SCADA devices to pass $1.5 Billion by 2020

Lake Erie Connector Investment advances a 1,000 MW HVDC transmission link connecting Ontario to the PJM Interconnection, enhancing grid reliability, clean power trade, and GHG reductions through a public-private partnership led by CIB and ITC.

Key Points

A $1.7B public-private HVDC project linking Ontario and PJM to boost reliability, cut GHGs, and enable clean power trade.

✅ 1,000 MW, 117 km HVDC link between Ontario and PJM

✅ $655M CIB and $1.05B private financing, ITC to own-operate

✅ Cuts system costs, boosts reliability, reduces GHG emissions

The Canada Infrastructure Bank (CIB) and ITC Investment Holdings (ITC) have signed an agreement in principle to invest $1.7 billion in the Lake Erie Connector project.

Under the terms of the agreement, the CIB will invest up to $655 million or up to 40% of the project cost. ITC, a subsidiary of Fortis Inc., and private sector lenders will invest up to $1.05 billion, the balance of the project's capital cost.

The CIB and ITC Investment Holdings signed an agreement in principle to invest $1.7B in the Lake Erie Connector project.

The Lake Erie Connector is a proposed 117 kilometre underwater transmission line connecting Ontario with the PJM Interconnection, the largest electricity market in North America, and aligns with broader regional efforts such as the Maine transmission line to import Quebec hydro to strengthen cross-border interconnections.

The 1,000 megawatt, high-voltage direct current connection will help lower electricity costs for customers in Ontario and improve the reliability and security of Ontario's energy grid, complementing emerging solutions like battery storage across the province. The Lake Erie Connector will reduce greenhouse gas emissions and be a source of low-carbon electricity in the Ontario and U.S. electricity markets.

During construction, the Lake Erie Connector is expected to create 383 jobs per year and drive more than $300 million in economic activity, and complements major clean manufacturing investments like a $1.6 billion battery plant in the Niagara Region that supports the EV supply chain. Over its life, the project will provide 845 permanent jobs and economic benefits by boosting Ontario's GDP by $8.8 billion.

The project will also help Ontario to optimize its current infrastructure, avoid costs associated with existing production curtailments or shutdowns. It can leverage existing generation capacity and transmission lines to support electricity demand, alongside new resources such as the largest battery storage project planned for southwestern Ontario.

ITC continues its discussions with First Nations communities and is working towards meaningful participation in the near term and as the project moves forward to financial close.

The CIB anticipates financial close late in 2021, pending final project transmission agreements, with construction commencing soon after. ITC will own the transmission line and be responsible for all aspects of design, engineering, construction, operations and maintenance.

ITC acquired the Lake Erie Connector project in August 2014 and it has received all necessary regulatory and permitting approvals, including a U.S. Presidential Permit and approval from the Canada Energy Regulator.

This is the CIB's first investment commitment in a transmission project and another example of the CIB's momentum to quickly implement its $10B Growth Plan, amid broader investments in green energy solutions in British Columbia that support clean growth.

Endorsements

This project will allow Ontario to export its clean, non-emitting power to one of the largest power markets in the world and, as a result, benefit Canadians economically while also significantly contributing to greenhouse gas emissions reductions in the PJM market. The project allows Ontario to better manage peak capacity and meet future reliability needs in a more sustainable way. This is a true win-win for both Canada and the U.S., both economically and environmentally.
Ehren Cory, CEO, Canada Infrastructure Bank

The Lake Erie Connector has tremendous potential to generate customer savings, help achieve shared carbon reduction goals, and increase electricity system reliability and flexibility. We look forward to working with the CIB, provincial and federal governments to support a more affordable, customer-focused system for Ontarians. 
Jon Jipping, EVP & COO, ITC Investment Holdings Inc., a subsidiary of Canadian-based Fortis Inc. 

We are encouraged by this recent announcement by the Canada Infrastructure Bank. Mississaugas of the Credit First Nation has an interest in projects within our historic treaty lands that have environmental benefits and that offer economic participation for our community.
Chief Stacey Laforme, Mississaugas of the Credit First Nation

While our evaluation of the project continues, we recognize this project can contribute to the economic resilience of our Shareholder, the Mississaugas of the Credit First Nation. Subject to the successful conclusion of our collaborative efforts with ITC, we look forward to our involvement in building the necessary infrastructure that enable Ontario's economic engine.
Leonard Rickard, CEO, Mississaugas of the Credit Business Corporation

The Lake Erie Connector demonstrates the advantages of public-private partnerships to develop critical infrastructure that delivers greater value to Ontarians. Connecting Ontario's electricity grid to the PJM electricity market will bring significant, tangible benefits to our province. This new connection will create high-quality jobs, improve system flexibility, and allow Ontario to export more excess electricity to promote cost-savings for Ontario's electricity consumers.
Greg Rickford, Minister of Energy, Northern Development and Mines, Minister of Indigenous Affairs

With the US pledging to achieve a carbon-free electrical grid by 2035, Canada has an opportunity to export clean power, helping to reduce emissions, maximizing clean power use and making electricity more affordable for Canadians. The Lake Erie Connector is a perfect example of that. The Canada Infrastructure Bank's investment will give Ontario direct access to North America's largest electricity market - 13 states and D.C. This is part of our infrastructure plan to create jobs across the country, tackle climate change, and increase Canada's competitiveness in the clean economy, alongside innovation programs like the Hydrogen Innovation Fund that foster clean technology.

Quick Facts

• The Lake Erie Connector is a 1,000 megawatt, 117 kilometre long underwater transmission line connecting Ontario and Pennsylvania.
• The PJM Interconnection is a regional transmission organization coordinating the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
• The project will help to reduce electricity system costs for customers in Ontario, and aligns with ongoing consultations on industrial electricity pricing and programs, while helping to support future capacity needs.
• The CIB is mandated to invest CAD $35 billion and attract private sector investment into new revenue-generating infrastructure projects that are in the public interest and support Canadian economic growth.
• The investment commitment is subject to final due diligence and approval by the CIB's Board.

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Maine Hydropower Transmission Line revived by high court after referendum challenge, advancing NECEC, Hydro-Quebec supply, Central Maine Power partnership, clean energy integration, grid reliability, and lower rates across New England pending land-lease ruling.

Key Points

A court-revived NECEC line delivering 1,200 MW of Hydro-Quebec hydropower via CMP to strengthen the New England grid.

✅ Maine high court deems retroactive referendum unconstitutional

✅ Pending state land lease case may affect final route

✅ Project could lower rates and cut emissions in New England

Maine's highest court on Tuesday breathed new life into a $1-billion US transmission line that aims to serve as conduit for Canadian hydropower, after construction starts drew scrutiny, ruling that a statewide vote rebuking the project was unconstitutional.

The Supreme Judicial Court ruled that the retroactive nature of the referendum last year violated the project developer's constitutional rights, sending it back to a lower court for further proceedings.

The court did not rule in a separate case that focuses on a lease for a 1.6-kilometre portion of the proposed power line that crosses state land.

Central Maine Power's parent company and Hydro-Québec teamed up on the project that would supply up to 1,200 megawatts of Canadian hydropower, amid the ongoing Maine-Quebec corridor debate in the region. That's enough electricity for one million homes.

Most of the proposed 233-kilometre power transmission line would be built along existing corridors, but a new 85-kilometre section was needed to reach the Canadian border, echoing debates around the Northern Pass clash in New Hampshire.

Workers were already clearing trees and setting poles when the governor asked for work to be suspended after the referendum in November 2021, mirroring New Hampshire's earlier rejection of a Quebec-Massachusetts proposal that rerouted regional plans. The Maine Department of Environmental Protection later suspended its permit, but that could be reversed depending on the outcome of legal proceedings.

The high court was asked to weigh in on two separate lawsuits. Developers sought to declare the referendum unconstitutional while another lawsuit focused on a lease allowing transmission lines to cross a short segment of state-owned land.

Supporters say bold projects such as this one, funded by ratepayers in Massachusetts, are necessary to battle climate change and introduce additional electricity into a region that's heavily reliant on natural gas, which can cause spikes in energy costs, as seen with Nova Scotia rate increases recently across the Atlantic region.

Critics say the project's environmental benefits are overstated — and that it would harm the woodlands in western Maine.

It was the second time the Supreme Judicial Court was asked to weigh in on a referendum aimed at killing the project. The first referendum proposal never made it onto the ballot after the court raised constitutional concerns.

Although the project is funded by Massachusetts ratepayers, the introduction of so much electricity to the grid would serve to stabilize or reduce electricity rates for all consumers, proponents contend, even as Manitoba Hydro rate hikes face opposition elsewhere.

The referendum on the project was the costliest in Maine history, topping $90 million US and underscoring deep divisions.

The high-stakes campaign put environmental and conservation groups at odds, and pitted utilities backing the project, amid the Hydro One-Avista backlash, against operators of fossil fuel-powered plants that stand to lose money.

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Ontario Global Adjustment Deferral provides COVID-19 relief to industrial and commercial electricity consumers, holding GA charges at pre-COVID levels, aligning Class A and Class B rates, and deferring non-RPP costs from April to June 2020.

Key Points

An emergency measure that defers a portion of GA charges to stabilize electricity bills for non-RPP Class A/B consumers.

✅ Holds GA near pre-COVID levels at $115/MWh for Class B.

✅ Applies equal percentage relief to Class A customers.

✅ Deferred costs recovered over 12 months from Jan 2021.

Through an emergency order passed today, the Ontario government is taking steps to defer a portion of Global Adjustment (GA) charges for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan for the period starting from April 2020, at a time when Toronto's growing electricity needs require careful planning. This initiative is intended to provide companies with temporary immediate relief on their monthly electricity bills, as utilities use AI to adapt to shifting electricity demands in April, May and June 2020. The government intends to keep this emergency order in place until May 31, 2020, and subsequent regulatory amendments would, if approved, provide for the deferral of these charges for June 2020 as well.

This relief will prevent a marked increase in Global Adjustment charges due to the low electricity demand caused by the COVID-19 outbreak. Without this emergency order, a small industrial or commercial consumer (i.e., Class B) could have seen bills increase by 15 per cent or more. This emergency order will hold GA rates in line with pre-COVID-19 levels, even as clean energy initiatives in British Columbia accelerate across the sector.

"Ontario's industrial and commercial electricity consumers are being impacted by COVID-19. They employ thousands of hardworking Ontarians, and we know this is a challenging time for them," said Greg Rickford, Minister of Energy, Northern Development and Mines. "This would provide immediate financial support for more than 50,000 companies when they need it most: as they do their part to stop the spread of COVID-19 and as they prepare to help get our economy moving again with Toronto preparing for a surge in electricity demand in the years ahead."

Quick Facts

• The GA rate for smaller industrial and commercial consumers (i.e., Class B) has been set at $115 per megawatt-hour, which is roughly in line with the March 2020 value, alongside efforts to develop IoT security standards for electricity sector devices today. Large industrial and commercial consumers (i.e., Class A) will receive the same percentage reduction in GA charges as Class B consumers.
• Subject to the approval of subsequent amendments, deferred costs would be recovered over a 12-month period beginning in January 2021, amid increasing exposure to harsh weather across Canadian grids.

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BC Hydro COVID-19 Bill Relief provides payment deferrals, no-penalty payment plans, Crisis Fund grants up to $600, and utility bill assistance as customers face pandemic layoffs, social distancing, and increased home power usage.

Key Points

A BC Hydro program offering bill deferrals, no-penalty plans, and up to $600 Crisis Fund grants during COVID-19.

✅ Defer payments or set no-penalty payment plans

✅ Apply for up to $600 Customer Crisis Fund grants

✅ Measures to ensure reliable power and remote customer service

BC Hydro is implementing a program, including bill relief measures, to help people pay their bills if they’re affected by the novel coronavirus.

The Crown corporation says British Columbians are facing a variety of financial pressures related to the COVID-19 pandemic, as some workplaces close or reduce staffing levels and commercial power consumption plummets across the province.

BC Hydro said it also expects increased power usage as more people stay home amid health officials’ requests that people take social distancing measures, even as electricity demand is down 10% provincewide.

Under the new program, customers will be able to defer bill payments or arrange a payment plan with no penalty, though a recent report on deferred operating costs outlines long-term implications for the utility.

BC Hydro says some customers could also be eligible for grants of up to $600 under its Customer Crisis Fund, if facing power disconnection due to job loss, illness or loss of a family member, while in other jurisdictions power bills were cut for households during the pandemic.

The company says it has taken precautions to keep power running by isolating key facilities, including its control centre, and by increasing its cleaning schedule, a priority even as some utilities face burgeoning debt amid COVID-19.

It has also closed its walk-in customer service desks to reduce risk from face-to-face contact and suspended all non-essential business travel, public meetings and site tours, and warned businesses about BC Hydro impersonation scams during this period.

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EU Electricity Market Reform advances two-way CfDs, PPAs, and fixed-price tariffs to cut volatility, support renewables and nuclear, stabilize investor revenues, and protect consumers from price spikes across wholesale power markets.

Key Points

An EU plan expanding two-way CfDs, PPAs, and fixed-price contracts to curb price swings and support low-carbon power.

✅ Two-way CfDs return excess revenues to consumers

✅ Boosts PPAs and fixed-price retail options

✅ Targets renewables, nuclear; limits fossil exposure

The European Union wants to expand the use of contracts that pay power plants a fixed price for electricity, a draft proposal showed, as part of an electricity market revamp to shield European consumers from big price swings.

The European Commission pledged last year to reform the EU's electricity market rules, after record-high gas prices, caused by cuts to Russian flows, sent power prices soaring, prompting debates over gas price cap strategies in response.

A draft of the EU executive's proposal, seen by Reuters on Tuesday and due to be published on Mar. 16, steered clear of the deep redesign of the electricity market that some member states have called for, even as nine EU countries opposed sweeping reforms as a fix earlier in the crisis, suggesting instead limited changes to nudge countries towards more predictable, fixed-price power contracts.

If EU countries want to support new investments in wind, solar, geothermal, hydropower and nuclear electricity, for example - a point over which France and Germany have wrestled - they should use a two-way contract for difference (CfD) or an equivalent contract, the draft said.

The aim is to provide a stable revenue stream to investors, and help make consumers' energy bills less volatile, even though rolling back electricity prices is tougher than it appears. Restricting this support to renewable and low-carbon electricity also aims to speed up Europe's shift away from fossil fuels.

Two-way CfDs offer generators a fixed "strike price" for their electricity, regardless of the price in short-term energy markets. If the market price is above the CfD strike price, then the extra revenue the generator receives should be handed out to final electricity consumers, the draft EU document said.

Countries should also make it easier for power buyers to sign power purchase agreements (PPA) - another type of long-term contract to directly buy electricity from a generator.

Governments should also make sure consumers have access to fixed-price electricity contracts - echoing France's new electricity pricing scheme to reassure Brussels - giving them the option to avoid a contract that would expose them to volatile prices swings in energy markets, the draft said.

If European energy prices were to spike to extreme levels again, the Commission suggested allowing national governments to temporarily intervene to fix prices while weighing emergency measures to limit prices where needed, and offer consumers and small businesses a share of their electricity at a lower price.

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CO2 Tax for UK Offshore Energy Efficiency can accelerate adoption of aero-derivative gas turbines, flare gas recovery, and combined cycle power, reducing emissions on platforms like Equinor's Mariner and supporting net zero goals.

Key Points

A carbon price pushing operators to adopt efficient turbines, flare recovery, and combined cycle to cut emissions.

✅ Aero-derivative turbines beat industrial units on efficiency

✅ Flare gas recovery cuts routine flaring and fuel waste

✅ Combined cycle raises efficiency and lowers emissions

By Tom Baxter

The recent Energy Voice article from the Equinor chairman concerning the Mariner project heralding a ‘significant point of reference’ for growth highlighted the energy efficiency achievements associated with the platform.

I view energy efficiency as a key enabler to net zero, and alongside this the UK must start large-scale storage to meet system needs; it is a topic I have been involved with for many years.

As part of my energy efficiency work, I investigated Norwegian practices and compared them with the UK.

There were many differences, here are three;

1. Power for offshore installations is usually supplied from gas turbines burning fuel from the oil and gas processing plant, and even as the UK's offshore wind supply accelerates, installations convert that to electricity or couple the gas turbine to a machine such as a gas compressor.

There are two main generic types of gas turbine – aero-derivative and industrial. As the name implies aero-derivatives are aviation engines used in a static environment. Aero-derivative turbines are designed to be energy efficient as that is very import for the aviation industry.

Not so with industrial type gas turbines; they are typically 5-10% less efficient than a comparable aero-derivative.

Industrial machines do have some advantages – they can be cheaper, require less frequent maintenance, they have a wide fuel composition tolerance and they can be procured within a shorter time frame.

My comparison showed that aero-derivative machines prevailed in Norway because of the energy efficiency advantages – not the case in the UK where there are many more offshore industrial gas turbines.

Tom Baxter is visiting professor of chemical engineering at Strathclyde University and a retired technical director at Genesis Oil and Gas Consultants

2. Offshore gas flaring is probably the most obvious source of inefficient use of energy with consequent greenhouse gas emissions.

On UK installations gas is always flared due to the design of the oil and gas processing plant.

Though not a large quantity of gas, a continuous flow of gas is routinely sent to flare from some of the process plant.

In addition the flare requires pilot flames to be maintained burning at all times and, while Europe explores electricity storage in gas pipes, a purge of hydrocarbon gas is introduced into the pipes to prevent unsafe air ingress that could lead to an explosive mixture.

On many Norwegian installations the flare system is designed differently. Flare gas recovery systems are deployed which results in no flaring during continuous operations.

Flare gas recovery systems improve energy efficiency but they are costly and add additional operational complexity.

3. Returning to gas turbines, all UK offshore gas turbines are open cycle – gas is burned to produce energy and the very hot exhaust gases are vented to the atmosphere. Around 60 -70% of the energy is lost in the exhaust gases.

Some UK fields use this hot gas as a heat source for some of the oil and gas treatment operations hence improving energy efficiency.

There is another option for gas turbines that will significantly improve energy efficiency – combined cycle, and in parallel plans for nuclear power under the green industrial revolution aim to decarbonise supply.

Here the exhaust gases from an open cycle machine are taken to a separate turbine. This additional turbine utilises exhaust heat to produce steam with the steam used to drive a second turbine to generate supplementary electricity. It is the system used in most UK power stations, even as UK low-carbon generation stalled in 2019 across the grid.

Open cycle gas turbines are around 30 – 40% efficient whereas combined cycle turbines are typically 50 – 60%. Clearly deploying a combined cycle will result in a huge greenhouse gas saving.

I have worked on the development of many UK oil and gas fields and combined cycle has rarely been considered.

The reason being is that, despite the clear energy saving, they are too costly and complex to justify deploying offshore.

However that is not the case in Norway where combined cycle is used on Oseberg, Snorre and Eldfisk.

What makes the improved Norwegian energy efficiency practices different from the UK – the answer is clear; the Norwegian CO2 tax.

A tax that makes CO2 a significant part of offshore operating costs.

The consequence being that deploying energy efficient technology is much easier to justify in Norway when compared to the UK.

Do we need a CO2 tax in the UK to meet net zero – I am convinced we do. I am in good company. BP, Shell, ExxonMobil and Total are supporting a carbon tax.

Not without justification there has been much criticism of Labour’s recent oil tax plans, alongside proposals for state-owned electricity generation that aim to reshape the power market.

To my mind Labour’s laudable aims to tackle the Climate Emergency would be much better served by supporting a CO2 tax that complements the UK's coal-free energy record by strengthening renewable investment.

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