Environment Minister John Baird is slamming a move by Ontario and Quebec to create a carbon trading market between the two provinces.
"It will be the first time anywhere in the world people have talked about a trading regime where there are no regulations in place forcing the big polluters to cut their emissions," he told CTV's Question Period.
"Trading is to help reduce emissions, not simply an end in itself."
Ontario and Quebec's cabinets held a joint meeting in Quebec City; a deal will be unveiled in the near future.
According to a recent report, the deal will involve the following elements:
• A basic framework for a cap-and-trade system with a 1990 baseline for emission levels;
• It will also opt for "real reductions," as opposed to the federal government's "intensity-based" plan to reduce greenhouse gas emissions.
The federal plan uses 2006 as a baseline and requires industry to reduce emissions on a percentage basis per unit of output.
Critics say that if total output rises sufficiently, GHG emissions could actually increase under an intensity-based plan.
Baird said the Ontario and Quebec governments have done nothing to regulate big industries in the past five years. In comparison, the federal government has moved to regulate industrial GHG emissions and tabled a plan that calls for real reductions, he said.
Ontario's government had promised to eliminate coal-fired electricity plants, but won't do so until 2014, he said, adding the federal government has given Ontario more than $500 million to help it do so.
"The reality is that the federal numbers will be demonstrably higher than anything that Ontario or Quebec come up with," he said.
Quebec has cut its GHG emissions by nine per cent below 1990 levels, in part because of its abundant hydroelectricity.
Baird said only Alberta is "forcing the big polluters to cut their emissions."
The Alberta plan for reducing GHG emissions has set a target of a 14 per cent cut below 2005 levels by 2050 - with no reductions before 2020.
Alberta's plan "is not as strong as we'd like," Baird said.
The federal Tories say their plan will result in a 20 per cent reduction below 2006 levels by 2020. Many critics have said it is riddled with loopholes and won't meet its targets. The government has said Canada's Kyoto Protocol target of a six per cent cut below 1990 levels by 2012 wouldn't be reached until 2025.
The minister said of the 17 sectors covered, only coal and the oilsands will show emissions increases of more than 18 per cent in the next 18 months. "We're moving aggressively with tougher measures, and with even tougher measures for the oilsands," he said.
Some analysts have worried that Canada needs a national carbon-trading regime and that a patchwork regulatory environment is taking root in the country.
Baird said the provinces have been unable to come up with a national consensus. "We've got to stop talking about these things and start doing them," he said.
Boeing 787 More-Electric Architecture replaces pneumatics with bleedless pressurization, VFSG starter-generators, electric brakes, and heated wing anti-ice, leveraging APU, RAT, batteries, and airport ground power for efficient, redundant electrical power distribution.
Key Points
An integrated, bleedless electrical system powering start, pressurization, brakes, and anti-ice via VFSGs, APU and RAT.
✅ VFSGs start engines, then generate 235Vac variable-frequency power
✅ Bleedless pressurization, electric anti-ice improve fuel efficiency
✅ Electric brakes cut hydraulic weight and simplify maintenance
The 787 Dreamliner is different to most commercial aircraft flying the skies today. On the surface it may seem pretty similar to the likes of the 777 and A350, but get under the skin and it’s a whole different aircraft.
When Boeing designed the 787, in order to make it as fuel efficient as possible, it had to completely shake up the way some of the normal aircraft systems operated. Traditionally, systems such as the pressurization, engine start and wing anti-ice were powered by pneumatics. The wheel brakes were powered by the hydraulics. These essential systems required a lot of physical architecture and with that comes weight and maintenance. This got engineers thinking.
What if the brakes didn’t need the hydraulics? What if the engines could be started without the pneumatic system? What if the pressurisation system didn’t need bleed air from the engines? Imagine if all these systems could be powered electrically… so that’s what they did.
Power sources
The 787 uses a lot of electricity. Therefore, to keep up with the demand, it has a number of sources of power, much as grid operators track supply on the GB energy dashboard to balance loads. Depending on whether the aircraft is on the ground with its engines off or in the air with both engines running, different combinations of the power sources are used.
Engine starter/generators
The main source of power comes from four 235Vac variable frequency engine starter/generators (VFSGs). There are two of these in each engine. These function as electrically powered starter motors for the engine start, and once the engine is running, then act as engine driven generators.
The generators in the left engine are designated as L1 and L2, the two in the right engine are R1 and R2. They are connected to their respective engine gearbox to generate electrical power directly proportional to the engine speed. With the engines running, the generators provide electrical power to all the aircraft systems.
APU starter/generators
In the tail of most commercial aircraft sits a small engine, the Auxiliary Power Unit (APU). While this does not provide any power for aircraft propulsion, it does provide electrics for when the engines are not running.
The APU of the 787 has the same generators as each of the engines — two 235Vac VFSGs, designated L and R. They act as starter motors to get the APU going and once running, then act as generators. The power generated is once again directly proportional to the APU speed.
The APU not only provides power to the aircraft on the ground when the engines are switched off, but it can also provide power in flight should there be a problem with one of the engine generators.
Battery power
The aircraft has one main battery and one APU battery. The latter is quite basic, providing power to start the APU and for some of the external aircraft lighting.
The main battery is there to power the aircraft up when everything has been switched off and also in cases of extreme electrical failure in flight, and in the grid context, alternatives such as gravity power storage are being explored for long-duration resilience. It provides power to start the APU, acts as a back-up for the brakes and also feeds the captain’s flight instruments until the Ram Air Turbine deploys.
Ram air turbine (RAT) generator
When you need this, you’re really not having a great day. The RAT is a small propeller which automatically drops out of the underside of the aircraft in the event of a double engine failure (or when all three hydraulics system pressures are low). It can also be deployed manually by pressing a switch in the flight deck.
Once deployed into the airflow, the RAT spins up and turns the RAT generator. This provides enough electrical power to operate the captain’s flight instruments and other essentials items for communication, navigation and flight controls.
External power
Using the APU on the ground for electrics is fine, but they do tend to be quite noisy. Not great for airports wishing to keep their noise footprint down. To enable aircraft to be powered without the APU, most big airports will have a ground power system drawing from national grids, including output from facilities such as Barakah Unit 1 as part of the mix. Large cables from the airport power supply connect 115Vac to the aircraft and allow pilots to shut down the APU. This not only keeps the noise down but also saves on the fuel which the APU would use.
The 787 has three external power inputs — two at the front and one at the rear. The forward system is used to power systems required for ground operations such as lighting, cargo door operation and some cabin systems. If only one forward power source is connected, only very limited functions will be available.
The aft external power is only used when the ground power is required for engine start.
Circuit breakers
Most flight decks you visit will have the back wall covered in circuit breakers — CBs. If there is a problem with a system, the circuit breaker may “pop” to preserve the aircraft electrical system. If a particular system is not working, part of the engineers procedure may require them to pull and “collar” a CB — placing a small ring around the CB to stop it from being pushed back in. However, on the 787 there are no physical circuit breakers. You’ve guessed it, they’re electric.
Within the Multi Function Display screen is the Circuit Breaker Indication and Control (CBIC). From here, engineers and pilots are able to access all the “CBs” which would normally be on the back wall of the flight deck. If an operational procedure requires it, engineers are able to electrically pull and collar a CB giving the same result as a conventional CB.
Not only does this mean that the there are no physical CBs which may need replacing, it also creates space behind the flight deck which can be utilised for the galley area and cabin.
A normal flight
While it’s useful to have all these systems, they are never all used at the same time, and, as the power sector’s COVID-19 mitigation strategies showed, resilience planning matters across operations. Depending on the stage of the flight, different power sources will be used, sometimes in conjunction with others, to supply the required power.
On the ground
When we arrive at the aircraft, more often than not the aircraft is plugged into the external power with the APU off. Electricity is the blood of the 787 and it doesn’t like to be without a good supply constantly pumping through its system, and, as seen in NYC electric rhythms during COVID-19, demand patterns can shift quickly. Ground staff will connect two forward external power sources, as this enables us to operate the maximum number of systems as we prepare the aircraft for departure.
Whilst connected to the external source, there is not enough power to run the air conditioning system. As a result, whilst the APU is off, air conditioning is provided by Preconditioned Air (PCA) units on the ground. These connect to the aircraft by a pipe and pump cool air into the cabin to keep the temperature at a comfortable level.
APU start
As we near departure time, we need to start making some changes to the configuration of the electrical system. Before we can push back , the external power needs to be disconnected — the airports don’t take too kindly to us taking their cables with us — and since that supply ultimately comes from the grid, projects like the Bruce Power upgrade increase available capacity during peaks, but we need to generate our own power before we start the engines so to do this, we use the APU.
The APU, like any engine, takes a little time to start up, around 90 seconds or so. If you remember from before, the external power only supplies 115Vac whereas the two VFSGs in the APU each provide 235Vac. As a result, as soon as the APU is running, it automatically takes over the running of the electrical systems. The ground staff are then clear to disconnect the ground power.
If you read my article on how the 787 is pressurised, you’ll know that it’s powered by the electrical system. As soon as the APU is supplying the electricity, there is enough power to run the aircraft air conditioning. The PCA can then be removed.
Engine start
Once all doors and hatches are closed, external cables and pipes have been removed and the APU is running, we’re ready to push back from the gate and start our engines. Both engines are normally started at the same time, unless the outside air temperature is below 5°C.
On other aircraft types, the engines require high pressure air from the APU to turn the starter in the engine. This requires a lot of power from the APU and is also quite noisy. On the 787, the engine start is entirely electrical.
Power is drawn from the APU and feeds the VFSGs in the engines. If you remember from earlier, these fist act as starter motors. The starter motor starts the turn the turbines in the middle of the engine. These in turn start to turn the forward stages of the engine. Once there is enough airflow through the engine, and the fuel is igniting, there is enough energy to continue running itself.
After start
Once the engine is running, the VFSGs stop acting as starter motors and revert to acting as generators. As these generators are the preferred power source, they automatically take over the running of the electrical systems from the APU, which can then be switched off. The aircraft is now in the desired configuration for flight, with the 4 VFSGs in both engines providing all the power the aircraft needs.
As the aircraft moves away towards the runway, another electrically powered system is used — the brakes. On other aircraft types, the brakes are powered by the hydraulics system. This requires extra pipe work and the associated weight that goes with that. Hydraulically powered brake units can also be time consuming to replace.
By having electric brakes, the 787 is able to reduce the weight of the hydraulics system and it also makes it easier to change brake units. “Plug in and play” brakes are far quicker to change, keeping maintenance costs down and reducing flight delays.
In-flight
Another system which is powered electrically on the 787 is the anti-ice system. As aircraft fly though clouds in cold temperatures, ice can build up along the leading edge of the wing. As this reduces the efficiency of the the wing, we need to get rid of this.
Other aircraft types use hot air from the engines to melt it. On the 787, we have electrically powered pads along the leading edge which heat up to melt the ice.
Not only does this keep more power in the engines, but it also reduces the drag created as the hot air leaves the structure of the wing. A double win for fuel savings.
Once on the ground at the destination, it’s time to start thinking about the electrical configuration again. As we make our way to the gate, we start the APU in preparation for the engine shut down. However, because the engine generators have a high priority than the APU generators, the APU does not automatically take over. Instead, an indication on the EICAS shows APU RUNNING, to inform us that the APU is ready to take the electrical load.
Shutdown
With the park brake set, it’s time to shut the engines down. A final check that the APU is indeed running is made before moving the engine control switches to shut off. Plunging the cabin into darkness isn’t a smooth move. As the engines are shut down, the APU automatically takes over the power supply for the aircraft. Once the ground staff have connected the external power, we then have the option to also shut down the APU.
However, before doing this, we consider the cabin environment. If there is no PCA available and it’s hot outside, without the APU the cabin temperature will rise pretty quickly. In situations like this we’ll wait until all the passengers are off the aircraft until we shut down the APU.
Once on external power, the full flight cycle is complete. The aircraft can now be cleaned and catered, ready for the next crew to take over.
Bottom line
Electricity is a fundamental part of operating the 787. Even when there are no passengers on board, some power is required to keep the systems running, ready for the arrival of the next crew. As we prepare the aircraft for departure and start the engines, various methods of powering the aircraft are used.
The aircraft has six electrical generators, of which only four are used in normal flights. Should one fail, there are back-ups available. Should these back-ups fail, there are back-ups for the back-ups in the form of the battery. Should this back-up fail, there is yet another layer of contingency in the form of the RAT. A highly unlikely event.
The 787 was built around improving efficiency and lowering carbon emissions whilst ensuring unrivalled levels safety, and, in the wider energy landscape, perspectives like nuclear beyond electricity highlight complementary paths to decarbonization — a mission it’s able to achieve on hundreds of flights every single day.
Fukushima Hydrogen Energy System leverages a 10,000 kW H2 production hub for grid balancing, demand response, and renewable integration, delivering hydrogen supply across Tohoku while supporting storage, forecasting, and flexible power management.
Key Points
A 10,000 kW H2 project in Namie for grid balancing, renewable integration, and regional hydrogen supply.
✅ 10,000 kW H2 production hub in Namie, Fukushima
✅ Balances renewable-heavy grids via demand response
✅ Supported by NEDO; partners Toshiba, Tohoku Electric, Iwatani
Toshiba Corporation, Tohoku Electric Power Co. and Iwatani Corporation have announced they will construct and operate a large-scale hydrogen (H2) energy system in Japan, based on a 10,000 kilowat class H2 production facility, which reflects advances in PEM hydrogen R&D worldwide.
The system, which will be built in Namie-Cho, Fukushima, will use H2 to offset grid loads and deliver H2 to locations in Tohoku and beyond, while complementary approaches like power-to-gas storage in Europe demonstrate broader storage options, and will seek to demonstrate the advantages of H2 as a solution in grid balancing and as a H2 gas supply.
The product has won a positive evaluation from Japan’s New Energy and Industrial Technology Development Organisation (NEDO), and its continued support for the transition to the technical demonstration phase. The practical effectiveness of the large-scale system will be determined by verification testing in financial year 2020, even as interest grows in nuclear beyond electricity for complementary services.
The main objectives of the partners are to promote expanded use of renewable energy in the electricity grid, including UK offshore wind investment by Japanese utilities, in order to balance supply and demand and process load management; and to realise a new control system that optimises H2 production and supply with demand forecasting for H2.
Hiroyuki Ota, General Manager of Toshiba’s Energy Systems and Solutions Company, said, “Through this project, Toshiba will continue to provide comprehensive H2 solutions, encompassing all processes from the production to utilisation of hydrogen.”
Manager of Tohoku Electric Power Co., Ltd, Mitsuhiro Matsumoto, added, “We will study how to use H2 energy systems to stabilize electricity grids with the aim of increasing the use of renewable energy and contributing to Fukushima.”
Moriyuki Fujimoto, General Manager of Iwatani Corporation, commented, “Iwatani considers that this project will contribute to the early establishment of a H2 economy that draws on our experience in the transportation, storage and supply of industrial H2, and the construction and operation of H2stations.”
Japan’s Ministry of Economy, Trade and Industry’s ‘Long-term Energy Supply and Demand Outlook’ targets increasing the share of renewable energy in Japan’s overall power generation mix from 10.7% in 2013 to 22-24% by 2030. Since output from renewable energy sources is intermittent and fluctuates widely with the weather and season, grid management requires another compensatory power source, as highlighted by a near-blackout event in Japan. The large hydrogen energy system is expected to provide a solution for grids with a high penetration of renewables.
Atlantic Canada Hurricane Resilience focuses on climate change adaptation: grid hardening, burying lines, coastline resiliency to sea-level rise, mixed forests, and aggressive tree trimming to reduce outages from hurricane-force winds and post-tropical storms.
Key Points
A strategy to harden grids, protect coasts, and manage forests to limit hurricane damage across Atlantic Canada.
✅ Grid hardening and selective undergrounding to cut outage risk.
✅ Coastal defenses: seawalls, dikes, and shoreline vegetation upgrades.
✅ Mixed forests and proactive tree trimming to reduce windfall damage.
In an era when storms with hurricane-force winds are expected to keep battering Atlantic Canada, experts say the region should make major changes to electrical grids, power utilities and shoreline defences and even the types of trees being planted.
Work continues today to reconnect customers after post-tropical storm Dorian knocked out power to 80 per cent of homes and businesses in Nova Scotia. By early afternoon there were 56,000 customers without electricity in the province, compared with 400,000 at the storm's peak on the weekend, a reminder that major outages can linger long after severe weather.
Recent scientific literature says 35 hurricanes -- not including post-tropical storms like Dorian -- have made landfall in the region since 1850, an average of one every five years that underscores the value of interprovincial connections like the Maritime Link for reliability.
Heavy rains and strong winds batter Shelburne, N.S. on Saturday, Sept. 7, 2019 as Hurricane Dorian approaches, making storm safety practices crucial for residents. (Suzette Belliveau/ CTV Atlantic)
Anthony Taylor, a forest ecologist scientist with Natural Resources Canada, wrote in a recent peer-reviewed paper that climate change is expected to increase the frequency of severe hurricanes.
He says promoting more mixed forests with hardwoods would reduce the rate of destruction caused by the storms.
Erni Wiebe, former director of distribution at Manitoba Hydro, says the storms should cause Atlantic utilities to rethink their view that burying lines is too expensive and to contemplate other long-term solutions such as the Maritime Link that enhance grid resilience.
Blair Feltmate, head of the Intact Centre on Climate Change at the University of Waterloo, says Atlantic Canada should also develop standards for coastline resiliency due to predictions of rising sea levels combining with the storms, while considering how delivery rate changes influence funding timelines.
He says that would mean a more rapid refurbishing of sea walls and dike systems, along with more shoreline vegetation.
Feltmate also calls for an aggressive tree-trimming program to limit power outages that he says "will otherwise continue to plague the Maritimes," while addressing risks like copper theft through better security.
✅ Vegetation management reduces storm-related line contact
✅ Selective undergrounding where risk and cost justify
The increasing intensity of storms that lead to massive power outages highlights the need for Canada’s electrical utilities to be more robust and innovative, climate change scientists say.
“We need to plan to be more resilient in the face of the increasing chances of these events occurring,” University of New Brunswick climate change scientist Louise Comeau said in a recent interview.
The East Coast was walloped this week by the third storm in as many days, with high winds toppling trees and even part of a Halifax church steeple, underscoring the value of storm-season electrical safety tips for residents.
Significant weather events have consistently increased over the last five years, according to the Canadian Electricity Association (CEA), which has tracked such events since 2003.
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Nearly a quarter of total outage hours nationally in 2016 – 22 per cent – were caused by two ice storms, a lightning storm, and the Fort McMurray fires, which the CEA said may or may not be classified as a climate event.
“It (climate change) is putting quite a lot of pressure on electricity companies coast to coast to coast to improve their processes and look for ways to strengthen their systems in the face of this evolving threat,” said Devin McCarthy, vice president of public affairs and U.S. policy for the CEA, which represents 40 utilities serving 14 million customers.
The 2016 figures – the most recent available – indicate the average Canadian customer experienced 3.1 outages and 5.66 hours of outage time.
McCarthy said electricity companies can’t just build their systems to withstand the worst storm they’d dealt with over the previous 30 years. They must prepare for worse, and address risks highlighted by Site C dam stability concerns as part of long-term planning.
“There needs to be a more forward looking approach, climate science led, that looks at what do we expect our system to be up against in the next 20, 30 or 50 years,” he said.
Toronto Hydro is either looking at or installing equipment with extreme weather in mind, Elias Lyberogiannis, the utility’s general manager of engineering, said in an email.
That includes stainless steel transformers that are more resistant to corrosion, and breakaway links for overhead service connections, which allow service wires to safely disconnect from poles and prevents damage to service masts.
Comeau said smaller grids, tied to electrical systems operated by larger utilities, often utilize renewable energy sources such as solar and wind as well as battery storage technology to power collections of buildings, homes, schools and hospitals.
“Capacity to do that means we are less vulnerable when the central systems break down,” Comeau said.
Nova Scotia Power recently announced an “intelligent feeder” pilot project, which involves the installation of Tesla Powerwall storage batteries in 10 homes in Elmsdale, N.S., and a large grid-sized battery at the local substation. The batteries are connected to an electrical line powered in part by nearby wind turbines.
The idea is to test the capability of providing customers with back-up power, while collecting data that will be useful for planning future energy needs.
Tony O’Hara, NB Power’s vice-president of engineering, said the utility, which recently sounded an alarm on copper theft, was in the late planning stages of a micro-grid for the western part of the province, and is also studying the use of large battery storage banks.
“Those things are coming, that will be an evolution over time for sure,” said O’Hara.
Some solutions may be simpler. Smaller utilities, like Nova Scotia Power, are focusing on strengthening overhead systems, mainly through vegetation management, while in Ontario, Hydro One and Alectra are making major investments to strengthen infrastructure in the Hamilton area.
“The number one cause of outages during storms, particularly those with high winds and heavy snow, is trees making contact with power lines,” said N.S. Power’s Tiffany Chase.
The company has an annual budget of $20 million for tree trimming and removal.
“But the reality is with overhead infrastructure, trees are going to cause damage no matter how robust the infrastructure is,” said Matt Drover, the utility’s director for regional operations.
“We are looking at things like battery storage and a variety of other reliability programs to help with that.”
NB Power also has an increased emphasis on tree trimming and removal, and now spends $14 million a year on it, up from $6 million prior to 2014.
O’Hara said the vegetation program has helped drive the average duration of power outages down since 2014 from about three hours to two hours and 45 minutes.
Some power cables are buried in both Nova Scotia and New Brunswick, mostly in urban areas. But both utilities maintain it’s too expensive to bury entire systems – estimated at $1 million per kilometre by Nova Scotia Power.
The issue of burying more lines was top of mind in Toronto following a 2013 ice storm, but that’s city’s utility also rejected the idea of a large-scale underground system as too expensive – estimating the cost at around $15 billion, while Ontario customers have seen Hydro One delivery rates rise in recent adjustments.
“Having said that, it is prudent to do so for some installations depending on site specific conditions and the risks that exist,” Lyberogiannis said.
Comeau said lowering risks will both save money and disruption to people’s lives.
“We can’t just do what we used to do,” said Xuebin Zhang, a senior climate change scientist at Environment and Climate Change Canada.
“We have to build in management risk … this has to be a new norm.”
Canada Three-Layer Mask Recommendation advises non-medical masks with a polypropylene filter layer and tightly woven cotton, aligned with WHO guidance, to curb COVID-19 aerosols indoors through better fit, coverage, and public health compliance.
Key Points
PHAC advises three-layer non-medical masks with a polypropylene filter to improve indoor COVID-19 protection.
✅ Two fabric layers plus a non-woven polypropylene filter
✅ Ensure snug fit: cover nose, mouth, chin without gaps
✅ Aligns with WHO guidance for aerosols and droplets
The Public Health Agency of Canada is now recommending Canadians choose three-layer non-medical masks with a filter layer to prevent the spread of COVID-19, even as an IEA report projects higher electricity needs for net-zero, as they prepare to spend more time indoors over the winter.
Chief Public Health Officer Dr. Theresa Tam made the recommendation during her bi-weekly pandemic briefing in Ottawa Tuesday, as officials also track electricity grid security amid critical infrastructure concerns.
"To improve the level of protection that can be provided by non-medical masks or face coverings, we are recommending that you consider a three-layer nonmedical mask," she said.
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According to recently updated guidelines, two layers of the mask should be made of a tightly woven fabric, such as cotton or linen, and the middle layer should be a filter-type fabric, such as non-woven polypropylene fabric, as Canada explores post-COVID manufacturing capacity for PPE.
"We're not necessarily saying just throw out everything that you have," Tam told reporters, suggesting adding a filter can help with protection.
The Public Health website now includes instructions for making three-layer masks, while national goals like Canada's 2050 net-zero target continue to shape recovery efforts.
The World Health Organization has recommended three layers for non-medical masks since June, and experts note that cleaning up Canada's electricity is critical to broader climate resilience. When pressed about the sudden change for Canada, Tam said the research has evolved.
"This is an additional recommendation just to add another layer of protection. The science of masks has really accelerated during this particular pandemic. So we're just learning again as we go," she said.
"I do think that because it's winter, because we're all going inside, we're learning more about droplets and aerosols, and how indoor comfort systems from heating to air conditioning costs can influence behaviors."
She also urged Canadians to wear well-fitted masks that cover the nose, mouth and chin without gaping, as the federal government advances emissions and EV sales regulations alongside public health guidance.
BC Hydro Crypto Mining Moratorium pauses high-load connection requests, as BCUC reviews electricity demand, gigawatt-hours and megawatt load forecasts, data center growth, and potential rate impacts on the power grid and industrial customers.
Key Points
A BC order pausing crypto mining connections while BC Hydro and BCUC assess load, grid impacts, and ratepayer risks.
✅ 18-month pause on new high-load crypto connections
✅ 1,403 MW in requests suspended; 273 MW existing or pending
✅ Seeks to manage demand, rates, and grid reliability
In its Nov. 1, 2022 load update briefing note to senior executives of the Crown corporation, BC Hydro shows that the entire large industrial sector accounted for 6,591 gigawatt-hours during the period – one percent less than forecast in the service plan.
BC Hydro censored load statistics about crypto mining, coal mining and chemicals from the briefing note, which was obtained under the freedom of information law and came amid scrutiny over B.C. electricity imports because it feared that disclosure would harm Crown corporation finances and third-party business interests.
Crypto mining requires high-powered computers to run and be cooled around the clock constantly. So much so that cabinet ordered the BC Utilities Commission (BCUC) last December to place an 18-month moratorium on crypto mining connection requests, while other jurisdictions, such as the N.B. Power crypto review, undertook similar pauses to assess impacts.
In a news release, the government said 21 projects seeking 1,403 megawatts were temporarily suspended. The government said that would be enough to power 570,000 homes or 2.1 million electric vehicles for a year.
A report issued by BC Hydro before Christmas said there were already 166 megawatts of power from operational projects at seven sites. Another six projects with 107 megawatts were nearing connection, bringing its total load to 273 megawatts.
Richard McCandless, a retired assistant deputy minister who analyzes the performance of BC Hydro and the Insurance Corp of British Columbia, said China's May 2021 ban on crypto mining had a major ripple effect on those seeking cheap and reliable power.
"When China cracked down, these guys fled to different areas," McCandless said in an interview. "So they took their computers and went somewhere else. Some wound up in B.C."
He said BC Hydro's secrecy about crypto loads appears rooted in the Crown corporation underestimating load demand, even as new generating stations were commissioned to bolster capacity.
"Crypto is up so dramatically; they didn't want to show that," McCandless said. "Maybe they didn't want to be seen as being asleep at the switch."
Indeed, BCUC's April 21 decision on BC Hydro's 2021 revenue forecasts through the 2025 fiscal year included BC Hydro's forecast increase for crypto and data centres of about 100 gigawatt-hours through fiscal 2024 before returning to 2021 levels by 2025. In addition, the BCUC document said that BC Hydro's December 2020 load forecast was lower than the previous one because of project cancellations and updated load requests, amid ongoing nuclear power debate in B.C.
"Given the segment's continued uncertainty and volatility, the forecast assumes these facilities are not long-lived," the BC Hydro application said.
A September 2022 report to the White House titled "Crypto-Assets in the United States" said increased electricity demand from crypto-asset mining could lead to rate increases.
"Crypto-asset mining in upstate New York increased annual household electric bills by [US]$82 and annual small business electric bills by [US]$164, with total net losses from local consumers and businesses estimated to be [US]$179 million from 2016-2018," the report said. The information mentioned Plattsburgh, New York's 18-month moratorium in 2018. Manitoba announced a similar suspension almost a month before B.C.
B.C.'s total core domestic load of 23,666 gigawatt-hours was two percent higher than the service plan amid BC Hydro call for power planning, with commercial and light industrial (9,198 gigawatt-hours) and residential (7,877 gigawatt-hours) being the top two customer segments.
"A cooler spring and warmer summer supported increased loads, as the Western Canada drought strained hydropower production regionally. However, warmer daytime temperatures in September impacted heating more than cooling," said the briefing note.
"Commercial and light industrial consumption benefited from warmer temperatures in August but has also been impacted to a lesser degree by the reduced heating load in the first three weeks of October."
Loads improved relative to 2021, but offices, retail businesses and restaurants remained below pre-pandemic levels. Education, recreation and hotel sectors were in line with pre-pandemic levels. Light industrial sector growth offset the declines.
For heavy industry, pulp and paper electricity use was 15 percent ahead of forecast, but wood manufacturing was 16 percent below forecast. The briefing note said oil and gas grew nine percent relative to the previous year but, alongside ongoing LNG power demand, fell nine percent below the service plan.
