United Illuminating Company expecting stimulus dollars for energy efficiency

Hydro-Que9bec 2020 Profit Outlook faces COVID-19 headwinds as revenue drops, U.S. Northeast export demand weakens, and clean-energy infrastructure plans shift toward domestic investments, energy efficiency, EV charging stations, and grid upgrades to stabilize net income.

Key Points

A forecast of COVID-19 revenue declines, weaker U.S. exports, and a shift to energy efficiency and grid upgrades.

✅ Q1 profit fell 14%; net income $1.53B vs $1.77B

✅ Exports to U.S. Northeast weaker; revenue off ~$130M Mar-Jun

✅ Strategy: energy efficiency, EV charging, grid, dam upgrades

Hydro-Québec expects the coronavirus pandemic to chop “hundreds of millions of dollars” off 2020 profits, its new chief executive officer said.

COVID-19 has depressed revenue by about $130 million between March and June, Sophie Brochu said Monday, as residential electricity use rose even while overall consumption dropped. Shrinking electricity exports to the U.S. northeast are poised to compound the shortfall, she said.

“What we’re living through is not small. The impacts are real,” Brochu said on a conference call with reporters, noting that utilities such as Hydro One supported Ontario's COVID-19 response at the height of the pandemic. “I’m not talking about a billion. I’m talking about hundreds of millions. We have no idea how quickly the economy will restart. As we approach the fall we will have a better view.”

Hydro-Québec last month reported a 14-per-cent drop in first-quarter profit and warned full-year results would fall short of targets as the COVID-19 crisis weighs on power demand. Net income in the quarter was $1.53 billion compared with $1.77 billion a year ago, the company said.

Canada’s biggest electricity producer had earlier been targeting 2020 profit of between $2.8 billion and $3 billion, according to its current strategic plan and corporate structure currently in place.

The first quarter was the utility’s last under former CEO Eric Martel, who left to take over at jetmaker Bombardier Inc. Brochu, who previously ran Énergir, replaced him April 6.

To boost exports over time, Brochu said Hydro-Québec will look to strengthen ties with neighbours such as Ontario, where the Hydro One CEO is working to repair relations with government and investors, and the U.S. The CEO said she’s heartened by New York Governor Andrew Cuomo’s call last month for new power lines from Canada and upstate to promote clean energy.

“This is a clear, encouraging signal that must express itself through very concrete negotiations,” she said. “The United States is our backyard. This is true for Ontario, where key system staff lockdowns were even contemplated, and the Atlantic provinces as well. This is our ecosystem, and we intend to build on our footprint, on the relationships that we have.”

Though stricter environmental hurdles make it more complicated to get power lines built today than a decade ago, the CEO insists it’s still possible to sell electricity to neighbouring U.S. states.

“Is it more difficult today to build energy projects? The answer is yes,” she said. “Does this clog up the U.S. northeast market? Not at all. I believe this federation of ecosystems is very promising.”

In the meantime, Hydro-Québec is planning to speed up investments at home — for example, by building new charging stations that will be needed to serve a growing fleet of electric cars. The utility will also upgrade some of its Montreal-area facilities, as well as its massive dams on the Manicouagan River, Brochu said. The investments will result in additional capacity.

“Today we need to put water in the pump of Quebec, so we will concentrate our human and financial efforts here,” she said. “We are needed in Quebec.” 

Hydro-Québec is stepping up efforts to promote energy efficiency among its customer base, amid retroactive billing concerns, which Brochu said could postpone the need to build large dams.

“We have to move towards ‘no-regret moves.’ What’s a no-regret move? It’s energy efficiency,” Brochu said earlier Monday during a presentation to the Chamber of Commerce of Metropolitan Montreal, noting that Ontario debated peak rate relief for self-isolating customers. “This is healthy, it’s fundamental and it will contribute to Quebec’s economic rebound by lowering energy costs.”

Brochu also pledged to build a more diverse workforce after the company said last week that 8.2 per cent of staff belong to “visible and ethnic” minorities.

“This can be improved on,” she said. “What I’m expressing today is my determination, and that of the management team, to move the needle.”

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U.S. Clean Energy Job Losses highlight COVID-19 impacts on renewable energy, solar, wind, and energy efficiency, with PPP fatigue, unemployment, and calls for Congressional stimulus, per Department of Labor data analyzed by E2.

Key Points

Pandemic-driven layoffs across renewable, solar, wind, and efficiency sectors, risking recovery without federal aid.

✅ Over 620,500 clean energy jobs lost in three months

✅ Energy efficiency, solar, and wind hit hardest nationwide

✅ Industry urges Congress for stimulus, tax credit relief

As Congress this week begins debating economic stimulus support for the energy industry, a new analysis of unemployment data shows the biggest part of America's energy economy - clean energy - lost another 27,000 jobs in May, bringing the total number of clean energy workers who have lost their jobs in the past three months to more than 620,500.

While May saw an improvement in new unemployment claims over March and April, the findings represent the sector's third straight month of significant job losses across solar, wind, energy efficiency, clean vehicles and other industries. With coronavirus cases once again rising in many states and companies beginning to run out of the Payroll Protection Program (PPP) funding that has helped small businesses keep workers employed, and as households confront pandemic power shut-offs that heighten energy insecurity, the report increases concerns the sector will be unable to resume its economy-leading jobs growth in the short- or long-term without a significant policy response.

Given the size and scope of the clean energy industry, such a sustained loss would cast a pall on the nation's overall economic recovery, as shifting electricity demand during COVID-19 complicates forecasts, according to the analysis of the Department of Labor's May unemployment data from E2 (Environmental Entrepreneurs), E4TheFuture and the American Council on Renewable Energy (ACORE).

Prior to COVID-19, clean energy - including energy efficiency, solar and wind generation, clean vehicles and related sectors - was among the U.S. economy's biggest and fastest-growing employment sectors, growing 10.4% since 2015 to nearly 3.4 million jobs at the end of 2019. That made clean energy by far the biggest employer of workers in all energy occupations, employing nearly three times as many people as the fossil fuel industry. For comparison, coal mining employs about 47,000 workers, even as clean energy projects in coal communities aim to revitalize local economies.

The latest monthly analysis for the groups by BW Research Partnership runs contrary to recent Bureau of Labor Statistics (BLS) reports, which indicated that a more robust economic rebound was underway, even as high fuel prices haven't spurred a green shift in adoption, while also acknowledging misclassifications and serious reporting difficulties in its own data.

Bob Keefe, Executive Director at E2, said:

"May's almost 30,000 clean energy jobs loss is sadly an improvement in the rate of jobs shed but make no mistake: There remains huge uncertainty and volatility ahead. It will be very tough for clean energy to make up these continuing job losses without support from Congress. Lawmakers must act now. If they do, we can get hundreds of thousands of these workers back on the job today and build a better, cleaner, more equitable economy for tomorrow. And who doesn't want that?"

Pat Stanton, Policy Director at E4TheFuture, said:

"Most of the time, energy efficiency workers need to go inside homes, businesses and other buildings to get the job done. Since they couldn't do that during COVID lockdowns, they couldn't work. Now states are opening up. But utilities, contractors and building owners need to protect employees and occupants from possible exposure to the virus and need more clarity about potential liabilities."

Gregory Wetstone, President and CEO of ACORE, said:

"In May, we saw thousands of additional renewable energy workers join the ranks of the unemployed, further underscoring the damage COVID-19 is inflicting on our workforce. Since the pandemic began, nearly 100,000 renewable energy workers have lost their jobs. We need help from Congress to get American clean energy workers back to work. With commonsense measures like temporary refundability and a delay in the phasedown of renewable energy tax credits, Congress can help restore these good-paying jobs so the renewable sector can continue to provide the affordable, pollution-free power American consumers and businesses want and deserve."

Phil Jordan, Vice President and Principal at BW Research Partnership, said:

"We understand the challenges and limitations of data collection for BLS in the middle of a global pandemic. But any suggestion that a strong employment rebound is underway in the United States simply is not reflected in the clean energy sector right now. And with PPP expiring, that only increases uncertainty in the months ahead."

The report comes as both the Senate Committee on Energy and Natural Resources and the House Energy and Commerce Committee are considering clean energy stimulus to restart the U.S. economy, and amid assessments of mixed results from the climate law shaping expectations, and as lawmakers in both the House and Senate are increasing calls for supporting clean energy workers and businesses, including this bicameral letter signed by 57 members of Congress and another signed today by 180 House members.

Industries Hit Hardest

According to the analysis, energy efficiency lost more jobs than any other clean energy sector for the third consecutive month in May, shedding about 18,900 jobs. These workers include electricians, HVAC technicians who work with high-efficiency systems, and manufacturing employees who make Energy Star appliances, LED lighting systems and efficient building materials.

Renewable energy, including solar and wind, lost nearly 4,300 jobs in May.

Clean grid and storage and clean vehicles manufacturing -- including grid modernization, energy storage, car charging and electric and plug-in hybrid vehicle manufacturing -- lost a combined 3,200 jobs in May, as energy crisis impacts electricity, gas, and EVs in several ways.

The clean fuels sector lost more than 650 jobs in May.

States and Localities Hit Across Country

California continues to be the hardest hit state in terms of total job losses, losing 4,313 jobs in May and more than 109,700 since the COVID-19 crisis began. Florida was the second hardest hit state in May, losing an additional 2,563 clean energy jobs, while Georgia, Texas, Washington, and Michigan all suffered more than 1,000 job losses across the sector. An additional 12 states saw at least 500 clean energy unemployment filings, and reports like Pennsylvania's clean energy jobs analysis provide added context, according to the latest analysis.

For a full breakdown of clean energy job losses in each state, along with a list of the hardest hit counties and metro areas, see the full analysis here.

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Ontario EV Battery Storage ROI leverages V2B, V2G, two-way charging, demand response, and second-life batteries to monetize peak pricing, cut GHG emissions, and unlock up to $38,000 in lifetime value for commuters and buildings.

Key Points

The economic return from V2B/V2G two-way charging and second-life storage using EV batteries within Ontario's grid.

✅ Monetize peak pricing via workplace V2B discharging

✅ Earn up to $8,400 per EV over vehicle life

✅ Reduce gas generation and GHGs with demand response

The payback that usually comes to mind when people buy an electric vehicle is to drive an emissions-free, low-maintenance, better-performing mode of transportation.

On top of that, you can now add $38,000.

That, according to a new report from Ontario electric vehicle education and advocacy nonprofit, Plug‘n Drive, is the potential lifetime return for an electric car driven as a commuter vehicle while also being used as an electricity storage option amid an energy storage crunch in Ontario’s electricity system.

“EVs contain large batteries that store electric energy,” says the report. “Besides driving the car, [those] batteries have two other potentially useful applications: mobile storage via vehicle-to-grid while they are installed in the vehicle, and second-life storage after the vehicle batteries are retired.”

Pricing and demand differentials
The study, prepared by the research firm Strategic Policy Economics, modeled a two-stage scenario calculating the total benefits from both mobile and second-life storage when taking advantage of differences in daytime and nighttime electricity pricing and demand.

If done systematically and at scale, the combined benefits to EV owners, building operators and the electricity system in Ontario could reach $129 million per year by 2035, according to the report. Along with the financial gains, the province would also cut GHG emissions by up to 67.2 kilotons annually.

The math might sound complicated, but the concepts are simple. All it requires is for drivers to charge their batteries with low-cost electricity overnight at home, then plug them into two-way EV charging stations at work and discharge their stored electricity for use by the building by day when buying power from the grid is more expensive.

“Workplace buildings could avoid high daytime prices by purchasing electricity from EVs parked onsite and enjoy savings as a result,” says the report.

Based on average commuting distances, EVs in this scenario could make half their storage capacity available for discharge. Drivers would be paid out of the building’s savings, effectively selling electricity back to the grid and earning up to $8,400 over the life of their vehicle.

According to the report, Ontario could have as many as 18,555 vehicles participating in mobile storage by 2030. At this level, the daily electricity demand would be reduced by 565 MWh. This, in turn, would reduce demand for natural gas-fired electricity generation, a fossil-fuel electricity source, avoiding the expense of gas purchases while reducing GHG emissions.

The second-life storage opportunity begins when the vehicle lifespan ends. “EV batteries will still have over 80% of their storage capacity after being driven for 13 years and providing mobile storage,” the report states. “Those-second life batteries could provide a low-cost energy storage solution for the electricity grid and enhance grid stability over time.”

Some of the savings could be shared with EV owners in the form of a rebate worth up to 20 per cent of the batteries’ initial cost.

Call to action
The report concludes with a call to action for EV advocates to press policy makers and other stakeholders to take actions on building codes, the federal Clean Fuel Standard and other business models in order to maximize the benefits of using EV batteries for the electricity system in this way, even as growing adoption could challenge power grids in some regions.

“EVs are often approached as an environmental solution to climate change,” says Cara Clairman, Plug’n Drive president and CEO. “While this is true, there are significant economic opportunities that are often overlooked.”

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Germany Solar-Plus-Storage Cost Parity signals grid parity as solar power with battery storage undercuts conventional electricity. Falling LCOE, policy incentives, and economies of scale accelerate the energy transition and decarbonization across Germany's power market.

Key Points

The point at which solar power with battery storage is cheaper than conventional grid electricity across Germany.

✅ Lower LCOE from tech advances and economies of scale

✅ EEG incentives and streamlined installs cut total costs

✅ Enhances energy security, reduces fossil fuel dependence

Germany, a global leader in renewable energy adoption, with clean energy supplying about half of its electricity in recent years, has reached a significant milestone: the cost of solar power combined with battery storage has now fallen below that of conventional electricity sources. This development marks a transformative shift in the energy landscape, showcasing the increasing affordability and competitiveness of renewable energy technologies and reinforcing Germany’s position as a pioneer in the transition to sustainable energy.

The decline in costs for solar power paired with battery storage represents a breakthrough in Germany’s energy sector, especially amid the recent solar power boost during the energy crisis, where the transition from traditional fossil fuels to cleaner alternatives has been a central focus. Historically, conventional power sources such as coal, natural gas, and nuclear energy have dominated electricity markets due to their established infrastructure and relatively stable pricing. However, the rapid advancements in solar technology and energy storage solutions are altering this dynamic, making renewable energy not only environmentally preferable but also economically advantageous.

Several factors contribute to the cost reduction of solar power with battery storage:

1. Technological Advancements: The technology behind solar panels and battery storage systems has evolved significantly over recent years. Solar panel efficiency has improved, allowing for greater energy generation from smaller installations. Similarly, cheaper batteries have advanced, with reductions in cost and increases in energy density and lifespan. These improvements mean that solar installations can produce more electricity and store it more effectively, enhancing their economic viability.

2. Economies of Scale: As demand for solar and battery storage systems has grown, manufacturers have scaled up production, leading to economies of scale. This scaling has driven down the cost of both solar panels and batteries, making them more affordable for consumers. As the market for these technologies expands, prices are expected to continue decreasing, further enhancing their competitiveness.

3. Government Incentives and Policies: Germany’s commitment to renewable energy has been supported by robust government policies and incentives. The country’s Renewable Energy Sources Act (EEG) and other supportive measures, alongside efforts to remove barriers to PV in Berlin that could accelerate adoption, have provided financial incentives for the adoption of solar power and battery storage. These policies have encouraged investment in renewable technologies and facilitated their integration into the energy market, contributing to the overall reduction in costs.

4. Falling Installation Costs: The cost of installing solar power systems and battery storage has decreased as the industry has matured. Advances in installation techniques, increased competition among service providers, and streamlined permitting processes have all contributed to lower installation costs. This reduction in upfront expenses has made solar with battery storage more accessible and financially attractive to both residential and commercial consumers.

The economic benefits of solar power with battery storage becoming cheaper than conventional power are substantial. For consumers, this shift translates into lower electricity bills and reduced reliance on fossil fuels. Solar installations with battery storage allow households and businesses to generate their own electricity, store it for use during times of low sunlight, and even sell excess power back to the grid, reflecting how solar is reshaping electricity prices in Northern Europe as markets adapt. This self-sufficiency reduces exposure to fluctuating energy prices and enhances energy security.

For the broader energy market, the decreasing cost of solar power with battery storage challenges the dominance of conventional power sources. As renewable energy becomes more cost-effective, it creates pressure on traditional energy providers to adapt and invest in cleaner technologies, including responses to instances of negative electricity prices during renewable surpluses. This shift can accelerate the transition to a low-carbon energy system and contribute to the reduction of greenhouse gas emissions.

Germany’s achievement also has implications for global energy markets. The country’s success in making solar with battery storage cheaper than conventional power serves as a model for other nations pursuing similar energy transitions. As the cost of renewable technologies continues to decline, other countries can leverage these advancements to enhance their own energy systems, reduce carbon emissions, and achieve energy independence amid over 30% of global electricity now from renewables trends worldwide.

The impact of this development extends beyond economics. It represents a significant step forward in addressing climate change and promoting sustainability. By reducing the cost of renewable energy technologies, Germany is accelerating the shift towards a cleaner and more resilient energy system. This progress aligns with the country’s ambitious climate goals and reinforces its role as a leader in global efforts to combat climate change.

Looking ahead, several challenges remain. The integration of renewable energy into existing energy infrastructure, grid stability, and the management of energy storage are all areas that require continued innovation and investment. However, the decreasing cost of solar power with battery storage provides a strong foundation for addressing these challenges and advancing the transition to a sustainable energy future.

In conclusion, the fact that solar power with battery storage in Germany has become cheaper than conventional power is a groundbreaking development with wide-ranging implications. It underscores the technological advancements, economic benefits, and environmental gains associated with renewable energy technologies. As Germany continues to lead the way in clean energy adoption, this achievement highlights the potential for renewable energy to drive global change and reshape the future of energy.

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UK Energy Security Bill drives private investment, diversifies from fossil fuels with hydrogen and offshore wind, strengthens an independent system operator, and extends the retail price cap to shield consumers from volatile gas markets.

Key Points

A UK plan to reform energy, cut fossil fuel reliance, boost hydrogen and wind, and extend the retail price cap.

✅ Targets £100bn private investment and 480,000 jobs by 2030.

✅ Creates an independent system operator for grid planning.

✅ Extends retail energy price cap; mitigates volatile gas costs.

The British government said that plans to bolster the country's energy security, diversify away from fossil fuels amid the Europe energy crisis and protect consumers from spiralling prices are set to become law.

Britain's energy security bill will be introduced to Parliament on Wednesday and includes 26 measures to reform the energy system, including ending the gas-electricity price link, and reduce its dependency on fossil fuels and exposure to volatile gas prices.

Global energy prices have skyrocketed this year, and UK natural gas and electricity have risen sharply, particularly after Russia's invasion of Ukraine which has led to many European countries trying to reduce reliance on Russian pipeline gas and seek cheaper alternatives.

The bill will help drive 100 billion pounds ($119 billion) of private sector investment by 2030 into industries to diversify Britain's energy supply, including hydrogen and offshore wind, which could help lower costs as a 16% decrease in bills in April is anticipated, and create around 480,000 jobs by the end of the decade, the government said.

"We’re going to slash red tape, get investment into the UK, and grab as much global market share as possible in new technologies to make this plan a reality," Business and Energy Secretary Kwasi Kwarteng, amid high winter energy costs, said in a statement.

The bill will establish a new independent system operator to coordinate and plan Britain's energy system, while MPs move to restrict prices for gas and electricity through oversight.

It will also enable the extension of a cap on retail energy prices beyond 2023, with the price cap cost under scrutiny, which limits the amount suppliers can charge for each unit of gas and electricity.

The bill will also enable the secretary of state to prevent potential disruptions to the downstream oil sector due to industrial action or malicious protests, the government added.

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Ontario Teachers' Evoltz Acquisition expands electricity transmission in Brazil, adding seven grid lines across ten states, aligning infrastructure strategy with inflation-linked cash flows, renewable energy integration, Latin America and net-zero objectives pending regulatory approvals.

Key Points

A 100% purchase of Brazil's Evoltz, adding seven grid lines and delivering stable, inflation-linked cash flows.

✅ 100% stake in Evoltz with seven transmission lines

✅ Aligns with net-zero and renewable energy strategy

✅ Inflation-linked, core infrastructure cash flows in Brazil

The Ontario Teachers’ Pension Plan has acquired Evoltz Participações, an electricity transmission firm in Brazil, from US asset manager TPG. 

The retirement system took a 100% stake in the energy firm, Ontario Teachers’ said Monday. The acquisition has netted the pension fund seven electricity transmission lines that service consumers and businesses across 10 states in Brazil, amid dynamics similar to electricity rate reductions for businesses seen in Ontario. The firm was founded by TPG just three years ago. 

“Our strategy focuses on allocating significant capital to high-quality core infrastructure assets with lower risks and stable inflation-linked cash flows,” Dale Burgess, senior managing director of infrastructure and natural resources at Ontario Teachers, said in a statement. “Electricity transmission businesses are particularly attractive given their importance in facilitating a transition to a low-carbon economy.” 

The pension fund has invested in other electricity distribution companies recently. In March, Ontario Teachers’ took a 40% stake in Finland’s Caruna, and agreed to acquire a 25% stake in SSEN Transmission in the UK grid. For more than a decade, it has maintained a 50% stake in Chile-based transmission firm Saesa. 

The investment into Evoltz demonstrates Ontario Teachers’ growing portfolio in Brazil and Latin America, while activity in Ontario such as the Peterborough Distribution sale reflects ongoing utility consolidation. In 2016, the firm, with the Canada Pension Plan Investment Board (CPPIB), invested in toll roads in Mexico. They took a 49% stake with Latin American infrastructure group IDEAL. 

Evoltz, which delivers renewable energy, will also help decarbonize the pension fund’s portfolio. In January, the fund pledged to reach net-zero carbon emissions by 2050. Last year, Ontario Teachers’ issued its first green bond offering. The $890 million 10-year bond will help the retirement system fund sustainable investments aligned with policy measures like Ontario's subsidized hydro plan during COVID-19. 

However, Ontario Teachers’ has also received criticism for its investment into parts of Abu Dhabi’s gas pipeline network, and investor concerns about Hydro One highlight sector uncertainties. Last summer, it joined other institutional investors in investing $10.1 billion for a 49% stake. 

As of December, Ontario Teachers’ reached a portfolio with C$221.2 billion (US$182.5 billion) in assets. Since 1990, the fund has maintained a 9.6% annualized return. Last year, it missed its benchmark with an 8.6% return, with examples such as Hydro One shares fall after shake-up underscoring market volatility.

The pension fund expects the deal will close later this fall, pending closing conditions and regulatory approvals, including decisions such as the OEB combined T&D rates ruling that shape utility economics. 

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