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Virtual Power Plants orchestrate distributed energy resources like rooftop solar, home batteries, and EVs to deliver grid services, demand response, peak shaving, and resilience, lowering costs while enhancing reliability across wholesale markets and local networks.

Key Points

Virtual Power Plants aggregate solar and batteries to provide grid services, cut peak costs, and boost reliability.

✅ Aggregates DERs via cloud to bid into wholesale markets

✅ Reduces peak demand, defers costly grid upgrades

✅ Enhances resilience vs outages, cyber risks, and wildfires

If “virtual” meetings can allow companies to gather without anyone being in the office, then remotely distributed solar panels and batteries can harness energy and act as “virtual power plants.” It is simply the orchestration of millions of dispersed assets within a smarter electricity infrastructure to manage the supply of electricity — power that can be redirected back to the grid and distributed to homes and businesses. 

The ultimate goal is to revamp the energy landscape, making it cleaner and more reliable. By using onsite generation such as rooftop solar and smart solar inverters in combination with battery storage, those services can reduce the network’s overall cost by deferring expensive infrastructure upgrades and by reducing the need to purchase cost-prohibitive peak power. 

“We expect virtual power plants, including aggregated home solar and batteries, to become more common and more impactful for energy consumers throughout the country in the coming years,” says Michael Sachdev, chief product officer for Sunrun Inc., a rooftop solar company, in an interview. “The growth of home solar and batteries will be most apparent in places where households have an immediate need for backup power, as they do in California, where grid reliability pressures have led utilities to turn off the electricity to reduce wildfire risk.”

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Home battery adoption, such as Tesla Powerwall systems, is becoming commonplace in Hawaii and in New England, he adds, because those distributed assets are improving the efficiency of the electrical network. It is a trend that is reshaping the country’s energy generation and delivery system by relying more on clean onsite generation and less on fossil fuels.

Sunrun has recently formed a business partnership with AutoGrid, which will manage Sunrun’s fleet of rechargeable batteries. It is a cloud-based system that allows Sunrun to work with utilities to dispatch its “storage fleet” to optimize the economic results. AutoGrid compiles the data and makes AI-driven forecasts that enable it to pinpoint potential trouble spots. 

But a distributed energy system, or a virtual power plant, would have 200,000 subsystems. Or, 200,000 5 kilowatt batteries would be the equivalent of one power plant that has a capacity of 1,000 megawatts. 

“A virtual power plant acts as a generator,” says Amit Narayan, chief executive officer of AutoGrid, in an interview. “It is one of the top five innovations of the decade. If you look at Sunrun, 60% of every solar system it sells in the Bay Area is getting attached to a battery. The value proposition comes when you can aggregate these batteries and market them as a generation unit. The pool of individual assets may improve over time. But when you add these up, it is better than a large-scale plant. It is like going from mainframe computers to laptops.”

The AutoGrid executive goes on to say that centralized systems are less reliable than distributed resources. While one battery could falter, 200,000 of them that operate from remote locations will prove to be more durable — able to withstand cyber attacks and wildfires. Sunrun’s Sachdev adds that the ability to store energy in batteries, as seen in California’s expanding grid-scale battery use supporting reliability, and to move it to the grid on demand creates value not just for homes and businesses but also for the network as a whole.

The good news is that the trend worldwide is to make it easier for smaller distributed assets, including energy storage for microgrids that support local resilience, to get the same regulatory treatment as power plants. System operators have been obligated to call up those power supplies that are the most cost-effective and that can be easily dispatched. But now regulators are giving virtual power plants comprised of solar and batteries the same treatment. 

In the United States, for example, the Federal Energy Regulatory Commission issued an order in 2018 that allows storage resources to participate in wholesale markets — where electricity is bought directly from generators before selling that power to homes and businesses. Under the ruling, virtual power plants are paid the same as traditional power suppliers. A federal appeals court this month upheld the commission’s order, saying that it had the right to ensure “technological advances in energy storage are fully realized in the marketplace.” 

“In the past, we have used back-up generators,” notes AutoGrid’s Narayan. “As we move toward more automation, we are opening up the market to small assets such as battery storage and electric vehicles. As we deploy more of these assets, there will be increasing opportunities for virtual power plants.” 

Virtual power plants have the potential to change the energy horizon by harnessing locally-produced solar power and redistributing that to where it is most needed — all facilitated by cloud-based software that has a full panoramic view. At the same time, those smaller distributed assets can add more reliability and give consumers greater peace-of-mind — a dynamic that does, indeed, beef-up America’s generation and delivery network.

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Jay Grewal Manitoba Hydro Appointment marks the first woman CEO at the Crown utility, amid debt, rate increase plans, privatization debate, and Metis legal challenge, following board turmoil and Premier Pallister's strained relations.

Key Points

The selection of Jay Grewal as Manitoba Hydro's first woman CEO amid debt, rate hikes, and legal disputes.

✅ First woman CEO of Manitoba Hydro

✅ Faces debt, rate hikes, and project overruns

✅ Amid privatization debate and Metis legal action

The Manitoba government has appointed a new president and chief executive officer at its Crown-owned energy utility.

Jay Grewal becomes the first woman to head Manitoba Hydro, and takes over the top spot as the utility faces mounting financial challenges, rising electricity demand and turmoil.

Grewal has previously held senior roles at Capstone Mining Corp and B.C. Hydro, and is currently president of the Northwest Territories Power Corporation.

She will replace outgoing president Kelvin Shepherd, who recently announced he is retiring, on Feb. 4.

The utility was hit by the sudden resignations of nine of its 10 board members in March, who said they had been unable to meet with Premier Brian Pallister to discuss pressing issues like servicing energy-intensive customers facing the utility.

Manitoba Hydro is also in the middle of a battle between the Progressive Conservative government and the Manitoba Metis Federation over the cancellation of two agreements that would have given the Metis $87 million.

The federation has launched a legal challenge over one deal and says its likely going to do the same over the second agreement.

Grewal also takes over the utility at a time when it has racked up billions of dollars in debt building new generating stations and transmission lines. Manitoba Hydro has told the provincial regulatory agency it needs rate increases of nearly eight per cent a year for the next few years to help pay for the projects.

The utility also exports electricity, with deals such as SaskPower's purchase agreement expanding sales to Saskatchewan.

"Ms. Grewal is a proven leader, with extensive senior leadership experience in the utility, resource and consulting sectors," Crown Services Minister Colleen Mayer said in a written statement Thursday.

The Opposition New Democrats said Grewal's appointment is a sign the government wants to privatize Manitoba Hydro. Grewal's time at B.C. Hydro coincided with the privatization of some parts of that Crown utility, the NDP said.

The B.C. premier at the time, Gordon Campbell, was recently hired by Manitoba to review two major projects that ran over-budget and have added to the provincial debt.

NDP Leader Wab Kinew asked Pallister in the legislature Thursday to promise not to privatize Manitoba Hydro. Pallister would only point to a law that requires a referendum to be held before a Crown entity can be sold off.

"We stand by that (law)," Pallister said. "We believe Manitobans are the proper decision-makers in respect of any of the future structuring of Manitoba Hydro."

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Canada 2035 Clean Electricity Target faces a 48.4GW shortfall as renewable capacity lags; accelerating wind, solar PV, grid upgrades, and coherent federal-provincial policy is vital to reach zero-emissions power and strengthen transmission and distribution.

Key Points

Canada's plan to supply nearly 100% of electricity from zero-emitting sources by 2035, requiring renewable buildout.

✅ Average adds 2.6GW; shortfall totals 48.4GW by 2035

✅ Expand wind, solar PV, storage, and grid modernization

✅ Align federal-province policy; retire or convert thermal plants

GlobalData’s latest report, ‘Canada Power Market Size and Trends by Installed Capacity, Generation, Transmission, Distribution and Technology, Regulations, Key Players and Forecast, 2022-2035’, discusses the power market structure of Canada and, amid looming power challenges, provides historical and forecast numbers for capacity, generation and consumption up to 2035. Detailed analysis of the country’s power market regulatory structure, competitive landscape and a list of major power plants are provided. The report also gives a snapshot of the power sector in the country on broad parameters of macroeconomics, supply security, generation infrastructure, transmission and distribution infrastructure, electricity import and export scenario, degree of competition, regulatory scenario, and future potential. An analysis of the deals in the country’s power sector is also included in the report.

Canada is expected to fall short of its 2035 clean electricity target after reviewing the country’s current renewable capacity activity. The country has targeted to produce nearly 100% of its electricity from zero-emitting sources by 2035, while electricity associations' net-zero goals extend to 2050; however, the country is adding only 2.6GW of annual renewable capacity additions on average every year, which would mean a cumulative shortfall of 48.4GW.

Canada has good governmental support, but it is not doing enough to ensure its targets are met. If the country is to meet its target to produce nearly 100% of electricity from zero-emitting sources by 2035, the country should both increase the capacity and efficiency of renewable power plants, as well as provide comprehensive end-to-end policies at both the federal and provincial levels, as debates over whether Ontario is embracing clean power continue across provinces. It should also involve communities and businesses in raising awareness of the benefits of adopting renewable energy.

The country has a large amount of proven natural gas and oil reserves that are proving too tempting an opportunity, and the Canadian Government is planning to increase the capacity of its gas-based plants under net-zero regulations permit some gas in the power mix, to secure real-time demand and supply. However, the country’s dependency on gas-based plants creates a major challenge to achieve its 2035 clean electricity target.

If the Canadian Government is to meet its 2035 targets, it should draw on examples from its European counterparts and add renewable capacity at a rapid pace, while balancing demand and emissions in key provinces. One advantage for Canada here is that it does not have land constraints, which is common in other major renewable power-generating countries. This could give the country an estimated 6.1GW of renewable capacity every year on average during the 2021-2035 period: enough capacity to meet its target. Most of these installations are expected to be for wind and solar PV.

Changing provincial governments are not helpful when it comes to implementing long-term projects, especially as Ontario faces looming electricity shortfalls that heighten planning risks, and continued stopping and starting of projects like this will only be damaging to renewable goals. Another way the country can achieve its target is by converting thermal power plants into clean energy plants and providing a roadmap or timeline for provinces to retire thermal power plants completely, even as scrapping coal can be costly for some systems.

Canada’s GDP (at constant prices) increased from $1,617.3bn in 2010 to $1,924.5bn in 2021, at a CAGR of 1.6%. The GDP (at constant prices) of the country declined sharply from $1,943.8bn in 2019 to $1,840.5bn in 2020 because of Covid-19 pandemic. After the recommencement of regular industrial and trade activities, the GDP grew by 4.6% in 2021 from 2020. The GDP is expected to cross pre-pandemic levels by the end of 2022.

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Ontario Electricity Pricing Pilot Projects explore alternative rates beyond time-of-use, with LDCs and the Ontario Energy Board testing dynamic pricing, demand management, smart-meter billing, and residential customer choice to enhance service and energy efficiency.

Key Points

Ontario LDC trials testing alternatives to time-of-use rates to improve billing, demand response, and efficiency.

✅ Data shared across LDCs and Ontario Energy Board provincewide

✅ Tests dynamic pricing, peak/off-peak plans, demand management

✅ Insights to enhance customer choice, bills, and energy savings

The results from three electricity pilot projects being offered in southern Ontario will be valuable to utility companies across the province.

Ontario Energy Minister Glenn Thibeault was in Barrie on Tuesday to announce the pilot projects, which will explore alternative pricing plans for electricity customers from three different utility companies, informed by the electricity cost allocation framework guiding rate design.

"Everyone in the industry is watching to see how the pilots deliver.", said Wendy Watson, director of communications for Greater Sudbury Utilities.

"The data will be shared will all the LDCs [local distribution companies] in the province, and probably beyond...because the industry tends to share that kind of information."

Most electricity customers in the province are billed using time-of-use rates, including options like the ultra-low overnight rates that lower costs during off-peak periods, where the cost of electricity varies depending on demand.

The Ontario Energy Board said in a media release that the projects will give residential customers more choice in how much they pay for electricity at different times, reflecting changes for Ontario electricity consumers that expand plan options.

Pilot projects can help improve service

Watson says these kinds of projects give LDCs the chance to experiment and explore new ways of delivering their service, including demand-response initiatives like the Peak Perks program that encourage conservation.

"Any pilot project is a great way to see if in practice if the theory proves out, so I think it's great that the province is supporting these LDCs," she says.

GSU recently completed its own pilot project, the Home Energy Assessment and Retrofit (HEAR) program, which focused on customers who use electric baseboards to heat their homes, amid broader provincial support for electric bills to ease costs."We installed some measures, like programmable thermostats and a few other pieces of equipment into their house," Watson says. "We also made some recommendations about other things that they could do to make their homes more energy efficient."

At the end of the program, GSU provided customers with a report so that they could the see the overall impact on their energy consumption.

Watson says a report on the results of the HEAR program will be released in the near future, for other LDCs interested in new ways to improve their service.

"We think it's incumbent on every LDC...to see what ideas that they can come up with and get approved so they can best serve their customers."

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EU Renewable Power Overtakes Fossil Fuels, reflecting a greener energy mix as wind, solar, and hydro expand, cutting CO2 emissions and curbing coal while negative prices rise amid pandemic-driven demand drops.

Key Points

A milestone as renewables surpass fossil power in the EU, driven by wind, solar, hydro growth and pandemic demand.

✅ 40% renewables vs 34% fossil in H1 across 27 EU states

✅ Wind, solar, hydro rose; coal generation fell 32% year-on-year

✅ Lower demand, carbon prices, grid priority boosted clean output

Renewable power for the first time contributed a bigger share in the European generation mix than fossil fuels, as described in Europe's green surge as the fallout from the pandemic cut energy demand.

About 40 percent of the electricity in the first half in the 27 EU countries came from renewable sources, exceeding the global renewables share reported elsewhere, compared with 34 percent from plants burning fossil fuels, according to environmental group Ember in London. As a result, carbon dioxide emissions from the power sector fell 23 percent.

The rise is significant and encouraging for law makers as Europe prepares to spend billions of euros to recover from the virus, with wind power investments underscoring the momentum, and set the bloc on track to neutralize its carbon footprint by the middle of the century.

“This marks a symbolic moment ​in the transition of Europe’s electricity sector,” said Dave Jones, an electricity analyst at Ember. “For countries like Poland and Czech Republic grappling with how to get off coal, there is now a clear way out.”

While power demand slumped, output from wind and solar farms increased, reflecting global wind and solar gains, because more plants came online in breezy and sunny weather. At the same time, wet conditions boosted hydro power in Iberia and the Nordic markets.

Those conditions helped renewables become a rare bright spot throughout the economic tumult this year. In many areas, renewable sources of electricity have priority to the grid, meaning they could keep growing even as demand shrank and other power plants were turned off.

Electricity demand in the EU fell 7 percent overall. Fossil-fuel power generation plunged 18 percent in the first half compared with a year earlier. Renewable generation grew by 11 percent, according to Ember.

Coal was by far the biggest loser in 2020. It’s one of the most-polluting sources of power and its share is slumping in Europe as the price of carbon increases, with renewables surpassing coal in the US illustrating the broader shift, and governments move to cut emissions. Power from coal fell 32 percent across the EU.

Despite the economics, the decision to shut off coal for good will come down to political agreements between producers and governments, while reducing reliance on Russian energy reshapes policy debates.

One consequence of the jump in renewables is that negative prices have increased, as solar is reshaping prices in Northern Europe in similar ways. On particularly windy or sunny days when there isn’t much demand, the grid can be flooded with power. That’s leading wind farms to be shut off and customers to be paid to consume electricity.

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Hydro-Québec Bill 34 Refund issues $535M customer credits tied to electricity rates, consumption-based rebates, and variance accounts, averaging $60 per account and 2.49% of 2018-2019 usage, via bill credits or mailed cheques.

Key Points

A $535M credit refunding 2.49% of 2018-2019 usage to Hydro-Québec customers via bill credits or cheques.

✅ Applies to 2018-2019 consumption; average refund about $60.

✅ Current customers get bill credits; former customers receive cheques.

✅ Refund equals 2.49% of usage from variance accounts under prior rates.

Following the adoption of Bill 34 in December 2019, a total amount of $535 million will be refunded to customers who were Hydro-Québec account holders in 2018 or 2019. This amount was accumulated in variance accounts required under the previous rate system between January 1, 2018, and December 31, 2019.

If you are still a Hydro-Québec customer, a credit will be applied to your bill in the coming weeks, and improving billing layout clarity is a focus in some provinces as well. The amount will be indicated on your bill.

An average refund amount of $60. The refund amount is calculated based on the quantity of electricity that each customer consumed in 2018 and 2019. The refund will correspond to 2,49% of each customer's consumption between January 1, 2018, and December 31, 2019, for an average of approximately $60, while Ontario hydro rates are set to increase on Nov. 1.

The following chart provides an overview of the refund amount based on the type of home. Naturally, the number of occupants, electricity use habits and features of the home, such as insulation and energy efficiency, may have a significant impact on the amount of the refund, and in other provinces, oversight debates continue following a BC Hydro fund surplus revelation.

What if you were an account holder in 2018 or 2019 but you are no longer a Hydro-Québec customer?
People who were account holders in 2018 or 2019, but who are no longer Hydro-Québec customers will receive their credit by cheque, a lump sum credit approach seen elsewhere.

To receive their cheque, these people must get in touch to update their address in one of the following ways:  

If they have a Hydro-Québec Customer Space and remember their access code, they can update their profile.

Anyone without a Customer Space or who doesn't remember their access code can fill out the Request for a credit form at the following address: www.hydroquebec.com/credit in which they can indicate the address where they wish to receive their cheque, where applicable.

Those who cannot send us their address online can call 514 385-7252 or 1 888 385-7252 to give it to a customer services representative, as utilities like Hydro One have moved to reconnect customers in some cases. Note that the process will take longer on the phone, especially if the call volume is high.

UPDATE: Hydro-Québec will be returning an additional $35 million to customers under the adoption of Bill 34, amid overcharging allegations reported elsewhere.

Energy Minister Jonatan Julien announced on Tuesday that the public utility will be refunding a total of $535 million to customers between January and April.

The legislation, which was passed in December, allows the Quebec government to take control of the rates charged for electricity in the province, including decisions on whether to seek a rate hike next year under the new framework.

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