Maine poised to harness energy from the ocean

Canada Economic Crossroads highlights bank earnings trends, interest rates, loan delinquencies, EV tariffs on Chinese imports, domestic manufacturing, Algoma Steel decarbonization, sustainability, and housing market risks shaping growth, investment, consumer prices, and climate policy.

Key Points

An overview of how bank earnings, EV tariffs, and Algoma Steel's transition shape Canada's economy.

✅ Higher rates lift margins but raise delinquencies and housing risks

✅ EV tariffs aid domestic makers but pressure consumer prices

✅ Algoma invests to decarbonize, boosting efficiency and compliance

In a complex economic landscape, recent developments have brought attention to several pivotal issues affecting Canada's business sector. The Globe and Mail’s latest report delves into three major topics: the latest bank earnings, the implications of new tariffs on Chinese electric vehicles (EVs), and Algoma Steel’s strategic maneuvers. These factors collectively paint a picture of the challenges and opportunities facing Canada's economy.

Bank Earnings Reflect Economic Uncertainty

The recent financial reports from major Canadian banks have revealed a mixed picture of the nation’s economic health. As the Globe and Mail reports, earnings results show robust performances in some areas while highlighting growing concerns in others. Banks have generally posted strong quarterly results, buoyed by higher interest rates which have improved their net interest margins. This uptick is largely attributed to the central bank's monetary policies aimed at combating inflation and stabilizing the economy.

However, the positive earnings are tempered by underlying economic uncertainties. Rising loan delinquencies and a slowing housing market are areas of concern. Increased interest rates, while beneficial for banks’ margins, have also led to higher borrowing costs for consumers and businesses. This dynamic has the potential to impact overall economic growth and consumer confidence.

Tariffs on Chinese EVs: A Strategic Shift

Another significant development is the imposition of new tariffs on Chinese electric vehicles. This move is part of a broader strategy to protect domestic automotive industries and address trade imbalances, aligning with public support for tariffs in key sectors. The tariffs are expected to increase the cost of Chinese EVs in Canada, which could have several implications for the market.

On one hand, the tariffs might provide a temporary boost to Canadian and North American manufacturers by reducing competition from lower-priced Chinese imports. This protectionist measure could encourage investments in local production and innovation, mirroring tariff threats boosting support for energy projects in other sectors. However, the increased cost of Chinese EVs may also lead to higher prices for consumers, potentially slowing the adoption of electric vehicles—a critical goal in Canada’s climate strategy.

The tariffs come at a time when the Canadian government is keen on accelerating the transition to electric mobility to meet its environmental targets, even as a critical crunch in electrical supply raises questions about grid readiness. Balancing the protection of domestic industries with the broader goal of reducing emissions will be a significant challenge moving forward.

Algoma Steel’s Strategic Evolution

In the steel industry, Algoma Steel has been making headlines with its strategic initiatives aimed at transforming its operations, in a broader shift toward clean grids and industrial decarbonization. The Globe and Mail highlights Algoma Steel's efforts to modernize its production processes and shift towards more sustainable practices. This includes significant investments in technology and infrastructure to enhance production efficiency and reduce environmental impact.

Algoma's focus on reducing carbon emissions aligns with broader industry trends towards sustainability. The company’s efforts are part of a larger push within the steel sector to address climate change and meet regulatory requirements. As one of Canada’s leading steel producers, Algoma’s actions could set a precedent for the industry, showcasing how traditional manufacturing sectors can adapt to evolving environmental standards.

Implications and Future Outlook

The interplay of these developments reflects a period of significant transition for Canada's economy, shaped in part by U.S. policy where Biden is seen as better for Canada's energy sector by some analysts. For banks, the challenge will be to navigate the balance between profitability and potential risks from a changing economic environment. The new tariffs on Chinese EVs represent a strategic shift with mixed implications for the automotive market, potentially influencing both domestic production and consumer prices. Meanwhile, Algoma Steel’s push towards sustainability could serve as a model for other industries seeking to align with environmental goals.

As these issues unfold, stakeholders across sectors will need to stay informed and adaptable. For policymakers, the challenge will be to support domestic industries while fostering innovation and sustainability, including the dilemma over electricity rates and innovation they must weigh. For businesses, the focus will be on navigating financial pressures and leveraging opportunities for growth. Consumers, in turn, will face the impact of these developments in their daily lives, from the cost of borrowing to the price of electric vehicles.

In summary, Canada’s current economic landscape is characterized by a blend of financial resilience, strategic adjustments, and evolving industry practices, amid policy volatility such as a tariff threat delaying Quebec's green energy bill earlier this year. As the country navigates these crossroads, the outcomes of these developments will play a crucial role in shaping the future economic environment.

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EECBG Program Funding empowers states, Tribes, and local governments with DOE grants to deploy clean energy, energy efficiency, EV infrastructure, and community solar, cutting emissions, lowering utility bills, and advancing net-zero decarbonization.

Key Points

EECBG Program Funding is a $550M DOE grant for states, Tribes, and governments to deploy clean energy and efficiency.

✅ Supports EV infrastructure and community solar deployment

✅ Cuts emissions and lowers utility costs via efficiency

✅ Prioritizes Justice40 benefits for underserved communities

The Biden-Harris Administration, through the U.S. Department of Energy (DOE), today released a Notice of Intent announcing $550 million to support community-based clean energy in state, Tribal, and local governments — serving more than 250 million Americans. This investment in American communities, through the Energy Efficiency and Conservation Block Grant (EECBG) Program, will support communities across the country to develop local programming and deploy clean energy technologies to cut emissions, advance a 90% carbon-free electricity goal nationwide, and reduce consumers’ energy costs, and help meet President Biden’s goal of a net-zero economy by 2050. 

“This funding is a streamlined and flexible tool for local governments to build their electricity future with clean energy,” said U.S. Secretary of Energy Jennifer M. Granholm. “State, local, and Tribal communities nationwide will be able to leverage this funding to drive greater energy efficiency and conservation practices to lower utility bills and create healthier environments for American families.”   

The EECBG Program will fund 50 states, five U.S. territories, the District of Columbia, 774 Tribes, and 1,878 local governments in a variety of capacity-building, planning, and infrastructure efforts to reduce carbon emissions and energy use and improve energy efficiency in the transportation, building, and other related sectors. For example, communities with this funding can build out electric vehicle infrastructure and deploy community solar to serve areas that otherwise do not have access to electric vehicles or clean energy, particularly through a rural energy security program where appropriate.  

The $550 million made available through the Bipartisan Infrastructure Law (BIL) represents the second time that the EECBG Program has been funded, the first of which was through the American Recovery and Reinvestment Act of 2009. With this most recent funding, communities can build on prior investments and leverage additional clean energy funding from DOE, other federal agencies, and the private sector to achieve sustained impacts, supported by a Clean Electricity Standard where applicable, that can put their communities on a pathway to decarbonization. 

Through the EECBG Program and the Office of State and Community Energy Programs (SCEP), DOE will support the many diverse state, local, and tribal communities across the U.S., including efforts to revitalize coal communities through clean energy, as they implement this funding and other clean energy projects. To ensure no communities are left behind, the program aligns with President’s Justice40 initiative and efforts toward equity in electricity regulation to help ensure that 40% of the overall benefits of clean energy investments go to underserved and overburdened communities. 

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Ireland 65% Renewable Grid Capability showcases world leading integration of intermittent wind and solar, smart grid flexibility, EU-SysFlex learnings, and the Celtic Interconnector to enhance stability, exports, and energy security across the European grid.

Key Points

Ireland can run its isolated power system with 65% variable wind and solar, informing EU grid integration and scaling.

✅ 65% system non-synchronous penetration on an isolated grid

✅ EU-SysFlex roadmap supports large-scale renewables integration

✅ Celtic Interconnector adds 700MW capacity and stability

Ireland is now able to cope with 65% of its electricity coming from intermittent electricity sources like wind and solar, as highlighted by Ireland's green electricity outlook today – an expertise Energy Minister Denish Naugthen believes can be replicated on a larger scale as Europe moves towards 50% renewable power by 2030.

Denis Naughten is an Irish politician who serves as Minister for Communications, Climate Action and Environment since May 2016.

Naughten spoke to editor Frédéric Simon on the sidelines of a EURACTIV event in the European  Parliament to mark the launch of EU-SysFlex, an EU-funded project, which aims to create a long-term roadmap for the large-scale integration of renewable energy on electricity grids.

What is the reason for your presence in Brussels today and the main message that you came to deliver?

The reason that I’m here today is that we’re going to share the knowledge what we have developed in Ireland, right across Europe. We are now the global leaders in taking variable renewable electricity like wind and solar onto our grid.

We can take a 65% loading on to the grid today – there is no other isolated grid in the world that can do that. We’re going to get up to 75% by 2020. This is a huge technical challenge for any electricity grid and it’s going to be a problem that is going to grow and grow across Europe, even as Europe's electricity demand rises in the coming years, as we move to 50% renewables onto our grid by 2030.

And our knowledge and understanding can be used to help solve the problems right across Europe. And the sharing of technology can mean that we can make our own grid in Ireland far more robust.

What is the contribution of Ireland when it comes to the debate which is currently taking place in Europe about raising the ambition on renewable energy and make the grid fit for that? What are the main milestones that you see looking ahead for Europe and Ireland?

It is a challenge for Europe to do this, but we’ve done it Ireland. We have been able to take a 65% loading of wind power on our grid, with Irish wind generation hitting records recently, so we can replicate that across Europe.

Yes it is about a much larger scale and yes, we need to work collaboratively together, reflecting common goals for electricity networks worldwide – not just in dealing with the technical solutions that we have in Ireland at the fore of this technology, but also replicating them on a larger scale across Europe.

And I believe we can do that, I believe we can use the learnings that we have developed in Ireland and amplify those to deal with far bigger challenges that we have on the European electricity grid.

Trialogue talks have started at European level about the reform of the electricity market. There is talk about decentralised energy generation coming from small-scale producers. Do you see support from all the member states in doing that? And how do you see the challenges ahead on a political level to get everyone on board on such a vision?

I don’t believe there is a political problem here in relation to this. I think there is unanimity across Europe that we need to support consumers in producing electricity for self-consumption and to be able to either store or put that back into the grid.

The issues here are more technical in nature. And how you support a grid to do that. And who actually pays for that. Ireland is very much a microcosm of the pan-European grid and how we can deal with those challenges.

What we’re doing at the moment in Ireland is looking at a pilot scheme to support consumers to generate their own electricity to meet their own needs and to be able to store that on site.

I think in the years to come a lot of that will be actually done with more battery storage in the form of electric vehicles and people would be able to transport that energy from one location to another as and when it’s needed. In the short term, we’re looking at some novel solutions to support consumers producing their own electricity and meeting their own needs.

So I think this is complex from a technical point of view at the moment, I don’t think there is an unwillingness from a political perspective to do it, and I think working with this particular initiative and other initiatives across Europe, we can crack those technical challenges.

To conclude, last year, the European Commission allocated €4 million to a project to link up the Irish electricity grid to France. How is that going to benefit Ireland? And is that related to worries that you may have over Brexit?

The plan, which is called the Celtic Interconnector, is to link France with the Irish electricity grid. It’s going to have a capacity of about 700MW. It allows us to provide additional stability on our grid and enables us to take more renewables onto the grid. It also allows us to export renewable electricity onto the main European grid as well, and provide stability to the French network.

So it’s a benefit to both individual networks as well as allowing far more renewables onto the grid. We’ve been working quite closely with RTE in France and with both regulators. We’re hoping to get the support of the European Commission to move it now from the design stage onto the construction stage. And I understand discussions are ongoing with the Commission at present with regard to that.

And that is going to diversify potential sources of electricity coming in for Ireland in a situation which is pretty uncertain because of Brexit, correct?

Well, I don’t think there is uncertainty because of Brexit in that we have agreements with the United Kingdom, we’re still going to be part of the broader energy family in relation to back-and-forth supply across the Irish Sea, with grid reinforcements in Scotland underscoring reliability needs.  But I think it is important in terms of meeting the 15% interconnectivity that the EU has set in relation to electricity.

And also in relation of providing us with an alternative support in relation to electricity supply outside of Britain. Because Britain is now leaving the European Union and I think this is important from a political point of view, and from a broader energy security point of view. But we don’t see it in the short term as causing threats in relation to security of supply.

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Ontario Electricity Demand 2020 shows a rare decline amid COVID-19, with higher residential peak load, lower commercial usage, hot-weather air conditioning, nuclear baseload constraints, and smart meter data shaping grid operations and forecasting.

Key Points

It refers to 2020 power use in Ontario: overall demand fell, while residential peaks rose and commercial loads dropped.

✅ Peak load shifted to homes; commercial usage declined.

✅ Hot summers raised peaks; overall annual demand still fell.

✅ Smart meters aid forecasting; grid must balance nuclear baseload.

Demand for electricity in Ontario last year fell to levels rarely seen in decades amid shifts in usage patterns caused by pandemic measures, with Ottawa’s electricity consumption dropping notably, new data show.

The decline came despite a hot summer that had people rushing to crank up the air conditioning at home, the province’s power management agency said, even as the government offered electricity relief to families and small businesses.

“We do have this very interesting shift in who’s using the energy,” said Chuck Farmer, senior director of power system planning with the Independent Electricity System Operator.

“Residential users are using more electricity at home than we thought they would and the commercial consumers are using less.”

The onset of the pandemic last March prompted stay-home orders, businesses to close, and a shuttering of live sports, entertainment and dining out. Social distancing and ongoing restrictions, even as the first wave ebbed and some measures eased, nevertheless persisted and kept many people home as summer took hold and morphed into winter, while the province prepared to extend disconnect moratoriums for residential customers.

System operator data show peak electricity demand rose during a hot summer spell to 24,446 megawatts _ the highest since 2013. Overall, however, Ontario electricity demand last year was the second lowest since 1988, the operator said.

In all, Ontario used 132.2 terawatt-hours of power in 2020, a decline of 2.9 per cent from 2019.

With more people at home during the lockdown, winter residential peak demand has climbed 13 per cent above pre-pandemic levels, even as Hydro One made no cut in peak rates for self-isolating customers, while summer peak usage was up 19 per cent.

“The peaks are getting higher than we would normally expect them to be and this was caused by residential customers _ they’re home when you wouldn’t expect them to be home,” Farmer said.

Matching supply and demand _ a key task of the system operator _ is critical to meeting peak usage and ensuring a stable grid, and the operator has contingency plans with some key staff locked down at work sites to maintain operations during COVID-19, because electricity cannot be stored easily. It is also difficult to quickly raise or lower the output from nuclear-powered generators, which account for the bulk of electricity in the province, as demand fluctuates.

READ MORE: Ontario government extends off-peak electricity rates to Feb. 22

Life patterns have long impacted overall usage. For example, demand used to typically climb around 10 p.m. each night as people tuned into national television newscasts. Livestreaming has flattened that bump, while more energy-efficient lighting led to a drop in provincial demand over the holiday season.

The pandemic has now prompted further intra-day shifts in usage. Fewer people are getting up in the morning and powering up at home before powering down and rushing off to work or school. The summer saw more use of air conditioners earlier than normal after-work patterns.

Weather has always been a key driver of demand for power, accounting for example for the record 27,005 megawatts of usage set on a brutally hot Aug. 1, 2006. Similarly, a mild winter and summer led to an overall power usage drop in 2017.

Still, the profound social changes prompted by the COVID-19 pandemic _ and whether some will be permanent _ have complicated demand forecasting.

“Work patterns used to be much more predictable,” the agency said. “The pandemic has now added another element of variability for electricity demand forecasting.”

Some employees sent home to work have returned to their offices and other workplaces, and many others are likely do so once the pandemic recedes. However, some larger companies have indicated that working from home will be long term.

“Companies like Facebook and Shopify have already stated their intention to make work from home a more permanent arrangement,” the operator said. “This is something our near-term forecasters would take into account when preparing for daily operation of the grid.”

Aggregated data from better smart meters, which show power usage throughout the day, is one method of improving forecasting accuracy, the operator said.

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Costa Rica Renewable Energy Record highlights 99.99% clean power in May 2019, driven by hydropower, wind, solar, geothermal, and biomass, enabling ICE REM electricity exports and reduced rates from optimized generation totaling 984.19 GWh.

Key Points

May 2019 benchmark: Costa Rica generated 99.99% of 984.19 GWh from renewables, shifting from imports to regional exports.

✅ 99.99% renewable share across hydro, wind, solar, geothermal, biomass

✅ 984.19 GWh generated; ICE suspended imports and exported via REM

✅ Geothermal output increased to offset dry-season hydropower variability

During the whole month of May 2019, Costa Rica generated a total of 984.19 gigawatt hours of electricity, the highest in the country’s history. What makes this feat even more impressive is the fact that 99.99% of this energy came from a portfolio of renewable sources such as hydropower, wind, biomass, solar, and geothermal.

With such a high generation rate, the state power company Instituto Costariccense de Electricidad (ICE) were able to suspend energy imports from the first week of May and shifted to exports, while U.S. renewable electricity surpassed coal in 2022 domestically. To date, the power company continues to sell electricity to the Regional Electricity Market (REM) which generates revenues and is likely to reduce local electricity rates, a trend echoed in places like Idaho where a vast majority of electricity comes from renewables.

The record-breaking power generation was made possible by optimization of the country’s renewable sources, much as U.S. wind capacity surpassed hydro capacity at the end of 2016 to reshape portfolios. As the period coincided with the tail end of the dry season, the geothermal quota had to be increased.

Costa Rica remains a leader in renewable power generation, whereas U.S. wind generation has become the most-used renewable source in recent years. In 2015, more than 98% of the country’s electrical generation came from renewable sources, while U.S. renewables hit a record 28% in April in one recent benchmark. Through the years, this figure has remained fairly constant despite dry bouts caused by the El Niño phenomenon, and U.S. solar generation also continued to rise.

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Netherlands vs Canada Solar Power compares per capita capacity, renewable energy policies, photovoltaics adoption, rooftop installations, grid integration, and incentives like feed-in tariffs and BIPV, highlighting efficiency, costs, and public engagement.

Key Points

Concise comparison of per capita capacity, policies, technology, and engagement in Dutch and Canadian solar adoption.

✅ Dutch per capita PV capacity exceeds Canada's by wide margin.

✅ Strong incentives: net metering, feed-in tariffs, rooftop focus.

✅ Climate, grid density, and awareness drive higher yields.

When it comes to harnessing solar power, the Netherlands stands as a shining example of efficient and widespread adoption, far surpassing Canada in solar energy generation per capita. Despite Canada's vast landmass and abundance of sunlight, the Netherlands has managed to outpace its North American counterpart, which some experts call a solar power laggard in solar energy production. This article explores the factors behind the Netherlands' success in solar power generation and compares it to Canada's approach.

Solar Power Capacity and Policy Support

The Netherlands has rapidly expanded its solar power capacity in recent years, driven by a combination of favorable policies, technological advancements, and public support. According to recent data, the Netherlands boasts a significantly higher per capita solar power capacity compared to Canada, where demand for solar electricity lags relative to deployment in many regions, leveraging its smaller geographical size and dense population centers to maximize solar panel installations on rooftops and in urban areas.

In contrast, Canada's solar energy development has been slower, despite having vast areas of suitable land for solar farms. Challenges such as regulatory hurdles, varying provincial policies, and the high initial costs of solar installations have contributed to a more gradual adoption of solar power across the country. However, provinces like Ontario have seen significant growth in solar installations due to supportive government incentives and favorable feed-in tariff programs, though growth projections were scaled back after Ontario scrapped a key program.

Innovation and Technological Advancements

The Netherlands has also benefited from ongoing innovations in solar technology and efficiency improvements. Dutch companies and research institutions have been at the forefront of developing new solar panel technologies, improving efficiency rates, and exploring innovative applications such as building-integrated photovoltaics (BIPV). These advancements have helped drive down the cost of solar energy and increase its competitiveness with traditional fossil fuels.

In contrast, while Canada has made strides in solar technology research and development, commercialization and widespread adoption have been more restrained due to factors like market fragmentation and the country's reliance on other energy sources such as hydroelectricity.

Public Awareness and Community Engagement

Public awareness and community engagement play a crucial role in the Netherlands' success in solar power adoption. The Dutch government has actively promoted renewable energy through public campaigns, educational programs, and financial incentives for homeowners and businesses to install solar panels. This proactive approach has fostered a culture of energy conservation and sustainability among the Dutch population.

In Canada, while there is growing public support for renewable energy, varying levels of awareness and engagement across different provinces have impacted the pace of solar energy adoption. Provinces like British Columbia and Alberta have seen increasing interest in solar power, driven by environmental concerns, technological advancements, and economic benefits, as the country is set to hit 5 GW of installed capacity in the near term.

Climate and Geographic Considerations

Climate and geographic considerations also influence the disparity in solar power generation between the Netherlands and Canada. The Netherlands, despite its northern latitude, benefits from relatively mild winters and a higher average annual sunlight exposure compared to most regions of Canada. This favorable climate has facilitated higher solar energy yields and made solar power a more viable option for electricity generation.

In contrast, Canada's diverse climate and geography present unique challenges for solar energy deployment. Northern regions experience extended periods of darkness during winter months, limiting the effectiveness of solar panels in those areas. Despite these challenges, advancements in energy storage technologies and hybrid solar-diesel systems are making solar power increasingly feasible in remote and off-grid communities across Canada, even as Alberta faces expansion challenges related to grid integration and policy.

Future Prospects and Challenges

Looking ahead, both the Netherlands and Canada face opportunities and challenges in expanding their respective solar power capacities. In the Netherlands, continued investments in solar technology, grid infrastructure upgrades, and policy support will be crucial for maintaining momentum in renewable energy development.

In Canada, enhancing regulatory consistency, scaling up solar installations in urban and rural areas, and leveraging emerging technologies will be essential for narrowing the gap with global leaders in solar energy generation and for seizing opportunities in the global electricity market as the energy transition accelerates.

In conclusion, while the Netherlands currently generates more solar power per capita than Canada, with the Prairie Provinces poised to lead growth in the Canadian market, both countries have unique strengths and challenges in their pursuit of a sustainable energy future. By learning from each other's successes and leveraging technological advancements, both nations can further accelerate the adoption of solar power and contribute to global efforts to combat climate change.

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