Economic opportunities are blowing in the wind

Amur-Heihe ETL Power Supply Tripling will expand Russia-China electricity exports, extending 750 MW DC full-load hours to stabilize northeast China grids amid coal shortages, peak demand spikes, and cross-border energy security concerns.

Key Points

Russia will triple electricity via Amur-Heihe ETL, boosting 750 MW DC operations to relieve shortages in northeast China.

✅ 500 kV converter station increases full-load hours from 5 to 16

✅ Supports Heilongjiang, Liaoning, and Jilin grids amid coal shortfall

✅ Cross-border 750 MW DC link enhances reliability, peak demand coverage

Russia will triple electricity supplies via the Amur-Heihe electric transmission line (ETL) starting October 1, China Central Television has reported, a move seen within broader shifts in China's electricity sector by observers.

"Starting October 1, the overhead convertor substation of 500 kW (750 MW DC) will increase its daily time of operation with full loading from 5 to 16 hours per day," the TV channel said.

"This measure will make it possible to dramatically ease the situation with the electricity supply," the report said. Electricity from this converting station is used in three northeastern provinces of China - Heilongjiang, Liaoning and Jilin, while regional markets are strained as India rations coal supplies amid surging demand today. In 29 years, Russia supplied over 30 bln kilowatt hours of electricity, according to the channel.

The Amur-Heihe overhead transnational power line was constructed for increasing electricity exports to China, where projections see electricity to meet 60% of energy use by 2060 according to Shell. It was commissioned in 2012. Its maximum capacity is 750 MW.

China’s Jiemian News reported on September 27 that, amid nationwide power cuts affecting grids, 20 regions were limited in electricity supplies to a various extent due to the ongoing coal deficit. In particular, in China’s northeastern provinces, restrictions on power consumption were imposed not only on industrial enterprises, but also on households, as well as on office premises, raising concerns for U.S. solar supply chains among downstream manufacturers.

Later, China’s financial media Zhongxin Jingwei noted that the coal deficit had been triggered by price hikes brought on by tightened national environmental standards and efforts to reduce coal power production across the country. Reduced coal imports amid disruptions in the work of foreign suppliers due to the coronavirus pandemic was an additional reason, and earlier power demand drops as factories shuttered compounded imbalances.
 

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Ontario Comprehensive Electricity Plan delivers Global Adjustment reductions for industrial and commercial non-RPP customers, lowering electricity rates, shifting renewable energy costs, and enhancing competitiveness across Ontario businesses in 2022, with additional 4 percent savings.

Key Points

Ontario's plan lowers Global Adjustment by shifting renewable costs, cutting industrial and commercial bills 15-17%.

✅ Shifts above-market non-hydro renewable costs to the Province

✅ Reduces GA for industrial and commercial non-RPP customers

✅ Additional 4% savings on 2022 bills after GA deferral

As of January 1, 2022, industrial and commercial electricity customers will benefit from the full savings introduced through the Ontario government’s Comprehensive Electricity Plan, which supports stable electricity pricing for industrial and commercial companies, announced in Budget 2020, and first implemented in January 2021. This year customers could see an additional four percent savings compared to their bills last year, bringing the full savings from the Comprehensive Electricity Plan to between 15 and 17 per cent, making Ontario a more competitive place to do business.

“Our Comprehensive Electricity Plan has helped reverse the trend of skyrocketing electricity prices that drove jobs out of Ontario,” said Todd Smith, Minister of Energy. “Over 50,000 customers are benefiting from our government’s plan which has reduced electricity rates on clean and reliable power, allowing them to focus on reinvesting in their operations and creating jobs here at home.”

Starting on January 1, 2021, the Comprehensive Electricity Plan reduced overall Global Adjustment (GA) costs for industrial and commercial customers who do not participate in the Regulated Price Plan (RPP) by shifting the forecast above-market costs of non-hydro renewable energy, such as wind, solar and bioenergy, from the rate base to the Province, alongside energy-efficiency programs that complement demand reduction efforts.

“Since taking office, our government has listened to job creators and worked to lower the costs of doing business in the province. Through these significant reductions in electricity prices through the Comprehensive Electricity Plan, customers all across Ontario will benefit from significant savings in their business operations in 2022,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By continuing to reduce electricity costs, lowering taxes, and cutting red tape our government has reduced the cost of doing business in Ontario by nearly $7 billion annually to ensure that we remain competitive, innovative and poised for economic recovery.”

As part of its COVID response, including electricity relief for families and small businesses, Ontario had deferred a portion of GA between April and June 2020 for industrial and non-RPP commercial customers, with more than 50,000 customers benefiting. Those same businesses paid back these deferred GA costs over 12 months, between January 2021 and December 2021, while the province prepared to extend disconnect moratoriums for residential customers.

During the pandemic, residential electricity use rose even as overall consumption dropped, underscoring shifts in load patterns.

Now that the GA deferral repayment period is over, industrial and non-RPP commercial customers will benefit from the full cost reductions provided to them by the Comprehensive Electricity Plan, alongside temporary off-peak rate relief that supported families and small businesses. This means that, beginning January 1, 2022, these businesses could see an additional four per cent savings on their bills compared to 2021, as new ultra-low overnight pricing options emerge depending on their location and consumption.

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Arc One Electric Speedboat delivers zero-emission performance, quiet operation, and reduced maintenance, leveraging battery propulsion, aerospace engineering, and venture-backed innovation to cut noise pollution, fuel costs, and water contamination in high-performance marine recreation.

Key Points

Arc One Electric Speedboat is a battery-powered, zero-emission craft offering quiet, high-performance marine cruising.

✅ 475 hp, 24 ft hull, about 40 mph top speed

✅ Cuts noise, fumes, and water contamination vs gas boats

✅ Backed by Andreessen Horowitz; ex-SpaceX engineers

A team of former SpaceX rocket engineers have joined the race to build the first commercial electric speedboat.

The Arc Boat company announced it had raised $4.25m (£3m) in seed funding to start work on a 24ft 475-horsepower craft that will cost about $300,000.

The LA-based company, which is backed by venture capital firm Andreessen Horowitz (an early backer of Facebook and Airbnb), said the first model of the Arc One boat would be available for sale by the end of the year.

Mitch Lee, Arc’s chief executive, said he wanted to build electric boats because of the impact conventional petrol- or diesel-powered boats have on the environment.

“They not only get just two miles to the gallon, they also pump a lot of those fumes into the water,” Lee said. “In addition, there is the huge noise pollution factor [of conventional boats] and that is awful for the marine life. With gas-powered boats it’s not just carbon emissions into the air, it’s also polluting the water and causing noise pollution. Electric boats, like electric ships clearing the air on the B.C. coast, eliminate all that.”

Lee said electric vessels would also reduce the hassle of boat ownership. “I love being out on the water, being on a boat is so much fun, but owning a boat is so awful,” he said. “I have always believed that electric boats make sense. They will be quicker, quieter and way cheaper and easier to operate and maintain, with access options like an electric boat club in Seattle lowering barriers for newcomers.”

While the first models will be very expensive, Lee said the cost was mostly in developing the technology and cheaper versions would be available in the future, mirroring advances in electric aviation seen across the industry. “It is very much the Tesla approach – we are starting up market and using that income to finance research and development and work our way down market,” he said.

Lee said the technology could be applied to larger craft, and even ferries could run on electricity in the future, as projects for battery-electric high-speed ferries begin to scale.

“We started in February with no team, no money and no warehouse,” he said. “By December we are going to be selling the Arc One, and we are hiring aggressively because we want to accelerate the adoption of electric boats across a whole range of craft, including an electric-ready ferry on Kootenay Lake.”

Lee founded the company with fellow mechanical engineer Ryan Cook. Cook, the company’s chief technology officer, was previously the lead mechanical engineer at Elon Musk’s space exploration company SpaceX where he worked on the Falcon 9 rocket, the world’s first orbital class reusable rocket. In parallel, Harbour Air's electric aircraft highlights cross-sector electrification. Apart from Lee, all of Arc’s employees have some experience working at SpaceX.

The Arc boat, which would have a top speed of 40 mph, joins a number of startups rushing to make the first large-scale production of electric-powered speedboats, while a Vancouver seaplane airline demonstrates complementary progress with a prototype electric aircraft. The Monaco Yacht Club this month held a competition for electric boat prototypes to “instigate a new vision and promote all positive approaches to bring yachting into line” with global carbon dioxide emission reduction targets. Sweden’s Candela C-7 hydrofoil boat was crowned the fastest electric vessel.

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Ontario Electricity Bill Scams: beware phishing, spoofed calls, fake invoices, and disconnection threats demanding prepaid cards, gift cards, or Bitcoin; verify with Hydro One, Alectra, Toronto Hydro, Elexicon, or Hydro Ottawa customer service.

Key Points

Fraud schemes impersonating utilities via calls, texts, emails, or fake bills to coerce instant payment with threats.

✅ Never pay by gift cards, prepaid debit, or Bitcoin.

✅ Do not call numbers in messages; use your bill or utility website.

✅ Verify IDs; report threats or door-to-door demands to police.

Ontario’s five largest electricity utilities have teamed up to warn the public about ongoing scams concerning fake phone calls, texts and bills connected to the utility accounts.

“We always receive these reports of scams and it gets increasingly higher during the holidays when people are busy and enjoying the season," said Whitney Brhelle, spokesperson with Hydro One.

Hydro One joined with Alectra Utilities, Elexicon Energy, Hydro Ottawa and Toronto Hydro to get the message out that scammers are targeting customers and threatening to turn off their power.

Scams involve impersonation of a local utility or its employees, threatening phone calls, texts or emails and pressure for immediate payment that come with threats to disconnect service the same day.

Criminals may demand payment in prepaid debit cards, gift cards or Bitcoin. Utilities said they would never call a customer without notice and threaten disconnection over the phone.

In a separate case, authorities in Montreal arrested suspects in an electricity theft ring that highlights broader energy-related crime.

“People have been calling customers and saying you need to pay your bill immediately and they are threatened with disconnection, often citing supposed changes to peak hydro rates to add pressure, which is something that we would ever do," said Kimberly Brathwaite, spokesperson with Elexicon Energy.

Scammers are also creating fake bills that look like the real thing.

“Scammers will actually take our Alectra logo and send out various authentic looking documents to people’s homes, so people have to be aware and check their statements very carefully” said Ashley Trgachef spokesperson with Alectra Utilities.

Customers are advised to never make a payment not listed on their recent bill and to ignore texts or emails with links promising refunds, and to verify any official relief fund information only through their utility and not to provide personal information or details about their account.

If you are given a number to call don’t call the number provided, you are better off to go to your bill or the utility’s website to makes sure it is the correct number for customer service and to review information about customer flexibility there.

Some scammers have even gone door to door demanding payment, and the utilities are advising anyone who feels threatened to call police.

They are also asking that you share the information with family and friends to be careful if they are contacted by someone claiming to be with their electricity company.

If you fall for a scam and money is sent, it's very difficult to get it back.  

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Hydro-Québec $185-Billion Clean Energy Plan accelerates hydroelectric upgrades, wind power expansion, solar and battery storage, pumped storage, and 5,000 km transmission lines to decarbonize Quebec, boost grid resilience, and attract bond financing and Indigenous partnerships.

Key Points

Plan to grow renewables, harden the grid, and fund Quebec's decarbonization with major investments.

✅ $110B new generation, $50B grid resilience by 2035

✅ Triple wind, add solar, batteries, and pumped storage

✅ 5,000 km lines, bond financing, Indigenous partnerships

Hydro-Québec is in the preliminary stages of dialogue with various financiers and potential collaborators to strategize the implementation of a $185-billion initiative aimed at transitioning Quebec away from fossil fuel dependency.

As the leading hydroelectric power producer in Canada, Hydro-Québec is set to allocate up to $110 billion by 2035 towards the development of new clean energy facilities, building on its hydropower capacity expansion in recent years, with an additional $50 billion dedicated to enhancing the resilience of its power grid, as revealed in a strategy announced last November. The remainder of the projected expenditure will cover operational costs.

This ambitious initiative has garnered significant interest from the financial sector, with the province's recent electricity for industrial projects also drawing attention, as noted by CEO Michael Sabia during a conference call with journalists where the utility's annual financial outcomes were discussed. Sabia reported receiving various proposals to fund the initiative, though specific partners were not disclosed. He expressed confidence in securing the necessary capital for the project's success.

Sabia highlighted three immediate strategies to increase power output: identifying new sites for hydroelectric projects while upgrading turbines at existing facilities, such as the Carillon Generating Station upgrade now underway for enhanced efficiency, expanding wind energy production threefold, and promoting energy conservation among consumers to optimize current power usage.

Additionally, Hydro-Québec aims to augment its solar and battery energy production and is planning to establish a pumped-storage hydroelectric plant to support peak demand periods. The utility also intends to construct 5,000 kilometers of new transmission lines, address Quebec-to-U.S. transmission constraints where feasible, and is set to double its capital expenditure to $16 billion annually, a significant increase from the investment levels during the James Bay hydropower project construction in the 1970s and 1980s.

To fund part of this expansive plan, Hydro-Québec will continue to access the bond market, having issued $3.7 billion in notes to investors last year despite facing several operational hurdles due to adverse weather conditions.

For the year 2023, Hydro-Québec reported a net income of $3.3 billion, marking a 28% decrease from the previous year's record of $4.56 billion. Factors such as insufficient snow cover, reduced spring runoff, and higher temperatures resulted in lower water levels in reservoirs, leading to a reduction in power exports and a $547-million decrease in external market sales compared to the previous year.

The utility experienced its lowest export volume in a decade but managed to leverage hedging strategies to secure 10.3 cents per kWh for exported power to markets including New Brunswick via recent NB Power agreements that expand interprovincial deliveries, nearly twice the average market rate, through forward contracts that cover up to half of its export volume for about a year in advance.

The success of Sabia's plan will partly depend on the cooperation of First Nations communities, as the proposed infrastructure developments are likely to traverse their ancestral territories. Relationships with some communities are currently tense, exemplified by the Innu of Labrador's $4-billion lawsuit against Hydro-Québec for damages related to land flooding for reservoir construction, and broader regional tensions in Newfoundland and Labrador that persist in the power sector.

Sabia has committed to involving First Nations and Inuit communities as partners in clean energy ventures, offering them ongoing financial benefits rather than one-off settlements, a principle he refers to as "economic reconciliation."

Recently, the Quebec government reached an agreement with the Innu of Pessamit, pledging $45 million to support local community development. This agreement outlines solutions for managing a nearby hydropower reservoir, such as the La Romaine complex in the region, and includes commitments for wind energy development.

Sabia is optimistic about building stronger, more positive relationships with various Indigenous communities, anticipating significant progress in the coming months and viewing this year as a potential milestone in transforming these relationships for the better.

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European Electricity Market Trends 2020 highlight decarbonisation, rising renewables, EV adoption, shifting energy mix, COVID-19 impacts, fuel switching, hydro, wind and solar growth, gas price dynamics, and wholesale electricity price increases.

Key Points

EU power in 2020 saw lower emissions, more renewables, EV growth, demand shifts, and higher wholesale prices.

✅ Power sector CO2 down 14% on higher renewables, lower coal

✅ Renewables 39% vs fossil 36%; hydro, wind, solar expanded

✅ EV share hit 17%; wholesale prices rose with gas, ETS costs

According to the Market Observatory for Energy DG Energy report, the COVID-19 pandemic and favorable weather conditions are the two key drivers of the trends experienced within the European electricity market in 2020. However, the two drivers were exceptional or seasonal.

The key trends within Europe’s electricity market include:

1. Decrease in power sector’s carbon emissions

As a result of the increase in renewables generation and decrease in fossil-fueled power generation in 2020, the power sector was able to reduce its carbon footprint by 14% in 2020. The decrease in the sector’s carbon footprint in 2020 is similar to trends witnessed in 2019 when fuel switching was the main factor behind the decarbonisation trend.

However, most of the drivers in 2020 were exceptional or seasonal (the pandemic, warm winter, high
hydro generation). However, the opposite is expected in 2021, with the first months of 2021 having relatively cold weather, lower wind speeds and higher gas prices, with stunted hydro and nuclear output also cited, developments which suggest that the carbon emissions and intensity of the power sector could rise.

The European Union is targeting to completely decarbonise its power sector by 2050 through the introduction of supporting policies such as the EU Emissions Trading Scheme, the Renewable Energy Directive and legislation addressing air pollutant emissions from industrial installations, with expectations that low-emissions sources will cover most demand growth in the coming years.

According to the European Environment Agency, Europe halved its power sector’s carbon emissions in 2019 from 1990 levels.

2. Changes in energy consumption

EU consumption of electricity fell by -4% as majority of industries did not operate at full level during the first half of 2020. Although majority of EU residents stayed at home, meaning an increase in residential energy use, rising demand by households could not reverse falls in other sectors of the economy.

However, as countries renewed COVID-19 restrictions, energy consumption during the 4th quarter was closer to the “normal levels” than in the first three quarters of 2020. 

The increase in energy consumption in the fourth quarter of 2020 was also partly due to colder temperatures compared to 2019 and signs of surging electricity demand in global markets.

3. Increase in demand for EVs

As the electrification of the transport system intensifies, the demand for electric vehicles increased in 2020 with almost half a million new registrations in the fourth quarter of 2020. This was the highest figure on record and translated into an unprecedented 17% market share, more than two times higher than in China and six times higher than in the United States.

However, the European Environment Agency (EEA)argues that the EV registrations were lower in 2020 compared to 2019. EEA states that in 2019, electric car registrations were close to 550 000 units, having reached 300 000 units in 2018.

4. Changes in the region’s energy mix and increase in renewable energy generation

The structure of the region’s energy mix changed in 2020, according to the report.

Owing to favorable weather conditions, hydro energy generation was very high and Europe was able to expand its portfolio of renewable energy generation such that renewables (39%) exceeded the share of fossil fuels (36%) for the first time ever in the EU energy mix.

Rising renewable generation was greatly assisted by 29 GW of wind and solar capacity additions in 2020, which is comparable to 2019 levels. Despite disrupting the supply chains of wind and solar resulting in project delays, the pandemic did not significantly slow down renewables’ expansion.

In fact, coal and lignite energy generation fell by 22% (-87 TWh) and nuclear output dropped by 11% (-79 TWh). On the other hand, gas energy generation was not significantly impacted owing to favorable prices which intensified coal-to-gas and lignite-to-gas switching, even as renewables crowd out gas in parts of the market.

5. Retirement of coal energy generation intensify

 As the outlook for emission-intensive technologies worsens and carbon prices rise, more and more early coal retirements have been announced. Utilities in Europe are expected to continue transitioning from coal energy generation under efforts to meet stringent carbon emissions reduction targets and as they try to prepare themselves for future business models that they anticipate to be entirely low-carbon reliant.

6. Increase in wholesale electricity prices

In recent months, more expensive emission allowances, along with rising gas prices, have driven up wholesale electricity prices on many European markets to levels last seen at the beginning of 2019. The effect was most pronounced in countries that are dependent on coal and lignite. The wholesale electricity prices dynamic is expected to filter through to retail prices.

The rapid sales growth in the EVs sector was accompanied by expanding charging infrastructure. The number of high-power charging points per 100 km of highways rose from 12 to 20 in 2020.

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