Toronto household power use soars 18 per cent

By Toronto Star


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Electricity use has soared in Toronto and across the province this summer, driven by hot weather.

But the sharp increase underscores the need for the province to push energy conservation more aggressively, says the chair of the Ontario Clean Air Alliance.

Toronto Hydro says residential power consumption jumped 18 per cent in June and July, compared with last year.

Provincial power use is also up significantly. The Independent Electricity System Operator says total consumption was up 6 per cent in June, 18 per cent in July and 6 per cent so far in August. It didn't break out a separate figure for residential consumption.

Jack Gibbons of the clean air alliance said the hot weather clearly had an impact on the increase, and cautioned not to read too much into a few months of data.

But he said it's a warning signal that the province needs to pay more attention to curbing power use rather than increasing supply.

"Weather can be a big driver of electricity demand," he said, and current conservation programs are moving in the right direction.

Toronto Hydro, for example is pushing the Peaksaver program to install devices on central air conditioners, allowing the utility to keep the unit from switching on as frequently when demand soars and strains the system. Customers who sign up from now until December 31 will get a one-time $75 credit.

But current efforts are skewed toward producing more power rather than saving energy, Gibbons said.

"For every dollar the Ontario Power Authority has spent on conservation and demand management, they've contracted for $40 of new supply," he said.

"We don't have a balanced approach to meeting our electricity needs."

Energy Minister Brad Duguid said the fact that the power system has withstood this summer's exceptional heat is testimony to the success of current policies.

"If we had not made the important investments we've made, and had not taken some of the conservation measures we've taken, we would have run out of power consistently throughout this summer," he said in an interview.

"There were no warnings this summer to reduce electricity on particular days."

Gibbons said the power authority should be funding local utilities to hire students to go door to door, selling conservation programs like Peaksaver, just as energy retailers have sales staffs on the ground to sell their products.

"There's no reason why the Peaksaver program can't be as successful as the Blue Box," he said.

Ben Chin, vice president of the power authority, said Gibbons' comparison of the money spent on generation and conservation is questionable, because the ratio can change quickly if the price of power goes up or down.

"But I don't think we disagree that we need to keep the pedal to the floor on conservation," Chin said.

The OPA has set a target of shaving peak demand by 6,300 megawatts by 2025, Chin said: "It's the equivalent of taking one in five users off the grid."

The OPA has triggered the Peaksaver program three times, this year, and a similar program for industry eight times, he said.

Toronto Hydro has an additional program called Powershift that it triggers whenever the temperature is above 27 degrees it's been used 36 times this summer. About 4,000 households have signed up for it.

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Berlin urged to remove barriers to PV

Germany Solar Cap Removal would accelerate photovoltaics, storage, and renewables, replacing coal and nuclear during phaseout with 10GW per year toward 162GW by 2030, boosting grid resilience, O&M jobs, and domestic clean energy growth.

 

Key Points

A policy change to scrap the 52GW limit, enabling 10GW/year PV and storage to replace coal and nuclear capacity.

✅ Scrap 52GW cap to prevent post-2020 market slump

✅ Add 10GW PV annually; scale residential, commercial, grid storage

✅ Create jobs in planning, installation, and O&M through 2030

 

The German Solar Association (BSW) has called on the government to remove barriers to the development of new solar power capacity in Germany and storage capacity needed to replace coal and nuclear generation that is being phased out.

A 52GW cap should be scrapped, otherwise there is a risk that a market slump will occur in the solar industry after 2020, BSW said, especially as U.S. solar expansion plans signal accelerating global demand.

BSW managing director Carsten Körnig said: “Time is running out, and further delays are irresponsible. The 52GW mark will already be reached within a few months.”
A new report from BSW, in cooperation with Bonn-based marketing and social research company EuPD Research and The smarter E Europe initiative, said 10GW a year is needed as well as an increase in battery storage capacity.

This would lead to cumulative photovoltaic capacity of 162GW and 15GW residential, commercial and grid storage systems by 2030, in line with global renewable records being set, leading to new job opportunities.

The number of jobs in the domestic photovoltaic and storage industries could increase to 78,000 by the end of the next decade from today’s level of 26,400, aligning with forecasts of wind and solar reaching 50% by mid-century, said 'The Energy Transition in the Context of the Nuclear and Coal Phaseout – Perspectives in the Electricity Market to 2040' study.

Job growth would take place for the most part in the fields of planning, installation and operations and maintenance of PV systems, as solar uptake in Poland increases, the report said.

In maintenance alone, employment would increase from 9,200 to 26,000, with additional opened up by tapping into the market potential of medium- to long-term storage systems, alongside changing electricity prices in Northern Europe that favor flexibility, it said.

The report added that industry revenue could grow from €5bn to €12.5bn in the coming decade.

The report was supported by BayWa Re E3/DC, Fronius, Goldbeck Solar, IBC Solar, Panasonic, Sharp, Siemens, Sonnen, Suntech, Tesvolt and Varta.

 

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Ukraine Prepares for Winter Amid Energy Challenges

Ukraine Winter Energy Resilience focuses on energy security, grid repairs, renewable power, EU support, heating reliability, electricity imports, and conservation measures to stabilize infrastructure and protect households amid conflict and severe cold.

 

Key Points

A strategy to secure heat and power via repairs, renewables, imports, and conservation during wartime winter.

✅ Grid repairs and hardening of power plants and transmission lines

✅ Diversified supply: renewables, electricity imports, fuel reserves

✅ Public conservation to cut peak demand and safeguard essential services

 

As winter approaches, Ukraine is bracing for a challenging season, especially in the energy sector amid global energy instability and price pressures, which has been heavily impacted by the ongoing conflict with Russia. With the weather forecast predicting colder temperatures, the Ukrainian government is ramping up efforts to secure energy supplies and bolster infrastructure, aiming to ensure that citizens have access to heating and electricity during the harsh months ahead.

The Energy Landscape in Ukraine

The conflict has severely disrupted Ukraine’s energy infrastructure, leading to widespread damage and inefficiencies. Key facilities, including power plants and transmission lines, have been targeted amid energy ceasefire violations reported by both sides, resulting in significant energy shortages. As a response, the government has implemented a series of measures aimed at stabilizing the energy sector, ensuring that the nation can withstand the winter months.

One of the primary strategies has been the repair and reinforcement of energy infrastructure. Officials have prioritized critical facilities that are essential for electricity generation and distribution. Emergency repairs and upgrades are being carried out to restore functionality and improve resilience against potential attacks.

In addition to repairing existing infrastructure, Ukraine is actively seeking to diversify its energy sources. This includes increasing reliance on renewable energy, such as wind and solar, which can be less susceptible to disruption. The shift toward renewables not only enhances energy security and supports moving away from fossil fuels in line with Ukraine's long-term environmental goals.

International Support and Collaboration

Ukraine's challenges have not gone unnoticed on the international stage. Countries and organizations around the world have pledged energy security support to help Ukraine fortify its energy sector. This assistance includes financial aid, technical expertise, and the provision of materials needed for infrastructure repairs.

The European Union, in particular, has been a key ally, providing both immediate and long-term support to Ukraine's energy efforts. The EU's commitment to helping Ukraine transition to a more sustainable energy model, including steps toward ENTSO-E synchronization to bolster grid stability, is reflected in various initiatives aimed at increasing energy efficiency and integrating renewable sources.

Furthermore, international organizations have mobilized resources to assist in the restoration of damaged infrastructure. This collaboration not only enhances Ukraine's energy capabilities but also strengthens ties with global partners, fostering a sense of solidarity amidst the ongoing conflict.

Preparing for Winter Challenges

As temperatures drop, the demand for heating will surge, putting additional pressure on an already strained energy system. To address this, the Ukrainian government is urging citizens to prepare for potential shortages. Officials are promoting energy conservation measures, encouraging households to reduce consumption and use energy more efficiently.

Public awareness campaigns are being launched to educate citizens about the importance of energy saving and the steps they can take to minimize their energy use and prevent outages during peak demand. These initiatives aim to foster a collective sense of responsibility as the nation braces for the winter ahead.

In addition to conservation efforts, the government is exploring alternative energy supplies. This includes negotiating with neighboring countries for electricity imports and enhancing domestic production where feasible. By securing a diverse range of energy sources, Ukraine aims to mitigate the risk of shortages and ensure that essential services remain operational.

The Role of Resilience and Innovation

Despite the challenges, the resilience of the Ukrainian people and their commitment to overcoming adversity shine through. Communities are coming together to support one another, sharing resources and information to help navigate the difficulties of winter.

Innovative solutions are also emerging as part of the response to the energy crisis. Local initiatives aimed at promoting energy efficiency and the use of alternative energy sources are gaining traction. From community-led solar projects to energy-efficient building practices, Ukrainians are finding ways to adapt and thrive even in the face of uncertainty.

Looking Ahead

As Ukraine prepares for the winter months, the focus remains on ensuring energy security and maintaining the functionality of critical infrastructure. While challenges loom, the collective efforts of the government, international partners, and citizens demonstrate a strong commitment to resilience and adaptation.

In conclusion, the upcoming winter presents significant challenges for Ukraine's energy sector, yet the nation's determination to secure its energy future remains unwavering. With ongoing repairs, international support, and community innovation, Ukraine is working diligently to navigate the complexities of this winter, aiming to emerge stronger and more resilient in the face of adversity. The resilience shown today will be crucial as the country continues to confront the ongoing impacts of conflict and seeks to build a sustainable future.

 

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How to Get Solar Power on a Rainy Day? Beam It From Space

Space solar power promises wireless energy from orbital solar satellites via microwave or laser power beaming, using photovoltaics and rectennas. NRL and AFRL advances hint at 24-7 renewable power delivery to Earth and airborne drones.

 

Key Points

Space solar power beams orbital solar energy to Earth via microwaves or lasers, enabling continuous wireless electricity.

✅ Harvests sunlight in orbit and transmits via microwaves or lasers

✅ Provides 24-7 renewable power, independent of weather or night

✅ Enables wireless power for remote sites, grids, and drones

 

Earlier this year, a small group of spectators gathered in David Taylor Model Basin, the Navy’s cavernous indoor wave pool in Maryland, to watch something they couldn’t see. At each end of the facility there was a 13-foot pole with a small cube perched on top. A powerful infrared laser beam shot out of one of the cubes, striking an array of photovoltaic cells inside the opposite cube. To the naked eye, however, it looked like a whole lot of nothing. The only evidence that anything was happening came from a small coffee maker nearby, which was churning out “laser lattes” using only the power generated by the system as ambitions for cheap abundant electricity gain momentum worldwide.

The laser setup managed to transmit 400 watts of power—enough for several small household appliances—through hundreds of meters of air without moving any mass. The Naval Research Lab, which ran the project, hopes to use the system to send power to drones during flight. But NRL electronics engineer Paul Jaffe has his sights set on an even more ambitious problem: beaming solar power to Earth from space. For decades the idea had been reserved for The Future, but a series of technological breakthroughs and a massive new government research program suggest that faraway day may have finally arrived as interest in space-based solar broadens across industry and government.

Since the idea for space solar power first cropped up in Isaac Asimov’s science fiction in the early 1940s, scientists and engineers have floated dozens of proposals to bring the concept to life, including inflatable solar arrays and robotic self-assembly. But the basic idea is always the same: A giant satellite in orbit harvests energy from the sun and converts it to microwaves or lasers for transmission to Earth, where it is converted into electricity. The sun never sets in space, so a space solar power system could supply renewable power to anywhere on the planet, day or night, as recent tests show we can generate electricity from the night sky as well, rain or shine.

Like fusion energy, space-based solar power seemed doomed to become a technology that was always 30 years away. Technical problems kept cropping up, cost estimates remained stratospheric, and as solar cells became cheaper and more efficient, and storage improved with cheap batteries, the case for space-based solar seemed to be shrinking.

That didn’t stop government research agencies from trying. In 1975, after partnering with the Department of Energy on a series of space solar power feasibility studies, NASA beamed 30 kilowatts of power over a mile using a giant microwave dish. Beamed energy is a crucial aspect of space solar power, but this test remains the most powerful demonstration of the technology to date. “The fact that it’s been almost 45 years since NASA’s demonstration, and it remains the high-water mark, speaks for itself,” Jaffe says. “Space solar wasn’t a national imperative, and so a lot of this technology didn’t meaningfully progress.”

John Mankins, a former physicist at NASA and director of Solar Space Technologies, witnessed how government bureaucracy killed space solar power development firsthand. In the late 1990s, Mankins authored a report for NASA that concluded it was again time to take space solar power seriously and led a project to do design studies on a satellite system. Despite some promising results, the agency ended up abandoning it.

In 2005, Mankins left NASA to work as a consultant, but he couldn’t shake the idea of space solar power. He did some modest space solar power experiments himself and even got a grant from NASA’s Innovative Advanced Concepts program in 2011. The result was SPS-ALPHA, which Mankins called “the first practical solar power satellite.” The idea, says Mankins, was “to build a large solar-powered satellite out of thousands of small pieces.” His modular design brought the cost of hardware down significantly, at least in principle.

Jaffe, who was just starting to work on hardware for space solar power at the Naval Research Lab, got excited about Mankins’ concept. At the time he was developing a “sandwich module” consisting of a small solar panel on one side and a microwave transmitter on the other. His electronic sandwich demonstrated all the elements of an actual space solar power system and, perhaps most important, it was modular. It could work beautifully with something like Mankins' concept, he figured. All they were missing was the financial support to bring the idea from the laboratory into space.

Jaffe invited Mankins to join a small team of researchers entering a Defense Department competition, in which they were planning to pitch a space solar power concept based on SPS-ALPHA. In 2016, the team presented the idea to top Defense officials and ended up winning four out of the seven award categories. Both Jaffe and Mankins described it as a crucial moment for reviving the US government’s interest in space solar power.

They might be right. In October, the Air Force Research Lab announced a $100 million program to develop hardware for a solar power satellite. It’s an important first step toward the first demonstration of space solar power in orbit, and Mankins says it could help solve what he sees as space solar power’s biggest problem: public perception. The technology has always seemed like a pie-in-the-sky idea, and the cost of setting up a solar array on Earth is plummeting, as proposals like a tenfold U.S. solar expansion signal rapid growth; but space solar power has unique benefits, chief among them the availability of solar energy around the clock regardless of the weather or time of day.

It can also provide renewable energy to remote locations, such as forward operating bases for the military, which has deployed its first floating solar array to bolster resilience. And at a time when wildfires have forced the utility PG&E to kill power for thousands of California residents on multiple occasions, having a way to provide renewable energy through the clouds and smoke doesn’t seem like such a bad idea. (Ironically enough, PG&E entered a first-of-its-kind agreement to buy space solar power from a company called Solaren back in 2009; the system was supposed to start operating in 2016 but never came to fruition.)

“If space solar power does work, it is hard to overstate what the geopolitical implications would be,” Jaffe says. “With GPS, we sort of take it for granted that no matter where we are on this planet, we can get precise navigation information. If the same thing could be done for energy, especially as peer-to-peer energy sharing matures, it would be revolutionary.”

Indeed, there seems to be an emerging race to become the first to harness this technology. Earlier this year China announced its intention to become the first country to build a solar power station in space, and for more than a decade Japan has considered the development of a space solar power station to be a national priority. Now that the US military has joined in with a $100 million hardware development program, it may only be a matter of time before there’s a solar farm in the solar system.

 

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SaskPower eyes buying $300M worth of electricity from Flying Dust First Nation

SaskPower-Flying Dust flare gas power deal advances a 20 MW, 20-year Power Purchase Agreement, enabling grid supply from FNPA-backed generation, supporting renewable strategy, lower carbon footprint targets, and First Nation economic development in Saskatchewan.

 

Key Points

A 20 MW, 20-year PPA converting flare gas to grid power, with SaskPower buying from Flying Dust First Nation via FNPA.

✅ 20 MW of flare gas generation linked to Saskatchewan's grid

✅ 20-year term; about $300M total value to SaskPower

✅ FNPA-backed project; PPA targeted in 6-12 months

 

An agreement signed between SaskPower, which reported $205M income in 2019-20, and Flying Dust First Nation is an important step toward a plan that could see the utility buy $300 million worth of electricity from Flying Dust First Nation, according to Flying Dust's chief.

"There's still a lot of groundwork that needs to be done before we get building but you know we're a lot closer today with this signing," Jeremy Norman told reporters Friday.

Norman's community was assisted by the First Nations Power Authority (FNPA), a non-profit that helps First Nations get into the power sector, with examples like the James Bay project showing what Indigenous ownership can achieve.

The agreement signed Friday says SaskPower will explore the possibility of buying 20 megawatts of flare gas power from FNPA, which it will look to Flying Dust to produce.

#google#

 

20-year plan

The proposed deal would span 20 years and cost SaskPower around $300 million over those years, as the utility also explores geothermal power to meet 2030 targets.

The exact price would be determined once a price per metawatt is brought forward.

"We won't be able to do this ourselves," Norman said.

Flare gas power generation works by converting flares from the oil and gas sector into electricity. Under this plan, SaskPower would take the electricity provided by Flying Dust and plug it into the provincial power grid, complementing a recent move to buy more power from Manitoba Hydro to support system reliability.

"This is a great opportunity as we advance our renewable strategy, including progress on doubling renewables by 2030, and try to achieve a lower carbon footprint by 2030 and beyond," Marsh said.

Ombudsman report details dispute between senior with breathing disorder, SaskPower

Norman said the business deal presents an opportunity to raise money to reinvest into the First Nation for things like more youth programming.

For the next steps, both parties will need to sign a power purchase agreement that spells out the exact prices for the power generation.

Marsh expects to do so in the next six to 12 months, with development of the required infrastructure to take place after that.

 

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On the road to 100 per cent renewables

US Climate Alliance 100% Renewables 2035 accelerates clean energy, electrification, and decarbonization, replacing coal and gas with wind, solar, and storage to cut air pollution, lower energy bills, create jobs, and advance environmental justice.

 

Key Points

A state-level target for alliance members to meet all electricity demand with renewable energy by 2035.

✅ 100% RES can meet rising demand from electrification

✅ Major health gains from reduced SO2, NOx, and particulates

✅ Jobs grow, energy burdens fall, climate resilience improves

 

The Union of Concerned Scientists joined with COPAL (Minnesota), GreenRoots (Massachusetts), and the Michigan Environmental Justice Coalition, to better understand the feasibility and implications of leadership states meeting 100 percent of their electricity needs with renewable energy by 2035, a target reflected in federal clean electricity goals under discussion today.

We focused on 24 member states of the United States Climate Alliance, a bipartisan coalition of governors committed to the goals of the 2015 Paris Climate Agreement. We analyzed two main scenarios: business as usual versus 100 percent renewable electricity standards, in line with many state clean energy targets now in place.

Our analysis shows that:

Climate Alliance states can meet 100 percent of their electricity consumption with renewable energy by 2035, as independent assessments of zero-emissions feasibility suggest. This holds true even with strong increases in demand due to the electrification of transportation and heating.

A transition to renewables yields strong benefits in terms of health, climate, economies, and energy affordability.

To ensure an equitable transition, states should broaden access to clean energy technologies and decision making to include environmental justice and fossil fuel-dependent communitieswhile directly phasing out coal and gas plants.

Demands for climate action surround us. Every day brings news of devastating "this is not normal" extreme weather: record-breaking heat waves, precipitation, flooding, wildfires. To build resilience and mitigate the worst impacts of the climate crisis requires immediate action to reduce heat-trapping emissions and transition to renewable energy, including practical decarbonization strategies adopted by states.

On the Road to 100 Percent Renewables explores actions at one critical level: how leadership states can address climate change by reducing heat-trapping emissions in key sectors of the economy as well as by considering the impacts of our energy choices. A collaboration of the Union of Concerned Scientists and local environmental justice groups COPAL (Minnesota), GreenRoots (Massachusetts), and the Michigan Environmental Justice Coalition, with contributions from the national Initiative for Energy Justice, assessed the potential to accelerate the use of renewable energy dramatically through state-level renewable electricity standards (RESs), major drivers of clean energy in recent decades. In addition, the partners worked with Greenlink Analytics, an energy research organization, to assess how RESs most directly affect people's lives, such as changes in public health, jobs, and energy bills for households.

Focusing on 24 members of the United States Climate Alliance (USCA), the study assesses the implications of meeting 100 percent of electricity consumption in these states, including examples like Rhode Island's 100% by 2030 plan that inform policy design, with renewable energy in the near term. The alliance is a bipartisan coalition of governors committed to reducing heat-trapping emissions consistent with the goals of the 2015 Paris climate agreement.[1]

On the Road to 100 Percent Renewables looks at three types of results from a transition to 100 percent RES policies: improvements in public health from decreasing the use of coal and gas2 power plants; net job creation from switching to more labor-oriented clean energy; and reduced household energy bills from using cleaner sources of energy. The study assumes a strong push to electrify transportation and heating to address harmful emissions from the current use of fossil fuels in these sectors. Our core policy scenario does not focus on electricity generation itself, nor does it mandate retiring coal, gas, and nuclear power plants or assess new policies to drive renewable energy in non-USCA states.

Our analysis shows that:

USCA states can meet 100 percent of their electricity consumption with renewable energy by 2035 even with strong increases in demand due to electrifying transportation and heating.

A transition to renewables yields strong benefits in terms of health, climate, economies, and energy affordability.

Renewable electricity standards must be paired with policies that address not only electricity consumption but also electricity generation, including modern grid infrastructure upgrades that enable higher renewable shares, both to transition away from fossil fuels more quickly and to ensure an equitable transition in which all communities experience the benefits of a clean energy economy.

Currently, the states in this analysis meet their electricity needs with differing mixes of electricity sourcesfossil fuels, nuclear, and renewables. Yet across the states, the study shows significant declines in fossil fuel use from transitioning to clean electricity; the use of solar and wind powerthe dominant renewablesgrows substantially:

In the study's "No New Policy" scenario"business as usual"coal and gas generation stay largely at current levels over the next two decades. Electricity generation from wind and solar grows due to both current policies and lowest costs.

In a "100% RES" scenario, each USCA state puts in place a 100 percent renewable electricity standard. Gas generation falls, although some continues for export to non-USCA states. Coal generation essentially disappears by 2040. Wind and solar generation combined grow to seven times current levels, and three times as much as in the No New Policy scenario.

A focus on meeting in-state electricity consumption in the 100% RES scenario yields important outcomes. Reductions in electricity from coal and gas plants in the USCA states reduce power plant pollution, including emissions of sulfur dioxide and nitrogen oxides. By 2040, this leads to 6,000 to 13,000 fewer premature deaths than in the No New Policy scenario, as well as 140,000 fewer cases of asthma exacerbation and 700,000 fewer lost workdays. The value of the additional public health benefits in the USCA states totals almost $280 billion over the two decades. In a more detailed analysis of three USCA statesMassachusetts, Michigan, and Minnesotathe 100% RES scenario leads to almost 200,000 more added jobs in building and installing new electric generation capacity than the No New Policy scenario.

The 100% RES scenario also reduces average energy burdens, the portion of household income spent on energy. Even considering household costs solely for electricity and gas, energy burdens in the 100% RES scenario are at or below those in the No New Policy scenario in each USCA state in most or all years. The average energy burden across those states declines from 3.7 percent of income in 2020 to 3.0 percent in 2040 in the 100% RES scenario, compared with 3.3 percent in 2040 in the No New Policy scenario.

Decreasing the use of fossil fuels through increasing the use of renewables and accelerating electrification reduces emissions of carbon dioxide (CO2), with implications for climate, public health, and economies. Annual CO2 emissions from power plants in USCA states decrease 58 percent from 2020 to 2040 in the 100% RES scenario compared with 12 percent in the No New Policy scenario.

The study also reveals gaps to be filled beyond eliminating fossil fuel pollution from communities, such as the persistence of gas generation to sell power to neighboring states, reflecting barriers to a fully renewable grid that policy must address. Further, it stresses the importance of policies targeting just and equitable outcomes in the move to renewable energy.

Moving away from fossil fuels in communities most affected by harmful air pollution should be a top priority in comprehensive energy policies. Many communities continue to bear far too large a share of the negative impacts from decades of siting the infrastructure for the nation's fossil fuel power sector in or near marginalized neighborhoods. This pattern will likely persist if the issue is not acknowledged and addressed. State policies should mandate a priority on reducing emissions in communities overburdened by pollution and avoiding investments inconsistent with the need to remove heat-trapping emissions and air pollution at an accelerated rate. And communities must be centrally involved in decisionmaking around any policies and rules that affect them directly, including proposals to change electricity generation, both to retire fossil fuel plants and to build the renewable energy infrastructure.

Key recommendations in On the Road to 100 Percent Renewables address moving away from fossil fuels, increasing investment in renewable energy, and reducing CO2 emissions. They aim to ensure that communities most affected by a history of environmental racism and pollution share in the benefits of the transition: cleaner air, equitable access to good-paying jobs and entrepreneurship alternatives, affordable energy, and the resilience that renewable energy, electrification, energy efficiency, and energy storage can provide. While many communities can benefit from the transition, strong justice and equity policies will avoid perpetuating inequities in the electricity system. State support to historically underserved communities for investing in solar, energy efficiency, energy storage, and electrification will encourage local investment, community wealth-building, and the resilience benefits the transition to renewable energy can provide.

A national clean electricity standard and strong pollution standards should complement state action to drive swift decarbonization and pollution reduction across the United States. Even so, states are well positioned to simultaneously address climate change and decades of inequities in the power system. While it does not substitute for much-needed national and international leadership, strong state action is crucial to achieving an equitable clean energy future.

 

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Ontario takes constitutional challenge of its global adjustment electricity fee to Supreme Court

Ontario Global Adjustment Supreme Court Appeal spotlights a constitutional challenge to Ontario's electricity charge, pitting National Steel Car against the IESO over regulatory charge vs tax, procurement policy, and renewable energy feed-in tariff contracts.

 

Key Points

An SCC leave bid on whether Ontario's global adjustment is a valid regulatory charge or an unconstitutional tax.

✅ Appeals Court revived case for full record review

✅ Dispute centers on regulatory charge vs tax classification

✅ FIT renewables contracts and procurement policies at issue

 

The Ontario government wants the Supreme Court of Canada to weigh in on a constitutional challenge being brought against a large provincial electricity charge, a case the province claims raises issues of national importance.

Ontario’s attorney general and its Independent Electricity System Operator applied for permission to appeal to the Supreme Court in January, according to the court’s website.

The province is trying to appeal a Court of Appeal decision reinstating the challenge from November that said a legal challenge by Hamilton, Ont.-based National Steel Car Ltd. should be sent back to a lower-court for a full hearing.

Court reinstates constitutional challenge to Ontario's hefty ‘global adjustment’ electricity charge
National Steel Car appealing decision in legal challenge of Ontario electricity fee it calls an unconstitutional tax
Doug Ford’s cancellation of green energy deals costs Ontario taxpayers $231 million
National Steel Car launched its legal challenge in 2017, with the maker of steel rail cars claiming the province’s global adjustment electricity charge was a tax intended to fund certain post-financial-crisis policy goals. Since it is allegedly a tax, and one not imposed by the provincial legislature, the company’s argument is the global adjustment is unconstitutional, and also in breach of a provincial law requiring a referendum for new taxes.

The global adjustment mostly bridges the gap between the province’s hourly electricity price and the price guaranteed under contracts and regulated rates with power generators. It also helps cover the cost of building new electricity infrastructure and providing conservation programs, but the fee now makes up most of the commodity portion of a household power bill in the province.

Ontario argued the global adjustment is a valid regulatory charge, and moved to have National Steel Car’s challenge thrown out. An Ontario Superior Court judge agreed, and dismissed the challenge in 2018, saying it was “plain, obvious and beyond doubt” it could not succeed. However, an appeals court judge disagreed, writing in a decision last November that the “merits should not have been determined on a pleadings motion and without the development of a full record.”

In filings made to the Supreme Court, both the IESO and Ontario’s Ministry of the Attorney General argued their proposed appeals raise “issues of national and public importance,” such as whether incorporating environmental and social policy goals in procurement could turn attempts by a public body to recover costs into an unconstitutional tax.

Most applications for leave to appeal to the Supreme Court are dismissed, but the Ontario government claims the court’s guidance is required in this case, as it could lead to questions being raised about other fees or charges, such as money raised from fishing licences.

“A failure to dispose of this claim at the pleadings stage may well result in such uncertainty that public authorities across Canada decline to incorporate the kind of environmental and social policy goals objected to in this case into the decisions they make about how to spend funds raised from regulatory charges,” the filing from the attorney general states. “Alternatively, it may induce governments not to engage in cost recovery in connection with publicly supplied goods and services, which can otherwise be sound public policy.”

The government has so far had to pay National Steel Car $250,000 in legal costs “to avoid responding to the credible claim that the Global Adjustment is an unconstitutional tax,” said David Trafford of Morse Shannon LLP, one of National Steel Car’s lawyers.

“The application for leave to appeal is the next step in this effort to avoid having to respond to the case on the merits,” Trafford added in an email.

The application for leave to appeal is the next step in this effort to avoid having to respond to the case on the merits

David Trafford of Morse Shannon, one of National Steel Car’s lawyers
 
National Steel Car has particularly taken issue with the part of the global adjustment that funded contracts for renewable energy under a “feed-in tariff” program, or FIT, which the company called “the main culprit behind the dramatic price increases for electricity.”

The FIT program has been ended, but contracts awarded under it remain in place and form part of the global adjustment. Ontario’s auditor general estimated in 2015 that electricity consumers would pay $9.2 billion more for renewable energy under the government’s guaranteed-price program, a figure that later featured in a dispute between the auditor and the electricity regulator that drew political attention.

National Steel Car said its global adjustment costs grew from $207,260 in 2008 to almost $3.4 million in 2016, reflecting how high electricity rates have pressured manufacturers, to almost $3.4 million in 2016. For 2018, there was approximately $11.2 billion in global adjustment collected, according to the IESO’s reporting.

A spokesperson for the IESO said it “is not in a position to comment” because the case is still before the courts.

Electricity prices have been an ongoing problem for both Ontario consumers and politicians, which the previous Liberal government tried to address in 2017 by, among other things, refinancing global-adjustment costs through the Fair Hydro Plan and other measures.

Since National Steel Car filed its lawsuits, though, the Liberals lost power in the province and were succeeded in 2018 by Premier Doug Ford and the Progressive Conservatives, who made changes to the previous government’s power policies, including legislation to lower electricity rates introduced early in their mandate.

The province has also pursued interprovincial power arrangements, including building on an electricity deal with Quebec as part of its broader energy strategy.

“The present government of Ontario does not agree with the former government’s electricity procurement program, which ceased awarding new contracts in 2016,” Ontario’s attorney general said in a filing. “However, Ontario submits that (the lower-court judge) was correct in holding that it does not give rise to a claim susceptible to being remedied by the courts.”

 

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