Kansai Electric to restart 5 thermal power units next summer

Ontario Global Adjustment Appeal spotlights Ontario's electricity fee, regulatory charge vs tax debate, FIT contracts, green energy policy, and constitutional challenge as National Steel Car contests soaring power costs before the Ontario Superior Court.

Key Points

Court challenge over Ontario's global adjustment fee, disputing its status as a regulatory charge instead of a tax.

✅ Challenges classification of global adjustment as tax vs regulatory charge.

✅ Focuses on FIT contracts, renewable energy payments, power cost impacts.

✅ Appeals Ontario ruling; implications for ratepayers and policy.

A manufacturer of steel rail cars is pursuing an appeal after its lawsuit challenging the constitutionality of a major Ontario electricity fee was struck down earlier this year.

Lawyers for Hamilton, Ont.-based National Steel Car Ltd. filed a notice of appeal in July after Ontario Superior Court Justice Wendy Matheson ruled in June that an electricity fee known as the global adjustment charge was a regulatory charge, and not an unconstitutional tax used to finance policy goals, as National Steel Car alleges.

The company, the decision noted, began its legal crusade last year after seeing its electricity bills had “increased dramatically” since the Ontario government passed green energy legislation nearly a decade ago, and amid concerns that high electricity rates are hurting Ontario manufacturers.

Under that legislation, the judge wrote, “private suppliers of renewable energy were paid to ’feed in’ energy into Ontario’s electricity grid.” The contracts for these so-called “feed-in tariff” contracts, or FIT contracts, were the “primary focus” of the lawsuit.

“The applicant seeks a declaration that part of the amount it has paid for electricity is an unconstitutional tax rather than a valid regulatory charge,” the judge added. “More specifically, it challenges part of the Global Adjustment, which is a component of electricity pricing and incorporates obligations under FIT contracts.”

Chiefly representing the difference between Ontario’s market price for power and the guaranteed price owed to generators, global adjustment now makes up the bulk of the commodity cost of electricity in the province. The fee has risen over the past decade, amid calls to reject steep Nova Scotia rate hikes as well — costing electricity customers $37 billion in global adjustment from 2006 to 2014, according to the province’s auditor general — because of investments in the electricity grid and green-energy contracts, among other reasons.

National Steel Car argued the global adjustment is a tax, and an unconstitutional one at that because it violated a section of the Constitution Act requiring taxes to be authorized by the legislature. The company also said the imposition of the global adjustment broke an Ontario law requiring a referendum to be held for new taxes.

The province, Justice Matheson wrote, had argued “that it is plain and obvious that these applications will fail.” In a decision released in June, the judge granted motions to strike out National Steel Car’s applications.

“The Global Adjustment,” she added, “is not a tax because its purpose, in pith and substance, is not to tax, and it is a regulatory charge and therefore, again, not a tax.”

Now, National Steel Car is arguing that the judge erred in several ways, including in fact, “by finding that the FIT contracts must be paid, when they can be cancelled.”

There has been a change in government at Queen’s Park since National Steel Car first filed its lawsuit last year, and that change has put green energy contracts under fire. The Progressive Conservative government of new Premier Doug Ford has already made a number of decisions on the electricity file, such as moving to cancel and wind down more than 750 renewable energy contracts, as well as repealing the province’s Green Energy Act.

The Tories also struck a commission of inquiry into the province’s finances that warned the global adjustment “may be struck down as unconstitutional,” a warning delivered amid cases where Nova Scotia's regulator approved a 14% rate hike in a high-profile decision.

“There is a risk that a court may find the global adjustment is not a valid regulatory charge if shifting costs over a longer period of time inadvertently results in future ratepayers cross-subsidizing today’s ratepayers,” the commission’s report said.

A spokesperson for Ontario’s Ministry of Energy, Northern Development and Mines said in an email that it would be “inappropriate to comment about the specifics of any case before the courts or currently under arbitration.”

National Steel Car is also prepared to fight its case all the way up to the Supreme Court of Canada, according to its lawyer.

“What is clear from our proceeding with the appeal is National Steel Car has every intention of seeing that lawsuit through to its conclusion if this government isn’t interested or prepared to reasonably settle it,” Jerome Morse said.

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Site C Dam Injunction signals Ottawa's neutrality while B.C. reviews a hydroelectric dam project on the Peace River, amid First Nations treaty rights claims, federal approval defenses, and scrutiny of environmental assessment and Crown consultation.

Key Points

A legal request to pause Site C while courts weigh First Nations treaty rights, environmental review, and approvals.

✅ Ottawa neutral on injunction; still defends federal approvals

✅ First Nations cite treaty rights over Peace River territory

✅ B.C. jurisdiction, environmental assessment and Crown consultation at issue

The federal government is not going to argue against halting construction of the controversial Site C hydroelectric dam in British Columbia while a B.C. court decides if the project violates constitutionally protected treaty rights.

Work on Site C suspended prior to First Nations lawsuit

However a spokeswoman for Environment Minister Catherine McKenna said Monday the government will continue to defend the federal approval given for the project in December 2014, even though that approval was given using an environmental review process McKenna herself has said is fundamentally flawed.

The Site C project is an 1,100-megawatt dam and generating station on the Peace River in northern B.C. that will flood parts of the traditional territory of the West Moberly and Prophet River First Nations.

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In January, they filed a civil court case against the provincial government, B.C. Hydro and the federal government asking a judge to decide if their rights were being violated by the dam. A few weeks later, West Moberly asked the court for an injunction to halt construction pending the outcome of the rights case, similar to other contested transmission projects like the Maine electricity corridor debate in New England.

On May 11, lawyers for Attorney General Jody Wilson-Raybould filed a notice that Canada would remain neutral on the question of the injunction, meaning Canada won't argue against the idea of postponing construction for months, if not years, while the rights case winds through the court.

Wilson-Raybould has been silent on Site C since being named Canada's minister of justice in 2015, but in 2012, when she was the B.C. regional chief for the Assembly of First Nations, she said the project was "running roughshod" over treaty rights. The Justice Department on Monday directed questions to Environment and Climate Change Canada.

Defence of environmental assessment

McKenna's spokeswoman, Caroline Theriault, said the injunction request is just a procedural step regarding construction and that it is B.C. jurisdiction not federal.

However, she said Canada will defend the environmental assessment and Crown consultation processes and the federally issued permits required for construction.

B.C. auditor general set to scrutinize Site C dam project

McKenna has legislation before the House of Commons to overhaul the process for environmental assessment of major projects like hydro dams and pipelines, arguing the former government's procedures had skewed too far towards proponents. The overhaul includes requiring traditional Indigenous knowledge be taken into account, a consideration also central to the Columbia River Treaty talks underway on both sides of the border.

However, Theriault said the commitment to overhaul the process also included a promise not to revisit projects that had already been approved, such as Site C.

"The federal environmental assessment process for the Site C project has already been upheld in other court actions," said Theriault.

'It feels kind of odd'

West Moberly Chief Roland Wilson said he was both excited and yet concerned by Canada's decision last week not to oppose the injunction.

"It feels kind of odd and makes me wonder what they're up to," Wilson said.

However he said all he has ever wanted was for the project to be stopped until the question of rights can be answered. Wilson said two previous dams on the Peace River already flooded 80 per cent of the functional land within West Moberly's territory and that Site C will flood half of what's left. That land is used for fishing and hunting and there is also concern the dam will allow mercury to leak into Moberly Lake, he said.

Retiree undaunted by steep odds against his petition to stop Site C dam

Construction began in 2015 and more than $2.4 billion has already been spent on a project that will at the earliest, not be completed until 2024 and will cost an estimated $10 billion total, with cost overrun risks underscored by the Muskrat Falls ratepayer agreement in Atlantic Canada.

The province continues to argue against the injunction and will also fight the rights case, even as Alberta suspends power purchase talks with B.C. over energy disputes. Premier John Horgan campaigned on a promise to review the Site C approval. A B.C. Utilities Commission report in November found there are alternatives to building it and that it will go over budget. Nevertheless Horgan in December said he had to let construction continue because cancelling the project would be too costly both for the province and its electricity consumers, despite the B.C. rate freeze announced around the same period.

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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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Hydro-Québec Unified Corporate Structure advances the energy transition through integrated planning, strategy, infrastructure delivery, and customer operations, aligning generation, transmission, and distribution while ensuring non-discriminatory grid access and agile governance across assets and behind-the-meter technologies.

Key Points

A cross-functional model aligning strategy, planning, and operations to accelerate Quebec's low-carbon transition.

✅ Four groups: strategy, planning, infrastructure, operations.

✅ Ensures non-discriminatory transmission access compliance.

✅ No staff reductions; staged implementation from Feb 28.

As Hydro-Que9bec prepares to play a key role in the transition to a low-carbon economy, the complexity of the work to be done in the coming decade requires that it develop a global vision of its operations and assets, from the drop of water entering its turbines to the behind-the-meter technologies marketed by its subsidiary Hilo. This has prompted the company to implement a new corporate structure that will maximize cooperation and agility, including employee-led pandemic support that builds community trust, making it possible to bring about the energy transition efficiently with a view to supporting the realization of Quebecers’ collective aspirations.

Toward a single, unified Hydro

Hydro-Québec’s core mission revolves around four major functions that make up the company’s value chain, alongside policy choices like peak-rate relief during emergencies. These functions consist of:

1. Developing corporate strategies based on current and future challenges and business opportunities
2. Planning energy needs and effectively allocating financial capital, factoring in pandemic-related revenue impacts on demand and investment timing
3. Designing and building the energy system’s multiple components
4. Operating assets in an integrated fashion and providing the best customer experience by addressing customer choice and flexibility expectations across segments.

Accordingly, Hydro-Québec will henceforth comprise four groups respectively in charge of strategy and development; integrated energy needs planning; infrastructure and the energy system; and operations and customer experience, including billing accuracy concerns that can influence satisfaction. To enable the company to carry out its mission, these groups will be able to count on the support of other groups responsible for corporate functions.

Across Canada, leadership changes at other utilities highlight the need to rebuild ties with governments and investors, as seen with Hydro One's new CEO in Ontario.

“For over 20 years, Hydro-Québec has been operating in a vertical structure based on its main activities, namely power generation, transmission and distribution. This approach must now give way to one that provides a cross-functional perspective allowing us to take informed decisions in light of all our needs, as well as those of our customers and the society we have the privilege to serve,” explained Hydro-Québec’s President and Chief Executive Officer, Sophie Brochu.

In terms of gender parity, the management team continues to include several men and women, thus ensuring a diversity of viewpoints.

Hydro-Québec’s new structure complies with the regulatory requirements of the North American power markets, in particular with regard to the need to provide third parties with non-discriminatory access to the company’s transmission system. The frameworks in place ensure that certain functions remain separate and help coordinate responses to operational events such as urban distribution outages that challenge continuity of service.

These changes, which will be implemented gradually as of Monday, February 28, do not aim to achieve any staff reductions.

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Near-Field Thermophotovoltaics captures radiated energy across a nanoscale gap, using thin-film photovoltaic cells and indium gallium arsenide to boost power density and efficiency, enabling compact Army portable power from emitters via radiative heat transfer.

Key Points

A nanoscale TPV method capturing near-field photons for higher power density at lower emitter temperatures.

✅ Nanoscale gap boosts radiative transfer and usable photon flux

✅ Thin-film InGaAs cells recycle sub-band-gap photons via reflector

✅ Achieved ~5 kW/m2 power density with higher efficiency

With the addition of sensors and enhanced communication tools, providing lightweight, portable power has become even more challenging, with concepts such as power from falling snow illustrating how diverse new energy-harvesting approaches are. Army-funded research demonstrated a new approach to turning thermal energy into electricity that could provide compact and efficient power for Soldiers on future battlefields.

Hot objects radiate light in the form of photons into their surroundings. The emitted photons can be captured by a photovoltaic cell and converted to useful electric energy. This approach to energy conversion is called far-field thermophotovoltaics, or FF-TPVs, and has been under development for many years; however, it suffers from low power density and therefore requires high operating temperatures of the emitter.

The research, conducted at the University of Michigan and published in Nature Communications, demonstrates a new approach, where the separation between the emitter and the photovoltaic cell is reduced to the nanoscale, enabling much greater power output than what is possible with FF-TPVs for the same emitter temperature.

This approach, which enables capture of energy that is otherwise trapped in the near-field of the emitter is called near-field thermophotovoltaics or NF-TPV and uses custom-built photovoltaic cells and emitter designs ideal for near-field operating conditions, alongside emerging smart solar inverters that help manage conversion and delivery.

This technique exhibited a power density almost an order of magnitude higher than that for the best-reported near-field-TPV systems, while also operating at six-times higher efficiency, paving the way for future near-field-TPV applications, including remote microgrid deployments in extreme environments, according to Dr. Edgar Meyhofer, professor of mechanical engineering, University of Michigan.

"The Army uses large amounts of power during deployments and battlefield operations and must be carried by the Soldier or a weight constrained system," said Dr. Mike Waits, U.S. Army Combat Capabilities Development Command's Army Research Laboratory. "If successful, in the future near-field-TPVs could serve as more compact and higher efficiency power sources for Soldiers as these devices can function at lower operating temperatures than conventional TPVs."

The efficiency of a TPV device is characterized by how much of the total energy transfer between the emitter and the photovoltaic cell is used to excite the electron-hole pairs in the photovoltaic cell, where insights from near-light-speed conduction research help contextualize performance limits in semiconductors. While increasing the temperature of the emitter increases the number of photons above the band-gap of the cell, the number of sub band-gap photons that can heat up the photovoltaic cell need to be minimized.

"This was achieved by fabricating thin-film TPV cells with ultra-flat surfaces, and with a metal back reflector," said Dr. Stephen Forrest, professor of electrical and computer engineering, University of Michigan. "The photons above the band-gap of the cell are efficiently absorbed in the micron-thick semiconductor, while those below the band-gap are reflected back to the silicon emitter and recycled."

The team grew thin-film indium gallium arsenide photovoltaic cells on thick semiconductor substrates, and then peeled off the very thin semiconductor active region of the cell and transferred it to a silicon substrate, informing potential interfaces with home battery systems for distributed use.

All these innovations in device design and experimental approach resulted in a novel near-field TPV system that could complement distributed resources in virtual power plants for resilient operations.

"The team has achieved a record ~5 kW/m2 power output, which is an order of magnitude larger than systems previously reported in the literature," said Dr. Pramod Reddy, professor of mechanical engineering, University of Michigan.

Researchers also performed state-of-the-art theoretical calculations to estimate the performance of the photovoltaic cell at each temperature and gap size, informing hybrid designs with backup fuel cell solutions that extend battery life, and showed good agreement between the experiments and computational predictions.

"This current demonstration meets theoretical predictions of radiative heat transfer at the nanoscale, and directly shows the potential for developing future near-field TPV devices for Army applications in power and energy, communication and sensors," said Dr. Pani Varanasi, program manager, DEVCOM ARL that funded this work.

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California Governor Gavin Newsom vetoed a bill aimed at expanding load flexibility in state grid planning, citing conflicts with California’s resource adequacy framework and concerns over grid reliability and energy planning uncertainty.

Why has Newsom vetoed the Bill to Codify Load Flexibility?

Governor Gavin Newsom’s veto blocks legislation that would have required the California Energy Commission to incorporate load flexibility into the state’s energy planning and policy framework, a move that has stirred debate across the clean energy sector.

✅ Argues the bill conflicts with California’s existing Resource Adequacy system

✅ Draws backlash from clean energy and grid modernization advocates

✅ Exposes ongoing tension over how to manage renewable integration and demand response

California Governor Gavin Newsom has vetoed Assembly Bill 44, which would have required the California Energy Commission to evaluate and incorporate load management mechanisms into the state’s energy planning process. The move drew criticism from clean energy advocates who say it undermines efforts to strengthen grid reliability and reduce costs.

The bill directed the commission to adopt “upfront technical requirements and load modification protocols” that would allow load-serving entities to adjust their electrical demand forecasts. Proponents viewed this as a way to modernize California’s grid management, and to explore a revamp of electricity rates to help clean the grid, making it more responsive to demand fluctuations and renewable energy variability.

In his veto statement, Newsom said the bill was incompatible with existing energy planning frameworks, even as a looming electricity shortage remains a concern. “While I support expanding electric load flexibility, this bill does not align with the California Public Utility Commission’s Resource Adequacy framework,” he said. “As a result, the requirements of this bill would not improve electric grid reliability planning and could create uncertainty around energy resource planning and procurement processes.”

Newsom’s decision comes shortly after he signed a broad package of energy legislation that set the stage for a regional Western electricity market and extended the state’s cap-and-trade program. However, that legislative package did not include continued funding for several key grid reliability programs — including what advocates have called the world’s largest virtual power plant, a distributed network of connected devices that can balance electricity demand in real time.

Clean energy supporters saw AB 44 as a crucial step toward integrating these distributed energy resources into long-term grid planning. “With Assembly Bill 44 being vetoed, the state has missed a huge opportunity to advance common-sense policy that would have lowered costs, strengthened the grid, and unlocked the full potential of advanced energy,” said Edson Perez, California lead at Advanced Energy United.

Perez added that the setback increases pressure on lawmakers to take stronger action in the next legislative session. “The pressure is on next session to ensure that California is using all tools in its policy toolbox to build critically needed infrastructure, strengthen the grid, and bring costs down,” he said.

California’s growing use of demand response programs and virtual power plants has been central to its strategy for managing grid stress during heat waves and wildfire seasons. These systems allow utilities and customers to temporarily reduce or shift energy use, helping to prevent blackouts and reduce the need for fossil-fuel peaker plants during peak demand.

A recent report by the Brattle Group found that California’s taxpayer-funded virtual power plant could save ratepayers $206 million between 2025 and 2028 while reducing reliance on gas generation. The study, commissioned by Sunrun and Tesla Energy, highlighted the potential for flexible load management to improve both grid reliability and reduce costs, even as regulators weigh whether the state needs more power plants to ensure reliability.

Despite these findings, Newsom’s veto signals continued tension between state policymakers and clean energy advocates over how best to modernize California’s power grid. While the governor has prioritized large-scale renewable development and regional market integration, critics argue that California’s climate policy choices risk exacerbating reliability challenges and that failing to codify load flexibility could slow progress toward a more adaptive, resilient, and affordable clean energy future.

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