Report calls for sale of Hydro-Québec

By Globe and Mail


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Hydro-Québec is racked by wretched inefficiency and would be better off to Quebec being privatized, according to a new study commissioned by the Montreal Economic Institute.

The long-awaited study, to be released and authored by Claude Garcia, the retired former head of Standard Life's Canadian unit, is likely to reignite a political debate in Quebec about how to best exploit the province's vast hydroelectric resources.

Mr. Garcia last year estimated Hydro-Québec's market value at an eye-popping $130-billion, based on average North American electricity prices. Actually getting that much for Hydro-Québec, the developed world's biggest hydroelectric utility, would be unlikely, however, since power rates in Quebec are currently fixed well below market prices.

Hydro-Québec, a symbol of provincial economic prowess that took flight with the 1963 nationalization of the province's hydroelectric industry, currently charges deeply discounted rates to consumers in the province. Surpluses are sold to customers in the United States at market rates, but the highly profitable exports only account for about 10 per cent of Hydro-Québec's $12.3-billion in annual sales.

Big industrial energy users in Quebec, such as aluminum smelters and paper mills, pay on average only half as much as factories operating in Ontario and a quarter of the amount that is charged in Boston or New York.

Critics say the pricing strategy encourages overconsumption – and hence, overbuilding – in Quebec and deprives the utility of billions in potential revenues.

Mr. Garcia's study is the most comprehensive to date in its scrutiny of Hydro-Québec's operational efficiency and business strategy.

The study also challenges Premier Jean Charest's use of Hydro-Québec to further the government's own economic growth targets. The premier has ordered the utility to embark on an aggressive dam construction phase aimed at adding 4,500 megawatts of new hydro capacity by 2015.

Mr. Charest recently boasted that the additional dam building, combined with other Hydro-Québec projects already under way, puts Quebec well ahead of the rest of Canada in adopting a stimulus package to rescue the flagging economy.

At Mr. Charest's behest, Hydro-Québec will invest $5-billion in new construction this year, compared with $4.5-billion in 2008 and $3.6-billion in 2007.

But according to Hydro-Québec's own estimates, the bulk of the new hydro generating stations will produce electricity for almost twice as much as the utility currently charges domestic consumers.

And if the past is any guide, Mr. Garcia fears the new dams will come in vastly over budget.

Mr. Charest said the investment by Hydro-Québec, coupled with the provincial government's own infrastructure program, will pump $72-billion into the Quebec economy in the next decade.

“Thanks to this plan we're ahead of other governments,” Mr. Charest said at the World Economic Forum in Davos, Switzerland, where he told reporters he was negotiating with investors to attract “hundreds of millions of dollars” to the province.

Quebec regularly uses cheap electricity, and guarantees of low prices on a long-term basis, to entice industry to the province. Mr. Garcia's study documents the true costs of Hydro-Québec's strategy, while demonstrating just how inefficient the government-owned monopoly has become.

For instance, according to the study, the implementation of a new “client information system” was supposed to cost $270-million when it was announced in 2002. But the initiative is behind schedule and now expected to cost double the 2002 projection, without providing the promised productivity gains.

The privatization of Hydro-Québec, along with a gradual increase in electricity rates and the introduction of competition in the marketplace, would raise tens of billions to pay down Quebec's massive $124-billion net public debt and increase the government's annual tax haul, the study concludes.

As a Crown corporation, Hydro-Québec does not pay federal or provincial income taxes, though it sends an annual dividend to Quebec City. The dividend totalled $2.1-billion in 2007.

During last fall's election campaign, the opposition Action Démocratique du Québec proposed selling off 7.5 per cent of Hydro-Québec to citizens in the province to raise $10-billion and inject a dose of transparency into the often-secretive utility. By selling shares to the public, Hydro-Québec would be forced to adhere to the same disclosure rules as other publicly traded companies.

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Australia to head huge electricity and internet project in PNG

Australia-PNG Infrastructure Rollout delivers electricity and broadband expansion across PNG, backed by New Zealand, the US, Japan, and South Korea, enhancing telecom capacity, digital connectivity, and regional development ahead of the APEC summit.

 

Key Points

A multi-billion-dollar plan to expand power and broadband in PNG, covering 70% of users with allied support.

✅ Delivers internet to 70% of PNG households and communities

✅ Expands electricity grid, boosting reliability and access

✅ Backed by NZ, US, Japan, and S. Korea; complements APEC investments

 

Australia will lead a new multi-billion-dollar electricity and internet rollout in Papua New Guinea, with the PM rules out taxpayer-funded power plants stance underscoring its approach to energy policy.

The Australian newspaper reported New Zealand, the US, Japan, whose utilities' offshore wind deal in the UK signaled expanding energy interests, and South Korea are supporting the project, which will be PNG's largest ever development investment.

The project will deliver internet to 70 percent of PNG and improve access to power, even as clean energy investment in developing nations has slipped sharply, according to a recent report.

Both China and the US are also expected to announce new investments in the region at the APEC summit this week, and recent China-Cambodia nuclear energy cooperation underscores those energy ties.

Beijing will announce new mining and energy investments in PNG, echoing projects such as the Chinese-built electricity poles plant in South Sudan, and two Confucius Insitutes to be housed at PNG universities.

 

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There's a Russia-Sized Mystery in China's Electricity Sector

China Power Demand-Emissions Gap highlights surging grid demand outpacing renewables, with coal filling shortages despite record solar, wind, EV charging, and hydrogen growth, threatening decarbonization targets and net-zero pathways through 2030.

 

Key Points

China's power demand outpaces renewables, keeping coal dominant and raising emissions risk through the 2020s.

✅ Record solar and wind still lag fast grid demand growth

✅ Coal fills gaps as EV charging and hydrogen loads rise

✅ Forecasts diverge: CEC bullish vs IEA, BNEF conservative

 

Here’s a new obstacle that could prevent the world finally turning the corner on climate change: Imagine that over the coming decade a whole new economy the size of Russia were to pop up out of nowhere. With the world’s fourth-largest electricity sector and largest burden of power plant emissions after China, the U.S. and India, this new economy on its own would be enough to throw out efforts to halt global warming — especially if it keeps on growing through the 2030s.

That’s the risk inherent in China’s seemingly insatiable appetite for grid power, as surging electricity demand is putting systems under strain worldwide.

From the cracking pace of renewable build-out last year, you might think the country had broken the back of its carbon addiction. A record 55 gigawatts of solar power and 48 gigawatts of wind were connected — comparable to installing the generation capacity of Mexico in less than 12 months. This year will see an even faster pace, with 93 GW of solar and 50 GW of wind added, according to a report last week from the China Electricity Council, an industry association.

That progress could in theory see the country’s power sector emissions peak within months, rather than the late-2020s date the government has hinted at. Combined with a smaller quantity of hydro and nuclear, low-emissions sources will probably add about 310 terawatt-hours to zero-carbon generation this year. That 3.8% increase would be sufficient to power the U.K.

Countries that have reached China’s levels of per-capita electricity consumption (already on a par with most of Europe) typically see growth rates at less than half that level, even as global power demand has surged past pre-pandemic levels in recent years. Grid supply could grow at a faster pace than Brazil, Iran, South Korea or Thailand managed over the past decade without adding a ton of additional carbon to the atmosphere.

There’s a problem with that picture, however. If electricity demand grows at an even more headlong pace, there simply won’t be enough renewables to supply the grid. Fossil fuels, overwhelmingly coal, will fill the gap, a reminder of the iron law of climate dynamics in energy transitions.

Such an outcome looks distinctly possible. Electricity consumption in 2021 grew at an extraordinary rate of 10%, and will increase again by between 5% and 6% this year, according to the CEC. That suggests the country is on pace to match the CEC’s forecasts of bullish grid demand over the coming decade, with generation hitting 11,300 terawatt-hours in 2030. External analysts, such as the International Energy Agency and BloombergNEF, envisage a more modest growth to around 10,000 TWh. 

The difference between those two outlooks is vast — equivalent to all the electricity produced by Russia or Japan. If the CEC is right and the IEA and BloombergNEF are wrong, even the furious rate of renewable installations we’re seeing now won’t be enough to rein in China’s power-sector emissions.

Who’s correct? On one hand, it’s fair to say that power planners usually err on the side of overestimation. If your forecast for electricity demand is too high, state-owned generators will be less profitable than they otherwise would have been — but if it’s too low, you’ll see power cuts and shutdowns like China witnessed last autumn, with resulting power woes affecting supply chains beyond its borders.

On the other hand, the decarbonization of China’s economy itself should drive electricity demand well above what we’ve seen in the past, with some projections such as electricity meeting 60% of energy use by 2060 pointing to a profound shift. Some 3.3 million electric vehicles were sold in 2021 and BloombergNEF estimates a further 5.7 million will be bought in 2022. Every million EVs will likely add in the region of 2 TWh of load to the grid. Those sums quickly mounts up in a country where electric drivetrains are taking over a market that shifts more than 25 million new cars a year.

Decarbonizing industry, a key element on China’s road to zero emissions, could also change the picture. The IEA sees the country building 25 GW of electolysers to produce hydrogen by 2030, enough to consume some 200 TWh on their own if run close to full-time.

That’s still not enough to justify the scale of demand being forecast, though. China is already one of the least efficient countries in the world when it comes to translating energy into economic growth, and despite official pressure on the most wasteful, so called “dual-high” industries such as steel, oil refining, glass and cement, its targets for more thrifty energy usage remain pedestrian.

The countries that have decarbonized fastest are those, such as Germany, the U.K and the U.S., where Americans are using less electricity, that have seen power demand plateau or even decline, giving new renewable power a chance to swap out fossil-fired generators without chasing an ever-increasing burden on the grid. China’s inability to do this as its population peaks and energy consumption hits developed-country levels isn’t a sign of strength.

Instead, it’s a sign of a country that’s chronically unable to make the transition away from polluting heavy industry and toward the common prosperity and ecological civilization that its president keeps promising. Until China reins in that credit-fueled development model, the risks to its economy and the global climate will only increase.

 

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DOE Announces $28M Award for Wind Energy

DOE Wind Energy Funding backs 13 R&D projects advancing offshore wind, distributed energy, and utility-scale turbines, including microgrids, battery storage, nacelle and blade testing, tall towers, and rural grid integration across the United States.

 

Key Points

DOE Wind Energy Funding is a $28M R&D effort in offshore, distributed, and utility-scale wind to lower cost and risk.

✅ $6M for rural microgrids, storage, and grid integration.

✅ $7M for offshore R&D, nacelle and long-blade testing.

✅ Up to $10M demos; $5M for tall tower technology.

 

The U.S. Department of Energy announced that in order to advance wind energy in the U.S., 13 projects have been selected to receive $28 million. Project topics focus on technology development while covering distributed, offshore wind growth and utility-scale wind found on land.

The selections were announced by the DOE’s Assistant Secretary for the Office of Energy Efficiency and Renewable Energy, Daniel R. Simmons, at the American Wind Energy Association Offshore Windpower Conference in Boston, as New York's offshore project momentum grows nationwide.

 

Wind Project Awards

According to the DOE, four Wind Innovations for Rural Economic Development projects will receive a total of $6 million to go toward supporting rural utilities via facilitating research drawing on U.K. wind lessons for deployment that will allow wind projects to integrate with other distributed energy resources.

These endeavors include:

Bergey WindPower (Norman, Oklahoma) working on developing a standardized distributed wind/battery/generator micro-grid system for rural utilities;

Electric Power Research Institute (Palo Alto, California) working on developing modeling and operations for wind energy and battery storage technologies, as large-scale projects in New York progress, that can both help boost wind energy and facilitate rural grid stability;

Iowa State University (Ames, Iowa) working on optimization models and control algorithms to help rural utilities balance wind and other energy resources; and

The National Rural Electric Cooperative Association (Arlington, Virginia) providing the development of standardized wind engineering options to help rural-area adoption of wind.

Another six projects are to receive a total of $7 million to facilitate research and development in offshore wind, as New York site investigations advance, with these projects including:

Clemson University (North Charleston, South Carolina) improving offshore-scale wind turbine nacelle testing via a “hardware-in-the-loop capability enabling concurrent mechanical, electrical and controller testing on the 7.5-megawatt dynamometer at its Wind Turbine Drivetrain Testing Facility to accelerate 1 GW on the grid progress”; and

The Massachusetts Clean Energy Center (Boston) upgrading its Wind Technology Testing Center to facilitate structural testing of 85- to 120-meter-long (roughly 278- to 393-foot-long) blades, as BOEM lease requests expand, among other projects.

Additionally, two offshore wind technology demonstration projects will receive up to $10 million for developing initiatives connected to reducing wind energy risk and cost. One last project will also be granted $5 million for the development of tall tower technology that can help overcome restrictions associated with transportation.

“These projects will be instrumental in driving down technology costs and increasing consumer options for wind across the United States as part of our comprehensive energy portfolio,” said Simmons.

 

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Europe's largest shore power plant opens

AIDAsol shore power Rostock-Warnemfcnde delivers cold ironing for cruise ships, up to 20 MVA at berths P7 and P8, cutting port emissions during berthing and advancing AIDA's green cruising strategy across European ports.

 

Key Points

Rostock-Warnemfcnde shore power supplies two cruise ships up to 20 MVA, enabling cold ironing and cutting emissions.

✅ Up to 20 MVA; powers two cruise ships at berths P7 and P8

✅ Enables cold ironing for AIDA fleet to reduce berth emissions

✅ Part of AIDA green cruising with fuel cells and batteries

 

In a ceremony held in Rostock-Warnemünde yesterday during Germany’s 12th National Maritime Conference, the 2,174-passenger cruise ship AIDAsol inaugurated Europe’s largest shore power plants for ships.

The power plant has been established under a joint agreement between AIDA Cruises, a unit of Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), the state government of Mecklenburg-Western Pomerania, the city of Rostock and the Port of Rostock.

“With our green cruising strategy, we have been investing in a sustainable cruise market for many years,” said AIDA Cruises President Felix Eichhorn. “The shore power plant in Rostock-Warnemünde is another important step — after the facility in Hamburg — on our way to an emission-neutral cruise that we want to achieve with our fleet. I would like to thank the state government of Mecklenburg-Western Pomerania and all partners involved for the good and trusting cooperation. Together, we are sending out an important signal, not just in Germany, but throughout Europe.”

CAN POWER TWO CRUISE SHIPS AT A TIME
The shore power plant, which was completed in summer 2020, is currently the largest in Europe and aligns with port electrification efforts such as the all-electric berth at London Gateway in the UK. With an output of up to 20 megavolt amperes (MVA), two cruise ships can be supplied with electricity at the same time at berths P7 and P8 in Warnemünde.

In regular passenger operation AIDAsol needs up to 4.5 megawatts per hour (MWh) of electricity.

The use of shore power to supply ships with energy is a decisive step in AIDA Cruises’ plans to reduce local emissions to zero during berthing, complementing recent progress with electric ships on the B.C. coast, as a cruise ship typically stays in port around 40% of its operating time.

As early as 2004, when the order for the construction of AIDAdiva was placed, and for all other ships put into service in subsequent years, the company has considered the use of shore power as an option for environmentally friendly ship operation.

Since 2017, AIDA Cruises has been using Europe’s first shore power plant in Hamburg-Altona, where AIDAsol is in regular operation, while operators like BC Ferries add hybrid ferries to expand low-emission service in Canada. Currently, 10 ships in the AIDA fleet can either use shore power where available or are technically prepared for it.

The aim is to convert all ships built from 2000 onwards, supporting future solutions like offshore charging with wind power.

With AIDA Cruises starting a cruise season from Kiel, Germany, on May 22, AIDAsol will also be the first cruise ship to complete the final tests on a newly built shore power plant there, as innovations such as Berlin’s electric flying ferry highlight the broader shift toward electrified waterways. Construction of that plant is the result of a joint initiative by the state government of Schleswig-Holstein, the city and the port of Kiel and AIDA Cruises. AIDAsol is scheduled to arrive in Kiel on the afternoon of May 13.

As part of its green cruising strategy, AIDA Cruises has been investing in a sustainable cruise operation for many years, paralleling urban shifts toward zero-emission bus fleets in Berlin. Other steps on the path to the zero emission ship of the future are already in preparation. This year, AIDAnova will receive the first fuel cell to be used on an ocean-going cruise ship. In 2022, the largest battery storage system to date in cruise shipping will go into operation on board an AIDA ship, similar to advances in battery-electric ferries in the U.S. In addition, the company is already addressing the question of how renewable fuels can be used on board cruise ships in the future.

 

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Calgary electricity retailer urges government to scrap overhaul of power market

Alberta Capacity Market Overhaul faces scrutiny over electricity costs, reliability targets, investor certainty, and AESO design, as UCP reviews NDP reforms, renewables integration, and deregulated energy-only alternatives impacting generators, ratepayers, and future power price volatility.

 

Key Points

A shift paying generators for capacity and energy to improve reliability; critics warn of higher electricity costs.

✅ UCP reviewing NDP plan and subsidies amid market uncertainty

✅ AESO cites reliability needs as coal retires, renewables grow

✅ Critics predict overprocurement and premature launch cost spikes

 

Jason Kenney's government is facing renewed pressure to cancel a massive overhaul of Alberta's power market that one player says will needlessly spike costs by hundreds of millions of dollars, amid an electricity sector in profound change today.

Nick Clark, who owns the Calgary-based electricity retailer Spot Power, has sent the Alberta government an open letter urging it to walk away from the electricity market changes proposed by the former NDP government.

"How can you encourage new industry to open up when one of their raw material costs will increase so dramatically?" Clark said. "The capacity market will add more costs to the consumer and it will be a spiral downwards."

But NDP Leader Rachel Notley, whose government ushered in the changes, said fears over dramatic cost increases are unfounded.

"There are some players within the current electricity regime who have a vested interest in maintaining the current situation," Notley said

Kenney's UCP vowed during the recent election to review the current and proposed electricity market options, as the electricity market heads for a reshuffle, with plans to report on its findings within 90 days.

The party also promised to scrap subsidies for renewable power, while ensuring "a market-based electricity system" that emphasizes competition in Alberta's electricity market for consumers.

The New Democrats had opted to scrap the current deregulated power market — in place since the Klein era — after phasing out coal-fired generation and ushering in new renewable power as part of changes in how Alberta produces and pays for electricity under their climate change strategy.

The Alberta Electric System Operator, which oversees the grid, says the province will need new sources of electricity to replace shuttered coal plants and backstop wind and solar generators, while meeting new consumer demand.

After consulting with power companies and investors, the AESO concluded in late 2016 the electricity market couldn't attract enough investment to build the needed power generation under the current model.

The AESO said at the time investors were concerned their revenues would be uncertain once new plants are running. It recommended what's known as a capacity market, which compensates power generators for having the ability to produce electricity, even when they're not producing it.

In other words, producers would collect revenue for selling electricity into the grid and, separately, for having the capacity to produce power as a backstop, ensuring the lights stay on. Power generators would use this second source of income to help cover plant construction costs.

Clark said the complex system introduces unnecessary costs, which he believes would hurt consumers in the end. He said what's preventing investment in the power market is uncertainty over how the market will be structured in the future.

"What investors need to see in this market is price certainty, regulatory ease, and where the money they're putting into the marketplace is not at risk," he said.

"They can risk their own money, but if in fact the government comes in and changes the policy as it was doing, then money stayed away from the province."

Notley said a capacity market would not increase power bills but would avoid big price swings, with protections like a consumer price cap on power bills also debated, while bringing greener sources of energy into Alberta's grid.

"Moving back to the [deregulated] energy-only market would make a lot of money for a few people, and put consumers, both industrial and residential, at great risk."

Clark disagrees, citing Enmax's recent submissions to the Alberta Utilities Commission, in which the utility argues the proposed design of the capacity market is flawed.

In its submissions to the commission, which is considering the future of Alberta's power market, Enmax says the proposed system would overestimate the amount of generation capacity the province will need in the future. It says the calculation could result in Alberta procuring too much capacity.

The City of Calgary-owned utility says this could drive up costs by anywhere from $147 million to $849 million a year. It says a more conservative calculation of future electricity demand could avoid the extra expense.

An analysis by a Calgary energy consulting firm suggests a different feature of the proposed power market overhaul could also lead to a massive spike in costs.

EDC Associates, hired by the Consumers' Coalition of Alberta, argues the proposal to launch the new system in November 2021 may be premature, because it could bring in additional supplies of electricity before they're needed.

The consultant's report, also filed with the Alberta Utilities Commission, estimates the early launch date could require customers to pay 40 per cent more for electricity amid rising electricity prices in the province — potentially an extra $1.4 billion — in 2021/22.

"The target implementation date is politically driven by the previous government," said Duane Reid-Carlson, president of EDC Associates.

Reid-Carlson recommends delaying the launch date by several years and making another tweak: reducing the proposed target for system reliability, which would scale back the amount of power generation needed to backstop renewable sources.

"You could get a result in the capacity market that would give a similar cost to consumers that the [deregulated] energy-only market design would have done otherwise," he said.

"You could have a better risk profile associated with the capacity market that would serve consumers better through lower cost, lower price volatility, and it would serve generators better by giving them better access to capital at lower costs."

The UCP government did not respond to a request for comment.

 

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Reload.Land 2025: Berlin's Premier Electric Motorcycle Festival Returns

Reload.Land 2025 returns to Berlin with electric motorcycles, e-scooters, test rides, a conference on sustainability, custom builds, a silent ride, networking, innovators, brands, enthusiasts, and an electronic afterparty, spotlighting Europe's cutting-edge electromobility scene.

 

Key Points

Reload.Land 2025 is Berlin's electric motorcycle festival with test rides, panels, custom bikes, and a city silent ride.

✅ Test rides for electric motorcycles and e-scooters

✅ Conference on technology, sustainability, and policy

✅ Custom exhibition, Silent Ride, and electronic afterparty

 

Reload.Land, Europe's pioneering festival dedicated to electric motorcycles, is set to return for its third edition on June 7–8, 2025. Held at the Napoleon Komplex in Berlin, a city advancing sustainable mobility initiatives, this event promises to be a significant gathering for enthusiasts, innovators, and industry leaders in the realm of electric mobility.

A Hub for Electric Mobility Enthusiasts

Reload.Land serves as a platform for showcasing the latest advancements in electric two-wheelers, reflecting broader electricity innovation trends, including motorcycles, e-scooters, and custom electric bikes. Attendees will have the opportunity to test ride a diverse selection of electric vehicles from various manufacturers, providing firsthand experience of the evolving landscape of electromobility.

Highlights of the Festival

  • Custom Exhibition: A curated display of unique electric motorcycles and vehicles, highlighting the creativity and innovation within the electric mobility sector, from custom builders to Daimler's electrification plan shaping supply chains.

  • Reload.Land Conference: Engaging panel discussions and presentations from industry experts, focusing on topics such as cutting-edge technology, sustainability, including electricity demand from e-mobility projections, and the future of electric transportation.

  • Silent Ride: A group electric-only ride through the streets of Berlin, alongside projects like the city's electric flying ferry initiative, offering participants a unique experience of the city while promoting the quiet and clean nature of electric vehicles.

  • Official Afterparty: An evening celebration featuring electronic music, providing attendees with an opportunity to unwind and network in a vibrant atmosphere.
     

Community and Networking Opportunities

Reload.Land is not just an event; it's a movement that brings together a global community of riders, innovators, and brands. The festival fosters an environment where like-minded individuals can connect, share ideas, and collaborate on shaping the future of electric mobility, with similar gatherings like Everything Electric in Vancouver amplifying awareness worldwide. 

Event Details

  • Dates: June 7–8, 2025

  • Location: Napoleon Komplex, Modersohnstraße 35–45, 10245 Berlin, Germany.

  • Entry Fee: €10 (Children up to 14 years free)

Reload.Land 2025 promises to be a landmark event in the electric mobility calendar, offering a comprehensive look at the innovations shaping the future of transportation, echoing the public enthusiasm seen at EV events in Regina this year. Whether you're a seasoned rider, an industry professional, or simply curious about electric vehicles, Reload.Land provides a unique opportunity to immerse yourself in the world of electric motorcycles.

 

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