EU not increasing carbon cuts to 30

California Biofuels vs EV Subsidies examines tradeoffs in decarbonization, greenhouse gas reductions, clean energy deployment, charging infrastructure, energy security, lifecycle emissions, and transportation sector policy to meet climate goals and accelerate sustainable mobility.

Key Points

Policy tradeoffs weighing biofuels and EVs to cut GHGs, boost energy security, and advance clean transportation.

✅ Near-term blending cuts emissions from existing fleets

✅ EVs scale with a cleaner grid and charging buildout

✅ Lifecycle impacts and costs guide optimal subsidy mix

California is at the forefront of the transition to a greener economy, driven by its ambitious goals to reduce greenhouse gas emissions and combat climate change. As part of its strategy, the state is grappling with the question of whether it should subsidize out-of-state biofuels or in-state electric vehicles (EVs) to meet these goals. Both options come with their own sets of benefits and challenges, and the decision carries significant implications for the state’s environmental, economic, and energy landscapes.

The Case for Biofuels

Biofuels have long been promoted as a cleaner alternative to traditional fossil fuels like gasoline and diesel. They are made from organic materials such as agricultural crops, algae, and waste, which means they can potentially reduce carbon emissions in comparison to petroleum-based fuels. In the context of California, biofuels—particularly ethanol and biodiesel—are viewed as a way to decarbonize the transportation sector, which is one of the state’s largest sources of greenhouse gas emissions.

Subsidizing out-of-state biofuels can help California reduce its reliance on imported oil while promoting the development of biofuel industries in other states. This approach may have immediate benefits, as biofuels are widely available and can be blended with conventional fuels to lower carbon emissions right away. It also allows the state to diversify its energy sources, improving energy security by reducing dependency on oil imports.

Moreover, biofuels can be produced in many regions across the United States, including rural areas. By subsidizing out-of-state biofuels, California could foster economic development in these regions, creating jobs and stimulating agricultural innovation. This approach could also support farmers who grow the feedstock for biofuel production, boosting the agricultural economy in the U.S.

However, there are drawbacks. The environmental benefits of biofuels are often debated. Critics argue that the production of biofuels—particularly those made from food crops like corn—can contribute to deforestation, water pollution, and increased food prices. Additionally, biofuels are not a silver bullet in the fight against climate change, as their production and combustion still release greenhouse gases. When considering whether to subsidize biofuels, California must also account for the full lifecycle emissions associated with their production and use.

The Case for Electric Vehicles

In contrast to biofuels, electric vehicles (EVs) offer a more direct pathway to reducing emissions from transportation. EVs are powered by electricity, and when coupled with renewable energy sources like solar or wind power, they can provide a nearly zero-emission solution for personal and commercial transportation. California has already invested heavily in EV infrastructure, including expanding its network of charging stations and exploring how EVs can support grid stability through vehicle-to-grid approaches, and offering incentives for consumers to purchase EVs.

Subsidizing in-state EVs could stimulate job creation and innovation within California's thriving clean-tech industry, with other states such as New Mexico projecting substantial economic gains from transportation electrification, and the state has already become a hub for electric vehicle manufacturers, including Tesla, Rivian, and several battery manufacturers. Supporting the EV industry could further strengthen California’s position as a global leader in green technology, attracting investment and fostering growth in related sectors such as battery manufacturing, renewable energy, and smart grid technology.

Additionally, the environmental benefits of EVs are substantial. As the electric grid becomes cleaner with an increasing share of renewable energy, EVs will become even greener, with lower lifecycle emissions than biofuels. By prioritizing EVs, California could further reduce its carbon footprint while also achieving its long-term climate goals, including reaching carbon neutrality by 2045.

However, there are challenges. EV adoption in California remains a significant undertaking, requiring major investments in infrastructure as they challenge state power grids in the near term, technology, and consumer incentives. The cost of EVs, although decreasing, still remains a barrier for many consumers. Additionally, there are concerns about the environmental impact of lithium mining, which is essential for EV batteries. While renewable energy is expanding, California’s grid is still reliant on fossil fuels to some degree, and in other jurisdictions such as Canada's 2019 electricity mix fossil generation remains significant, meaning that the full emissions benefit of EVs is not realized until the grid is entirely powered by clean energy.

A Balancing Act

The debate between subsidizing out-of-state biofuels and in-state electric vehicles is ultimately a question of how best to allocate California’s resources to meet its climate and economic goals. Biofuels may offer a quicker fix for reducing emissions from existing vehicles, but their long-term benefits are more limited compared to the transformative potential of electric vehicles, even as some analysts warn of policy pitfalls that could complicate the transition.

However, biofuels still have a role to play in decarbonizing hard-to-abate sectors like aviation and heavy-duty transportation, where electrification may not be as feasible in the near future. Thus, a mixed strategy that includes both subsidies for EVs and biofuels may be the most effective approach.

Ultimately, California’s decision will likely depend on a combination of factors, including technological advancements, 2021 electricity lessons, and the pace of renewable energy deployment, and the state’s ability to balance short-term needs with long-term environmental goals. The road ahead is not easy, but California's leadership in clean energy will be crucial in shaping the nation’s response to climate change.

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NGCP-SGCC Partnership drives transmission grid modernization in the Philippines, boosting high-voltage capacity, reliability, and resilience, while developing engineering talent via the Trailblazers Program to meet Southeast Asia best practices and utility standards.

Key Points

A partnership to modernize the Philippines' grid, boost high-voltage capacity, and upskill NGCP engineers.

✅ Modernizes transmission assets and grid reliability nationwide

✅ Trailblazers Program develops NGCP's engineering leadership

✅ SGCC knowledge transfer on UHV, high-voltage, and best practices

The National Grid Corp. of the Philippines (NGCP) is building on its partnership with State Grid Corp of China (SGCC) to expand and modernize transmission facilities, as well as enhance the capabilities of its personnel to advance the country's grid network, aligning with smart grid transformation in Egypt seen in other markets. NGCP Internal Affairs Department head Edwin Natividad said the grid operator is implementing various development programs with SGCC to make the country's power grid among the best power utilities in Asia.

"We have to look at policies aligned with best global practices, including smart grid solutions increasingly adopted worldwide, that we can choose in adopting in the Philippines too," he said. One of NGCP's flagship development program is the Trailblazers Program, the company's strategy to further develop engineers "who will not just be technical experts, but also be the change agents and movers in the NGCP organization as well as in the Philippines' power sector," Natividad said.

"Having the support of the largest utility in the world gives us comfort that this program is designed and implemented by the best in the power industry," he said. Under the program, high performing personnel participating will be prepared for bigger roles later on in their careers at NGCP.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1 "The advantage of such a pool is that it provides flexibility and, eventually, organizational self-sufficiency around the current and future talent needs of NGCP," Natividad said. Now on its third edition, the Trailblazers Program has already sent 76 personnel since it started in November 2016. Natividad said more than 16 of those who previously attended similar programs have already assumed higher roles in NGCP.

Apart from technical skills development, NGCP's partnership with SGCC also provides technical development to improve on the physical transmission assets. "If you will compare the facilities being handled by SGCC with other countries, in terms of handling high voltage capability, SGCC is way ahead.

The higher the voltage it's going to be more difficult to handle," Natividad said, adding they can handle more power to distribute to power distributors. As an example, SGCC's transmission facilities can handle high voltage to as much as 1,000 kiloVolts (kV), whereas the Philippines only has one high voltage facility, the interconnection between Luzon and Visayas, which can handle 500 kV, echoing proposals for macrogrids in Canada to improve reliability.

Natividad said NGCP was the first and biggest investment of SGCC outside of China before it made investments in other parts of the world, even as cybersecurity concerns in Britain have influenced supplier choices. A consortium among businessmen Henry Sy Jr., Robert Coyuito Jr., and SGCC as technical partner, NGCP holds a 25-year concession contract to operate and maintain the country's transmission grid.

Earlier, Sy, NGCP president and CEO, said the company is targeting to become the best utility firm in Southeast Asia. Since it took over the operations and maintenance of the country's power transmission network in 2009, the grid operator has introduced major physical and technological upgrades to ageing state-owned lines and facilities, while in Great Britain an independent operator model is being advanced to reshape system operations.

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Alberta Hydropower Potential highlights renewable energy, dams, reservoirs, grid flexibility, contrasting wind and solar growth with limited investment, regulatory hurdles, river basin resources, and decarbonization pathways across Athabasca, Peace, and Slave River systems.

Key Points

It is the technical capacity for new hydro in Alberta's river basins to support a more reliable, lower carbon grid.

✅ 42,000 GWh per year developable hydro identified in studies.

✅ Major potential in Athabasca, Peace, and Slave River basins.

✅ Barriers include high capital costs, market design, water rights.

When you think about renewable energy sources on the Prairies, your mind may go to the wind farms in southern Alberta, or even the Travers Solar Project, southeast of Calgary.

Most of the conversation around renewable energy in the province is dominated by advancements in solar and wind power, amid Alberta's renewable energy surge that continues to attract attention. 

But what about Canada's main source of electricity — hydro power?

More than half of Canada's electricity is generated from hydro sources, with 632.2 terawatt-hours produced as of 2019. That makes it the fourth largest installed capacity of hydropower in the world. 

But in Alberta, it's a different story. 

Currently, hydro power contributes between three and five per cent of Alberta's energy mix, while fossil fuels make up about 89 per cent.

According to Canada's Energy Future report from the Canada Energy Regulator, by 2050 it will make up two per cent of the province's electricity generation shares.

So why is it that a province so rich in mountains and rivers has so little hydro power?

Hydro's history in Alberta
Hydro power didn't always make up such a small sliver of Alberta's electricity generation. Hydro installations began in the early 20th century as the province's population exploded. 

Grant Berg looks after engineering for hydro for TransAlta, Alberta's largest producer of hydro power with 17 facilities across the province.

"Our first plant was Horseshoe, which started in 1911 that we formed as Calgary Power," he said. 

"It was really in response to the City of Calgary growing and having some power needs."

Berg said in 1913, TransAlta's second installation, the Kananaskis Plant, started as Calgary continued to grow.

A historical photo of a hydro-electric dam in Kananaskis Alta. taken in 1914.
Hydro power plant in Kananaskis as seen in 1914. (Glenbow Archives)
Some bigger installations were built in the 1920s, including Ghost reservoir, but by mid-century population growth increased.

"Quite a large build out really, I think in response to the growth in Alberta following the war. So through the 1950s really quite a large build out of hydro from there."

By the 1950s, around half of the province's installed capacity was hydro power.

"Definitely Calgary power was all hydro until the 1950s," said Berg. 

Hydro potential in the province 
Despite the current low numbers in hydroelectricity, Alberta does have potential. 

According to a 2010 study, there is approximately 42,000 gigawatt-hours per year of remaining developable hydroelectric energy potential at identified sites. 

An average home in Alberta uses around 7,200 kilowatt-hours of electricity per year, meaning that the hydro potential could power 5.8 million homes each year. 

"This volume of energy could be sufficient to serve a significant amount of Alberta's load and therefore play a meaningful role in the decarbonization of the province's electric system," the Alberta Electric System Operator said in its 2022 Pathways to Net-Zero Emissions report.

Much of that potential lies in northern Alberta, in the Athabasca, Peace and Slave River basins.

The AESO report says that despite the large resource potential, Alberta's energy-only market framework has attracted limited investment in hydroelectric generation. 

Hydro power was once a big deal in Alberta, but investment in the industry has been in decline since the 1950s. Climate change reporter Christy Climenhaga explains why.
So why does Alberta leave out such a large resource potential on the path to net zero?

The government of Alberta responded to that question in a statement. 

"Hydro facilities, particularly large scale ones involving dams, are associated with high costs and logistical demands," said the Ministry of Affordability and Utilities. 

"Downstream water rights for other uses, such as irrigation, further complicate the development of hydro projects."

The ministry went on to say that wind and solar projects have increased far more rapidly because they can be developed at relatively lower cost and shorter timelines, and with fewer logistical demands.

"Sources from wind power and solar are increasingly more competitive," said Jean-Denis Charlebois, chief economist with the Canadian Energy Regulator. 

Hydro on the path to net zero
Hydro power is incredibly important to Canada's grid, and will remain so, despite growth in wind and solar power across the province.

Charlebois said that across Canada, the energy make-up will depend on the province. 

"Canadian provinces will generate electricity in very different ways from coast to coast. The major drivers are essentially geography," he said. 

Charlebois says that in British Columbia, Manitoba, Quebec and Newfoundland and Labrador, hydropower generation will continue to make up the majority of the grid.

"In Alberta and Saskatchewan, we see a fair bit of potential for wind and solar expansion in the region, which is not necessarily the case on Canada's coastlines," he said.

And although hydro is renewable, it does bring its adverse effects to the environment — land use changes, changes in flow patterns, fish populations and ecosystems, which will have to be continually monitored. 

"You want to be able to manage downstream effects; make sure that you're doing all the proper things for the environment," said Ryan Braden, director of mining and hydro at TransAlta.

Braden said hydro power still has a part to play in Alberta, even with its smaller contributions to the future grid. 

"It's one of those things that, you know, the wind doesn't blow or the sun doesn't shine, this is here. The way we manage it, we can really support that supply and demand," he said.

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Ontario Clean Energy Adjustment lowers hydro bills by shifting global adjustment costs, cutting time-of-use rates, and using OPG debt financing; ratepayers get inflation-capped increases for four years, then repay costs over 20 years.

Key Points

A 20-year line item repaying debt used to lower rates for 10 years by shifting global adjustment costs off hydro bills.

✅ 17% average bill cut takes effect after royal assent

✅ OPG-managed entity assumes debt for 10 years

✅ 20-year surcharge repays up to $28B plus interest

Ontarians will see lowered hydro bills for the next 10 years, but will then pay higher costs for the following 20 years, under new legislation tabled Thursday.

Ten weeks after announcing its plan to lower hydro bills, the Liberal government introduced legislation to lower time-of-use rates, take the cost of low-income and rural support programs off bills, and introduce new social programs.

It will lower time-of-use rates by removing from bills a portion of the global adjustment, a charge consumers pay for above-market rates to power producers. For the next 10 years, a new entity overseen by Ontario Power Generation will take on debt to pay that difference.

Then, the cost of paying back that debt with interest -- which the government says will be up to $28 billion -- will go back onto ratepayers' bills for the next 20 years as a "Clean Energy Adjustment."

An average 17-per-cent cut to bills will take effect 15 days after the hydro legislation receives royal assent, even as a Nov. 1 rate increase was set by the Ontario Energy Board, but there are just eight sitting days left before the Ontario legislature breaks for the summer. Energy Minister Glenn Thibeault insisted that leaves the opposition "plenty" of time for review and debate.

Premier Kathleen Wynne promised to cut hydro bills and later defended a 25% rate cut after widespread anger over rising costs helped send her approval ratings to record lows.

Electricity bills in the province have roughly doubled in the last decade, due in part to green energy initiatives, and Thibeault said the goal of this plan is to better spread out those costs.

"Like the mortgage on your house, this regime will cost more as we refinance over a longer period of time, but this is a more equitable and fair approach when we consider the lifespan of the clean energy investments, and generating stations across our province," he said.

NDP critic Peter Tabuns called it a "get-through-the-election" next June plan.

"We're going to take on a huge debt so Kathleen Wynne can look good on the hustings in the next few months and for decades we're going to pay for it," he said.

The legislation also holds rate increases to inflation for the next four years. After that, they'll rise more quickly, as illustrated by a leaked cabinet document the Progressive Conservatives unveiled Thursday.

The Liberals dismissed the document as containing outdated projections, but confirmed that it went before cabinet at some point before the government decided to go ahead with the hydro plan.

From about 2027 onward -- when consumers would start paying off the debt associated with the hydro plan -- Ontario electricity consumers will be paying about 12 per cent more than they would without the Liberal government's plan to cut costs in the short term, even though a deal with Quebec was not expected to reduce hydro bills, the government document projected.

But that was just one of many projections, said Energy Minister Glenn Thibeault.

"We have been working on this plan for months, and as we worked on it the documents and calculations evolved," he said.

The government's long-term energy plan is set to be updated this spring, and Thibeault said it will provide a more accurate look at how the hydro plan will reduce rates, even as a recovery rate could lead to higher hydro bills in certain circumstances.

Progressive Conservative critic Todd Smith said the "Clean Energy Adjustment" is nothing more than a revamped debt retirement charge, which was on bills from 2002 to 2016 to pay down debt left over from the old Ontario Hydro, the province's giant electrical utility that was split into multiple agencies in 1999 under the previous Conservative government.

"The minister can call it whatever he wants but it's right there in the graph, that there is going to be a new charge on the line," Smith said. "It's the debt retirement charge on steroids."

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Sir Adam Beck I refurbishment boosts hydropower capacity in Niagara, upgrading turbines, generators, and controls for Ontario Power Generation. The billion-dollar project enhances grid reliability, clean energy output, and preserves heritage architecture.

Key Points

An OPG upgrade of the historic Niagara plant to replace equipment, add 150 MW, and extend clean power life.

✅ Adds at least 150 MW to Ontario's clean energy supply

✅ Replaces turbines, generators, transformers, and controls

✅ Creates hundreds of skilled construction and engineering jobs

Ontario's iconic Sir Adam Beck hydroelectric generating station in Niagara is set to undergo a massive, billion-dollar refurbishment. The project will significantly boost the power station's capacity and extend its lifespan, with efforts similar to revitalizing older dams seen across North America, ensuring a reliable supply of clean energy for decades to come.

A Century of Power Generation

The Sir Adam Beck generating stations have played a pivotal role in Ontario's power grid for over a century. The first generating station, Sir Adam Beck I, went online in 1922, followed by Sir Adam Beck II in 1954. A third station, the Sir Adam Beck Pump Generating Station, was added in 1957, highlighting the role of pumped storage in Ontario for grid flexibility, Collectively, they form one of the largest hydroelectric complexes in the world, harnessing the power of the Niagara River.

Preparing for Increased Demand

The planned refurbishment of Sir Adam Beck I is part of Ontario Power Generation's broader strategy, which includes the life extension at Pickering NGS among other initiatives, to meet the growing energy demands of the province. With the population expanding and a shift towards electrification, Ontario will need to increase its power generation capacity while also focusing on sustainable and clean sources of energy.

Billions to Secure Sustainable Energy

The project to upgrade Sir Adam Beck I carries a hefty price tag of over a billion dollars but is considered a vital investment in Ontario's energy infrastructure, and recent OPG financial results underscore the utility's capacity to manage long-term capital plans. The refurbishment will see the replacement of aging turbines, generators, and transformers, and a significant upgrade to the station's control systems. Following the refurbishment, the output of Sir Adam Beck I is expected to increase by at least 150 megawatts – enough to power thousands of homes and businesses.

Creating Green Jobs

In addition to securing the province's energy future, the upgrade presents significant economic benefits to the Niagara region. The project will create hundreds of well-paying construction and engineering jobs, similar to employment from the continued operation of Pickering Station across Ontario, during the several years it will take to implement the upgrades.

Commitment to Hydropower

Ontario Power Generation (OPG) has long touted the benefits of hydropower as a reliable, renewable, and affordable source of energy, even as an analysis of rising grid emissions underscores the importance of clean generation to meet demand. The Sir Adam Beck complex is a shining example and represents a significant asset in the fight against climate change while providing reliable power to Ontario's businesses and residents.

Balancing Energy Needs with Heritage Preservation

The refurbishment will also carefully integrate modern design with the station's heritage elements, paralleling decisions such as the refurbishment of Pickering B that weigh system needs and public trust. Sir Adam Beck I is a designated historic site, and the project aims to preserve the station's architectural significance while enhancing its energy generation capabilities.

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California income-based utility charges face bipartisan pushback as the PUC weighs fixed fees for PG&E, SDG&E, and Southern California Edison, reshaping rate design, electricity affordability, energy equity, and privacy amid proposed per-kWh reductions.

Key Points

PUC-approved fixed fees tied to household income for PG&E, SDG&E, and SCE, offset by lower per-kWh rates.

✅ Proposed fixed fees: $51 SCE, $73.31 SDG&E, $50.92 PG&E

✅ Critics warn admin, privacy, legal risks and higher bills for savers

✅ Backers say lower-income pay less; kWh rates cut ~33% in PG&E area

Efforts are being made across California's political landscape to derail a legislative initiative that introduced income-based utility charges for customers of Southern California Edison and other major utilities.

Legislators from both the Democratic and Republican parties have proposed bills aimed at nullifying the 2022 legislation that established a sliding scale for utility charges based on customer income, a decision made in a late-hour session and subsequently endorsed by Governor Gavin Newsom.

The plan, pending final approval from the state Public Utilities Commission (PUC) — all of whose current members were appointed by Governor Newsom — would enable utilities like Southern California Edison, San Diego Gas & Electric, and PG&E to apply new income-based charges as early as this July.

Among the state legislators pushing back against the income-based charge scheme are Democrats Jacqui Irwin and Marc Berman, along with Republicans Janet Nguyen, Kelly Seyarto, Rosilicie Ochoa Bogh, Scott Wilk, Brian Dahle, Shannon Grove, and Roger Niello.

A cadre of specialists, including economist Ahmad Faruqui who has advised all three utilities implicated in the fee proposal, have outlined several concerns regarding the PUC's pending decision.

Faruqui and his colleagues argue that the proposed charges are excessively high in comparison to national standards, reflecting soaring electricity prices across the state, potentially leading to administrative challenges, legal disputes, and negative unintended outcomes, such as penalizing energy-conservative consumers.

Advocates for the income-based fee model, including The Utility Reform Network (TURN) and the National Resources Defense Council, argue it would result in higher charges for wealthier consumers and reduced fees for those with lower incomes. They also believe that the utilities plan to decrease per kilowatt-hour rates as part of a broader rate structure review to balance out the new fees.

However, even supporters like TURN and the Natural Resources Defense Council acknowledge that the income-based fee model is not a comprehensive solution to making soaring electricity bills more affordable.

If implemented, California would have the highest income-based utility fees in the country, with averages far surpassing the national average of $11.15, as reported by EQ Research:

• Southern California Edison would charge $51.
• San Diego Gas & Electric would levy $73.31.
• PG&E would set fees at $50.92.

The proposal has raised concerns among state legislators about the additional financial burden on Californians already struggling with high electricity costs.

Critics highlight several practical challenges, including the PUC's task of assessing customers' income levels, a process fraught with privacy concerns, potential errors, and constitutional questions regarding access to tax information.

Economists have pointed out further complications, such as the difficulty in accurately assessing incomes for out-of-state property owners and the variability of customers' incomes over time.

The proposed income-based charges would differ by income bracket within the PG&E service area, for example, with lower-income households facing lower fixed charges and higher-income households facing higher charges, alongside a proposed 33% reduction in electricity rates to help mitigate the fixed charge impact.

Yet, the economists warn that most customers, particularly low-usage customers, could end up paying more, essentially rewarding higher consumption and penalizing efficiency.

This legislative approach, they caution, could inadvertently increase costs for moderate users across all income brackets, a sign of major changes to electric bills that could emerge, challenging the very goals it aims to achieve by promoting energy inefficiency.

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