Get ready for a jolt from your electricity bill, as a series of rate increases converge.
As Toronto Hydro switches its customers to timeofuse rates – which mean higher prices at peak periods – 92 per cent have seen the energy portion of their bill rise by about 7 per cent, said Toronto Hydro chief executive Anthony Haines. The average jump was $2.38 a month.
Starting July 1, the new, blended harmonized sales tax HST will be added to hydro bills, which previously were exempt from provincial sales tax.
That will push the total bill up another 8 per cent overall, or close to $8 a month.
Ontario Power Generation has announced its applying for a 9.6 per cent rate increase for its portion of the bill that will add about $2.75 a month to a typical bill. And Toronto Hydro has applied for an 8.7 per cent rate increase for its portion of the bill, which will add another $2.43 a month.
The province has added a fee to boost conservation that will add another $4 a year to a bill, or about 33 cents a month.
The total is an increase of about $15 a month, based on an average monthly bill of about $100. That assumes the customer uses about 800 kilowatt hours a month.
Figures are based on experiences of 10,000 households that were the first to switch to timeofuse rates.
Most customers are now on timeofuse rates.
And the rest will be switched shortly. Customers who have contracts with retailers will pay the contracted price, not the timeofuse rate.
The numbers are subject to change because the Ontario Energy Board hasnt yet approved the Toronto Hydro and OPG rates. And the structure of winter rates – which is when these bills were recorded – is different from summer. The summer impact of timeofuse rates may be less pronounced.
Timeofuse rates mean that the price rises to 9.3 cents a kilowatt hour at peak periods and falls to 4.4 cents when demand is low – overnight and on weekends.
Theres also a midpeak price range of eight cents.
Timeofuse rates are supposed to encourage customers to use less power during peak periods.
But Haines said that hasnt happened yet. In fact, peak usage rose slightly among the first customers who were switched to timeofuse rates.
Haines said as customers study their new bills and look at the new rates, theyll get a chance to react and switch some of their power usage to offpeak hours.
The price signal has been sent. I know Torontonians will respond, but they need to see that higher price point coming through, he said.
New smart meters have been installed across the city that enable the utility to charge timeofuse rates. The cost of installation – ordered by the province – was about $110 million.
Toronto Hydro and other utilities have programs to help customers decrease their use at peak times.
In Toronto, customers can get a device attached to their central air conditioner allowing the utility to switch it off for short periods when the system is under strain.
About 61,000 Toronto households have one they save 60 megawatts of power at peak periods, said Haines. Theres a potential for installing 200,000 of the devices, which theoretically could trim demand by 200 megawatts.
Thats 37 per cent of the output of the Portlands generating station.
Boeing 787 More-Electric Architecture replaces pneumatics with bleedless pressurization, VFSG starter-generators, electric brakes, and heated wing anti-ice, leveraging APU, RAT, batteries, and airport ground power for efficient, redundant electrical power distribution.
Key Points
An integrated, bleedless electrical system powering start, pressurization, brakes, and anti-ice via VFSGs, APU and RAT.
✅ VFSGs start engines, then generate 235Vac variable-frequency power
✅ Bleedless pressurization, electric anti-ice improve fuel efficiency
✅ Electric brakes cut hydraulic weight and simplify maintenance
The 787 Dreamliner is different to most commercial aircraft flying the skies today. On the surface it may seem pretty similar to the likes of the 777 and A350, but get under the skin and it’s a whole different aircraft.
When Boeing designed the 787, in order to make it as fuel efficient as possible, it had to completely shake up the way some of the normal aircraft systems operated. Traditionally, systems such as the pressurization, engine start and wing anti-ice were powered by pneumatics. The wheel brakes were powered by the hydraulics. These essential systems required a lot of physical architecture and with that comes weight and maintenance. This got engineers thinking.
What if the brakes didn’t need the hydraulics? What if the engines could be started without the pneumatic system? What if the pressurisation system didn’t need bleed air from the engines? Imagine if all these systems could be powered electrically… so that’s what they did.
Power sources
The 787 uses a lot of electricity. Therefore, to keep up with the demand, it has a number of sources of power, much as grid operators track supply on the GB energy dashboard to balance loads. Depending on whether the aircraft is on the ground with its engines off or in the air with both engines running, different combinations of the power sources are used.
Engine starter/generators
The main source of power comes from four 235Vac variable frequency engine starter/generators (VFSGs). There are two of these in each engine. These function as electrically powered starter motors for the engine start, and once the engine is running, then act as engine driven generators.
The generators in the left engine are designated as L1 and L2, the two in the right engine are R1 and R2. They are connected to their respective engine gearbox to generate electrical power directly proportional to the engine speed. With the engines running, the generators provide electrical power to all the aircraft systems.
APU starter/generators
In the tail of most commercial aircraft sits a small engine, the Auxiliary Power Unit (APU). While this does not provide any power for aircraft propulsion, it does provide electrics for when the engines are not running.
The APU of the 787 has the same generators as each of the engines — two 235Vac VFSGs, designated L and R. They act as starter motors to get the APU going and once running, then act as generators. The power generated is once again directly proportional to the APU speed.
The APU not only provides power to the aircraft on the ground when the engines are switched off, but it can also provide power in flight should there be a problem with one of the engine generators.
Battery power
The aircraft has one main battery and one APU battery. The latter is quite basic, providing power to start the APU and for some of the external aircraft lighting.
The main battery is there to power the aircraft up when everything has been switched off and also in cases of extreme electrical failure in flight, and in the grid context, alternatives such as gravity power storage are being explored for long-duration resilience. It provides power to start the APU, acts as a back-up for the brakes and also feeds the captain’s flight instruments until the Ram Air Turbine deploys.
Ram air turbine (RAT) generator
When you need this, you’re really not having a great day. The RAT is a small propeller which automatically drops out of the underside of the aircraft in the event of a double engine failure (or when all three hydraulics system pressures are low). It can also be deployed manually by pressing a switch in the flight deck.
Once deployed into the airflow, the RAT spins up and turns the RAT generator. This provides enough electrical power to operate the captain’s flight instruments and other essentials items for communication, navigation and flight controls.
External power
Using the APU on the ground for electrics is fine, but they do tend to be quite noisy. Not great for airports wishing to keep their noise footprint down. To enable aircraft to be powered without the APU, most big airports will have a ground power system drawing from national grids, including output from facilities such as Barakah Unit 1 as part of the mix. Large cables from the airport power supply connect 115Vac to the aircraft and allow pilots to shut down the APU. This not only keeps the noise down but also saves on the fuel which the APU would use.
The 787 has three external power inputs — two at the front and one at the rear. The forward system is used to power systems required for ground operations such as lighting, cargo door operation and some cabin systems. If only one forward power source is connected, only very limited functions will be available.
The aft external power is only used when the ground power is required for engine start.
Circuit breakers
Most flight decks you visit will have the back wall covered in circuit breakers — CBs. If there is a problem with a system, the circuit breaker may “pop” to preserve the aircraft electrical system. If a particular system is not working, part of the engineers procedure may require them to pull and “collar” a CB — placing a small ring around the CB to stop it from being pushed back in. However, on the 787 there are no physical circuit breakers. You’ve guessed it, they’re electric.
Within the Multi Function Display screen is the Circuit Breaker Indication and Control (CBIC). From here, engineers and pilots are able to access all the “CBs” which would normally be on the back wall of the flight deck. If an operational procedure requires it, engineers are able to electrically pull and collar a CB giving the same result as a conventional CB.
Not only does this mean that the there are no physical CBs which may need replacing, it also creates space behind the flight deck which can be utilised for the galley area and cabin.
A normal flight
While it’s useful to have all these systems, they are never all used at the same time, and, as the power sector’s COVID-19 mitigation strategies showed, resilience planning matters across operations. Depending on the stage of the flight, different power sources will be used, sometimes in conjunction with others, to supply the required power.
On the ground
When we arrive at the aircraft, more often than not the aircraft is plugged into the external power with the APU off. Electricity is the blood of the 787 and it doesn’t like to be without a good supply constantly pumping through its system, and, as seen in NYC electric rhythms during COVID-19, demand patterns can shift quickly. Ground staff will connect two forward external power sources, as this enables us to operate the maximum number of systems as we prepare the aircraft for departure.
Whilst connected to the external source, there is not enough power to run the air conditioning system. As a result, whilst the APU is off, air conditioning is provided by Preconditioned Air (PCA) units on the ground. These connect to the aircraft by a pipe and pump cool air into the cabin to keep the temperature at a comfortable level.
APU start
As we near departure time, we need to start making some changes to the configuration of the electrical system. Before we can push back , the external power needs to be disconnected — the airports don’t take too kindly to us taking their cables with us — and since that supply ultimately comes from the grid, projects like the Bruce Power upgrade increase available capacity during peaks, but we need to generate our own power before we start the engines so to do this, we use the APU.
The APU, like any engine, takes a little time to start up, around 90 seconds or so. If you remember from before, the external power only supplies 115Vac whereas the two VFSGs in the APU each provide 235Vac. As a result, as soon as the APU is running, it automatically takes over the running of the electrical systems. The ground staff are then clear to disconnect the ground power.
If you read my article on how the 787 is pressurised, you’ll know that it’s powered by the electrical system. As soon as the APU is supplying the electricity, there is enough power to run the aircraft air conditioning. The PCA can then be removed.
Engine start
Once all doors and hatches are closed, external cables and pipes have been removed and the APU is running, we’re ready to push back from the gate and start our engines. Both engines are normally started at the same time, unless the outside air temperature is below 5°C.
On other aircraft types, the engines require high pressure air from the APU to turn the starter in the engine. This requires a lot of power from the APU and is also quite noisy. On the 787, the engine start is entirely electrical.
Power is drawn from the APU and feeds the VFSGs in the engines. If you remember from earlier, these fist act as starter motors. The starter motor starts the turn the turbines in the middle of the engine. These in turn start to turn the forward stages of the engine. Once there is enough airflow through the engine, and the fuel is igniting, there is enough energy to continue running itself.
After start
Once the engine is running, the VFSGs stop acting as starter motors and revert to acting as generators. As these generators are the preferred power source, they automatically take over the running of the electrical systems from the APU, which can then be switched off. The aircraft is now in the desired configuration for flight, with the 4 VFSGs in both engines providing all the power the aircraft needs.
As the aircraft moves away towards the runway, another electrically powered system is used — the brakes. On other aircraft types, the brakes are powered by the hydraulics system. This requires extra pipe work and the associated weight that goes with that. Hydraulically powered brake units can also be time consuming to replace.
By having electric brakes, the 787 is able to reduce the weight of the hydraulics system and it also makes it easier to change brake units. “Plug in and play” brakes are far quicker to change, keeping maintenance costs down and reducing flight delays.
In-flight
Another system which is powered electrically on the 787 is the anti-ice system. As aircraft fly though clouds in cold temperatures, ice can build up along the leading edge of the wing. As this reduces the efficiency of the the wing, we need to get rid of this.
Other aircraft types use hot air from the engines to melt it. On the 787, we have electrically powered pads along the leading edge which heat up to melt the ice.
Not only does this keep more power in the engines, but it also reduces the drag created as the hot air leaves the structure of the wing. A double win for fuel savings.
Once on the ground at the destination, it’s time to start thinking about the electrical configuration again. As we make our way to the gate, we start the APU in preparation for the engine shut down. However, because the engine generators have a high priority than the APU generators, the APU does not automatically take over. Instead, an indication on the EICAS shows APU RUNNING, to inform us that the APU is ready to take the electrical load.
Shutdown
With the park brake set, it’s time to shut the engines down. A final check that the APU is indeed running is made before moving the engine control switches to shut off. Plunging the cabin into darkness isn’t a smooth move. As the engines are shut down, the APU automatically takes over the power supply for the aircraft. Once the ground staff have connected the external power, we then have the option to also shut down the APU.
However, before doing this, we consider the cabin environment. If there is no PCA available and it’s hot outside, without the APU the cabin temperature will rise pretty quickly. In situations like this we’ll wait until all the passengers are off the aircraft until we shut down the APU.
Once on external power, the full flight cycle is complete. The aircraft can now be cleaned and catered, ready for the next crew to take over.
Bottom line
Electricity is a fundamental part of operating the 787. Even when there are no passengers on board, some power is required to keep the systems running, ready for the arrival of the next crew. As we prepare the aircraft for departure and start the engines, various methods of powering the aircraft are used.
The aircraft has six electrical generators, of which only four are used in normal flights. Should one fail, there are back-ups available. Should these back-ups fail, there are back-ups for the back-ups in the form of the battery. Should this back-up fail, there is yet another layer of contingency in the form of the RAT. A highly unlikely event.
The 787 was built around improving efficiency and lowering carbon emissions whilst ensuring unrivalled levels safety, and, in the wider energy landscape, perspectives like nuclear beyond electricity highlight complementary paths to decarbonization — a mission it’s able to achieve on hundreds of flights every single day.
Ontario Energy Storage Procurement accelerates grid flexibility as IESO seeks lithium batteries, pumped storage, compressed air, and flywheels to balance renewables, support EV charging, and complement gas peakers during Pickering refits and rising electricity demand.
Key Points
Ontario's plan to procure 2,500 MW of storage to firm renewables, aid EV charging, and add flexible grid capacity.
✅ 2,500 MW storage plus 1,500 MW gas for 2025-2027 reliability
✅ Enables VPPs via EVs, demand response, and hybrid solar-storage
Ontario is staring down an electricity supply crunch and amid a rush to secure more power, it is plunging into the world of energy storage — a relatively unknown solution for the grid that experts say could also change energy use at home.
Beyond the sprawling nuclear plants and waterfalls that generate most of the province’s electricity sit the batteries, the underground caverns storing compressed air to generate electricity, and the spinning flywheels waiting to store energy at times of low demand and inject it back into the system when needed.
The province’s energy needs are quickly rising, with the proliferation of electric vehicles and growing Canada-U.S. collaboration on EV adoption, and increasing manufacturing demand for electricity on the horizon just as a large nuclear plant that supplies 14 per cent of Ontario’s electricity is set to be retired and other units are being refurbished.
The government is seeking to extend the life of the Pickering Nuclear Generating Station, planning an import agreement for power with Quebec, rolling out conservation programs, and — controversially — relying on more natural gas to fill the looming gap between demand and supply, amid Northern Ontario sustainability debates.
Officials with the Independent Electricity System Operator say a key advantage of natural gas generation is that it can quickly ramp up and down to meet changes in demand. Energy storage can provide that same flexibility, those in the industry say.
Energy Minister Todd Smith has directed the IESO to secure 1,500 megawatts of new natural gas capacity between 2025 and 2027, along with 2,500 megawatts of clean technology such as energy storage that can be deployed quickly, which together would be enough to power the city of Toronto.
It’s a far cry from the 54 megawatts of energy storage in use in Ontario’s grid right now.
Smith said in an interview that it’s the largest active procurement for energy storage in North America.
“The one thing that we want to ensure that we do is continue to add clean generation as much as possible, and affordable and clean generation that’s reliable,” he said.
Rupp Carriveau, director of the Environmental Energy Institute at the University of Windsor, said the timing is good.
“The space is there, the technology is there, and the willingness among private industry to respond is all there,” he said. “I know of a lot of companies that have been rubbing their hands together, looking at this potential to construct storage capacity.”
Justin Rangooni, the executive director of Energy Storage Canada, said because of the relatively tight timelines, the 2,500 megawatts is likely to be mostly lithium batteries. But there are many other ways to store energy, other than a simple battery.
“As we get to future procurements and as years pass, you’ll start to see possibly pump storage, compressed air, thermal storage, different battery chemistry,” he said.
Pump storage involves using electricity during off-peak periods to pump water into a reservoir and slowly releasing it to run a turbine and generate electricity when it’s needed. Compressed air works similarly, and old salt caverns in Goderich, Ont., are being used to store the compressed air.
In thermal storage, electricity is used to heat water when demand is low and when it’s needed, water stored in tanks can be used as heat or hot water.
Flywheels are large spinning tops that can store kinetic energy, which can be used to power a turbine and produce electricity. A flywheel facility in Minto, Ont., also installed solar panels on its roof and became the first solar storage hybrid facility in Ontario, said a top IESO official.
Katherine Sparkes, the IESO’s director of innovation, research and development, said it’s exciting, from a grid perspective.
“As we kind of look to the future and we think about gas phase out and electrification, one of the big challenges that all power systems across North America and around the world are looking at is: how do you accommodate increasing amounts of variable, renewable resources and just make better use of your grid assets,” she said.
“Hybrids, storage generation pairings, gives you that opportunity to deal with the variability of renewables, so to store electricity when the sun isn’t shining, or the wind isn’t blowing, and use it when you need it to.”
The small amount of storage already in the system provides more fine tuning of the electricity system, whereas 2,500 megawatts will be a more “foundational” part of the toolkit, said Sparkes.
But what’s currently on the grid is far from the only storage in the province. Many commercial and industrial consumers, such as large manufacturing facilities or downtown office buildings, are using storage to manage their electricity usage, relying on battery energy when prices are high.
The IESO sees that as an opportunity and has changed market rules to allow those customers to sell electricity back to the grid when needed.
As well, the IESO has its eye on the thousands of mobile batteries in electric vehicles, a trend seen in California, that shuttle people around the province every day but sit unused for much of the time.
“If we can enable those batteries to work together in aggregation, or work with other types of technologies like solar or smart building systems in a configuration, like a group of technologies, that becomes a virtual power plant,” Sparkes said.
Peak Power, a company that seeks to “make power plants obsolete,” is running a pilot project with electric vehicles in three downtown Toronto office buildings in which the car batteries can provide electricity to reduce the facility’s overall demand during peak periods using vehicle-to-building charging with bidirectional chargers.
In that model, one vehicle can earn $8,000 per year, said cofounder and chief operating officer Matthew Sachs.
“Battery energy storage will change the energy industry in the same way and for the same reasons that refrigeration changed the milk industry,” he said.
“As you had refrigeration, you could store your commodity and that changed the distribution channels of it. So I believe that energy storage is going to radically change the distribution channels of energy.”
If every home has a solar panel, an electric vehicle and a residential battery, it becomes a generating station, a decentralization that’s not only more environmentally friendly, but also relies less on “monopolized utilities,” Sachs said.
In the next decade, energy demand from electric vehicles is projected to skyrocket, making vehicle-to-grid integration increasingly relevant, and Sachs said the grid can’t grow enough to accommodate a peak demand of hundreds of thousands of vehicles being plugged in to charge at the end of the workday commute. Authorities need to be looking at more incentives such as time-of-use pricing and price signals to ensure the demand is evened out, he said.
“It’s a big risk as much as it’s a big opportunity,” he said. “If we do it wrong, it will cost us billions to fix. If we do it right, it can save us billions.”
Jack Gibbons, the chair of the Ontario Clean Air Alliance, said the provincial and federal governments need to fund and install bidirectional chargers in order to fully take advantage of electric vehicles.
Peterborough Distribution Inc. Sale to Hydro One delivers a $105 million deal pending Ontario Energy Board approval, a 1% distribution rate cut, five-year rate freeze, job protections, and a new operations centre and fleet facility.
Key Points
A $105M acquisition of PDI by Hydro One, with OEB review, rate freeze, job protections, and a new operations centre.
✅ $105 million purchase; Ontario Energy Board approval required
✅ 1% distribution rate cut and a five-year rate freeze
✅ New operations centre; PDI employees offered roles at Hydro One
The City of Peterborough said Wednesday it has agreed to sell Peterborough Distribution Inc. to Hydro One for $105 million, amid a period when Hydro One shares fell after leadership changes.
According to the city, the deal includes a one per cent distribution rate reduction and a five-year freeze in distribution rates for customers, plus:
A second five-year period with distribution rate increases limited to inflation and an earnings sharing mechanism to offset rates in year 11 and onward
Protections for PDI employees with employees receiving employment offers to move to Hydro One
A sale price of $105 million
An agreement to develop a regional operations centre and new fleet maintenance facility in Peterborough
“Hydro One was unique in its ability to offer new investment and job creation in our community through the addition of a new operations centre to serve customers throughout the broader region,” Mayor Daryl Bennett said.
“We’re surrounded by Hydro One territory — in fact, we already have Hydro One customers within the City of Peterborough and new subdivisions will be in Hydro One territory. Hydro One will be able to create efficiencies by better utilizing its existing infrastructure, benefiting customers and supporting growth.”
The sale comes after months of negotiations amid investor concerns about Hydro One’s uncertainties. At one point, it looked like the sale wouldn’t go through, after it was announced that Hydro One had walked away from the bargaining table.
City council approved the sale of PDI in December 2016, despite a strong public opposition and debate over proposals to make hydro public again among some parties.
Elsewhere in Canada, political decisions around utilities have also sparked debate, as seen when Manitoba Hydro faced controversy over policy shifts.
Iran-Iraq Electricity Cooperation advances with power grid synchronization, cross-border energy trade, 400-kV transmission lines, and education partnerships, boosting grid reliability, infrastructure investment, and electricity exports between Tehran and Baghdad for improved supply and stability.
Key Points
A bilateral initiative to synchronize grids, expand networks, and sustain electricity exports, improving reliability.
✅ 400-kV Amarah-Karkheh line enables synchronized operations.
✅ Extends electricity export contracts to meet Iraq demand.
✅ Enhances grid reliability, training, and infrastructure investment.
Aradakanian has focused his one-day visit to Iraq on discussions pertaining to promoting bilateral collaboration between the two neighboring nations in the field of electricity, grid development deals and synchronizing power grid between Tehran and Baghdad, cooperating in education, and expansion of power networks.
He is also scheduled to meet with Iraqi top officials in a bid to boost cooperation in the relevant fields.
Back in December 2019, Ardakanian announced that Iran will continue exports of electricity to Iraq by renewing earlier contract as it is supplying about 40% of Iraq's power today.
"Iran has signed a 3-year-long cooperation agreement with Iraq to help the country's power industry in different aspects. The documents states at its end that we will export electricity to Iraq as far as they need," Ardakanian told FNA on December 9, 2019.
The contract to "export Iran's electricity" to Iraq will be extended, he added.
Ardakanian also said that Iran and Iraq's power grids have become synchronized in a move that supports Iran's regional power hub plans since a month ago.
In 2004 Iran started selling electricity to Iraq. Iran electricity exports to the western neighbor are at its highest level of 1,361 megawatts per day now, as the country weighs summer power sufficiency ahead of peak demand.
The new Amarah-Karkheh 400-KV transmission line stretching over 73 kilometers, is now synchronized to provide electricity to both countries, reflecting regional power export trends as well. It also paves the way for increasing export to power-hungry Iraq in the near future.
With synchronization of the two grids, the quality of electricity in Iraq will improve as the country explores nuclear power options to tackle shortages.
According to official data, 82% of Iraq's electricity is generated by thermal power plants that use gas as feedstock, while Iran is converting thermal plants to combined cycle to save energy. This is expected to reach 84% by 2027.
Alberta Energy Price Spike signals rising electricity and natural gas costs; lock in fixed rates as storage is low, demand surged in heat waves, and exports rose after Hurricane Ida, driving volatility and higher futures.
Key Points
An anticipated surge in Alberta electricity and natural gas prices, urging consumers to lock fixed rates to reduce risk.
✅ Fixed-rate gas near $3.79/GJ vs futures approaching $6/GJ
✅ Low storage after heat waves and U.S. export demand
✅ Switch providers or plans; UCA comparison tool helps
Energy economists are warning Albertans to review their gas and electricity bills and lock in a fixed rate if they haven't already done so because prices are expected to spike in the coming months.
"I have been urging anyone who will listen that every single Albertan should be on a fixed rate for this winter," University of Calgary energy economist Blake Shaffer said Monday. "And I say that for both natural gas and power."
Shaffer said people will rightly point out energy costs make up only roughly a third of their monthly bill. The rest of the costs for such things as delivery fees can't be avoided.
But, he said, "there is an energy component and it is meaningful in terms of savings."
For example, Shaffer said, when he checked last week, a consumer could sign a fixed rate gas contract for $3.79 a gigajoule and the current future price for gas is nearly $6 a gigajoule.
A typical household would use about 15 gigajoules a month, he said, so a consumer could save $30 to $45 a month for five months. For people on lower or fixed incomes, "that is a pretty significant saving."
Comparable savings can also be achieved with electricity, he said.
Shaffer said research has shown households that are least able to afford sharp increases in gas and electrical bills are less likely to pick up the phone and call their energy provider and either negotiate a lower fixed rate contract or jump to a new provider.
But, he said, it is definitely worth the time and effort, particularly as Calgary electricity bills are rising across the city. Alberta's Utilities Consumer Advocate has a handy cost comparison tool on its website that allows consumers to conduct regional price comparisons that will assist in making an informed decision.
"Folks should know that for most providers you can change back to a floating rate any time you want," Shaffer said.
Summer heat wave affected natural gas supply Why are energy prices set to spike in Alberta, which is a major producer of natural gas?
Sophie Simmonds, managing director of the brokerage firm Anova Energy, said Alberta is now generating the majority of its power using natural gas.
The heat wave in June and July created record electrical demand. Normally, natural gas is stored in the summer for use in the winter. But this year, there was much greater gas consumption in the summer and so less was stored.
On top of that, Alberta has been exporting much more natural gas to the United States since August and September because Hurricane Ida knocked out natural gas assets in the Gulf of Mexico.
"So what this means is we are actually going into winter with very, very low storage numbers," Simmonds said.
Why natural gas prices have surged to some of their highest levels in years Canadians to remain among world's top energy users even as government strives for net zero Consultant Matt Ayres said he believes rising electricity prices also are being affected by Alberta's transition from carbon-intensive fuel sources to less carbon-intensive fuel sources.
"That transition is not always smooth," said Ayres, who is also an adjunct assistant professor at the University of Calgary's School of Public Policy.
"It is my view that at least some of the price increases we are seeing on electricity comes down to difficulties imposed by that transition and also by a reduction in competition amongst generators, as well as power market overhaul debates shaping policy."
China Energy Crisis drives electricity shortages, power cuts, and blackouts as coal prices surge, carbon-neutrality rules tighten, and manufacturing hubs ration energy, disrupting supply chains and industrial output ahead of winter demand peaks.
Key Points
A power shortfall from costly coal, price caps, and emissions targets, causing blackouts and industrial rationing.
✅ Coal prices soar while electricity tariffs are capped
✅ Factories in northeast hubs face rationing and downtime
✅ Supply chains risk delays ahead of winter demand
China is struggling with a severe shortage of electricity which has left millions of homes and businesses hit by power cuts.
Blackouts are not that unusual in the country but this year a number of factors have contributed to a perfect storm for electricity suppliers, including surging electricity demand globally.
The problem is particularly serious in China's north eastern industrial hubs as winter approaches - and is something that could have implications for the rest of the world.
Why has China been hit by power shortages? The country has in the past struggled to balance electricity supplies with demand, which has often left many of China's provinces at risk of power outages.
During times of peak power consumption in the summer and winter the problem becomes particularly acute.
But this year a number of factors have come together to make the issue especially serious.
As the world starts to reopen after the pandemic, demand for Chinese goods is surging and the factories making them need a lot more power, highlighting China's electricity appetite in recent months.
Rules imposed by Beijing as it attempts to make the country carbon neutral by 2060 have seen coal production slow, even as the country still relies on coal for more than half of its power and as low-emissions generation is set to cover most global demand growth.
And as electricity demand has risen, the price of coal has been pushed up.
But with the government strictly controlling electricity prices, coal-fired power plants are unwilling to operate at a loss, with many drastically reducing their output instead.
Who is being affected by the blackouts? Homes and businesses have been affected by power cuts as electricity has been rationed in several provinces and regions.
A coal-burning power plant can be seen behind a factory in China"s Inner Mongolia Autonomous Region
The state-run Global Times newspaper said there had been outages in four provinces - Guangdong in the south and Heilongjiang, Jilin and Liaoning in the north east. There are also reports of power cuts in other parts of the country.
Companies in major manufacturing areas have been called on to reduce energy usage during periods of peak demand or limit the number of days that they operate.
Energy-intensive industries such as steel-making, aluminium smelting, cement manufacturing and fertiliser production are among the businesses hardest hit by the outages.
What has the impact been on China's economy? Official figures have shown that in September 2021, Chinese factory activity shrunk to the lowest it had been since February 2020, when power demand dropped as coronavirus lockdowns crippled the economy.
Concerns over the power cuts have contributed to global investment banks cutting their forecasts for the country's economic growth.
Goldman Sachs has estimated that as much as 44% of the country's industrial activity has been affected by power shortages. It now expects the world's second largest economy to expand by 7.8% this year, down from its previous prediction of 8.2%.
Globally, the outages could affect supply chains, including solar supply chains as the end-of-the-year shopping season approaches.
Since economies have reopened, retailers around the world have already been facing widespread disruption amid a surge in demand for imports.
China's economic planner, the National Development and Reform Commission (NDRC), has outlined a number of measures to resolve the problem, with energy supplies in the northeast of the country as its main priority this winter.
The measures include working closely with generating firms to increase output, ensuring full supplies of coal and promoting the rationing of electricity.
The China Electricity Council, which represents generating firms, has also said that coal-fired power companies were now "expanding their procurement channels at any cost" in order to guarantee winter heat and electricity supplies.
However, finding new sources of coal imports may not be straightforward.
Russia is already focused on its customers in Europe, Indonesian output has been hit by heavy rains and nearby Mongolia is facing a shortage of road haulage capacity,
Are energy shortages around the world connected? Power cuts in China, UK petrol stations running out of fuel, energy bills jumping in Europe, near-blackouts in Japan and soaring crude oil, natural gas and coal prices on wholesale markets - it would be tempting to assume the world is suddenly in the grip of a global energy drought.
However, it is not quite as simple as that - there are some distinctly different issues around the world.
For example, in the UK petrol stations have run dry as motorists rushed to fill up their vehicles over concerns that a shortage of tanker drivers would mean fuel would soon become scarce.
Meanwhile, mainland Europe's rising energy bills and record electricity prices are due to a number of local factors, including low stockpiles of natural gas, weak output from the region's windmills and solar farms and maintenance work that has put generating operations out of action.
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