Offshore needs billions to meet green targets

By The Independent


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Britain's offshore wind ambitions will face a £10 billion funding gap within five years, energy experts warn, and the government's legally binding 2020 green targets will not be met unless the deficit can be closed.

This comes a day after Energy Minister Chris Huhne revealed plans for a huge expansion of the UK's wind turbines, saying wind power would be an "important part" of meeting the country's energy demands in the future.

A whopping £30 billion of capital investment in offshore wind farms is needed over the coming decade if the UK is to produce the 30 per cent of electricity from renewable sources needed to comply with European regulations, according to the report from consultancy PricewaterhouseCoopers PwC.

The number dwarfs current levels of investment, which run at around £8 billion a year for all the utilities and National Grid combined. Given that the average offshore wind farm takes more than three years to construct, the £3 billion annual investment requirement creates a capex exposure of £10 billion by 2015.

"A massive injection of money is needed," Michael Hurley, head of energy at PwC, said. "We need a radical new plan to deal with what is going to be one of the biggest issues facing the Government in the aftermath of the departmental spending review [this autumn]."

The problem is that the money cannot come from the cash-strapped government. And with just £2 billion of capital, the coalition government's planned Green Investment Bank will neither have sufficient funds to solve the problem nor have the remit to solve the problems in the design of the market.

Trickier still, the risks associated with offshore wind farms – both in terms of the construction process and the unpredictable power price – are putting off the companies that might build them, and the financiers that might help them raise the money.

"The real issue is the ramp-up required to meet the 2020 target is very, very significant," Mr Hurley said. "Business as usual simply will not work."

There are a variety of options available to the Government to help spur investment in offshore wind, says PwC. The simplest – already adopted in parts of the United States – is to add a flat levy to customer bills, to be spelled out separately from existing standing and usage charges. It is difficult to estimate the size of such a levy.

A more complex version of the same principle is to put the provision of offshore infrastructure within the existing, regulated estate of National Grid, thus leaving the fundraising to a single corporate entity. But the move is unlikely to prove popular with the company because it would leave it over-exposed to the massive construction risks associated with offshore wind.

Alternatively, the government could approach the problem by raising the returns of the investment, by boosting the number of Renewable Obligations Certificates ROCs – the system already in place to reward green generation – associated with offshore wind.

Whatever strategy is pursued has to appeal to utilities and potential financial backers – ideally either pension funds or Individual Savings Account ISA holders, says PwC. "You may have an economic mechanism that works but [you] still have to get someone to finance it," Mr Hurley said. "The key is to make it attractive to pension funds, so it has to be simple."

The offshore wind industry is more bullish. Although Renewable UK supports the call for improved regulation, the lobby group denies that without such changes, the money will not be found. "The sums are huge and the structure of finance deals does not need a whole new approach," Maria McCaffery, the chief executive, said. "But the number of international investors beating a path to our door suggests a healthy level of interest."

There are 253 wind farms already in the UK, and 12 offshore. Mr Huhne identified Dogger Bank in the North Sea as the potential site for an offshore wind project.

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Atlantic Canadians less charged up to buy electric vehicle than rest of Canada

Atlantic Canada EV adoption lags, a new poll finds, as fewer buyers consider electric vehicles amid limited charging infrastructure, lower provincial rebates, and affordability pressures in Nova Scotia and Newfoundland compared to B.C. and Quebec.

 

Key Points

Atlantic Canada EV adoption reflects demand, shaped by rebates, charging access, costs, and the regional energy mix.

✅ Poll shows lowest purchase intent in Atlantic Canada

✅ Lack of rebates and charging slows EV consideration

✅ Income and energy mix affect affordability and benefits

 

Atlantic Canadians are the least likely to buy a car, truck or SUV in the next year and the most skittish about going electric, according to a new poll. 

Only 31 per cent of Nova Scotians are looking at buying a new or used vehicle before December 2021 rolls around. And just 13 per cent of Newfoundlanders who are planning to buy are considering an electric vehicle. Both those numbers are the lowest in the country. Still, 47 per cent of Nova Scotians considering buying in the next year are thinking about electric options, according to the numbers gathered online by Logit Group and analyzed by Halifax-based Narrative Research. That compares to 41 per cent of Canadians contemplating a vehicle purchase within the next year, with 54 per cent of them considering going electric. 

“There’s still a high level of interest,” said Margaret Chapman, chief operating officer at Narrative Research.  

“I think half of people who are thinking about buying a vehicle thinking about electric is pretty significant. But I think it’s a little lower in Atlantic Canada compared to other parts of the country probably because the infrastructure isn’t quite what it might be elsewhere. And I think also it’s the availability of vehicles as well. Maybe it just hasn’t quite caught on here to the extent that it might have in, say, Ontario or B.C., where the highest level of interest is.” 


Provincial rebates
Provincial rebates also serve to create more interest, she said, citing New Brunswick's rebate program as an example in the region. 

“There’s a $7,500 rebate on top of the $5,000 you get from the feds in B.C. But in Nova Scotia there’s no provincial rebate,” Chapman said. “So I think that kind of thing actually is significant in whether you’re interested in buying an electric vehicle or not.” 

The survey was conducted online Nov. 11–13 with 1,231 Canadian adults. 

Of the people across Canada who said they were not considering an electric vehicle purchase, 55 per cent said a provincial rebate would make them more likely to consider one, she said.  

In Nova Scotia, that number drops to 43 per cent. 

Nova Scotia families have the lowest median after-tax income in the country, according to numbers released earlier this year.  

The national median in 2018 was $61,400, according to Statistics Canada. Nova Scotia was at the bottom of the pack with $52,200, up from $51,400 in 2017. 

So big price tags on electric vehicles might put them out of reach for many Nova Scotians, and a recent cost-focused survey found similar concerns nationwide. 

“I think it’s probably that combination of cost and infrastructure,” Chapman said. 

“But you saw this week in the financial update from the federal government that they’re putting $150 million into new charging station, so were some of that cash to be spread in Atlantic Canada, I’m sure there would be an increase in interest … The more charging stations around you see, you think ‘Alright, it might not be so hard to ensure that I don’t run out of power for my car.’ All of that stuff I think will start to pick up. But right now it is a little bit lagging in Atlantic Canada, and in Labrador infrastructure still lags despite a government push in N.L. to expand EVs.” 


'Simple dollars and cents'
The lack of a provincial government rebate here for electric vehicles definitely factors into the equation, said Sean O’Regan, president and chief executive officer of O'Regan's Automotive Group.  

“Where you see the highest adoption are in the provinces where there are large government rebates,” he said. “It’s a simple dollars and cents (thing). In Quebec, when you combine the rebates it’s up to over $10,000, if not $12,000, towards the car. If you can get that kind of a rebate on a car, I don’t know that it would matter much what it was – it would help sell it.” 

A lot of people who want to buy electric cars are trying to make a conscious decision about the environment, O’Regan said. 

While Nova Scotia Power is moving towards renewable energy, he points out that much of our electricity still comes from burning coal and other fossil fuels, and N.L. lags in energy efficiency as the region works to improve.  

“So the power that you get is not necessarily the cleanest of power,” O’Regan said. “The green advantage is not the same (in Nova Scotia as it is in provinces that produce a lot of hydro power).” 

Compared to five years ago, the charging infrastructure here is a lot better, he said. But it doesn’t compare well to provinces including Quebec and B.C., though Newfoundland recently completed its first fast-charging network for electric car owners. 

“Certainly (with) electric cars – we're selling more and more and more of them,” O'Regan said, noting the per centage would be in the single digits of his overall sales. “But you're starting from zero a few years ago.” 

The highest number of people looking at buying electric cars was in B.C., with 57 per cent of those looking at buying a car saying they’d go electric, and even in southern Alberta interest is growing; like Bob Dylan in 1965 at the Newport Folk Festival.  

“The trends move from west to east across Canada,” said Jeff Farwell, chief executive officer of the All EV Canada electric car store in Burnside.  

“I would use the example of the craft beer market. It started in B.C. about 15 years before it finally went crazy in Nova Scotia. And if you look at Vancouver right now there’s (electric vehicles) everywhere.” 


Expectations high
Farwell expects electric vehicle sales to take off faster in Atlantic Canada than the craft beer market. “A lot faster.” 

His company also sells used electric vehicles in Prince Edward Island and is making moves to set up in Moncton, N.B. 

He’s been talking to Nova Scotia’s Department of Energy and Mines about creating rebates here for new and used electric vehicles. 

 “I guess they’re interested, but nothing’s happened,” Farwell said.  

Electric vehicles require “a bit of a lifestyle change,” he said. 

“The misconception is it takes a lot longer to charge a vehicle if it’s electric and gas only takes me 10 minutes to fill up at the gas station,” Farwell said.  

“The reality is when I go home at night, I plug my vehicle in,” he said. “I get up in the morning and I unplug it and I never have to think about it. It takes two seconds.”  
 

 

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Energy Vault Secures $28M for California Green Hydrogen Microgrid

Calistoga Resiliency Centre Microgrid delivers grid resilience via green hydrogen and BESS, providing island-mode backup during PSPS events, wildfire risk, and outages, with black-start and grid-forming capabilities for reliable community power.

 

Key Points

A hybrid green hydrogen and BESS facility ensuring resilient, islanded power for Calistoga during PSPS and outages.

✅ 293 MWh capacity with 8.5 MW peak for critical backup

✅ Hybrid lithium-ion BESS plus green hydrogen fuel cells

✅ Island mode with black-start and grid-forming support

 

Energy Vault, a prominent energy storage and technology company known for its gravity storage, recently secured US$28 million in project financing for its innovative Calistoga Resiliency Centre (CRC) in California. This funding will enable the development of a microgrid powered by a unique combination of green hydrogen and battery energy storage systems (BESS), marking a significant step forward in enhancing grid resilience in the face of natural disasters such as wildfires.

Located in California's fire-prone regions, the CRC is designed to provide critical backup power during Public Safety Power Shutoff (PSPS) events—periods when utility companies proactively cut power to prevent wildfires. These events can leave communities without electricity for extended periods, making the need for reliable, independent power sources more urgent as many utilities see benefits in energy storage today. The CRC, with a capacity of 293 MWh and a peak output of 8.5 MW, will ensure that the Calistoga community maintains power even when the grid is disconnected.

The CRC features an integrated hybrid system that combines lithium-ion batteries and green hydrogen fuel cells, even as some grid-scale projects adopt vanadium flow batteries for long-duration needs. During a PSPS event or other grid outages, the system will operate in "island mode," using hydrogen to generate electricity. This setup not only guarantees power supply but also contributes to grid stability by supporting black-start and grid-forming functions. Energy Vault's proprietary B-VAULT DC battery technology complements the hydrogen fuel cells, enhancing the overall performance and resilience of the microgrid.

One of the key aspects of the CRC project is the utilization of green hydrogen. Unlike traditional hydrogen, which is often produced using fossil fuels, green hydrogen is generated through renewable energy sources like solar or wind power, with large-scale initiatives such as British Columbia hydrogen project accelerating supply, making it a cleaner and more sustainable alternative. This aligns with California’s ambitious clean energy goals and is expected to reduce the carbon footprint of the region’s energy infrastructure.

The CRC project also sets a precedent for future hybrid microgrid deployments across California and other wildfire-prone areas, with utilities like SDG&E Emerald Storage highlighting growing adoption. Energy Vault has positioned the CRC as a model for scalable, utility-scale microgrids that can be adapted to various locations facing similar challenges. Following the success of this project, Energy Vault is expanding its portfolio with additional projects in Texas, where it anticipates securing up to US$25 million in financing.

The funding for the CRC also includes the sale of an investment tax credit (ITC), a key component of the financing structure that helps make such ambitious projects financially viable. This structure is crucial as it allows companies to leverage government incentives to offset development costs, including CEC long-duration storage funding, thus encouraging further investment in green energy infrastructure.

Despite some skepticism regarding the transportation of hydrogen rather than producing it onsite, the project has garnered strong support. California’s Public Utilities Commission (CPUC) acknowledged the potential risks of transporting green hydrogen but emphasized that it is still preferable to using more harmful fuel sources. This recognition is important as it validates Energy Vault’s approach to using hydrogen as part of a broader strategy to transition to clean, reliable energy solutions.

Energy Vault's shift from its traditional gravity-based energy storage systems to battery energy storage systems, such as BESS in New York, reflects the company's adaptation to the growing demand for versatile, efficient energy solutions. The hybrid approach of combining BESS with green hydrogen represents an innovative way to address the challenges of energy storage, especially in regions vulnerable to natural disasters and power outages.

As the CRC nears mechanical completion and aims for full commercial operations by Q2 2025, it is poised to become a critical part of California’s grid resilience strategy. The microgrid's ability to function autonomously during emergencies will provide invaluable benefits not only to Calistoga but also to other communities that may face similar grid disruptions in the future.

Energy Vault’s US$28 million financing for the Calistoga Resiliency Centre marks a significant milestone in the development of hybrid microgrids that combine the power of green hydrogen and battery energy storage. This project exemplifies the future of energy resilience, showcasing a forward-thinking approach to mitigating the impact of natural disasters and ensuring a reliable, sustainable energy future for communities at risk. With its innovative use of renewable energy sources and cutting-edge technology, the CRC sets a strong example for future energy storage projects worldwide.

 

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For Hydro-Québec, selling to the United States means reinventing itself

Hydro-Quebec hydropower exports deliver low-carbon electricity to New England, sparking debate on greenhouse gas accounting, grid attributes, and REC-style certificates as Quebec modernizes monitoring to verify emissions, integrate renewables, and meet ambitious climate targets.

 

Key Points

Low-carbon electricity to New England, with improved emissions tracking and verifiable grid attributes.

✅ Deep, narrow reservoirs cut lifecycle GHGs in cold boreal waters

✅ Attribute certificates trace source, type, and carbon intensity

✅ Contracts require facility-level tagging for compliance

 

For 40 years, through the most vicious interprovincial battles, even as proposals for bridging the Alberta-B.C. gap aimed to improve grid resilience, Canadians could agree on one way Quebec is undeniably superior to the rest of the country.

It’s hydropower, and specifically the mammoth dam system in Northern Quebec that has been paying dividends since it was first built in the 70s. “Quebec continues to boast North America’s lowest electricity prices,” was last year’s business-as-usual update in one trade publication, even as Newfoundland's rate strategy seeks relief for consumers.

With climate crisis looming, that long-ago decision earns even more envy and reflects Canada's electricity progress across the grid today. Not only do they pay less, but Quebeckers also emit the least carbon per capita of any province.

It may surprise most Canadians, then, to hear how most of New England has reacted to the idea of being able to buy permanently into Quebec’s power grid.

​​​​​​Hydro-Québec’s efforts to strike major export deals have been rebuffed in the U.S., by environmentalists more than anyone. They question everything about Quebec hydropower, including asking “is it really low-carbon?”

These doubts may sound nonsensical to regular Quebeckers. But airing them has, in fact, pushed Hydro-Québec to learn more about itself and adopt new technology.

We know far more about hydropower than we knew 40 years ago, including whether it’s really zero-emission (it’s not), how to make it as close to zero-emission as possible, and how to account for it as precisely as new clean energies like solar and wind, underscoring how cleaning up Canada's electricity is vital to meeting climate pledges.

The export deals haven’t gone through yet, but they’ve already helped drag Hydro-Québec—roughly the fourth-biggest hydropower system on the planet—into the climate era.

Fighting to export
One of the first signs of trouble for Quebec hydro was in New Hampshire, almost 10 years ago. People there began pasting protest signs on their barns and buildings. One citizens’ group accused Hydro of planning a “monstrous extension cord” across the state.

Similar accusations have since come from Maine, Massachusetts and New York.

The criticism isn’t coming from state governments, which mostly want a more permanent relationship with Hydro-Québec. They already rely on Quebec power, but in a piecemeal way, topping up their own power grid when needed (with the exception of Vermont, which has a small permanent contract for Quebec hydropower).

Last year, Quebec provided about 15 percent of New England’s total power, plus another substantial amount to New York, which is officially not considered to be part of New England, and has its own energy market separate from the New England grid.

Now, northeastern states need an energy lynch pin, rather than a top-up, with existing power plants nearing the end of their lifespans. In Massachusetts, for example, one major nuclear plant shut down this year and another will be retired in 2021. State authorities want a hydro-based energy plan that would send $10 billion to Hydro-Québec over 20 years.

New England has some of North America’s most ambitious climate goals, with every state in the region pledging to cut emissions by at least 80 percent over the next 30 years.

What’s the downside? Ask the citizens’ groups and nonprofits that have written countless op-eds, organized petitions and staged protests. They argue that hydropower isn’t as clean as cutting-edge clean energy such as solar and wind power, and that Hydro-Québec isn’t trying hard enough to integrate itself into the most innovative carbon-counting energy system. Right as these other energy sources finally become viable, they say, it’s a step backwards to commit to hydro.

As Hydro-Québec will point out, many of these critics are legitimate nonprofits, but others may have questionable connections. The Portland Press Herald in Maine reported in September 2018 that a supposedly grassroot citizens’ group called “Stand Up For Maine” was actually funded by the New England Power Generators Association, which is based in Boston and represents such power plant owners as Calpine Corp., Vistra Energy and NextEra Energy.

But in the end, that may not matter. Arguably the biggest motivator to strike these deals comes not from New England’s needs, but from within Quebec. The province has spent more than $10 billion in the last 15 years to expand its dam and reservoir system, and in order to stay financially healthy, it needs to double its revenue in the next 10 years—a plan that relies largely on exports.

With so much at stake, it has spent the last decade trying to prove it can be an energy of the future.

“Learning as you go”
American critics, justified or not, have been forcing advances at Hydro for a long time.

When the famously huge northern Quebec hydro dams were built at James Bay—construction began in the early 1970s—the logic was purely economic. The term “climate change” didn’t exist. The province didn’t even have an environment department.

The only reason Quebec scientists started trying to measure carbon emissions from hydro reservoirs was “basically because of the U.S.,” said Alain Tremblay, a senior environmental advisor at Hydro Quebec.


Alain Tremblay, senior environmental advisor at Hydro-Québec. Photograph courtesy of Hydro-Québec
In the early 1990s, Hydro began to export power to the U.S., and “because we were a good company in terms of cost and efficiency, some Americans didn't like that,” he said—mainly competitors, though he couldn’t say specifically who. “They said our reservoirs were emitting a lot of greenhouse gases.”

The detractors had no research to back up that claim, but Hydro-Québec had none to refute it, either, said Tremblay. “At that time we didn’t have any information, but from back-of-the envelope calculations, it was impossible to have the emissions the Americans were expecting we have.”

So research began, first to design methods to take the measurements, and then to carry them out. Hydro began a five-year project with a Quebec university.

It took about 10 years to develop a solid methodology, Tremblay said, with “a lot of error and learning-as-you-go.” There have been major strides since then.

“Twenty years ago we were taking a sample of water, bringing it back to the lab and analyzing that with what we call a gas chromatograph,” said Tremblay. “Now, we have an automated system that can measure directly in the water,” reading concentrations of CO2 and methane every three hours and sending its data to a processing centre.

The tools Hydro-Québec uses are built in California. Researchers around the world now follow the same standard methods.

At this point, it’s common knowledge that hydropower does emit greenhouse gases. Experts know these emissions are much higher than previously thought.

Workers on the Eastmain-1 project environmental monitoring program. Photography courtesy of Alain Tremblay.
​But Hydro-Québec now has the evidence, also, to rebut the original accusations from the early 1990s and many similar ones today.

“All our research from Université Laval [found] that it’s about a thousand years before trees decompose in cold Canadian waters,” said Tremblay.

Hydro reservoirs emit greenhouse gases because vegetation and sometimes other biological materials, like soil runoff, decay under the surface.

But that decay depends partly on the warmth of the water. In tropical regions, including the southern U.S., hydro dams can have very high emissions. But in boreal zones like northern Quebec (or Manitoba, Labrador and most other Canadian locations with massive hydro dams), the cold, well-oxygenated water vastly slows the process.

Hydro emissions have “a huge range,” said Laura Scherer, an industrial ecology professor at Leiden University in the Netherlands who led a study of almost 1,500 hydro dams around the world.

“It can be as low as other renewable energy sources, but it can also be as high as fossil fuel energy,” in rare cases, she said.

While her study found that climate was important, the single biggest factor was “sizing and design” of each dam, and specifically its shape, she said. Ideally, hydro dams should be deep and narrow to minimize surface area, perhaps using a natural valley.

Hydro-Québec’s first generation of dams, the ones around James Bay, were built the opposite way—they’re wide and shallow, infamously flooding giant tracts of land.


Alain Tremblay, senior environmental advisor at Hydro-Québec testing emission levels. Photography courtesy of Alain Tremblay
Newly built ones take that new information into account, said Tremblay. Its most recent project is the Romaine River complex, which will eventually include four reservoirs near Quebec’s northeastern border with Labrador. Construction began in 2016.

The site was picked partly for its topography, said Tremblay.

“It’s a valley-type reservoir, so large volume, small surface area, and because of that there’s a pretty limited amount of vegetation that’s going to be flooded,” he said.

There’s a dramatic emissions difference with the project built just before that, commissioned in 2006. Called Eastmain, it’s built near James Bay.

“The preliminary results indicate with the same amount of energy generated [by Romaine] as with Eastmain, you’re going to have about 10 times less emissions,” said Tremblay.

Tracing energy to its source
These signs of progress likely won’t satisfy the critics, who have publicly argued back and forth with Hydro about exactly how emissions should be tallied up.

But Hydro-Québec also faces a different kind of growing gap when it comes to accounting publicly for its product. In the New England energy market, a sophisticated system “tags” all the energy in order to delineate exactly how much comes from which source—nuclear, wind, solar, and others—and allows buyers to single out clean power, or at least the bragging rights to say they bought only clean power.

Really, of course, it’s all the same mix of energy—you can’t pick what you consume. But creating certificates prevents energy producers from, in worst-case scenarios, being able to launder regular power through their clean-power facilities. Wind farms, for example, can’t oversell what their own turbines have produced.

What started out as a fraud prevention tool has “evolved to make it possible to also track carbon emissions,” said Deborah Donovan, Massachusetts director at the Acadia Center, a climate-focused nonprofit.

But Hydro-Québec isn’t doing enough to integrate itself into this system, she says.

It’s “the tool that all of our regulators in New England rely on when we are confirming to ourselves that we’ve met our clean energy and our carbon goals. And…New York has a tool just like that,” said Donovan. “There isn’t a tracking system in Canada that’s comparable, though provinces like Nova Scotia are tapping the Western Climate Initiative for technical support.”

Hydro Quebec Chénier-Vignan transmission line crossing the Outaouais river. Photography courtesy of Hydro-Québec
Developing this system is more a question of Canadian climate policy than technology.

Energy companies have long had the same basic tracking device—a meter, said Tanya Bodell, a consultant and expert in New England’s energy market. But in New England, on top of measuring “every time there’s a physical flow of electricity” from a given source, said Bodell, a meter “generates an attribute or a GIS certificate,” which certifies exactly where it’s from. The certificate can show the owner, the location, type of power and its average emissions.

Since 2006, Hydro-Québec has had the ability to attach the same certificates to its exports, and it sometimes does.

“It could be wind farm generation, even large hydro these days—we can do it,” said Louis Guilbault, who works in regulatory affairs at Hydro-Québec. For Quebec-produced wind energy, for example, “I can trade those to whoever’s willing to buy it,” he said.

But, despite having the ability, he also has the choice not to attach a detailed code—which Hydro doesn’t do for most of its hydropower—and to have it counted instead under the generic term of “system mix.”

Once that hydropower hits the New England market, the administrators there have their own way of packaging it. The market perhaps “tries to determine emissions, GHG content,” Guilbault said. “They have their own rules; they do their own calculations.”

This is the crux of what bothers people like Donovan and Bodell. Hydro-Québec is fully meeting its contractual obligations, since it’s not required to attach a code to every export. But the critics wish it would, whether by future obligation or on its own volition.

Quebec wants it both ways, Donovan argued; it wants the benefits of selling low-emission energy without joining the New England system of checks and balances.

“We could just buy undifferentiated power and be done with it, but we want carbon-free power,” Donovan said. “We’re buying it because of its carbon content—that’s the reason.”

Still, the requirements are slowly increasing. Under Hydro-Québec’s future contract with Massachusetts (which still has several regulatory steps to go through before it’s approved) it’s asked to sell the power’s attributes, not just the power itself. That means that, at least on paper, Massachusetts wants to be able to trace the energy back to a single location in Quebec.

“It’s part of the contract we just signed with them,” said Guilbault. “We’re going to deliver those attributes. I’m going to select a specific hydro facility, put the number in...and transfer that to the buyers.”

Hydro-Québec says it’s voluntarily increasing its accounting in other ways. “Even though this is not strictly required,” said spokeswoman Lynn St. Laurent, Hydro is tracking its entire output with a continent-wide registry, the North American Renewables Registry.

That registry is separate from New England’s, so as far as Bodell is concerned, the measure doesn’t really help. But she and others also expect the entire tracking system to grow and mature, perhaps integrating into one. If it had been created today, in fact, rather than in the 1990s, maybe it would use blockchain technology rather than a varied set of administrators, she said.

Counting emissions through tracking still has a long way to go, as well, said Donovan, and it will increasingly matter in Canada's race to net-zero as standards tighten. For example, natural gas is assigned an emissions number that’s meant to reflect the emissions when it’s consumed. But “we do not take into account what the upstream carbon emissions are through the pipeline leakage, methane releases during fracking, any of that,” she said.

Now that the search for exactitude has begun, Hydro-Québec won’t be exempt, whether or not Quebeckers share that curiosity. “We don’t know what Hydro-Québec is doing on the other side of the border,” said Donovan.

 

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Global oil demand to decline in 2020 as Coronavirus weighs heavily on markets

COVID-19 Impact on Global Oil Demand 2020 signals an IEA forecast of declining consumption as travel restrictions curb transport fuels, disrupt energy markets, and shift OPEC and non-OPEC supply dynamics amid economic slowdown.

 

Key Points

IEA sees first demand drop since 2009 as COVID-19 curbs travel, weakening transport fuels and unsettling energy markets.

✅ IEA base case: 2020 demand at 99.9 mb/d, down 90 kb/d from 2019.

✅ Travel restrictions hit transport fuels; China drives the decline.

✅ Scenarios: low -730 kb/d; high +480 kb/d in 2020.

 

Global oil demand is expected to decline in 2020 as the impact of the new coronavirus (COVID-19) spreads around the world, constricting travel and broader economic activity, according to the International Energy Agency’s latest oil market forecast.

The situation remains fluid, creating an extraordinary degree of uncertainty over what the full global impact of the virus will be. In the IEA’s central base case, even as global CO2 emissions flatlined in 2019 according to the IEA, demand this year drops for the first time since 2009 because of the deep contraction in oil consumption in China, and major disruptions to global travel and trade.

“The coronavirus crisis is affecting a wide range of energy markets – including coal-fired electricity generation, gas and renewables – but its impact on oil markets is particularly severe because it is stopping people and goods from moving around, dealing a heavy blow to demand for transport fuels,” said Dr Fatih Birol, the IEA’s Executive Director. “This is especially true in China, the largest energy consumer in the world, which accounted for more than 80% of global oil demand growth last year. While the repercussions of the virus are spreading to other parts of the world, what happens in China will have major implications for global energy and oil markets.”

The IEA now sees global oil demand at 99.9 million barrels a day in 2020, down around 90,000 barrels a day from 2019. This is a sharp downgrade from the IEA’s forecast in February, which predicted global oil demand would grow by 825,000 barrels a day in 2020.

The short-term outlook for the oil market will ultimately depend on how quickly governments move to contain the coronavirus outbreak, how successful their efforts are, and what lingering impact the global health crisis has on economic activity.

To account for the extreme uncertainty facing energy markets, the IEA has developed two other scenarios for how global oil demand could evolve this year. In a more pessimistic low case, global measures fail to contain the virus, and global demand falls by 730,000 barrels a day in 2020. In a more optimistic high case, the virus is contained quickly around the world, and global demand grows by 480,000 barrels a day.

“We are following the situation extremely closely and will provide regular updates to our forecasts as the picture becomes clearer,” Dr Birol said. “The impact of the coronavirus on oil markets may be temporary. But the longer-term challenges facing the world’s suppliers are not going to go away, especially those heavily dependent on oil and gas revenues. As the IEA has repeatedly said, these producer countries need more dynamic and diversified economies in order to navigate the multiple uncertainties that we see today.”

The IEA also published its medium-term outlook examining the key issues in global demand, supply, refining and trade to 2025, as well as the trajectory of the global energy transition now shaping markets. Following a contraction in 2020 and an expected sharp rebound in 2021, yearly growth in global oil demand is set to slow as consumption of transport fuels grows more slowly and as national net-zero pathways, with Canada needing more electricity to reach net-zero influencing power demand, according to the report. Between 2019 and 2025, global oil demand is expected to grow at an average annual rate of just below 1 million barrels a day. Over the period as whole, demand rises by a total of 5.7 million barrels a day, with China and India accounting for about half of the growth.

At the same time, the world’s oil production capacity is expected to rise by 5.9 million barrels a day, with more than three-quarters of it coming from non-OPEC producers, the report forecasts. But production growth in the United States and other non-OPEC countries is set to lose momentum after 2022, amid shifts in Wall Street's energy strategy linked to policy signals, allowing OPEC producers from the Middle East to turn the taps back up to help keep the global oil market in balance.

The medium-term market report, Oil 2020, also considers the impact of clean energy transitions on oil market trends. Demand growth for gasoline and diesel between 2019 and 2025 is forecast to weaken as countries around the world implement policies to improve efficiency and cut carbon dioxide emissions – and as solar power becomes the cheapest electricity in many markets and electric vehicles increase in popularity. The impact of energy transitions on oil supply remains unclear, with many companies prioritising short-cycle projects for the coming years.

“The coronavirus crisis is adding to the uncertainties the global oil industry faces as it contemplates new investments and business strategies,” Dr Birol said. “The pressures on companies are changing, with European oil majors turning electric to diversify. They need to show that they can deliver not just the energy that economies rely on, but also the emissions reductions that the world needs to help tackle our climate challenge.”

 

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Ontario Drops Starlink Deal, Eyes Energy Independence

Ontario Starlink Contract Cancellation underscores rising tariffs, trade tensions, and retaliation, as SpaceX's Elon Musk loses a rural broadband deal; Ontario pivots to procurement bans, energy resilience, and nuclear power to boost grid independence.

 

Key Points

Ontario ended a C$100M Starlink deal over U.S. tariffs, prompting a shift to rural broadband alternatives.

✅ Triggered by U.S. tariffs; Ontario adopts retaliatory procurement bans.

✅ Ends plan to connect 15,000 rural homes and businesses with broadband.

✅ Signals push for energy resilience, nuclear power, and grid independence.

 

In a decisive move, Ontario Premier Doug Ford announced the cancellation of a C$100 million contract with Elon Musk's Starlink, a subsidiary of SpaceX, in direct response to U.S. President Donald Trump's imposition of tariffs on Canadian imports. This action underscores the escalating trade tensions between Canada and the United States, a theme highlighted during Ford's Washington meeting on energy tariffs earlier this month, and highlights Ontario's efforts to safeguard its economic interests.

The now-terminated agreement, established in November, aimed to provide high-speed internet access to 15,000 homes and businesses in Ontario's remote areas. Premier Ford's decision to "rip up" the contract signifies a broader strategy to distance the province from U.S.-based companies amid the current trade dispute. He emphasized, "Ontario won't do business with people hell-bent on destroying our economy."

This move is part of a series of retaliatory measures by Canadian provinces, including Ford's threat to cut electricity exports to the U.S., following President Trump's announcement of a 25% tariff on nearly all Canadian imports, excluding oil, which faces a 10% surcharge. These tariffs, set to take effect imminently, have prompted concerns about potential economic downturns in Canada. In response, Prime Minister Justin Trudeau declared that Canada would impose 25% tariffs on C$155 billion worth of U.S. goods, aiming to exert pressure on the U.S. administration to reconsider its stance.

Premier Ford's actions reflect a broader sentiment of economic nationalism, as he also announced a ban on American companies from provincial contracts until the U.S. tariffs are lifted. He highlighted that Ontario's government and its agencies allocate $30 billion annually on procurement, and reiterated his earlier vow to fire the Hydro One CEO and board as part of broader reforms aimed at efficiency.

The cancellation of the Starlink contract raises concerns about the future of internet connectivity in Ontario's rural regions. The original deal with Starlink was seen as a significant step toward bridging the digital divide, offering high-speed internet to underserved communities. With the contract's termination, the province faces the challenge of identifying alternative solutions to fulfill this critical need.

Beyond the immediate implications of the Starlink contract cancellation, Ontario is confronting broader challenges in ensuring the resilience and independence of its energy infrastructure. The province's reliance on external entities for critical services, such as internet connectivity and energy, has come under scrutiny, as Canada's electricity exports are at risk amid ongoing trade tensions and policy uncertainty.

Premier Ford has expressed a commitment to expanding Ontario's capacity to generate nuclear power as a means to bolster energy self-sufficiency. While this strategy aims to reduce dependence on external energy sources, it presents its own set of challenges that critics argue require cleaning up Ontario's hydro mess before new commitments proceed. Developing nuclear infrastructure requires substantial investment, rigorous safety protocols, and long-term planning. Moreover, the integration of nuclear power into the province's energy mix necessitates careful consideration of environmental impacts and public acceptance.

The concept of "Trump-proofing" Ontario's electricity grid involves creating a robust and self-reliant energy system capable of withstanding external political and economic pressures. Achieving this goal entails diversifying energy sources, including building on Ontario's electricity deal with Quebec to strengthen interties, investing in renewable energy technologies, and enhancing grid infrastructure to ensure stability and resilience.

However, the path to energy independence is fraught with complexities. Balancing the immediate need for reliable energy with long-term sustainability goals requires nuanced policy decisions, including Ontario's Supreme Court challenge to the global adjustment fee and related regulatory reviews to clarify cost impacts. Additionally, fostering collaboration between government entities, private sector stakeholders, and the public is essential to navigate the multifaceted challenges associated with overhauling the province's energy framework.

Ontario's recent actions, including the cancellation of the Starlink contract, underscore the province's proactive stance in safeguarding its economic and infrastructural interests amid evolving geopolitical dynamics. While such measures reflect a commitment to self-reliance, they also highlight the intricate challenges inherent in reducing dependence on external entities. As Ontario charts its course toward a more autonomous future, strategic planning, investment in sustainable technologies, and collaborative policymaking will be pivotal in achieving long-term resilience and prosperity.

 

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Hundreds facing hydro disconnection as bills pile up during winter ban

Ontario Hydro Disconnection Ban ends May 1, prompting utilities and Hydro One to push payment plans, address arrears, and link low-income assistance, as Sudbury officials urge customers to avoid spring electricity disconnections.

 

Key Points

A seasonal policy halting winter shutoffs in Ontario, ending May 1 as utilities emphasize payment plans and assistance.

✅ Disconnections resume after winter moratorium ends May 1.

✅ Utilities offer payment plans, arrears management, relief funds.

✅ Hydro One delays shutoffs until June 1; arrears down 60%.

 

The first of May has taken on new meaning this year in Ontario.

It's when the province's ban on hydro disconnections during the winter months comes to an end, even as Ontario considers extending moratoriums in some cases.

Wendy Watson, the director of communications at Greater Sudbury Utilities, says signs of the approaching deadline could be seen in their office of the past few weeks.

"We've had quite an active stream of people into our front office to catch up on their accounts and also we've had a lot of people calling us to make payment arrangements or pay their bill or deal with their arrears," she says.

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Watson says there are 590 customers in Sudbury who could face possible disconnection this spring, compared with just 60 when the ban started in November.

"They will put off until tomorrow what they can avoid today," she says.

Watson says they are hoping to work with customers to figure payment plans with more choice and flexibility and avoid the need to cut power to certain homes and businesses. 

"As we like to say we're in the distribution of energy business, not the disconnection of energy business. We want you to be able to turn the lights on," she says.

Joseph Leblanc from the Social Planning Council of Sudbury says the winter hydro disconnection ban is one of several government measures that keep low income families on the brink of disaster. (CBC)

Hydro One executive vice-president of customer care Ferio Pugilese, whose utility later extended disconnection bans across its service area, tells a different story.

He says the company has worked hard to configure payment plans for customers over the last three years amid unchanged peak-rate policies and find ways for them to pay "that fit their lifestyle."

"The threat of a disconnection is not on its own something that's going to motivate someone to pay their bills," says Pugilese.

He says Hydro One is also sending out notices this spring, but won't begin cutting anyone off until June 1st.

He says that disconnections and the amount owing from outstanding bills to Hydro One are down 60 per cent in the last year. 

Ontario Energy Minister Glenn Thibeault says there is plenty of help from government programs and utility financing options like Hydro One's relief fund for those having trouble paying their power bills. (CBC)

Sudbury MPP and Energy Minister Glenn Thibeault says his hope is that people having trouble paying their power bills will talk to their hydro utility and look at the numerous programs the government offers to help low-income citizens.

"You know, I really want every customer to have a conversation with their local utility about getting back on track and we do have those programs in place," he says.

However, Joseph Leblanc, the executive director of the Social Planning Council of Sudbury, says the winter disconnection ban is just another government policy that keeps the poor on the brink of disaster.

"It's a feel good story for the government to say that, but it's a band-aid solution. We can stop the bleeding for a little while, make sure people aren't freezing to death in Ontario," he says. 

"People choose between rent, hydro, medicine, food, and there's an option for one of those to take some pressure off for a little while."

Instead, Leblanc would like to see the government fast track the province-wide implementation of the basic income program it's testing out in a few cities. 

 

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