Economy, efficiency and EVs

By Toronto Star


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Economy, efficiency, emissions, environment, electricity: those are the watchwords.

To borrow a theme from Sesame Street, the year 2010 will be brought to you by the letter "E." Or at least it could be.

While the major actors that will influence the auto industry are readily identified, determining just what their effects will be is far from child's play.

At the beginning of 2009, with the global economy in freefall, I suggested that news about the state of the industry itself would overshadow anything about product and that the automotive industry would look different at the end of the year.

More than prescient predictions, they were simple statements of the obvious. Both forecasts, albeit it to a lesser degree, are likely valid for 2010 also.

While the world's economy is less fragile now than it was then, it is still far from stable. And while tentative signs of recovery have appeared, they remain just that – tentative.

In Canada, our situation is better than in most of the developed world. Full-year sales results have yet to be announced but all indications are they'll be somewhere around 12.5 per cent below 2008's numbers, which were the third-best ever.

That's a far better result than seemed likely when the year began and, barring some further economic calamity, it's expected to be a sustainable level for 2010, according to key industry analysts.

Nevertheless, 2009 took a big toll on the automotive landscape and the devastation will continue to play out through 2010.

Several brands have disappeared, or soon will, and almost 100 new-vehicle dealerships have closed across the country. As many as 200 more are likely to disappear during 2010, according to one expert close to the scene.

While the bankruptcies of Chrysler and General Motors and their emergence as new entities dominated the news coverage in 2009, neither they nor the rest of the industry are free of worry. There remains significant overcapacity in global production that has yet to be dealt with – particularly in Europe – and new capacity is being added in both China and India.

The bottom line: the shakeup in the industry is not over yet as the recent tie-up between Volkswagen and Suzuki, alliance talks between Mitsubishi and PSA (Peugeot/Citroen) and the tentative purchase of Volvo by China's Geely attest.

Who knows what strange bedfellows might seek each other's comfort by the end of 2010?

On the product front, the inevitable march of technology will continue, with significant improvements in safety, comfort, and particularly information and communications systems at all price levels.

But most of the technological focus for this and the next several years will have to be on efficiency, emissions and environmental concerns in general. Strict new regulations in both the U.S. and Canada will make it so.

Foremost among those are U.S. CAFE (Corporate Average Fuel Economy) standards that begin tightening for 2011 models (which come to market this year) and will continue to become more strict to 2016, ultimately achieving a fleet average for new vehicles of 6.6 L/100 km (35.5 mpg).

The Canadian government has just released proposed standards to limit carbon dioxide (CO2) emissions that effectively parallel the U.S. CAFE standards. CO2 emissions, which are believed to be major contributors to climate change, are directly related to fuel consumption.

To say these aggressive targets represent a major challenge to automakers would be a gross understatement. They will necessitate measures that go far beyond the normal pace of technical evolution.

The most apparent and immediate will be engine downsizing, which is already taking place. Many 2010 models that previously came with only V6 engines are now, or soon will be, available with four-cylinder powerplants. And some of the current fours, as well as V6s, will get smaller as well.

To help regain access to power lost by downsizing, for those circumstances when it is really needed, turbocharging will become more commonplace – again. And direct injection on gasoline engines, which aids both power and efficiency, will become de rigueur.

Particular attention will be paid to internal friction losses with improved materials and machining practices in many applications. And the use of 0W20 engine oil will become commonplace, to absolutely minimize internal drag.

Other details already seen in a few applications will include electric air-conditioning compressors and coolant pumps as well as more widespread use of electric power steering. Anything to reduce engine load and thus conserve fuel.

Of course, multi-speed transmissions help that effort. Six-speeds are now becoming the norm and seven- and eight-speeds will become more available, although the popularity of CVTs (continuously variable transmissions) seems to have plateaued.

Even more attention will have to be paid to aerodynamic drag at lower speeds – in areas like the vehicle underbodies – and to tire rolling resistance.

In short, anything that might bring an improvement of a fraction of a L/100 km will get serious consideration.

All of which leads us to the final "E" – electricity.

The demands of the new regulations are more than likely to be achievable with just improved efficiencies to conventional automobiles – even with increased use of diesel powerplants added to the mix, which is likely to be part of the solution, espoused particularly by the Europeans.

That means greater reliance on electric power will probably become inevitable – a conclusion most of the world's automakers already seem to have reached.

Just what form that electric power takes, and in what proportion, remains to be resolved.

Almost certainly the market share claimed by hybrids is likely to increase if for no other reason than there's a number of new models available. Few manufacturers will be without at least one offering by the end of 2010 and several will market multiple models.

The bigger question mark is the impact of plug-in electric vehicles (EVs) – be they range-extended EVs like the Chevrolet Volt (technically a series-hybrid), plug-in variants of conventional hybrids like the Toyota Prius or pure battery electrics (BEVs) like the Nissan Leaf.

Production of all three, and more, is scheduled to begin either later this year or next, although none are likely to make it to the Canadian market until at least 2011.

Perhaps a bigger question mark than the cars themselves – one that must be addressed soon – is the source of and infrastructure requirements for delivery of the electricity they will require.

It is to be hoped that 2010 will bring answers to many of the questions still hanging over the industry. The one thing for sure is that it promises to be exciting, for consumers as well as those involved in any aspect of the automobile business – journalists included.

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Quebec and other provinces heading toward electricity shortage: report

Canada Electricity Shortage threatens renewable energy transition as EV adoption and building decarbonization surge; Hydro-Quebec exports, wind power expansion, demand response, and smart grid resilience shape investment and capacity planning.

 

Key Points

A looming supply gap in central and eastern provinces driven by EVs, heating decarbonization, exports, and limited new hydro.

✅ Hydro-Quebec capacity pressured by exports and new loads

✅ Wind power prioritized; new mega-dams deemed unworkable

✅ Smart meters boost flexibility but raise cyber risk

 

Quebec and other provinces in central and eastern Canada are heading toward a significant shortage of electricity to respond to the various needs of a transition to renewable energy, and Ontario's energy storage push underscores how supply is tightening across the region.

This is according to Polytechnique Montréal’s Institut de l’énergie Trottier, which published a report titled A Strategic Perspective on Electricity in Central and Eastern Canada last week.

The white paper says that at the current rate, most provinces will be incapable of meeting the electricity needs created by the increase in the number of electric vehicles, including the federal 2035 EV sales mandate that will amplify demand, and the decarbonization of building heating by 2030. “The situation worsens if we consider carbon neutrality objectives of the federal government and some provinces for 2050,” the institute says.

The researchers called on public utilities to immediately review their investment plans for the coming years in light of examples such as B.C.'s power supply challenges that accompany rapid green ambitions.

In a news conference Wednesday, Premier François Legault said the province could indeed be short on electricity as debates over Quebec's EV push continue. “We’re open to exploiting green hydrogen, if the price is good and also based on the electrical capacity we have. Because currently, we predict that in the coming years we’re going to lack electricity, so we must be prudent.”

Quebec is in a better position than other provinces because it is the largest hydroelectricity producer in the country. But that energy source also attracts new clients that have contributed to increased demand over the coming years, including data centres, cryptocurrency miners and greenhouses.

Report co-author Normand Mousseau said that while Hydro-Québec largely has the capacity to meet demand from electric vehicles, even amid EV shortages and wait times for buyers, heating and manufacturers, export contracts to the United States “risk reducing its leeway.”

Hydro-Québec will therefore have to find new sources of electricity, and Mousseau said the answer isn’t new dams.

“The reservoirs give an immense flexibility to the network, but we don’t have the capacity today to flood territories like we have done in the past,” said Mousseau, the institute’s scientific director. “From an environmental viewpoint and a social accessibility one, it’s unworkable.”

The solution would be more wind turbines, he said, adding construction could happen at “very competitive rates” and if there’s a surplus, “we can sell it without issue because other provinces are in an even worse situation than ours,” a reality echoed by eco groups in Northern Ontario sustainability discussions focused on the grid’s future.

The researchers propose solutions based on six themes: regulations, pricing, demand management, data, support for implementation and resilience.

In the resilience category, the report notes that innovative technology like smart meters makes the network more flexible, with pilots such as EV-to-grid integration in Nova Scotia illustrating emerging options, but also increases the risk of cyberattacks. The more extreme weather caused by climate change also increases the risks of damage to infrastructure while at the same time increasing demand.

 

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Time running out for Ontario to formally request Pickering nuclear power station extension

Pickering Nuclear Plant Extension faces CNSC approval as Ontario Power Generation pursues license renewal before the June 30, 2023 deadline, amid a 2025 capacity crunch and grid reliability risks from decommissioning and overlapping nuclear outages.

 

Key Points

A plan to run Pickering past 2024 to Sept 2026, pending CNSC license renewal to address Ontario's 2025 capacity gap.

✅ CNSC approval needed for operation beyond Dec 31, 2024

✅ OPG aims to file by June 30, 2023 deadline

✅ Extension targets grid reliability through 2026

 

Ontario’s electricity generator has yet to file an official application to extend the life of the Pickering nuclear power plant, more than eight months after the Ford government announced a plan to continue operating Pickering for longer.

As the province faces an electricity shortfall in 2025 and beyond, the Ford government scrambled to prolong the Pickering power plant until September 2026, in order to guarantee a steady supply of power as the province experiences a rise in demand and shutdowns at other nuclear power plants.

The life extension may come down to the wire, however, as the Canadian Nuclear Safety Commission (CNSC), the federal regulator tasked with approving or denying the extension, tells Global News the province has yet to file key paperwork.

The information is required for the application, including materials related to the proposed Pickering B refurbishment, and the government now has a month before the deadline runs out.

“The Commission requires that Ontario Power Generation submit specific information by June 30, 2023, if it intends to operate the Pickering Nuclear Generating Station beyond December 31, 2024,” the CNSC told Global News in a statement. “The Commission Registry has not yet received an application from Ontario Power Generation.”

If Ontario doesn’t receive the green light, the power plant which currently is responsible for 14 per cent of the province’s energy grid will be decommissioned in 2025, leaving the province with a significant electricity supply gap if replacement sources are not secured.

For its part, the Ford government doesn’t seem concerned about the impending timeline, even though the station was slated to close as planned, suggesting the Crown corporation responsible for the application will get it in on time.

“OPG is on track to submit their application before the end of June and has already started to submit supporting materials as part of the regulatory process toward clean power goals,” a spokesperson for energy minister Todd Smith said.

 

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Clean B.C. is quietly using coal and gas power from out of province

BC Hydro Electricity Imports shape CleanBC claims as Powerex trades cross-border electricity, blending hydro with coal and gas supplies, affecting emissions, grid carbon intensity, and how electric vehicles and households assess "clean" power.

 

Key Points

Powerex buys power for BC Hydro, mixing hydro with coal and gas, shifting emissions and affecting CleanBC targets.

✅ Powerex trades optimize price, not carbon intensity

✅ Imports can include coal- and gas-fired generation

✅ Emissions affect EV and CleanBC decarbonization claims

 

British Columbians naturally assume they’re using clean power when they fire up holiday lights, juice up a cell phone or plug in a shiny new electric car. 

That’s the message conveyed in advertisements for the CleanBC initiative launched by the NDP government, amid indications that residents are split on going nuclear according to a survey, which has spent $3.17 million on a CleanBC “information campaign,” including almost $570,000 for focus group testing and telephone town halls, according to the B.C. finance ministry.

“We’ll reduce air pollution by shifting to clean B.C. energy,” say the CleanBC ads, which feature scenic photos of hydro reservoirs. “CleanBC: Our Nature. Our Power. Our Future.” 

Yet despite all the bumph, British Columbians have no way of knowing if the electricity they use comes from a coal-fired plant in Alberta or Wyoming, a nuclear plant in Washington, a gas-fired plant in California or a hydro dam in B.C. 

Here’s why. 

BC Hydro’s wholly-owned corporate subsidiary, Powerex Corp., exports B.C. power when prices are high and imports power from other jurisdictions when prices are low. 

In 2018, for instance, B.C. imported more electricity than it exported — not because B.C. has a power shortage (it has a growing surplus due to the recent spate of mill closures and the commissioning of two new generating stations in B.C.) but because Powerex reaps bigger profits when BC Hydro slows down generators to import cheaper power, especially at night.

“B.C. buys its power from outside B.C., which we would argue is not clean,” says Martin Mullany, interim executive director for Clean Energy BC. 

“A good chunk of the electricity we use is imported,” Mullany says. “In reality we are trading for brown power” — meaning power generated from conventional ‘dirty’ sources such as coal and gas. 

Wyoming, which generates almost 90 per cent of its power from coal, was among the 12 U.S. states that exported power to B.C. last year. (Notably, B.C. did not export any electricity to Wyoming in 2018.)

Utah, where coal-fired power plants produce 70 per cent of the state’s energy amid debate over the costs of scrapping coal-fired electricity, and Montana, which derives about 55 per cent of its power from coal, also exported power to B.C. last year. 

So did Nebraska, which gets 63 per cent of its power from coal, 15 per cent from nuclear plants, 14 per cent from wind and three per cent from natural gas.   

Coal is responsible for about 23 per cent of the power generated in Arizona, another exporter to B.C., while gas produces about 44 per cent of the electricity in that state.  

In 2017, the latest year for which statistics are available, electricity imports to B.C. totalled just over 1.2 million tonnes of carbon dioxide emissions, according to the B.C. environment ministry — roughly the equivalent of putting 255,000 new cars on the road, using the U.S. Environmental Protection Agency’s calculation of 4.71 tonnes of annual carbon emissions for a standard passenger vehicle. 

These figures far outstrip the estimated local and upstream emissions from the contested Woodfibre LNG plant in Squamish that is expected to release annual emissions equivalent to 170,000 new cars on the road.

Import emissions cast a new light on B.C.’s latest “milestone” announcement that 30,000 electric cars are now among 3.7 million registered vehicles in the province.

BC Electric Vehicles Announcement Horgan Heyman Mungall Weaver
In November of 2018 the province announced a new target to have all new light-duty cars and trucks sold to be zero-emission vehicles by the year 2040. Photo: Province of B.C. / Flickr

“Making sure more of the vehicles driven in the province are powered by BC Hydro’s clean electricity is one of the most important steps to reduce [carbon] pollution,” said the November 28 release from the energy ministry, noting that electrification has prompted a first call for power in 15 years from BC Hydro.

Mullany points out that Powerex’s priority is to make money for the province and not to reduce emissions.

“It’s not there for the cleanest outcome,” he said. “At some time we have to step up to say it’s either the money or the clean power, which is more important to us?”

Electricity bought and sold by little-known, unregulated Powerex
These transactions are money-makers for Powerex, an opaque entity that is exempt from B.C.’s freedom of information laws. 

Little detailed information is available to the public about the dealings of Powerex, which is overseen by a board of directors comprised of BC Hydro board members and BC Hydro CEO and president Chris O’Reilly. 

According to BC Hydro’s annual service plan, Powerex’s net income ranged from $59 million to $436 million from 2014 to 2018. 

“We will never know the true picture. It’s a black box.” 

Powerex’s CEO Tom Bechard — the highest paid public servant in the province — took home $939,000 in pay and benefits last year, earning $430,000 of his executive compensation through a bonus and holdback based on his individual and company performance.  

“The problem is that all of the trade goes on at Powerex and Powerex is an unregulated entity,” Mullany says. 

“We will never know the true picture. It’s a black box.” 

In 2018, Powerex exported 8.7 million megawatt hours of electricity to the U.S. for a total value of almost $570 million, according to data from the Canada Energy Regulator. That same year, Powerex imported 9.6 million megawatt hours of electricity from the U.S. for almost $360 million. 

Powerex sold B.C.’s publicly subsidized power for an average of $87 per megawatt hour in 2018, according to the Canada Energy Regulator. It imported electricity for an average of $58 per megawatt hour that year. 

In an emailed statement in response to questions from The Narwhal, BC Hydro said “there can be a need to import some power to meet our electricity needs” due to dam reservoir fluctuations during the year and from year to year.

‘Impossible’ to determine if electricity is from coal or wind power
Emissions associated with electricity imports are on average “significantly lower than the emissions of a natural gas generating plant because we mostly import electricity from hydro generation and, increasingly, power produced from wind and solar,” BC Hydro claimed in its statement. 

But U.S. energy economist Robert McCullough says there’s no way to distinguish gas and coal-fired U.S. power exports to B.C. from wind or hydro power, noting that “electrons lack labels.” 

Similarly, when B.C. imports power from Alberta, where generators are shifting to gas and 48.5 per cent of electricity production is coal-fired and 38 per cent comes from natural gas, there’s no way to tell if the electricity is from coal, wind or gas, McCullough says.

“It really is impossible to make that determination.” 

Wyoming Gilette coal pits NASA
The Gillette coal pits in Wyoming, one of the largest coal-producers in the U.S. Photo: NASA Earth Observatory

Neither the Canada Energy Regulator nor Statistics Canada could provide annual data on electricity imports and exports between B.C. and Alberta. 

But you can watch imports and exports in real time on this handy Alberta website, which also lists Alberta’s power sources. 

In 2018, California, Washington and Oregon supplied considerably more power to B.C. than other states, according to data from Canada Energy Regulator. 

Washington, where about one-quarter of generated power comes from fossil fuels, led the pack, with more than $339 million in electricity exports to B.C. 

California, which still gets more than half of its power from gas-fired plants even though it leads the U.S. in renewable energy with substantial investments in wind, solar and geothermal, was in second place, selling about $18.4 million worth of power to B.C. 

And Oregon, which produces about 43 per cent of its power from natural gas and six per cent from coal, exported about $6.2 million worth of electricity to B.C. last year. 

By comparison, Nebraska’s power exports to B.C. totalled about $1.6 million, Montana’s added up to $1.3 million,  Nevada’s were about $706,000 and Wyoming’s were about $346,000.

Clean electrons or dirty electrons?
Dan Woynillowicz, deputy director of Clean Energy Canada, which co-chaired the B.C. government’s Climate Solutions and Clean Growth Advisory Council, says B.C. typically exports power to other jurisdictions during peak demand. 

Gas-fired plants and hydro power can generate electricity quickly, while coal-fired power plants take longer to ramp up and wind power is variable, Woynillowicz notes. 

“When you need power fast and there aren’t many sources that can supply it you’re willing to pay more for it.”

Woynillowicz says “the odds are high” that B.C. power exports are displacing dirty power.

Elsewhere in Canada, analysts warn that Ontario's electricity could get dirtier as policies change, raising similar concerns.

“As a consumer you never know whether you’re getting a clean electron or a dirty electron. You’re just getting an electron.” 

 

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Ontario unveils new tax breaks, subsidized hydro plan to spur economic recovery from COVID-19

Ontario COVID-19 Business Tax Relief outlines permanent Employer Health Tax exemptions, lower Business Education Tax rates, optional municipal property tax cuts, and hydro bill subsidies to support small businesses, industrial and commercial recovery.

 

Key Points

A provincial package of tax breaks and hydro subsidies to help small, industrial, and commercial businesses recover.

✅ Permanent Employer Health Tax exemption to $1M payroll

✅ Lower Business Education Tax rates for 94% of firms

✅ Hydro subsidies cut medium-large rates by 14-16%

 

The Ontario government's latest plan to help businesses survive and recover from the COVID-19 pandemic includes a suite of new tax breaks for small businesses and $1.3 billion to subsidize electricity bills for industrial and commercial operations.

The new measures were announced Thursday as part of Ontario's 2020 budget, which sets new provincial records for both spending and deficit projections.

The government of Premier Doug Ford says the budget will address barriers impeding long-term growth, ensuring the province forges a path to a full recovery from the pandemic.

"When the pandemic is over, Ontario will come back with a vengeance, stronger and more prosperous than ever before," Ford said at an afternoon news conference.

Small businesses with payrolls under $1 million will no longer have to pay the Employer Health Tax. The province temporarily raised the exemption from $490,000 to $1 million earlier this year, but the government is now making the change permanent.

The higher exemption means that about 90 per cent of Ontario businesses will no longer have to pay the tax, amounting to about $360 million by 2022, according to the province.

"We have heard from employers across Ontario that this measure helped them keep workers on the job during COVID-19," Finance Minister Rod Phillips told the legislature.

The 2020 budget lowers rates for the Business Education Tax (BET), a property tax earmarked for public education. More than 200,000 Ontario businesses, or 94 per cent, will see a lower rate.

"I believe this budget takes some significant initial steps to help stabilize the economy and help businesses, especially small businesses," said Toronto Mayor John Tory in a statement. Tory's office estimates that reductions to the BET will result in $117 million in lower taxes for commercial properties in Canada's largest city.

Municipal governments will also be permitted to reduce property taxes for small businesses, should they choose to do so. The province says it will "consider matching these reductions," which could amount to $385 million in tax relief by 2023.

Finance Minister Rod Phillips tabled the largest spending plan in Ontario history on Thursday afternoon. (Frank Gunn/The Canadian Press)
Municipalities currently have few options to provide targeted relief to local businesses. Guelph Mayor Cam Guthrie, chair of Ontario's Big City Mayors, said the prospect of lowering property taxes will likely be welcomed by local governments across the province.

"I really am looking forward to looking into that because it would give targeted relief to these businesses that have been asking for something from local governments for the past nine months," he said in an interview.

Tax cuts 'won't help a boarded up business,' NDP says
The 2020 budget does not contain any new direct funding for small businesses or their employees. NDP leader Andrea Horwath, who has proposed to make hydro public again, said those types of funding would help businesses more than potential tax reductions.

"A future hydro or tax cut won't help a boarded up business and it certainly won't help the folks that used to work there," Horwath said.

"Those measures are great if you're a company that's doing really well ... but let's face it, main streets across Ontario are crumbling."

Ontario did reveal on Thursday more details about a previously announced $300-million fund to support businesses in Toronto, Ottawa, Peel Region and York Region, which were placed under modified Stage 2 restrictions this fall. The money can be used to cover property taxes and energy bills for eligible businesses.

In a similar move, B.C. provided a three-month break on electricity bills for residents and businesses during the pandemic.

An undetermined amount of the $300 million will also be made available to businesses that are placed under "control" and "lockdown" rules, which are the two most severe restrictions in the province's updated reopening guidelines announced in October.

No regions are currently under these restrictions.

Elsewhere, B.C. saw commercial electricity consumption plummet during the COVID-19 pandemic.

Government to subsidize hydro bills for industrial businesses
The Ford government, which earlier oversaw a Hydro One leadership overhaul, is also taking aim at what it calls "job-killing electricity prices" in Ontario's industrial and commercial sectors.

The budget includes a $1.3 billion investment over three years to subsidize their hydro bills, a move praised by Canadian Manufacturers & Exporters as supportive of industry, which the province says have been inflated due to contracts signed by the previous Liberal government to purchase electricity generated by wind, solar and bioenergy.

"This is the legacy that is making our businesses uncompetitive," Phillips told reporters Thursday afternoon.

Ontario says its $1.3-billion investment to subsidize electricity bills will offset expensive contracts for green energy signed by the previous Liberal government. (Patrick Pleul/dpa via Associated Press)
The investment will lower rates for medium- and large-sized business by between 14 and 16 per cent, and follows an OEB decision on Hydro One rates that affects transmission and distribution costs, according to Ontario's calculations. Phillips said those rates will be among the lowest of any jurisdiction in the Great Lakes region.

The provincial government said the investment is necessary for Ontario to recover from the COVID-19 downturn. The Ford government expects that no further subsidies will be required by around 2040.

 

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BC Hydro electricity demand down 10% amid COVID-19 pandemic

BC Hydro electricity demand decline reflects COVID-19 impacts across British Columbia, with reduced industrial load, full reservoirs, strategic spilling, and potential rate increases, as hydropower plants adjust operations at Seven Mile, Revelstoke, and Site C.

 

Key Points

A 10% COVID-19-driven drop in BC power use, prompting reservoir spilling, plant curtailment, and potential rate hikes.

✅ 10% load drop; industrial demand down 7% since mid-March

✅ Reservoirs near capacity; controlled spilling to mitigate risk

✅ Possible rate hikes; Site C construction continues

 

Elecricity demand is down 10 per cent across British Columbia, an unprecedented decline in commercial electricity consumption sparked by the COVID-19 pandemic, according to a BC Hydro report.

Power demand across hotels, offices, recreational facilities and restaurants have dwindled as British Columbians self isolate, and bill relief for residents and businesses was introduced during this period.

The shortfall means there's a surplus of water in reservoirs across the province.

"This drop in load in addition to the spring snow melt is causing our reservoirs to reach near capacity, which could lead to environmental concerns, as well as public safety risks if we don't address the challenges now," said spokesperson Tanya Fish.

Crews will have to strategically spill reservoirs to keep them from overflowing, a process that can have negative impacts on downstream ecosystems. Excessive spilling can increase fish mortality rates.

Spilling is currently underway at the Seven Mile and Revelstoke reservoirs. In addition, several small plants have been shut down.

Site C and hydro rates
According to the report, titled Demand Dilemma, the decline could continue into April 2021 and drop by another two per cent, even as a regulator report alleged BC Hydro misled oversight bodies.

Major industry — forestry, mining and oil and gas — accounts for about 30 per cent of BC Hydro's overall electricity load. Energy demand from these customers has dropped by seven per cent since mid-March, while in Manitoba a Consumers Coalition has urged rejection of proposed rate increases.

BC Hydro says a prolonged drop in demand could have an impact on future rates, which could potentially go up as the power provider looks to recoup deferred operating costs and financial losses.

In Manitoba, Manitoba Hydro's debt has grown significantly, underscoring the financial risks utilities face during demand shocks.

Fish said the crown corporation still expects there to be increased demand in the long-term. She said construction of the Site C Dam is continuing as planned to support clean-energy generation in the province. There are currently nearly 1,000 workers on-site.

 

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Renewable power surpasses fossil fuels for first time in Europe

EU Renewable Power Overtakes Fossil Fuels, reflecting a greener energy mix as wind, solar, and hydro expand, cutting CO2 emissions and curbing coal while negative prices rise amid pandemic-driven demand drops.

 

Key Points

A milestone as renewables surpass fossil power in the EU, driven by wind, solar, hydro growth and pandemic demand.

✅ 40% renewables vs 34% fossil in H1 across 27 EU states

✅ Wind, solar, hydro rose; coal generation fell 32% year-on-year

✅ Lower demand, carbon prices, grid priority boosted clean output

 

Renewable power for the first time contributed a bigger share in the European generation mix than fossil fuels, as described in Europe's green surge as the fallout from the pandemic cut energy demand.

About 40 percent of the electricity in the first half in the 27 EU countries came from renewable sources, exceeding the global renewables share reported elsewhere, compared with 34 percent from plants burning fossil fuels, according to environmental group Ember in London. As a result, carbon dioxide emissions from the power sector fell 23 percent.

The rise is significant and encouraging for law makers as Europe prepares to spend billions of euros to recover from the virus, with wind power investments underscoring the momentum, and set the bloc on track to neutralize its carbon footprint by the middle of the century.

“This marks a symbolic moment ​in the transition of Europe’s electricity sector,” said Dave Jones, an electricity analyst at Ember. “For countries like Poland and Czech Republic grappling with how to get off coal, there is now a clear way out.”

While power demand slumped, output from wind and solar farms increased, reflecting global wind and solar gains, because more plants came online in breezy and sunny weather. At the same time, wet conditions boosted hydro power in Iberia and the Nordic markets.

Those conditions helped renewables become a rare bright spot throughout the economic tumult this year. In many areas, renewable sources of electricity have priority to the grid, meaning they could keep growing even as demand shrank and other power plants were turned off.

Electricity demand in the EU fell 7 percent overall. Fossil-fuel power generation plunged 18 percent in the first half compared with a year earlier. Renewable generation grew by 11 percent, according to Ember.

Coal was by far the biggest loser in 2020. It’s one of the most-polluting sources of power and its share is slumping in Europe as the price of carbon increases, with renewables surpassing coal in the US illustrating the broader shift, and governments move to cut emissions. Power from coal fell 32 percent across the EU.

Despite the economics, the decision to shut off coal for good will come down to political agreements between producers and governments, while reducing reliance on Russian energy reshapes policy debates.

One consequence of the jump in renewables is that negative prices have increased, as solar is reshaping prices in Northern Europe in similar ways. On particularly windy or sunny days when there isn’t much demand, the grid can be flooded with power. That’s leading wind farms to be shut off and customers to be paid to consume electricity.

 

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