System to use sun to power up

Nordic Power Grid Dispute highlights cross-border interconnector congestion, curtailed exports and imports, hydropower priorities, winter demand spikes, rising spot prices, and transmission grid security amid decarbonization efforts across Sweden, Norway, Finland, and Denmark.

Key Points

A clash over interconnectors and capacity cuts reshaping trade, prices, and reliability in the Nordic power market.

✅ Sweden cuts interconnector capacity to protect grid stability

✅ Norway prioritizes higher-priced exports via new cables

✅ Finland and Denmark seek EU action on capacity curtailments

A spat over electricity supplies is heating up in northern Europe. Sweden is blocking Norway from using its grids to transfer power from producers throughout the region. That’s angered Norway, which in turn has cut flows to its Nordic neighbor.

The dispute has built up around the use of cross-border power cables, which are a key part of Europe’s plans to decarbonize since they give adjacent countries access to low-carbon resources such as wind or hydropower. The electricity flows to wherever prices are higher, informed by how electricity is priced across Europe, without interference from grid operators -- but in the event of a supply squeeze, flows can be stopped.

Sweden moved to safeguard the security of its grid after Norway started increasing electricity exports through huge new cables to Germany and the U.K. Those exports at times have drawn energy away from Sweden, resulting in the country’s system operator cutting capacity at its Nordic borders, preventing exports but also hindering imports, which it relies on to handle demand spikes during winter.

“This is not a good situation in the long run,” Christian Holtz, a energy market consultant for Merlin & Metis AB.

Norway hit back last week by cutting flows to Sweden, this will prioritize better paying customers in Europe, amid Irish price spikes that highlight dispatchable shortages, giving them access to its vast hydro resources at the expense of its Nordic neighbors. 

By partially closing its borders Sweden can’t access imports either, which it relies on to handle demand spikes during the coldest days of the winter. 

In Denmark, unusual summer and autumn winds have at times delivered extraordinarily low electricity prices that ripple through regional markets.

The Swedish grid manager Svenska Kraftnat has reduced export capacity at cables across its borders by as much as half this year to keep operations secure. Finland and Denmark rely on imports too and the cuts will come at a cost for millions of homes and industries across the four nations already contending with record electricity rates this year. 

Finland and Denmark want the European Union to end the exemption to regulations that make such reductions possible in the first place, as Europe is losing nuclear power and facing tighter supply.

“Imports from our neighboring countries ensure adequacy at times of peak consumption,” said Reima Paivinen, head of operation at the Finland’s Fingrid. “The recent surge in electricity prices throughout Europe does not directly affect the adequacy of electricity, but prices may rise dramatically for short periods.”

Svenska Kraftnat says it’s not political -- it has no choice but to cut capacity until its old grids are expanded to handle the new direction of flows, a challenge mirrored by grid expansion woes in Germany that slow integration. That could take at least until 2030 to complete, it said earlier this year. At the same time, Norway halving available export capacity to about 1,200 megawatts will increase risk of shortages. 

“If we need more we will have to count on imports from other countries,” said Erik Ek, head of strategic operation at Svenska Kraftnat. “If that is not available, we will have to disconnect users the day it gets cold.”

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IAEA Nuclear Security Mission in China reviews regulatory frameworks, physical protection, and compliance at nuclear power plants, endorsing CAEA efforts, IPPAS guidance, and capacity building to strengthen safeguards, risk management, and global cooperation.

Key Points

An IAEA advisory visit assessing China's nuclear security, physical protection, and regulatory frameworks.

✅ Reviews laws, regulations, and physical protection measures

✅ Endorses CAEA, COE, and IPPAS-aligned best practices

✅ Recommends accelerated rulemaking for expanding reactors

The International Atomic Energy Agency commended China's efforts and accomplishments in nuclear security after conducting its first nuclear security advisory mission to the nation, according to the China Atomic Energy Authority.

The two-week International Physical Protection Advisory Service mission, from Aug 28to Saturday, reviewed the legislative and regulatory framework for nuclear security as well as the physical protection of nuclear material and facilities, including worker safety protocols during health emergencies.

An eight-member expert team led by Joseph Sandoval of the United States' Sandia National Laboratories visited Fangjiashan Nuclear Power Plant, part of the Qinshan Nuclear Power Station in Zhejiang province, to examine security arrangements and observe physical protection measures, where recognized safety culture practices can reinforce performance.

The experts also met with officials from several Chinese government bodies involved in nuclear security such as the China Atomic Energy Authority, National Nuclear Safety Administration and Ministry of Public Security.

The international agency has carried out 78 of the protection missions in 48 member states since 1995. This was the first in China, it said.

The China Atomic Energy Authority said on Tuesday that a report by the experts highly approves of the Chinese government's continuous efforts to strengthen nuclear safety, to boost the sustainable development of the nuclear power industry and to help establish a global nuclear security system.

The report identifies the positive roles played by the State Nuclear Security Technology Center and its subsidiary, the Center of Excellence on Nuclear Security, in enhancing China's nuclear security capability and supporting regional and global cooperation in the field, such as bilateral cooperation agreements that advance research and standards, officials at the China Atomic Energy Authority said.

"A strong commitment to nuclear security is a must for any state that uses nuclear power for electricity generation and that is planning to significantly expand this capacity by constructing new power reactors," said Muhammad Khaliq, head of the international agency's nuclear security of materials and facilities section. "China'sexample in applying IAEA nuclear security guidance and using IAEA advisory services demonstrates its strong commitment to nuclear security and its enhancement worldwide."

The report notes that along with the rapid growth of China's nuclear power sector, challenges have emerged when it comes to the country's nuclear security mechanism and management, as highlighted by grid reliability warnings during pandemics in other markets.

It suggests that the Chinese government accelerate the making of laws and regulations to better govern this sector.

Deng Ge, director of the State Nuclear Security Technology Center, said the IAEAmission would help China strengthen its nuclear security since the nation could learn from other countries' successful experience, including on-site staffing measures to maintain critical operations, and find out its weaknesses for rectification.

Deng added that the mission's report can help the international community understand China's contributions to the global nuclear security system and also offer China's best practices to other nations.

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Ontario Clean Energy Adjustment lowers hydro bills by shifting global adjustment costs, cutting time-of-use rates, and using OPG debt financing; ratepayers get inflation-capped increases for four years, then repay costs over 20 years.

Key Points

A 20-year line item repaying debt used to lower rates for 10 years by shifting global adjustment costs off hydro bills.

✅ 17% average bill cut takes effect after royal assent

✅ OPG-managed entity assumes debt for 10 years

✅ 20-year surcharge repays up to $28B plus interest

Ontarians will see lowered hydro bills for the next 10 years, but will then pay higher costs for the following 20 years, under new legislation tabled Thursday.

Ten weeks after announcing its plan to lower hydro bills, the Liberal government introduced legislation to lower time-of-use rates, take the cost of low-income and rural support programs off bills, and introduce new social programs.

It will lower time-of-use rates by removing from bills a portion of the global adjustment, a charge consumers pay for above-market rates to power producers. For the next 10 years, a new entity overseen by Ontario Power Generation will take on debt to pay that difference.

Then, the cost of paying back that debt with interest -- which the government says will be up to $28 billion -- will go back onto ratepayers' bills for the next 20 years as a "Clean Energy Adjustment."

An average 17-per-cent cut to bills will take effect 15 days after the hydro legislation receives royal assent, even as a Nov. 1 rate increase was set by the Ontario Energy Board, but there are just eight sitting days left before the Ontario legislature breaks for the summer. Energy Minister Glenn Thibeault insisted that leaves the opposition "plenty" of time for review and debate.

Premier Kathleen Wynne promised to cut hydro bills and later defended a 25% rate cut after widespread anger over rising costs helped send her approval ratings to record lows.

Electricity bills in the province have roughly doubled in the last decade, due in part to green energy initiatives, and Thibeault said the goal of this plan is to better spread out those costs.

"Like the mortgage on your house, this regime will cost more as we refinance over a longer period of time, but this is a more equitable and fair approach when we consider the lifespan of the clean energy investments, and generating stations across our province," he said.

NDP critic Peter Tabuns called it a "get-through-the-election" next June plan.

"We're going to take on a huge debt so Kathleen Wynne can look good on the hustings in the next few months and for decades we're going to pay for it," he said.

The legislation also holds rate increases to inflation for the next four years. After that, they'll rise more quickly, as illustrated by a leaked cabinet document the Progressive Conservatives unveiled Thursday.

The Liberals dismissed the document as containing outdated projections, but confirmed that it went before cabinet at some point before the government decided to go ahead with the hydro plan.

From about 2027 onward -- when consumers would start paying off the debt associated with the hydro plan -- Ontario electricity consumers will be paying about 12 per cent more than they would without the Liberal government's plan to cut costs in the short term, even though a deal with Quebec was not expected to reduce hydro bills, the government document projected.

But that was just one of many projections, said Energy Minister Glenn Thibeault.

"We have been working on this plan for months, and as we worked on it the documents and calculations evolved," he said.

The government's long-term energy plan is set to be updated this spring, and Thibeault said it will provide a more accurate look at how the hydro plan will reduce rates, even as a recovery rate could lead to higher hydro bills in certain circumstances.

Progressive Conservative critic Todd Smith said the "Clean Energy Adjustment" is nothing more than a revamped debt retirement charge, which was on bills from 2002 to 2016 to pay down debt left over from the old Ontario Hydro, the province's giant electrical utility that was split into multiple agencies in 1999 under the previous Conservative government.

"The minister can call it whatever he wants but it's right there in the graph, that there is going to be a new charge on the line," Smith said. "It's the debt retirement charge on steroids."

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PG&E COVID-19 Shutoff Moratorium suspends service disconnections, offers flexible payment plans, and expands customer support with safety protocols, social distancing, and public health guidance for residential and commercial utility customers during the pandemic.

Key Points

A temporary halt to utility shutoffs with flexible payment plans to support PG&E customers during COVID-19.

✅ Suspends shutoffs for residential and commercial accounts

✅ Offers most flexible payment plans upon COVID-19 hardship

✅ Enhances safety: social distancing, PPE, remote work protocols

Pacific Gas and Electric Company has announced that due to the COVID-19 pandemic, it has voluntarily implemented a moratorium on service disconnections for non-payment, effective immediately. This suspension, similar to policies in New Jersey and New York, will apply to both residential and commercial customers and will remain in effect until further notice. To further support customers who may be impacted by the pandemic, PG&E will offer its most flexible pay plans to customers who indicate either an impact or hardship as a result of COVID-19. PG&E will continue to monitor current events and identify opportunities to support our customers and communities through concrete actions.

In addition to the moratorium on service shut-offs, PG&E’s response to the COVID-19 pandemic is focused on efforts to protect the health and safety of its customers, employees, contractors and the communities it serves, including ongoing wildfire risk reduction efforts that continue alongside its pandemic response. Actions the company has taken include providing guidance for employees who have direct customer contact to take social distancing precautionary measures, such as avoiding handshakes and wearing disposable nitrile gloves while in customers' homes, and continuing safety work related to power line-related fires across its service area.

Customers who visit local offices to pay bills and are sick or experiencing symptoms are being asked to use other payment options such as online or by phone, as seen when Texas utilities waived fees during the pandemic, at 1-877-704-8470.

“We recognize that this is a rapidly changing situation and an uncertain time for many of our customers. Our most important responsibility is the health and safety of our customers and employees. We also want to provide some relief from the stress and financial challenges many are facing during this worldwide, public health crisis, and with rates set to stabilize in 2025 the company remains focused on affordability. We understand that many of our customers may experience a personal financial strain due to the slowdown in the economy related to the pandemic, and programs like the Wildfire Assistance Program can help eligible customers,” said Chief Customer Officer and Senior Vice President Laurie Giammona.

Internally, the company is taking advanced cleaning measures, communicating best practices frequently with employees, and is asking its leaders to let employees work remotely if their job allows, while avoiding critical business disruption. PG&E has activated an enterprise-wide incident response team and is vigilantly monitoring the Centers for Disease Control and Prevention and World Health Organization for updates related to the virus. The company is committed to continue addressing customer service needs and does not expect any disruption in gas or electric service due to the public health crisis.

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Canada Clean Electricity Expansion is urged by the IEA to meet net-zero targets, scaling non-emitting generation, electrification, EV demand, and grid integration across provinces to decarbonize industry, buildings, and transport while ensuring reliability and affordability.

Key Points

An IEA-backed pathway for Canada to scale non-emitting power, electrification, and grid links to meet net-zero goals.

✅ Double or triple clean generation to replace fossil fuels

✅ Integrate provincial grids to decarbonize dependent regions

✅ Manage EV and heating loads with reliability and affordability

Canada will need more electricity capacity if it wants to hit its climate targets, and cleaning up Canada's electricity will be critical, according to a new report from the International Energy Agency (IEA).

The report offers mainly a rosy picture of Canada's overall federal energy policy. But, the IEA draws attention to Canada's increasing future electricity demands, and ultimately, calls on Canada to leverage its non-emitting energy potential and expand renewable energy to hit its climate targets.  

"Canada's wealth of clean electricity and its innovative spirit can help drive a secure and affordable transformation of its energy system and help realize its ambitious goals," stated Fatih Birol, the IEA executive director, in a news release.

The IEA notes that Canada has one of the cleanest energy grids globally, with 83 per cent of electricity coming from non-emitting sources in 2020. But this reflects nationwide progress in electricity to date; the report warns this is not a reason for Canada to rest on its laurels. More electricity will be needed to displace fossil fuels if Canada wants to hit its 2030 targets, the report states, and "even deeper cuts" will be required to reach net-zero by 2050.

"Perhaps more significantly, however, Canada will need to ensure sufficient new clean generation capacity to meet the sizeable levels of electrification that its net-zero targets imply."

Investing in new coal, oil and gas projects must stop to hit climate goals, global energy agency says
The Liberals have promised to create a 100 percent net-zero-emitting electricity system by 2035, with regulating oil and gas emissions and electric car sales as part of the plan; by then, every new light-duty vehicle sold in Canada will be a zero-emission vehicle. The switch from gas guzzlers to plug-in electric vehicles will create new pressures on Canada's electrical grid, as will any turn away from fossil natural gas for home heating.

To meet these challenges, the IEA warns, Canada would need to double or triple the power generated from non-emitting sources compared to today, a shift whose cost could reach $1.4 trillion according to the Canadian Gas Association. 

"Such a shift will require significant regulatory action," the report states, highlighting the need for climate policy for electricity grids to guide implementation, and that will require the federal government to work closely with provinces and territories that control power generation and distribution.

The report notes that the further integration of territorial and provincial electrical grids could allow fossil fuel-dependent provinces, like Alberta, to decarbonize and electrify their economies.

The report, entitled Canada 2022 Energy Policy Review, offers what it calls an "in-depth" look at the commitments Canada has made to transform its energy policy. Since the IEA conducted its last review in 2015, Canada has committed to cutting greenhouse gas emissions by 40 to 45 per cent from 2005 levels by 2030 and achieving net-zero by 2050 under an extended national target.

The IEA is well-known for the production of its annual World Energy Outlook. The Paris-based autonomous intergovernmental organization provides analysis, data, and policy recommendations to promote global energy security and sustainability. Canada is a part of the intergovernmental body, which also conducts peer reviews of its members' energy policy.

Oil and gas emissions rising
Natural Resources Minister Jonathan Wilkinson responded to the report in the IEA news release.

"This report acknowledges Canada's ambitious efforts and historic investments to develop pathways to achieve net-zero emissions by 2050 and ensure a transition that aligns with our shared objective of limiting global warming to 1.5 degrees Celsius," Wilkinson's statement read.

The report notes that — despite that objective — absolute emissions from Canadian oil and gas extraction went up 26 per cent between 2000 and 2019, largely from increased production.

Minister of Natural Resources Jonathan Wilkinson responds to a question at a news conference after the federal cabinet was sworn in, in Ottawa, on Oct. 26, 2021. (Justin Tang/The Canadian Press)
"Canada will need to reconcile future growth in oil sands production with increasingly strict greenhouse gas requirements," the report states.

On the plus side, the IEA found emissions per barrel of oilsands crude have decreased by 20 per cent in the last decade from technical and operational improvements.

The improving carbon efficiency of the oilsands is a "trend that is expected to continue at even higher rates," said Ben Brunnen, vice-president of oilsands, fiscal and economic policy at the Canadian Association of Petroleum Producers.

That may become important, the IEA report notes, as energy investors and buyers look for low-carbon assets and more countries adopt net-zero policies.

Further innovation, such as carbon capture and storage, could help to turn things around for Canada's oil patch, the report says. The Liberals have also said they will place a hard cap on oil and gas emissions from production, but that does not include the burning of the fossil fuels. 

In 2021, the IEA released a report that determined to achieve net-zero by 2050, among many steps, investments needed to end in coal mines, oil and gas wells. Thursday's report, however, made no mention of that, which disappointed at least one environmental group.

"A glaring omission was that this assessment says nothing about production. We know that the most important thing we can do is to stop using and producing oil and gas," said Julia Levin, a senior climate and energy program manager at Environmental Defence.

"And yet that was absent from this report, and that really is a glaring omission, which is completely out of line with their [the IEA's] own work."

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Ontario EV Battery Separator Plant anchors Canada's EV supply chain, with Asahi Kasei producing lithium-ion battery separators in Niagara Region to support Honda's Alliston assembly, clean transportation growth, and sustainable manufacturing jobs.

Key Points

Asahi Kasei's Niagara Region plant makes lithium-ion battery separators supplying Honda's EV factory in Ontario.

✅ Starts up by 2027 to align with Honda EV output timeline.

✅ Backed by clean tech tax credits and public investment.

✅ Boosts local jobs, R&D, and clean transportation leadership.

The automotive industry is undergoing a seismic shift, and Canada is firmly planting its flag in the electric vehicle (EV) revolution, propelled by recent EV assembly deals across the country. A new $1.6 billion battery component plant in Ontario's Niagara Region signifies a significant step towards a cleaner, more sustainable transportation future. This Asahi Kasei facility, a key player in Honda's $15 billion electric vehicle supply chain investment, promises to create jobs, boost the local economy, and solidify Ontario's position as a leader in clean transportation technology.

Honda's ambitious project forms part of Honda's Ontario EV investment that involves constructing a dedicated battery plant adjacent to their existing Alliston, Ontario assembly facility. This new plant will focus on producing fully electric vehicles, requiring a robust supply chain for critical components. Asahi Kasei's Niagara Region plant enters the picture here, specializing in the production of battery separators – a thin film crucial for separating the positive and negative electrodes within a lithium-ion battery. These separators play a vital role in ensuring the battery functions safely and efficiently.

The Niagara Region plant is expected to be operational by 2 027, perfectly aligning with Honda's EV production timeline. This strategic partnership benefits both companies: Honda secures a reliable source for a vital component, while Asahi Kasei capitalizes on the burgeoning demand for EV parts. The project is a catalyst for economic growth in Ontario, creating jobs in construction and manufacturing, supporting an EV jobs boom province-wide, and potentially future research and development sectors. Additionally, it positions the province as a hub for clean transportation technology, attracting further investment and fostering innovation.

This announcement isn't an isolated event. News of Volkswagen constructing a separate EV battery plant in St. Thomas, Ontario, and the continuation of a major EV battery project near Montreal further underscore Canada's commitment to electric vehicles. These developments signify a clear shift in the country's automotive landscape, with a focus on sustainable solutions.

Government support has undoubtedly played a crucial role in attracting these investments. The Honda deal involves up to $5 billion in public funds. Asahi Kasei's Niagara Region plant is also expected to benefit from federal and provincial clean technology tax credits. This demonstrates a collaborative effort between government and industry, including investments by Canada and Quebec in battery assembly, to foster a thriving EV ecosystem in Canada.

The economic and environmental benefits of this project are undeniable. Battery production is expected to create thousands of jobs, while the shift towards electric vehicles will lead to reduced emissions and a cleaner environment. Ontario stands to gain significantly from this transition, becoming a leader in clean energy technology and attracting skilled workers and businesses catering to the EV sector, especially as the U.S. auto pivot to EVs accelerates across the border.

However, challenges remain. Concerns about the environmental impact of battery production, particularly the sourcing of raw materials and the potential for hazardous waste, need to be addressed. Additionally, ensuring a skilled workforce capable of handling the complexities of EV technology is paramount.

Despite these challenges, the future of electric vehicles in Canada appears bright. Major automakers are making significant investments, government support is growing, and consumer interest in EVs is on the rise. The Niagara Region plant serves as a tangible symbol of Canada's commitment to a cleaner and more sustainable transportation future. With careful planning and continued Canada-U.S. collaboration across the sector, this project has the potential to revolutionize the Canadian automotive industry and pave the way for a greener tomorrow.

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