NCUC approves Duke Energy's gas plants

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The North Carolina Utilities Commission gave Duke Energy Carolinas the necessary regulatory approval to build two combined cycle, natural gas-fired generating units to serve its customers.

Regulators approved the company’s request for Certificates of Public Convenience and Necessity (CPCN) to add two 620-megawatt combined cycle, natural gas-fired units at two existing facilities – Buck Steam Station in Rowan County and Dan River Steam Station in Rockingham County.

“Customers trust that Duke Energy will meet their needs – supplying the power they rely on in a way that is both affordable and clean,” said Ellen Ruff, president of Duke Energy Carolinas. “These projects are part of our long-term plan to continue delivering on the promises we’ve made to customers while modernizing our fleet.”

The company will be ready to begin construction at the Buck facility once it receives the necessary air permit from North Carolina. Construction at Dan River would follow. The new Buck unit would be in operation as early as the summer of 2010. The plan includes retiring two older, less efficient coal units at each facility.

Both projects employ state-of-the art environmental control technology to minimize plant emissions. These controls, in combination with the retirement of older coal-fired units at both facilities, will result in a net reduction of environmental emissions of NOX and SO2 at the sites.

The projects will use cooling towers to minimize the impact on the Yadkin and Dan Rivers. The use of cooling towers will also minimize potential generation curtailments during drought conditions.

The addition of natural gas generation fits with the companyÂ’s strategy to maintain a diverse fuel portfolio - an important tool in managing customer costs and enhancing the reliability of the generation system.

The new gas-fired units are the first combined cycle generating units on the Duke Energy Carolinas system. They offer greater efficiency than traditional combustion turbines and operational flexibility. A combined cycle unit uses combustion turbine generators, boilers and a steam turbine generator to produce electricity. Natural gas is burned in the combustion turbines to produce mechanical power that is converted into electrical power by the generators. For increased efficiency, the hot exhaust gases from the combustion turbines are used to create steam in the boilers which spins a steam turbine-generator and creates additional power.

Duke Energy Carolinas has a long history in the communities surrounding the Buck and Dan River sites – generating electricity at the Buck Steam Station since 1926 and at the Dan River Steam Station since 1949.

“We’re honored that government and business leaders in Rowan and Rockingham counties strongly support these projects and recognize the positive impact they can have in their communities,” said Ruff.

Duke Energy Carolinas is making impressive progress in other parts of its plan for the future. The company is aggressively pursuing renewable power sources and power savings through energy efficiency. An advanced, clean coal unit is under construction at the Cliffside Steam Station on the Cleveland and Rutherford County line in North Carolina. Also, the company continues to evaluate the nuclear option at a site in Cherokee County, South Carolina.

Duke Energy's CarolinasÂ’ operations include nuclear, coal-fired, natural gas and hydroelectric generation. That diverse fuel mix provides nearly 21,000 megawatts of safe, reliable and competitively priced electricity to more than 2.3 million electric customers in a 24,000-square-mile service area of North Carolina and South Carolina.

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City of Vancouver named Clean Energy Champion for Bloedel upgrades

BC Hydro Clean Energy Champions highlights Vancouver's Bloedel Conservatory electrification with a massive heat pump, clean electricity, LED lighting, deep energy efficiency, and 90% greenhouse gas reductions advancing climate action across buildings and industry.

 

Key Points

A BC Hydro program honoring clean electricity adoption in homes, transport, and industry to replace fossil fuels.

✅ Vancouver's Bloedel Conservatory cut GHGs by 90% with a heat pump

✅ LEDs and electrification boost efficiency, comfort, and reliability

✅ Nominations open for residents, businesses, and Indigenous groups

 

The City of Vancouver has been selected as BC Hydro’s first Clean Energy Champion for energy efficient upgrades made at the Bloedel Conservatory that cut greenhouse gas emissions by 90 per cent, a meaningful step given concerns about 2050 greenhouse gas targets in B.C.

BC Hydro’s Clean Energy Champions program is officially being launched today to recognize residents, businesses, municipalities, Indigenous and community groups across B.C. that have made the choice to switch from using fossil fuels to using clean electricity in three primary areas: homes and buildings, transportation, and industry, even as drought challenges power generation in B.C. The City of Vancouver is being recognized as the first champion for demonstrating its commitment to using clean energy, including power from projects like Site C's electricity, to fight climate change at its landmark Bloedel Conservatory.

Earlier this year, the City of Vancouver installed a large air source heat pump at Bloedel Conservatory – more than 50 times the size of a heat pump used in a typical B.C. home – that uses electricity instead of natural gas to heat and cool the dome's interior, which is home to more than 500 exotic plants and flowers, and 100 exotic birds, aligning with citywide debates such as Vancouver’s reversal on gas appliances policy. It is the biggest heat pump the City of Vancouver has ever installed, with 210 tonnes of cooling capacity.

A heat pump that provides cooling in the summer and heating in the winter, helping reduce reliance on wasteful air conditioning that can drive up energy bills, is ideal for the conservatory, as its dome is completely made of glass, which can be challenging for temperature regulation. While the dome experiences a lot of heat loss in the colder months, its need for cooling in warmer weather is even greater to ensure the safety of the wildlife and plants that call it home.

The clean energy upgrades do not end there though. All lighting in the building has been upgraded to energy-efficient LEDs, reflecting conservation themes highlighted by 2018 Earth Hour electricity use discussions, and outside colour-changing LEDs now surround the perimeter and light up the dome at night.

BC Hydro is calling for nominations from B.C. residents, businesses, municipalities or Indigenous and community groups that have taken steps to lower their carbon footprint and adopt new clean energy technologies, and continues to support customers through programs like its winter payment plan during colder months. If you or someone you know is a Clean Energy Champion, nominate them at bchydro.com/cleanenergychampions.

 

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How waves could power a clean energy future

Wave Energy Converters can deliver marine power to the grid, with DOE-backed PacWave enabling offshore testing, robust designs, and renewable electricity from oscillating waves to decarbonize coastal communities and replace diesel in remote regions.

 

Key Points

Wave energy converters are devices that transform waves' oscillatory motion into electricity for the grid or loads.

✅ DOE's PacWave enables full-scale, grid-connected offshore testing.

✅ Multiple designs convert oscillating motion into torque and power.

✅ Ideal for islands, microgrids, and replacing diesel generation.

 

Waves off the coast of the U.S. could generate 2.64 trillion kilowatt hours of electricity per year — that’s about 64% of last year’s total utility-scale electricity generation in the U.S. We won’t need that much, but one day experts do hope that wave energy will comprise about 10-20% of our electricity mix, alongside other marine energy technologies under development today.

“Wave power is really the last missing piece to help us to transition to 100% renewables, ” said Marcus Lehmann, co-founder and CEO of CalWave Power Technologies, one of a number of promising startups focused on building wave energy converters.

But while scientists have long understood the power of waves, it’s proven difficult to build machines that can harness that energy, due to the violent movement and corrosive nature of the ocean, combined with the complex motion of waves themselves, even as a recent wave and tidal market analysis highlights steady advances.

″Winds and currents, they go in one direction. It’s very easy to spin a turbine or a windmill when you’ve got linear movement. The waves really aren’t linear. They’re oscillating. And so we have to be able to turn this oscillatory energy into some sort of catchable form,” said Burke Hales, professor of cceanography at Oregon State University and chief scientist at PacWave, a Department of Energy-funded wave energy test site off the Oregon Coast. Currently under construction, PacWave is set to become the nation’s first full-scale, grid-connected test facility for these technologies, a milestone that parallels U.K. wind power lessons on scaling new industries, when it comes online in the next few years.

“PacWave really represents for us an opportunity to address one of the most critical barriers to enabling wave energy, and that’s getting devices into the open ocean,” said Jennifer Garson, Director of the Water Power Technologies Office at the U.S. Department of Energy.

At the beginning of the year, the DOE announced $25 million in funding for eight wave energy projects to test their technology at PacWave, as offshore wind forecasts underscore the growing investor interest in ocean-based energy. We spoke with a number of these companies, which all have different approaches to turning the oscillatory motion of the waves into electrical power.

Different approaches
Of the eight projects, Bay Area-based CalWave received the largest amount, $7.5 million. 

″The device we’re testing at PacWave will be a larger version of this,” said Lehmann. The x800, our megawatt-class system, produces enough power to power about 3,000 households.”

CalWave’s device operates completely below the surface of the water, and as waves rise and fall, surge forward and backward, and the water moves in a circular motion, the device moves too. Dampers inside the device slow down that motion and convert it into torque, which drives a generator to produce electricity, a principle mirrored in some wind energy kite systems as they harvest aerodynamic forces.

“And so the waves move the system up and down. And every time it moves down, we can generate power, and then the waves bring it back up. And so that oscillating motion, we can turn into electricity just like a wind turbine,” said Lehmann.

Another approach is being piloted by Seattle-based Oscilla Power, which was awarded $1.8 million from the DOE, and is getting ready to deploy its wave energy converter off the coast of Hawaii, at the U.S. Navy Wave Energy Test site.

Oscilla Power’s device is composed of two parts. One part floats on the surface and moves with the waves in all directions — up and down, side to side and rotationally. This float is connected to a large, ring-shaped structure which hangs below the surface, and is designed to stay relatively steady, much like how underwater kites leverage a stable reference to generate power. The difference in motion between the float and the ring generates force on the connecting lines, which is used to rotate a gearbox to drive a generator.

″The system that we’re deploying in Hawaii is what we call the Triton-C. This is a community-scale system,” said Balky Nair, CEO of Oscilla Power. “It’s about a third of the size of our flagship product. It’s designed to be 100 kilowatt rated, and it’s designed for islands and small communities.”

Nair is excited by wave energy’s potential to generate electricity in remote regions, which currently rely on expensive and polluting diesel imports to meet their energy needs when other renewables aren’t available, and similar tidal energy for remote communities efforts in Canada point to viable models. Before wave energy is adopted at-scale, many believe we’ll see wave energy replacing diesel generators in off-the-grid communities.

A third company, C-Power, based in Charlottesville, Virginia, was awarded more than $4 million to test its grid-scale wave energy converter at PacWave. But first, the company wants to commercialize its smaller scale system, the SeaRAY, which is designed for lower-power applications. 

″Think about sensors in the ocean, research, metocean data gathering, maybe it’s monitoring or inspection,” said C-Power CEO Reenst Lesemann on the initial applications of his device.

The SeaRAY consists of two floats and a central body, the nacelle, which contains the drivetrain. As waves pass by, the floats bob up and down, rotating about the nacelle and turning their own respective gearboxes which power the electric generators.

Eventually, C-Power plans to scale up its SeaRAY so that it’s capable of satellite communications and deep water deployments, before building a larger system, called the StingRAY, for terrestrial electricity generation.

Meanwhile, one Swedish company, Eco Wave Power, is taking another approach completely, eschewing offshore technologies in favor of simpler wave power devices that can be installed on breakwaters, piers, and jetties.

“All the expensive conversion machinery, instead of being inside the floaters like in the competing technologies, is on land just like a regular power station. So basically this enables a very low installation, operation, and maintenance cost,” explained CEO Inna Braverman.

 

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Opinion: Germany's drive for renewable energy is a cautionary tale

Germany Energiewende Lessons highlight climate policy tradeoffs, as renewables, wind and solar face grid constraints, coal phase-out delays, rising electricity prices, and public opposition, informing Canada on diversification, hydro, oil and gas, and balanced transition.

 

Key Points

Insights from Germany's renewable shift on costs, grid limits, and emissions to guide Canada's balanced energy policy.

✅ Evidence: high power prices, delayed coal exit, limited grid buildout

✅ Land, materials, and wildlife impacts challenge wind and solar scale-up

✅ Diversification: hydro, nuclear, gas, and storage balance reliability

 

News that Greta Thunberg is visiting Alberta should be welcomed by all Canadians.

The teenaged Swedish environmentalist has focused global attention on the climate change debate like never before. So as she tours our province, where selling renewable energy could be Alberta's next big thing, what better time for a reality check than to look at a country that is furthest ahead in already adapting steps that Greta is advocating.

That country is Germany. And it’s not a pretty sight.

Germany embraced the shift toward renewable energy before anyone else, and did so with gusto. The result?

Germany’s largest newsmagazine Der Spiegel published an article on May 3 of this year entitled “A Botched Job in Germany.” The cover showed broken wind turbines and half-finished transition towers against a dark silhouette of Berlin.

Germany’s renewable energy transition, Energiewende, is a bust. After spending and committing a total of US$580 billion to it from 2000 to 2025.

Why is that? Because it’s been a nightmare of foolish dreams based on hope rather than fact, resulting in stalled projects and dreadfully poor returns.

Last year Germany admitted it had to delay its phase-out of coal and would not meet its 2020 greenhouse gas emissions reduction commitment. Only eight per cent of the transmission lines needed to support this new approach to powering Germany have been built.

Opposition to renewables is growing due to electricity prices rising to the point they are now among the highest in the world. Wind energy projects in Germany are now facing the same opposition that pipelines are here in Canada. 

Opposition to renewables in Germany, reports Forbes, is coming from people who live in rural or suburban areas, in opposition to the “urbane, cosmopolitan elites who fetishize their solar roofs and Teslas as a sign of virtue.” Sound familiar?

So, if renewables cannot successfully power Germany, one of the richest and most technologically advanced countries in the world, who can do it better?

The biggest problem with using wind and solar power on a large scale is that the physics just don’t work. They need too much land and equipment to produce sufficient amounts of electricity.

Solar farms take 450 times more land than nuclear power plants to produce the same amount of electricity. Wind farms take 700 times more land than natural gas wells.

The amount of metal required to build these sites is enormous, requiring new mines. Wind farms are killing hundreds of endangered birds.

No amount of marketing or spin can change the poor physics of resource-intensive and land-intensive renewables.

But, wait. Isn’t Norway, Greta’s neighbour, dumping its energy investments and moving into alternative energy like wind farms in a big way?

No, not really. Fact is only 0.8 per cent of Norway’s power comes from wind turbines. The country is blessed with a lot of hydroelectric power, but that’s a historical strength owing to the country’s geography, nothing new.

And yet we’re being told the US$1-trillion Oslo-based Government Pension Fund Global is moving out of the energy sector to instead invest in wind, solar and other alternative energy technologies. According to 350.org activist Nicolo Wojewoda this is “yet another nail in the coffin of the coal, oil, and gas industry.”

Well, no.

Norway’s pension fund is indeed investing in new energy forms, but not while pulling out of traditional investments in oil and gas. Rather, as any prudent fund manager will, they are diversifying by making modest investments in emerging industries such as Alberta's renewable energy surge that will likely pay off down the road while maintaining existing investments, spreading their investments around to reduce risk. Unfortunately for climate alarmists, the reality is far more nuanced and not nearly as explosive as they’d like us to think.

Yet, that’s enough for them to spin this tale to argue Canada should exit oil and gas investment and put all of our money into wind and solar, even as Canada remains a solar power laggard according to experts.

That is not to say renewable energy projects like wind and solar don’t have a place. They do, and we must continue to innovate and research lower-polluting ways to power our societies on the path to zero-emissions electricity by 2035 in Canada.

But like it actually is in Norway, investment in renewables should supplement — not replace — fossil fuel energy systems if we aim for zero-emission electricity in Canada by 2035 without undermining reliability. We need both.

And that’s the message that Greta should hear when she arrives in Canada.

Rick Peterson is the Edmonton-based founder and Beth Bailey is a Calgary-based supporter of Suits and Boots, a national not-for-profit group of investment industry professionals that supports resource sector workers and their families.

 

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Ontario to seek new wind, solar power to help ease coming electricity supply crunch

Ontario Clean Grid Plan outlines emissions-free electricity growth, renewable energy procurement, nuclear expansion at Bruce and Darlington, reduced natural gas, grid reliability, and net-zero alignment to meet IESO demand forecasts and EV manufacturing loads.

 

Key Points

A plan to expand emissions-free power via renewables and nuclear, cut natural gas use, and meet growing demand.

✅ Targets renewables, hydro, and nuclear capacity growth

✅ Aims to reduce reliance on gas for grid reliability

✅ Aligns with IESO demand forecasts and EV manufacturing loads

 

Ontario is working toward filling all of the province’s quickly growing electricity needs with emissions-free sources, including a plan to secure new renewable generation and clean power options, but isn’t quite ready to commit to a moratorium on natural gas.

Energy Minister Todd Smith announced Monday a plan to address growing energy needs for 2030 to 2050 — the Independent Electricity System Operator projects Ontario’s electricity demand could double by mid-century — and next steps involve looking for new wind, solar and hydroelectric power.

“While we may not need to start building today, government and those in the energy sector need to start planning immediately, so we have new clean, zero-emissions projects ready to go when we need them,” Smith said in Windsor, Ont.

The strategy also includes two nuclear projects announced last week — a new large-scale nuclear plant at Bruce Power on the shore of Lake Huron and three new small modular reactors at the site of the Darlington nuclear plant east of Toronto.

Those projects, enough to power six million homes, will help Ontario end its reliance on natural gas to generate electricity, said Smith, but committing to a natural gas moratorium in 2027 and eliminating natural gas by 2050 is contingent on the federal government helping to speed up the new nuclear facilities.

“Today’s report, the Powering Ontario’s Growth plan, commits us to working towards a 100 per cent clean grid,” Smith said in an interview.

“Hopefully the federal government can get on board with our intentions to build this clean generation as quickly as possible … That will put us in a much better position to use our natural gas facilities less in the future, if we can get those new projects online.”

The IESO has said that natural gas is required to ensure supply and stability in the short to medium term, as Ontario works on balancing demand and emissions across the grid, but that it will also increase greenhouse gas emissions from the electricity sector.

The province is expected to face increased demand for electricity from expanded electric vehicle use and manufacturing in the coming years, even as a $400-billion cost estimate for greening the grid is debated.

Keith Brooks, programs director for Environmental Defence, said the provincial plan could have been much more robust, containing firm timelines and commitments.

“This plan does not commit to getting emissions out of the system,” he said.

“It doesn’t commit to net zero, doesn’t set a timeline for a net zero goal or have any projection around emissions from Ontario’s electricity sector going forward. In fact, it’s not really a plan. It doesn’t set out any real goals and it doesn’t it doesn’t project what Ontario’s supply mix might look like.”

The Canadian Climate Institute applauded the plan’s focus on reducing reliance on gas-fired generation and emphasizing non-emitting generation, but also said there are still some question marks.

“The plan is silent on whether the province intends to construct new gas-fired generation facilities,” even as new gas plant expansions are proposed, senior research director Jason Dion wrote in a statement.

“The province should avoid building new gas plants since cost-effective alternatives are available, and such facilities are likely to end up as stranded assets. The province’s timeline for reaching net zero generation is also unclear. Canada and other G7 countries have set a target for 2035, something Ontario will need to address if it wants to remain competitive.”

 

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Berlin Electric Utility Wins National Safety Award

Berlin Electric Utility APPA Safety Award recognizes Gold Designation performance in public power, highlighting OSHA-aligned incident rates, robust safety culture, worker safety training, and operational reliability that keeps the community's electric service resilient.

 

Key Points

A national honor for Berlin's Gold Designation recognizing safety performance, worker protection, and reliable service.

✅ Gold Designation in 15,000-29,999 worker hours APPA category

✅ OSHA-based incident rate and robust safety culture

✅ Training, PPE, and reliability focus in public power operations

 

The Town of Berlin Electric Utility Department has been recognized for its outstanding safety practices with the prestigious Safety Award of Excellence from the American Public Power Association (APPA), a distinction also reflected in Medicine Hat Electric Utility for health and safety excellence, highlighting industry-wide commitment to worker protection.

Recognition for Excellence

In an era when workplace safety is a critical concern, with organizations highlighting leadership in worker safety across the sector, the Town of Berlin Electric Utility Department’s achievement stands out. The department earned the Gold Designation award in the category for utilities with 15,000 to 29,999 worker hours of annual worker exposure. This category is part of the APPA’s annual Safety Awards, which are designed to recognize the safety performance of public power utilities across the United States.

Out of more than 200 utilities that participated in the 2024 Safety Awards, Berlin's Electric Utility Department distinguished itself with an exemplary safety record. The utility’s ranking was based on its low incidence of work-related injuries and illnesses, alongside its robust safety programs and strong safety culture.

What the Award Represents

The Safety Award of Excellence is given to utilities that demonstrate effective safety protocols and practices over the course of the year. The APPA evaluates utilities based on their incident rate, which is calculated using the number of work-related reportable injuries or illnesses relative to worker hours. This measurement adheres to guidelines established by the Occupational Safety and Health Administration (OSHA), ensuring a standardized approach to assessing safety.

For the Town of Berlin Electric Utility Department, achieving the Gold Designation award signifies a year of outstanding safety performance. The award reflects the department’s dedication to preventing accidents and creating a work environment where safety is prioritized at every level.

Why Safety Matters

For utilities like the one in Berlin, safety is not just about preventing injuries—it's about fostering a culture of care and responsibility. Electric utility workers face unique and significant risks, ranging from the dangers of working with high-voltage systems, including hazards near downed power lines that require extreme caution, to the physical demands of the job. A utility’s ability to minimize these risks and keep its workforce safe is a direct reflection of its safety practices, training, and overall management.

The commitment to safety extends beyond just the immediate work environment. Utilities that place a high value on safety typically invest in ongoing training, safety gear, and processes, and even contingency measures like staff living on site during outbreaks, that ensure all employees are well-prepared to handle the challenges of their roles. The Town of Berlin Electric Utility Department has taken these steps seriously, providing its workers with the resources they need to stay safe while maintaining the power supply for the local community.

The Importance of Worker Safety in Public Power

The American Public Power Association’s Safety Award program highlights the best practices in public utilities, which, as the U.S. grid overseer's pandemic warning reminded the sector, play a crucial role in providing essential services to communities across the country. Public power utilities, like Berlin’s, are governed by local or municipal entities rather than for-profit corporations, which often allows them to have a closer relationship with their communities. As a result, these utilities often go above and beyond when it comes to worker safety, understanding that the well-being of employees directly impacts the quality of service provided to residents.

For the Town of Berlin, this award not only highlights the utility's commitment to its employees but also reinforces the importance of the work that public utilities do in keeping communities safe and powered. Berlin's recognition underscores the significance of maintaining a safe work environment, especially when the safety of first responders and utility workers, as seen when nuclear plant workers raised concerns over virus precautions, directly impacts the public’s access to reliable services.

What’s Next for Berlin’s Electric Utility Department

Receiving the Safety Award of Excellence is a remarkable achievement, but for the Town of Berlin Electric Utility Department, it’s not the end of their safety journey—it’s just one more step in their ongoing commitment to improvement. The department’s leadership, including the safety team, has emphasized the importance of continually evaluating and enhancing safety protocols to stay ahead of potential risks. This includes adopting new safety technologies, refining training programs, and ensuring that all employees are involved in the process of safety.

As the Town of Berlin looks forward to the future, its focus on worker safety will remain a top priority. Maintaining this level of safety is not only crucial for the health and well-being of employees but also for ensuring the continued success of the community’s utility services.

Community Impact

This recognition also serves as an example for other utilities in the region and across the country. By prioritizing safety, the Town of Berlin Electric Utility Department sets a standard that other utilities can aspire to. In a time when worker safety is more important than ever, Berlin’s commitment to best practices provides a model for others to follow.

Ultimately, the safety of utility workers is a reflection of a community’s dedication to its workforce and its commitment to providing reliable, uninterrupted services. For the residents of Berlin, the recognition of their local electric utility department’s safety practices means that they can continue to rely on a safe, secure, and resilient power infrastructure, while staying mindful of home risks such as overheated power strips that can spark fires.

 

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Americans aren't just blocking our oil pipelines, now they're fighting Hydro-Quebec's clean power lines

Champlain Hudson Power Express connects Hydro-Québec hydropower to the New York grid via a 1.25 GW high voltage transmission line, enabling renewable energy imports, grid decarbonization, storage synergy, and reduced fossil fuel generation.

 

Key Points

A 1.25 GW cross-border transmission project delivering Hydro-Québec hydropower to New York City to displace fossil power.

✅ 1.25 GW buried HV line from Quebec to Astoria, Queens

✅ Supports renewable imports and grid decarbonization in NYC

✅ Enables two-way trade and reservoir storage synergy

 

Last week, Quebec Premier François Legault took to Twitter to celebrate after New York State authorities tentatively approved the first new transmission line in three decades, the Champlain Hudson Power Express, that would connect Quebec’s vast hydroelectric network to the northeastern U.S. grid.

“C’est une immense nouvelle pour l’environnement. De l’énergie fossile sera remplacée par de l’énergie renouvelable,” he tweeted, or translated to English: “This is huge news for the environment. Fossil fuels will be replaced by renewable energy.”

The proposed construction of a 1.25 gigawatt transmission line from southern Quebec to Astoria, Queens, known as the Champlain Hudson Power Express, ties into a longer term strategy by Hydro Québec: in the coming decade, as cities such as New York and Boston look to transition away from fossil fuel-generated electricity and decarbonize their grids, Hydro-Québec sees opportunities to supply them with energy from its vast network of 61 hydroelectric generating stations and other renewable power, as Quebec has closed the door on nuclear power in recent years.

Already, the provincial utility is one of North America’s largest energy producers, generating $2.3 billion in net income in 2020, and planning to increase hydropower capacity over the near term. Hydro-Quebec has said it intends to increase exports and had set a goal of reaching $5.2 billion in net income by 2030, though its forecasts are currently under review.

But just as oil and gas companies have encountered opposition to nearly every new pipeline, Hydro-Québec is finding resistance as it seeks to expand its pathways into major export markets, which are all in the U.S. northeast. Indeed, some fossil fuel companies that would be displaced by Hydro-Québec are fighting to block the construction of its new transmission lines.

“Linear projects — be it a transmission line or a pipeline or highway or whatever — there’s always a certain amount of public opposition,” Gary Sutherland, director of strategic affairs and stakeholder relations for Hydro-Québec, told the Financial Post, “which is a good thing because it makes the project developer ask the right questions.”

While Sutherland said he isn’t expecting opposition to the line into New York, he acknowledged Hydro-Québec also didn’t fully anticipate the opposition encountered with the New England Clean Energy Connect, a 1.2 gigawatt transmission line that would cost an estimated US$950 million and run from Quebec through Maine, eventually connecting to Massachusetts’ grid.

In Maine, natural gas and nuclear energy companies, which stand to lose market share, and also environmentalists, who oppose logging through sensitive habitat, both oppose the project.

In August, Maine’s highest court invalidated a lease for the land where the lines were slated to be built, throwing permits into question. Meanwhile, Calpine Corporation and Vistra Energy Corp., both Texas-based companies that operate natural gas plants in Maine, formed a political action committee called Mainers for Local Power. It has raised nearly US$8 million to fight the transmission line, according to filings with the Maine Ethics Commission.

Neither Calpine nor Vistra could be reached for comment by the time of publication.

“It’s been 30 years since we built a transmission line into the U.S. northeast,” said Sutherland. “In that time we have increased our exports significantly … but we haven’t been able to build out the corresponding transmission to get that energy from point A to point B.”

Indeed, since 2003, Hydro-Québec’s exports outside the province have grown from roughly two terrawatts per year to more than 30 terrawatts, including recent deals with NB Power to move more electricity into New Brunswick. The provincial utility produces around 210 terrawatts annually, but uses less than 178 terrawatts in Quebec.

Linear projects — be it a transmission line or a pipeline or highway or whatever — there’s always a certain amount of public opposition

In Massachusetts, it has signed contracts to supply 9.4 terrawatts annually — an amount roughly equivalent to 8 per cent of the New England region’s total consumption. Meanwhile, in New York, Hydro-Québec is in the final stages of negotiating a 25-year contract to sell 10.4 terawatts — about 20 per cent of New York City’s annual consumption.

In his tweets, Legault described the New York contract as being worth more than $20 billion over 25 years, although Hydro Québec declined to comment on the value because the contract is still under negotiation and needs approval by New York’s Public Services Commission — expected by mid-December.

Both regions are planning to build out solar and wind power to meet their growing clean energy needs and reach ambitious 2030 decarbonization targets. New York has legislated a goal of 70 per cent renewable power by that time, while Massachusetts has called for a 50 per cent reduction in emissions in the same period.

Hydro-Quebec signage is displayed on a manhole cover in Montreal. PHOTO BY BRENT LEWIN/BLOOMBERG FILES
According to a 2020 paper titled “Two Way Trade in Green Electrons,” written by three researchers at the Center for Energy and Environmental Policy Research at the Massachusetts’ Institute for Technology, Quebec’s hydropower, which like fossil fuels can be dispatched, will help cheaply and efficiently decarbonize these grids.

“Today transmission capacity is used to deliver energy south, from Quebec to the northeast,” the researchers wrote, adding, “…in a future low-carbon grid, it is economically optimal to use the transmission to send energy in both directions.”

That is, once new transmission lines and wind and solar power are built, New York and Massachusetts could send excess energy into Quebec where it could be stored in hydroelectric reservoirs until needed.

“This is the future of this northeast region, as New York state and New England are decarbonizing,” said Sutherland. “The only renewable energies they can put on the grid are intermittent, so they’re going to need this backup and right to the north of them, they’ve got Hydro-Québec as backup.”

Hydro-Québec already sells roughly 7 terrawatts of electricity per year into New York on the spot market, but Sutherland says it is constrained by transmission constraints that limit additional deliveries.

And because transmission lines can cost billions of dollars to build, he said Hydro-Québec needs the security of long-term contracts that ensure it will be paid back over time, aligning with its broader $185-billion transition strategy to reduce reliance on fossil fuels.

Sutherland expressed confidence that the Champlain Hudson Power Express project would be constructed by 2025. He noted its partners, Blackstone-backed Transmission Developers, have been working on the project for more than a decade, and have already won support from labour unions, some environmental groups and industry.

The project calls for a barge to move through Lake Champlain and the Hudson River, and dig a trench while unspooling and burying two high voltage cables, each about 10-12 centimetres in diameter. In certain sections of the Hudson River, known to have high concentrations of PCP pollutants, the cable would be buried underground alongside the river.

 

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