Green grocer: Stew Leonard's reaps reward

Hydro One CEO Mark Poweska aims to rebuild ties with Ontario's provincial government, investors, and communities, stabilize the executive team, boost earnings and dividends, and reset strategy after the scrapped Avista deal and regulatory setbacks.

Key Points

He plans to mend government and investor relations, rebuild the C-suite, and refocus growth after the failed Avista bid.

✅ Rebuild ties with Ontario government and regulators

✅ Stabilize executive team and governance

✅ Refocus growth after Avista deal termination

The incoming chief executive officer of Hydro One Ltd. said Thursday that he aims to rebuild the relationship between the Ontario electrical utility and the provincial government, as seen in COVID-19 support initiatives, as well as ties between the company and its investors.

Mark Poweska, the former executive vice-president of operations at BC Hydro, was announced as Hydro One’s new president and CEO in March. His hiring followed a turbulent period for Toronto-based Hydro One, Ontario’s biggest distributor and transmitter of electricity, with large-scale storm restoration efforts underscoring its role.

Hydro One’s former CEO and board of directors departed last year under pressure from a new Ontario government, the utility’s biggest shareholder. Earlier this year, the company’s plan for a $6.7-billion takeover fell apart over concerns of political interference and the utility clashed with the new provincial government and Progressive Conservative Premier Doug Ford over executive compensation levels, amid rate policy debates such as no peak rate cuts for self-isolating customers.

Hydro One facing $885 million charge as regulator upholds tax decision forcing it to share savings with customers

Shares of Hydro One were up more than eight per cent year-to-date on Wednesday, closing at $21.74. However, the stock price was up only six per cent from Hydro One’s 2015 initial public offering price, something its incoming CEO seems set on changing.

“One of my first priorities will be to solidify the executive team and build relationships with the Government of Ontario, our customers, informed by customer flexibility research, and communities, indigenous leaders, investors, and our partners across the electricity sector,” Poweska said Thursday on a conference call outlining Hydro One’s first-quarter results. “At the same time, I will be working to earn the trust and confidence of the investment community.”

Hydro One reported a profit of $171 million for the three months ended March 31, while peers such as Hydro-Québec reported pandemic-related losses as the sector adapted. Net income for the first quarter was down from $222 million a year earlier, which was due to $140 million in costs related to the scrapping of Hydro One’s proposed acquisition of U.S. energy company Avista Corp.

Hydro One Ltd. appointed Mark Poweska as President and CEO.

In January, Hydro One said the proposed takeover of Spokane, Wash.-headquartered Avista, an approximately $6.7-billion deal announced in July 2017, was being called off. As a result, Hydro One said it would pay Avista a US$103 million break fee.

Revenues net of purchased power for the first quarter rose to $952 million, up by 15.4 per cent compared to last year, Hydro One said, helped by higher distribution revenues. Adjusted profit for the quarter, which removes the Avista-related costs, was $311 million, up from $210 million a year ago.

The company is hiking its quarterly dividend to 24.15 cents per share, up five per cent from the last increase in May 2018, while also launching a pandemic relief fund for customers.

Poweska is taking over for acting president and CEO Paul Dobson this month, and the new executive will be charged with revamping Hydro One’s C-suite.

The company’s chief operating officer, chief legal officer, and chief corporate development officer have all departed this year. The company’s chief human resource officer has retired as well, although Poweska did announce Thursday that he had appointed acting chief financial officer Chris Lopez as CFO.

“Hydro One’s significant bench strength and management depth will ensure stability and continuity during this period of transition, as the sector pursues Hydro-Québec energy transition as well,” the company said in its first-quarter earnings press release.

Ontario remains Hydro One’s biggest shareholder, owning approximately 47 per cent of the company.

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Hornsea One Offshore Wind Farm delivers first power to the UK grid, scaling renewable energy with 1.2GW capacity, giant offshore turbines, and Yorkshire coast infrastructure to replace delayed nuclear and cut fossil fuel emissions.

Key Points

Hornsea One Offshore Wind Farm is a 1.2GW UK project delivering offshore renewable power to about 1 million homes.

✅ 174 turbines over 407 km2; Siemens Gamesa supply chain in the UK

✅ 1.2GW capacity can power ~1m homes; phases scale with 10MW+ turbines

✅ Supports UK grid, replaces delayed nuclear, cuts fossil generation

An offshore windfarm on the Yorkshire coast that will dwarf the world’s largest when completed is to supply its first power to the UK electricity grid this week, mirroring advances in tidal electricity projects delivering to the grid as well.

The Danish developer Ørsted, which has installed the first of 174 turbines at Hornsea One, said it was ready to step up its plans and fill the gap left by failed nuclear power schemes.

The size of the project takes the burgeoning offshore wind power sector to a new scale, on a par with conventional fossil fuel-fired power stations.

Hornsea One will cover 407 square kilometres, five times the size of the nearby city of Hull. At 1.2GW of capacity it will power 1m homes, making it about twice as powerful as today’s biggest offshore windfarm once it is completed in the second half of this year.

“The ability to generate clean electricity offshore at this scale is a globally significant milestone at a time when urgent action needs to be taken to tackle climate change,” said Matthew Wright, UK managing director of Ørsted, the world’s biggest offshore windfarm builder.

The power station is only the first of four planned in the area, with a green light and subsidies already awarded to a second stage due for completion in the early 2020s, and interest from Japanese utilities underscoring growing investor appetite.

The first two phases will use 7MW turbines, which are taller than London’s Gherkin building.

But the latter stages of the Hornsea development could use even more powerful, 10MW-plus turbines. Bigger turbines will capture more of the energy from the wind and should lower costs by reducing the number of foundations and amount of cabling firms need to put into the water, with developers noting that offshore wind can compete with gas in the U.S. as costs fall.

Henrik Poulsen, Ørsted’s chief executive, said he was in close dialogue with major manufacturers to use the new generation of turbines, some of which are expected to approach the height of the Shard in London, the tallest building in the EU.

The UK has a great wind resource and shallow enough seabed to exploit it, and could even “power most of Europe if it [the UK] went to the extreme with offshore”, he said.

Offshore windfarms could help ministers fill the low carbon power gap created by Hitachi and Toshiba scrapping nuclear plants, the executive suggested. “If nuclear should play less of a role than expected, I believe offshore wind can step up,” he said.

New nuclear projects in Europe had been “dramatically delayed and over budget”, he added, in comparison to “the strong track record for delivering offshore [wind]”.

The UK and Germany installed 85% of new offshore wind power capacity in the EU last year, according to industry data, with wind leading power across several markets. The average power rating of the turbines is getting bigger too, up 15% in 2018.

The turbines for Hornsea One are built and shipped from Siemens Gamesa’s factory in Hull, part of a web of UK-based suppliers that has sprung up around the growing sector, such as Prysmian UK's land cables supporting grid connections.

Around half of the project’s transition pieces, the yellow part of the structure that connects the foundation to the tower, are made in Teeside. Many of the towers themselves are made by a firm in Campbeltown in the Scottish highlands. Altogether, about half of the components for the project are made in the UK.

Ørsted is not yet ready to bid for a share of a £60m pot of further offshore windfarm subsidies, to be auctioned by the government this summer, but expects the price to reach even more competitive levels than those seen in 2017.

Like other international energy companies, Ørsted has put in place contingency planning in event of a no-deal Brexit – but the hope is that will not come to pass. “We want a Brexit deal that will facilitate an orderly transition out of the union,” said Poulsen.

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Trump Offshore Wind Pledge signals a push for deregulation over renewable energy, challenging climate policy, green jobs, and coastal development while citing marine ecosystems, navigation, and energy independence amid state-federal permitting and legal hurdles.

Key Points

Trump's vow to cancel offshore wind projects favors deregulation and fossil fuels, impacting climate policy and jobs.

✅ Day-one plan to scrap offshore wind leases and permits

✅ Risks to renewable targets, grid mix, and coastal supply chains

✅ Likely court fights and state-federal regulatory conflicts

During his tenure as President of the United States, Donald Trump made numerous promises and policy proposals, many of which sparked controversy and debate. One such pledge was his vow to scrap offshore wind projects on "day one" of his presidency. This bold statement, while appealing to certain interests, raised concerns about its potential impact on U.S. offshore wind growth and environmental conservation efforts.

Trump's opposition to offshore wind projects stemmed from various factors, including his skepticism towards renewable energy, even as forecasts point to a $1 trillion offshore wind market in coming years, concerns about aesthetics and property values, and his focus on promoting traditional energy sources like coal and oil. Throughout his presidency, Trump prioritized deregulation and sought to roll back environmental policies introduced by previous administrations, arguing that they stifled economic growth and hindered American energy independence.

The prospect of scrapping offshore wind projects drew mixed reactions from different stakeholders. Supporters of Trump's proposal pointed to potential benefits such as preserving scenic coastal landscapes, protecting marine ecosystems, and addressing concerns about navigational safety and national security. Critics, however, raised valid concerns about the implications of such a decision on the renewable energy sector, including progress toward getting 1 GW on the grid nationwide, climate change mitigation efforts, and job creation in the burgeoning green economy.

Offshore wind energy has emerged as a promising source of clean, renewable power with the potential to reduce greenhouse gas emissions and diversify the energy mix. Countries like Denmark, the United Kingdom, and Germany have made significant investments in offshore wind in Europe, demonstrating its viability as a sustainable energy solution. In the United States, offshore wind projects have gained traction in states like Massachusetts, New York, and New Jersey, where coastal conditions are conducive to wind energy generation.

Trump's pledge to scrap offshore wind projects on "day one" of his presidency raised questions about the feasibility and legality of such a move. While the president has authority over certain aspects of energy policy and regulatory oversight, the development of offshore wind projects often involves multiple stakeholders, including state governments, local communities, private developers, and federal agencies, and actions such as Interior's move on Vineyard Wind illustrate federal leverage in permitting. Any attempt to halt or reverse ongoing projects would likely face legal challenges and regulatory hurdles, potentially delaying or derailing implementation.

Moreover, Trump's stance on offshore wind projects reflected broader debates about the future of energy policy, environmental protection, and economic development. While some argued for prioritizing fossil fuel extraction and traditional energy infrastructure, others advocated for a transition towards clean, renewable energy sources, drawing on lessons from the U.K. about wind deployment, to mitigate climate change and promote sustainable development. The Biden administration, which succeeded the Trump presidency, has signaled a shift towards a more climate-conscious agenda, including support for renewable energy initiatives and commitments to rejoin international agreements like the Paris Climate Accord.

In hindsight, Trump's pledge to scrap offshore wind projects on "day one" of his presidency underscores the complexities of energy policy and the importance of balancing competing interests and priorities. While concerns about aesthetics, property values, and environmental impact are valid, addressing the urgent challenge of climate change requires bold action and innovation in the energy sector. Offshore wind energy presents an opportunity, as seen in the country's biggest offshore wind farm approved in New York, to harness the power of nature in a way that is both environmentally responsible and economically beneficial. As the United States navigates its energy future, finding common ground and forging partnerships will be essential to ensure a sustainable and prosperous tomorrow.

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FERC Transmission Rule accelerates grid modernization and interregional high-voltage lines, enabling renewable energy integration, load balancing, and reliability to advance net-zero goals while strengthening resilience, capacity expansion, and decarbonization across U.S. regional transmission organizations.

Key Points

A federal policy mandating interregional grid planning and cost sharing to expand high-voltage lines for renewables.

✅ Expands interregional high-voltage transmission capacity

✅ Improves reliability, resilience, and load balancing

✅ Aligns cost allocation and long-term planning for renewables

On May 13th, 2024, the US took a monumental step towards its clean energy goals. The Federal Energy Regulatory Commission (FERC) approved a long-awaited rule designed to significantly expand the transmission of renewable energy across the nation's power grid, a US grid overhaul that many advocates say was overdue. This decision aligns with President Biden's ambitious plan to achieve net-zero carbon emissions by 2050, with renewable energy playing a central role.

The new rule tackles a critical bottleneck hindering the widespread adoption of renewables – transmission infrastructure. Unlike traditional power plants like coal or natural gas that run constantly, solar and wind power generation fluctuates with weather conditions. This variability poses a challenge for the existing grid, which is not designed to efficiently handle large-scale integration of these intermittent sources, helping explain why the grid isn't 100% renewable today.

The FERC rule aims to address this by promoting the construction of new, high-voltage transmission lines, particularly those connecting different regions, where grid limitations in the Pacific Northwest have highlighted the need for better interregional transfers. This improved connectivity would allow for a more strategic distribution of renewable energy. Imagine solar energy harnessed in the sun-drenched Southwest being transmitted eastward to meet peak demand during hot summer days on the Atlantic Coast.

The benefits of this expanded transmission network are multifaceted. First, it unlocks the full potential of renewable resources by allowing for their efficient utilization across the country, a trend consistent with wind and solar surpassing coal in U.S. generation. Abundant wind power in the Midwest could be utilized on the West Coast, while surplus solar energy from the South could supplement demand in the Northeast.

Second, a more robust grid with a higher capacity for renewables reduces reliance on fossil fuel-based power plants and complements other ways to meet decarbonization goals across sectors. This translates to cleaner air and a significant reduction in greenhouse gas emissions, contributing to the fight against climate change.

Third, a modernized grid with improved long-distance transmission bolsters the nation's energy security. Extreme weather events, a growing concern due to climate change, can disrupt energy production in specific regions. This interconnected grid would provide a buffer, ensuring a more reliable and resilient power supply and helping put regions on the road to 100% renewables even during adverse weather conditions.

The FERC's decision is a win for environmental groups and the renewable energy industry. They see it as a critical step towards a cleaner energy future and a significant driver of job creation in the construction and maintenance of new transmission lines. However, concerns have been raised by some stakeholders, particularly investor-owned utilities. They worry about the potential cost burden associated with building these expansive new lines, and recent reports of stalled grid spending underscore those concerns and the need for efficient cost allocation mechanisms. Striking a balance between efficiency, affordability, and environmental responsibility will be crucial for the successful implementation of this policy.

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U.S. EV Market Share Dip Q1 2024 reflects slower BEV adoption, rising PHEV demand, affordability concerns, charging infrastructure gaps, tax credit shifts, range anxiety, and automaker strategy adjustments across the electric vehicle market.

Key Points

Q1 2024 EV and hybrid share slipped as BEV sales lag, PHEVs rise, and affordability and charging concerns temper demand.

✅ BEV share fell to 7.0% as affordable models remain limited

✅ PHEV sales rose 50% YoY, easing range anxiety concerns

✅ Policy shifts and charging gaps weigh on consumer adoption

The U.S. electric vehicle (EV) market, once a beacon of unbridled growth, appears to be experiencing a course correction. Data from the U.S. Energy Information Administration (EIA) reveals that the combined market share of electric vehicles (battery electric vehicles, or BEVs) and hybrids dipped slightly in the first quarter of 2024, marking the first decline since the onset of the COVID-19 pandemic, even as EU EV share rose during lockdowns in 2020.

This news comes as a surprise to many analysts who predicted continued exponential growth for the EV market. While overall sales of electric vehicles surged into 2024 and did increase by 7% compared to Q1 2023, this growth wasn't enough to keep pace with the overall rise in vehicle sales. The result: a decline in market share from 18.8% in Q4 2023 to 18.0% in Q1 2024.

Several factors may be contributing to this shift. One potential culprit is a slowdown in battery electric vehicle sales. BEVs saw their share of the market dip from 8.1% to 7.0% in the same period. This could be attributed to a lack of readily available affordable options, with many popular EV models still commanding premium prices and concerns that EV supply may miss demand in the near term.

Another factor could be the rising interest in plug-in hybrid electric vehicles (PHEVs). PHEV sales witnessed a significant jump of 50% year-over-year, reflecting how gas-electric hybrids are getting a boost from major automakers, potentially indicating a consumer preference for vehicles that offer both electric and gasoline powertrain options, addressing concerns about range anxiety often associated with BEVs.

Industry experts offer mixed interpretations of this data. Some downplay the significance of the dip, attributing it to a temporary blip, even though EVs remain behind gas cars in total sales. They point to the ongoing commitment from major automakers to invest in EV production and the potential for new, more affordable models to hit the market soon.

Others express more concern, citing Europe's recent EV slump and suggesting this might be a sign of maturing consumer preferences. They argue that simply increasing the number of EVs on the market might not be enough. Automakers need to address issues like affordability, charging infrastructure, and range anxiety to maintain momentum.

The role of government incentives also remains a question mark. The federal tax credit for electric vehicles is currently set to phase out gradually, potentially impacting consumer purchasing decisions in the future. Continued government support, through incentives or infrastructure development, could be crucial in maintaining consumer interest.

The coming quarters will be crucial in determining the long-term trajectory of the U.S. EV market, especially after the global electric car market's rapid expansion in recent years. Whether this is a temporary setback or a more lasting trend remains to be seen. Addressing consumer concerns, ensuring a diverse range of affordable EV options, and continued government support will all be essential in ensuring the continued growth of this critical sector.

This development also presents an opportunity for traditional automakers. By capitalizing on the growing PHEV market and addressing consumer concerns about affordability and range anxiety, they can carve out a strong position in the evolving automotive landscape.

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USAID GE Mobile Power Plant Ukraine supplies 28MW of emergency power and distributed generation to bolster energy security, grid resilience, and critical infrastructure reliability across cities and regions amid ongoing attacks.

Key Points

A 28MW GE gas turbine from USAID providing mobile, distributed power to strengthen Ukraine's grid resilience.

✅ 28MW GE gas turbine; power for 100,000 homes

✅ Mobile deployment to cities and regions as needed

✅ Supports hospitals, schools, and critical infrastructure

Deputy U.S. Administrator Isobel Coleman announced during her visit to Kyiv that the U.S. Agency for International Development (USAID) has provided the Government of Ukraine with a mobile gas turbine power plant purchased from General Electric (GE), as discussions of a possible agreement on power plant attacks continue among stakeholders.

The mobile power plant was manufactured in the United States by GE’s Gas Power business and has a total output capacity of approximately 28MW, which is enough to provide the equivalent electricity to at least 100,000 homes. This will help Ukraine increase the supply of electricity to homes, hospitals, schools, critical infrastructure providers, and other institutions, as the country has even resumed electricity exports in recent months. The mobile power plant can be operated in different cities or regions depending on need, strengthening Ukraine’s energy security amid the Russian Federation’s continuing strikes against critical infrastructure.   

Since the February 2022 full-scale invasion of Ukraine, and particularly since October 2022, the Russian Federation has deliberately targeted critical civilian heating, power, and gas infrastructure in an effort to weaponize the winter, raising nuclear risks to grid stability noted by international monitors. Ukraine has demonstrated tremendous resilience in the wake of these attacks, with utility workers routinely risking their lives to repair the damage, often within hours of air strikes, even as Russia builds power lines to reactivate the Zaporizhzhia plant to influence the energy situation.

The collaboration between USAID and GE reflects the U.S. government’s emphasis on engaging American private sector expertise and procuring proven and reliable equipment to meet Ukraine’s needs. Since the start of Putin’s full-scale war against Ukraine, USAID has both directly procured equipment for Ukraine from American companies and engaged the private sector in partnerships to meet Ukraine’s urgent wartime needs, with U.S. policy debates such as a proposal on Ukraine’s nuclear plants drawing scrutiny.

This mobile power plant is the latest example of USAID assistance to Ukraine’s energy sector since the start of the Russian Federation’s full-scale invasion, during which Ukraine has resumed electricity exports as conditions improved. USAID has already delivered more than 1,700 generators to 22 oblasts across Ukraine, with many more on the way. These generators ensure electricity and heating for schools, hospitals, accommodation centers for internally-displaced persons, district heating companies, and water systems if and when power is knocked out by the Russian Federation’s relentless, systematic and cruel attacks against critical civil infrastructure. USAID has invested $55 million in Ukraine’s heating infrastructure to help the Ukrainian people get through winter. This support will benefit up to seven million Ukrainians by supporting repairs and maintenance of pipes and other equipment necessary to deliver heating to homes, hospitals, schools, and businesses across Ukraine. USAID’s assistance builds on over two decades of support to Ukraine to strengthen the country’s energy security, complementing growth in wind power that is harder to destroy.

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