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Hydro-Quebec NECEC Transmission Line faces Maine PUC scrutiny over clean energy claims, greenhouse gas emissions, spillage capacity, resource shuffling, and Massachusetts contracts, amid opposition from natural gas generators and environmental groups debating public need.

Key Points

A $1B Maine corridor for Quebec hydropower to Massachusetts, debated over emissions, spillage, and public need.

✅ Maine PUC weighing public need and ratepayer benefits

✅ Emissions impact disputed: resource shuffling vs new supply

✅ Hydro-Quebec spillage claims questioned without data

As Maine regulators are deciding whether to approve construction of a $1 billion electricity corridor across much of western Maine, the Canadian hydroelectric utility poised to make billions of dollars from the project has been absent from the process.

This has left both opponents and supporters of the line arguing about how much available energy the utility has to send through a completed line, and whether that energy will help fulfill the mission of the project: fighting climate change.

And while the utility has avoided making its case before regulators, which requires submitting to cross-examination and discovery, it has engaged in a public relations campaign to try and win support from the region's newspapers.

Government-owned Hydro-Quebec controls dams and reservoirs generating hydroelectricity throughout its namesake province. It recently signed agreements to sell electricity across the proposed line, named the New England Clean Energy Connect, to Massachusetts as part of the state's effort to reduce its dependence on fossil fuels, including natural gas.

At the Maine Public Utilities Commission, attorneys for Central Maine Power Co., which would build and maintain the line, have been sparring with the opposition over the line's potential impact on Maine and its electricity consumers. Leading the opposition is a coalition of natural gas electricity generators that stand to lose business should the line be built, as well as the Natural Resources Council of Maine, an environmental group.

That unusual alliance of environmental and business groups wants Hydro-Quebec to answer questions about its hydroelectric system, which they argue can't deliver the amount of electricity promised to Massachusetts without diverting energy from other regions.

In that scenario, critics say the line would not produce the reduction in greenhouse gas emissions that CMP and Hydro-Quebec have made a central part of their pitch for the project. Instead, other markets currently buying energy from Hydro-Quebec, such as New York, Ontario and New Brunswick, would see hydroelectricity imports decrease and have to rely on other sources of energy, including coal or oil, to make up the difference. If that happened, the total amount of clean energy in the world would remain the same.

Opponents call this possibility "greenwashing." Massachusetts regulators have described these circumstances as "resource shuffling."

But CMP spokesperson John Carroll said that if hydropower was diverted from nearby markets to power Massachusetts, those markets would not turn to fossil fuels. Rather they would seek to develop other forms of renewable energy "leading to further reductions in greenhouse gas emissions in the region."

Hydro-Quebec said it has plenty of capacity to increase its electricity exports to Massachusetts without diverting energy from other places.

However, Hydro-Quebec is not required to participate -- and has not voluntarily participated -- in regulatory hearings where it would be subject to cross examinations and have to testify under oath. Some participants wish it would.

At a January hearing at the Maine Public Utilities Commission, hearing examiner Mitchell Tannenbaum had to warn experts giving testimony to "refrain from commentary regarding whether Hydro-Quebec is here or not" after they complained about its absence when trying to predict potential ramifications of the line.

"I would have hoped they would have been visible and available to answer legitimate questions in all of these states through which their power is going to be flowing," said Dot Kelly, a member of the executive committee at the Maine Chapter of the Sierra Club who has participated in the line's regulatory proceedings as an individual. "If you're going to have a full and fair process, they have to be there."

[What you need to know about the CMP transmission line proposed for Maine]

While Hydro-Quebec has not presented data on its system directly to Maine regulators, it has brought its case to the press. Central to that case is the fact that it's "spilling" water from its reservoirs because it is limited by how much electricity it can export. It said that it could send more water through its turbines and lower reservoir levels, eliminating spillage and creating more energy, if only it had a way to get that energy to market. Hydro-Quebec said the line would make that possible, and, in doing so, help lower emissions and fight climate change.

"We have that excess potential that we need to use. Essentially, it's a good problem to have so long as you can find an export market," Hydro-Quebec spokesperson Serge Abergel told the Bangor Daily News.

Hydro-Quebec made its "spillage" case to the editorial boards of The Boston Globe, The Portland Press Herald and the BDN, winning qualified endorsements from the Globe and Press Herald. (The BDN editorial board has not weighed in on the project).

Opponents have questioned why Hydro-Quebec is willing to present their case to the press but not regulators.

"We need a better answer than 'just trust us,'" Natural Resources Council of Maine attorney Sue Ely said. "What's clear is that CMP and HQ are engaging in a full-court publicity tour peddling false transparency in an attempt to sell their claims of greenhouse gas benefits."

Energy generators aren't typically parties to public utility commission proceedings involving the building of transmission lines, but Maine regulators don't typically evaluate projects that will help customers in another state buy energy generated in a foreign country.

"It's a unique case," said Maine Public Advocate and former Democratic Senate Minority Leader Barry Hobbins, who has neither endorsed nor opposed the project. Hobbins noted the project was not proposed to improve reliability for Maine electricity customers, which is typically the point of new transmission line proposals evaluated by the commission. Instead, the project "is a straight shot to Massachusetts," Hobbins said.

Maine Public Utilities Commission spokesperson Harry Lanphear agreed. "The Commission has never considered this type of project before," he said in an email.

In order to proceed with the project, CMP must convince the Maine Public Utilities Commission that the proposed line would fill a "public need" and benefit Mainers. Among other benefits, CMP said it will help lower electricity costs and create jobs in Maine. A decision is expected in the spring.

Given the uniqueness of the case, even the commission seems unsure about how to apply the vague "public need" standard. On Jan. 14, commission staff asked case participants to weigh in on how it should apply Maine law when evaluating the project, including whether the hydroelectricity that would travel over the line should be considered "renewable" and whether Maine's own carbon reduction goals are relevant to the case.

James Speyer, an energy consultant whose firm was hired by natural gas company and project opponent Calpine to analyze the market impacts of the line, said he has testified before roughly 20 state public utility commissions and has never seen a proceeding like this one.

"I've never been in a case where one of the major beneficiaries of the PUC decision is not in the case, never has filed a report, has never had to provide any data to support its assertions, and never has been subject to cross examination," Speyer said. "Hydro-Quebec is like a black box."

Hydro-Quebec would gladly appear before the Maine Public Utilities Commission, but it has not been invited, said spokesperson Abergel.

"The PUC is doing its own process," Abergel said. "If the PUC were to invite us, we'd gladly intervene. We're very willing to collaborate in that sense."

But that's not how the commission process works. Individuals and organizations can intervene in cases, but the commission does not invite them to the proceedings, commission spokesperson Lanphear said.

CMP spokesperson Carroll dismissed concerns over emissions, noting that Hydro-Quebec is near the end of completing a more than 15-year effort to develop its clean energy resources. "They will have capacity to satisfy the contract with Massachusetts in their reservoirs," Carroll said.

While Maine regulators are evaluating the transmission line, Massachusetts' Department of Public Utilities is deciding whether to approve 20-year contracts between Hydro-Quebec and that state's electric utilities. Those contracts, which Hydro-Quebec has estimated could be worth close to $8 billion, govern how the utility sells electricity over the line.

Dean Murphy, a consultant hired by the Massachusetts Attorney General's office to review the contracts, testified before Massachusetts regulators that the agreements do not require a reduction in global greenhouse gas emissions. Murphy also warned the contracts don't actually require Hydro-Quebec to increase the total amount of energy it sends to New England, as energy could be shuffled from established lines to the proposed CMP line to satisfy the contracts.

Parties in the Massachusetts proceeding are also trying to get more information from Hydro-Quebec. Energy giant NextEra is currently trying to convince Massachusetts regulators to issue a subpoena to force Hydro-Quebec to answer questions about how its exports might change with the construction of the transmission line. Hydro-Quebec and CMP have opposed the motion.

Hydro-Quebec has a reputation for guarding its privacy, according to Hobbins.

"It would have been easier to not have to play Sherlock Holmes and try to guess or try to calculate without having a direct 'yes' or 'no' response from the entity itself," Hobbins said.

Ultimately, the burden of proving that Maine needs the line falls on CMP, which is also responsible for making sure regulators have all the information they need to make a decision on the project, said former Maine Public Utilities Commission Chairman Kurt Adams.

"Central Maine Power should provide the PUC with all the info that it needs," Adams said. "If CMP can't, then one might argue that they haven't met their burden."

'They treat HQ with nothing but distrust'

If completed, the line would bring 9.45 terawatt hours of electricity from Quebec to Massachusetts annually, or about a sixth of the total amount of electricity Massachusetts currently uses every year (and roughly 80 percent of Maine's annual load). CMP's parent company Avangrid would make an estimated $60 million a year from the line, according to financial analysts.

As part of its legally mandated efforts to reduce carbon emissions and fight climate change, Massachusetts would pay the $950 million cost of constructing the line. The state currently relies on natural gas, a fossil fuel, for nearly 70 percent of its electricity, a figure that helps explain natural gas companies' opposition to the project.

A panel of experts recently warned that humanity has 12 years to keep global temperatures from rising above 1.5 degrees Celsius and prevent the worst effects of climate change, which include floods, droughts and extreme heat.

The line could lower New England's annual carbon emissions by as much as 3 million metric tons, an amount roughly equal to Washington D.C.'s annual emissions. Opponents worry that reduction could be mostly offset by increases in other markets.

But while both sides have claimed they are fighting for the environment, much of the debate features giant corporations with headquarters outside of New England fighting over the future of the region's electricity market, echoing customer backlash seen in other utility takeovers.

Hydro-Quebec is owned by the people of Quebec, and CMP is owned by Avangrid, which is in turn owned by Spanish energy giant Iberdrola. Leading the charge against the line are several energy companies in the Fortune 500, including Houston-based Calpine and Florida-based NextEra Energy.

However, only one side of the debate counts environmental groups as part of its coalition, and, curiously enough, that's the side with fossil fuel companies.

Some environmental groups, including the Natural Resources Council of Maine and Environment Maine, have come out against the line, while others, including the Acadia Center and the Conservation Law Foundation, are still deciding whether to support or oppose the project. So far, none have endorsed the line.

"It is discouraging that some of the environmental groups are so opposed, but it seems the best is the enemy of the good," said CMP's Carroll in an email. "They seem to have no sense of urgency; and they treat HQ with nothing but distrust."

Much of the environmentally minded opposition to the project focuses on the impact the line would have on local wildlife and tourism.

Sandi Howard administers the Say NO To NECEC Facebook page and lives in Caratunk, one of the communities along the proposed path of the line. She said opposition to the line might change if it was proven to reduce emissions.

"If it were going to truly reduce global CO2 emissions, I think it would be be a different conversation," Howard said.

Not the first choice

Before Maine, New Hampshire had its own debate over whether it should serve as a conduit between Quebec and Massachusetts. The proposed Northern Pass transmission line would have run the length of the state. It was Massachusetts' first choice to bring Quebec hydropower to its residents.

But New Hampshire's Site Evaluation Committee unanimously voted to reject the Northern Pass project in February 2018 on the grounds that the project's sponsor, Eversource, had failed to prove the project would not interfere with local business and tourism. Though it was the source of the electricity that would have traveled over the line, Hydro-Quebec was not a party to the proceedings.

In its decision, the committee noted the project would not reduce emissions if it was not coupled with a "new source of hydropower" and the power delivered across the line was "diverted from Ontario and New York." The committee added that it was unclear if the power would be new or diverted.

The next month, Massachusetts replaced Northern Pass by selecting CMP's proposed line. As the project came before Maine regulators, questions about Hydro-Quebec and emissions persisted. Two different analyses of CMP's proposed line, including one by the Maine Public Utility Commission's independent consultant, found the line would greatly reduce New England's emissions.

But neither of those studies took into account the line's impact on emissions outside of New England. A study by Calpine's consultant, Energyzt, found New England's emissions reduction could be mostly offset by increased emissions in other areas, including New Brunswick and New York, that would see hydroelectricity imports shrink as energy was redirected to fulfill the contract with Massachusetts.

'They failed in any way to back up those spillage claims'

Hydro-Quebec seemed content to let CMP fight for the project alone before regulators for much of 2018. But at the end of the year, the utility took a more proactive approach, meeting with editorial boards and providing a two-page letter detailing its "spillage" issues to CMP, which entered it into the record at the Maine Public Utilities Commission.

The letter provided figures on the amount of water the utility spilled that could have been converted into sellable energy, if only Hydro-Quebec had a way to get it to market. Instead, by "spilling" the water, the company essentially wasted it.

Instead of sending water through turbines or storing it in reservoirs, hydroelectric operators sometimes discharge water held behind dams down spillways. This can be done for environmental reasons. Other times it is done because the operator has so much water it cannot convert it into electricity or store it, which is usually a seasonal issue: Reservoirs often contain the most water in the spring as temperatures warm and ice melts.

Hydro-Quebec said that, in 2017, it spilled water that could have produced 4.5 terawatt hours of electricity, or slightly more than half the energy needed to fulfill the Massachusetts contracts. In 2018, the letter continued, Hydro-Quebec spilled water that could have been converted into 10.4 terawatts worth of energy. The company said it didn't spill at all due to transmission constraints prior to 2017.

The contracts Hydro-Quebec signed with the Massachusetts utilities are for 9.45 terawatt hours annually for 20 years. In its letter, the utility essentially showed it had only one year of data to show it could cover the terms of the contract with "spilled" energy.

"Reservoir levels have been increasing in the last 15 years. Having reached their maximum levels, spillage maneuvers became necessary in 2017 and 2018," said Hydro-Quebec spokesperson Lynn St. Laurent.

By providing the letter through CMP, Hydro-Quebec did not have to subject its spillage figures to cross examination.

Dr. Shaleen Jain, a civil and environmental engineering professor at the University of Maine, said that, while spilled water could be converted into power generation in some circumstances, spills happen for many different reasons. Knowing whether spillage can be translated into energy requires a great deal of analysis.

"Not all of it can be repurposed or used for hydropower," Jain said.

In December, one of the Maine Public Utility Commission's independent consultants, Gabrielle Roumy, told the commission that there's "no way" to "predict how much water would be spilled each and every year." Roumy, who previously worked for Hydro-Quebec, added that even after seeing the utility's spillage figures, he believed it would need to divert energy from other markets to fulfill its commitment to Massachusetts.

"I think at this point we're still comfortable with our assumptions that, you know, energy would generally be redirected from other markets to NECEC if it were built," Roumy said.

In January, Tanya Bodell, the founder and executive director of consultant Energyzt, testified before the commission on behalf of Calpine that it was impossible to know why Hydro-Quebec was spilling without more data.

"There's a lot of details you'd have to look at in order to properly assess what the reason for the spillage is," Bodell said. "And you have to go into an hourly level because the flows vary across the year, within the month, the week, the days. ...And, frankly, it would have been nice if Hydro-Quebec was here and brought their model and allowed us to see how this could help them to sell more."

Even though CMP and Hydro-Quebec's path to securing approval of the project does not go through the Legislature, and despite a Maine court ruling that energized Hydro-Quebec's export bid, lawmakers have taken notice of Hydro-Quebec's absence. Rep. Seth Berry, D-Bowdoinham, the House chairman of the Joint Committee On Energy Utilities and Technology and a frequent critic of CMP, said he would like to see Hydro-Quebec "show up and subject their proposal to examination and full analysis and public examination by the regulators and the people of Maine."

"They're trying to sell an incredibly lucrative proposal, and they failed in any way to back up those spillage claims with defensible numbers and defensible analysis," Berry said.

Berry was part of a bipartisan group of Maine lawmakers that wrote a letter to Massachusetts regulators last year expressing concerns about the project, which included doubts about whether the line would actually reduce global gas emissions. On Monday, he announced legislation that would direct the state to create an independent entity to buy out CMP from its foreign investors.

'No benefit to remaining quiet'

Hydro-Quebec would like to provide answers, but "there is always a commercially sensitive information concern when we do these things," said spokesperson Abergel.

"There might be stuff we can do, having an independent study that looks at all of this. I'm not worried about the conclusion," Abergel said. "I'm worried about how long it takes."

Instead of asking Hydro-Quebec questions directly, participants in both Maine and Massachusetts regulatory proceedings have had to direct questions for Hydro-Quebec to CMP. That arrangement may be part of Hydro-Quebec's strategy to control its information, said former Maine Public Utilities Commissioner David Littell.

"From a tactical point of view, it may be more beneficial for the evidence to be put through Avangrid and CMP, which actually doesn't have that back-up info, so can't provide it," Littell said.

Getting information about the line from CMP, and its parent company Avangrid, has at times been difficult, opponents say.

In August 2018, the commission's staff warned CMP in a legal filing that it was concerned "about what appears to be a lack of completeness and timeliness by CMP/Avangrid in responding to data requests in this proceeding."

The trouble in getting information from Hydro-Quebec and CMP only creates more questions for Hydro-Quebec, said Jeremy Payne, executive director of the Maine Renewable Energy Association, which opposes the line in favor of Maine-based renewables.

"There's a few questions that should have relatively simple answers. But not answering a couple of those questions creates more questions," Payne said. "Why didn't you intervene in the docket? Why are you not a party to the case? Why won't you respond to these concerns? Why wouldn't you open yourself up to discovery?"

"I don't understand why they won't put it to bed," Payne said. "If you've got the proof to back it up, then there's no benefit to remaining quiet."

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Spring Storm Grid Risks highlight tornado outbreaks, flooding, power outages, and transmission disruptions, with NOAA flood outlooks, coal and barge delays, vulnerable nuclear sites, and distribution line damage demanding resilience, reliability, and emergency preparedness.

Key Points

Spring Storm Grid Risks show how tornadoes and floods disrupt power systems, fuel transport, and plants guide resilience.

✅ Tornado outbreaks and derechos damage distribution and transmission

✅ Flooding drives outages via treefall, substation and plant inundation

✅ Fuel logistics disrupted: rail coal, river barges, road access

The storm and tornado outbreak that recently barreled through the US Midwest, South and Mid-Atlantic was a devastating reminder of how much danger spring can deliver, despite it being the “milder” season compared to summer and winter.  

Danger season is approaching, and the country is starting to see the impacts. 

The event killed at least 32 people across seven states. The National Weather Service is still tallying up the number of confirmed tornadoes, which has already passed 100. Communities coping with tragedy are assessing the damage, which so far includes at least 72 destroyed homes in one Tennessee county alone, and dozens more homes elsewhere. 

On Saturday, April 1–the day after the storm struck–there were 1.1 million US utility customers without power, even as EIA reported a January power generation surge earlier in the year. On Monday morning, April 3, there were still more than 80,000 customers in the dark, according to PowerOutage.us. The storm system brought disruptions to both distribution grids–those networks of local power lines you generally see running overhead to buildings–as well as the larger transmission grid in the Midwest, which is far less common than distribution-level issues. 

While we don’t yet have a lot of granular details about this latest storm’s grid impacts, recent shifts in demand like New York City's pandemic power patterns show how operating conditions evolve, and it’s worth going through what else the country might be in for this spring, as well as in future springs. Moreover, there are steps policymakers can take to prepare for these spring weather phenomena and bolster the reliability and resilience of the US power system. 

Heightened flood risk 
The National Oceanic Atmospheric Administration (NOAA) said in a recent outlook that about 44 percent of the United States is at risk of floods this spring, equating to about 146 million people. This includes most of the eastern half of the country, the federal agency said. 

The agency also sees “major” flood risk potential in some parts of the Upper Mississippi River Basin, and relatively higher risk in the Sierra Nevada region, due in part to a historic snowpack in California.  

Multiple components of the power system can be affected by spring floods. 

Power lines – Floods can saturate soil and make trees more likely to uproot and fall onto power lines. This has been contributing to power outages during California’s recent heavy storms–called atmospheric rivers–that started over the winter. In other regions, soil moisture has even been used as a predictor of where power outages will occur due to hurricanes, so that utility companies are better prepared to send line repair crews to the right areas. Hurricanes are primarily a summer and fall phenomenon, and summer also brings grid stress from air conditioning demand in many states, so for now, during spring, they are less of a concern.  

Fuel transport – Spring floods can hinder the transportation of fuels like coal. While it is a heavily polluting fossil fuel that is set to continue declining as a fuel source for US electricity generation, with the EIA summer outlook for wind and solar pointing to further shifts, coal still accounted for roughly 20 percent of the country’s generation in 2022.   

About 70 percent of US coal is transported at least part of the way by trains. The rail infrastructure to transport coal from the Powder River Basin in Montana and Wyoming–the country’s primary coal source–was proven to be vulnerable to extreme floods in the spring of 2011, and even more extreme floods in the spring of 2019. The 2019 floods’ disruptions of coal shipments to power plants via rail persisted for months and into the summertime, also affecting river shipments of coal by barge. In June 2019, hundreds of barges were stalled in the Mississippi River, through which millions of tons of the fossil fuel are normally transported. 

Power plants – Power plants themselves can also be at risk of flooding, since most of them are sited near a source of water that is used to create steam to spin the plants’ turbines, and conversely, low water levels can constrain hydropower as seen in Western Canada hydropower drought during recent reservoir shortfalls. Most US fossil fuel generating capacity from sources like methane gas, which recently set natural gas power records across the grid, and coal utilizes steam to generate electricity. 

However, much of the attention paid to the flood risk of power plant sites has centered on nuclear plants, a key source of low-carbon electricity discussed in IAEA low-carbon electricity lessons that also require a water source for the creation of steam, as well as for keeping the plant cool in an emergency. To name a notable flood example here in the United States–both visually and substantively–in 2011, the Fort Calhoun nuclear plant in Nebraska was completely surrounded by water due to late-spring flooding along the Missouri River. This sparked a lot of concerns because it was just a few months after the March 2011 meltdown of the Fukushima Daiichi nuclear plant in Japan. The public was thankfully not harmed by the Nebraska incident, but this was unfortunately not an isolated incident in terms of flood risks posed to the US nuclear power fleet. 

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BC Tidal Energy Micro-Grids harness predictable tidal currents to replace diesel in remote Indigenous coastal communities, integrating marine renewables, storage, and demand management for resilient off-grid power along Vancouver Island and Haida Gwaii.

Key Points

Community-run tidal turbines and storage deliver reliable, diesel-free electricity to remote B.C. coastal communities.

✅ Predictable power from tidal currents reduces diesel dependence

✅ Integrates storage, demand management, and microgrid controls

✅ Local jobs via marine supply chains and community ownership

Many remote West Coast communities are reliant on diesel for electricity generation, which poses a number of negative economic and environmental effects.

But some sites along B.C.’s extensive coastline are ideal for tidal energy micro-grids that may well be the answer for off-grid communities to generate clean power, suggested experts at a COAST (Centre for Ocean Applied Sustainable Technologies) virtual event Wednesday.

There are 40 isolated coastal communities, many Indigenous communities, and 32 of them are primarily reliant on diesel for electricity generation, said Ben Whitby, program manager at PRIMED, a marine renewable energy research lab at the University of Victoria (UVic).

Besides being a costly and unreliable source of energy, there are environmental and community health considerations associated with shipping diesel to remote communities and running generators, Whitby said.

“It's not purely an economic question,” he said.

“You've got the emissions associated with diesel generation. There's also the risks of transporting diesel … and sometimes in a lot of remote communities on Vancouver Island, when deliveries of diesel don't come through, they end up with no power for three or four days at a time.”

The Heiltsuk First Nation, which suffered a 110,000-litre diesel spill in its territorial waters in 2016, is an unfortunate case study for the potential environmental, social, and cultural risks remote coastal communities face from the transport of fossil fuels along the rough shoreline.

A U.S. barge hauling fuel for coastal communities in Alaska ran aground in Gale Pass, fouling a sacred and primary Heiltsuk food-harvesting area.

There are a number of potential tidal energy sites near off-grid communities along the mainland, on both sides of Vancouver Island, and in the Haida Gwaii region, Whitby said.

Tidal energy exploits the natural ebb and flow of the coast’s tidal water using technologies like underwater kite turbines to capture currents, and is a highly predictable source of renewable energy, he said.

Micro-grids are self-reliant energy systems drawing on renewables from ocean, wave power resources, wind, solar, small hydro, and geothermal sources.

The community, rather than a public utility like BC Hydro, is responsible for demand management, storage, and generation with the power systems running independently or alongside backup fuel generators — offering the operators a measure of energy sovereignty.

Depending on proximity, cost, and renewable solutions, tidal energy isn’t necessarily the solution for every community, Whitby noted, adding that in comparison to hydro, tidal energy is still more expensive.

However, the best candidates for tidal energy are small, off-grid communities largely dependent on costly fossil fuels, Whitby said.

“That's really why the focus in B.C. is at a smaller scale,” he said.

“The time it would take (these communities) to recoup any capital investment is a lot shorter.

“And the cost is actually on a par because they're already paying a significant amount of money for that diesel-generated power.”

Lisa Kalynchuk, vice-president of research and innovation at UVic, said she was excited by the possibilities associated with tidal power, not only in B.C., but for all of Canada’s coasts.

“Canada has approximately 40,000 megawatts available on our three coastlines,” Kalynchuk said.

“Of course, not all this power can be realized, but it does exist, so that leads us to the hard part — tapping into this available energy and delivering it to those remote communities that need it.”

Challenges to establishing tidal power include the added cost and complexity of construction in remote communities, the storage of intermittent power for later use, the economic model, though B.C.’s streamlined regulatory process may ease approvals, the costs associated with tidal power installations, and financing for small communities, she said.

But smaller tidal energy projects can potentially set a track record for more nascent marine renewables, as groups like Marine Renewables Canada pivot to offshore wind development, at a lower cost and without facing the same social or regulatory resistance a large-scale project might face.

A successful tidal energy demo project was set up using a MAVI tidal turbine in Blind Channel to power a private resort on West Thurlow Island, part of the outer Discovery Islands chain wedged between Vancouver Island and the mainland, Whitby said.

The channel’s strong tidal currents, which routinely reach six knots and are close to the marina, proved a good site to test the small-scale turbine and associated micro-grid system that could be replicated to power remote communities, he said.

The mooring system, cable, and turbine were installed fairly rapidly and ran through the summer of 2017. The system is no longer active as provincial and federal funding for the project came to an end.

“But as a proof of concept, we think it was very successful,” Whitby said, adding micro-grid tidal power is still in the early stages of development.

Ideally, the project will be revived with new funding, so it can continue to act as a test site for marine renewable energy and to showcase the system to remote coastal communities that might want to consider tidal power, he said.

In addition to harnessing a local, renewable energy source and increasing energy independence, tidal energy micro-grids can fuel employment and new business opportunities, said Whitby.

The Blind Channel project was installed using the local supply chain out of nearby Campbell River, he said.

“Most of the vessels and support came from that area, so it was all really locally sourced.”

Funding from senior levels of government would likely need to be provided to set up a permanent tidal energy demonstration site, with recent tidal energy investments in Nova Scotia offering a model, or to help a community do case studies and finance a project, Whitby said.

Both the federal and provincial governments have established funding streams to transition remote communities away from relying on diesel.

But remote community projects funded federally or provincially to date have focused on more established renewables, such as hydro, solar, biomass, or wind.

The goal of B.C.’s Remote Community Energy Strategy, part of the CleanBC plan and aligned with zero-emissions electricity by 2035 targets across Canada, is to reduce diesel use for electricity 80 per cent by 2030 by targeting 22 of the largest diesel locations in the province, many of which fall along the coast.

The province has announced a number of significant investments to shift Indigenous coastal communities away from diesel-generated electricity, but they predominantly involve solar or hydro projects.

A situation that’s not likely to change, as the funding application guide in 2020 deemed tidal projects as ineligible for cash.

Yet, the potential for establishing tidal energy micro-grids in B.C. is good, Kalynchuk said, noting UVic is a hub for significant research expertise and several local companies, including ocean and river power innovators working in the region, are employing and developing related service technologies to install and maintain the systems.

“It also addresses our growing need to find alternative sources of energy in the face of the current climate crisis,” she said.

“The path forward is complex and layered, but one essential component in combating climate change is a move away from fossil fuels to other sources of energy that are renewable and environmentally friendly.”

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Alberta Coal Transition Support offers EI top-ups, 75% wage replacement, retraining, tuition vouchers, and on-site advice for workers leaving thermal coal mines and coal-fired power plants during the provincial phase-out.

Key Points

Alberta Coal Transition Support is a $40M program providing EI top-ups, retraining, and tuition vouchers to coal workers.

✅ 75% EI top-up; province requests federal alignment

✅ Tuition vouchers and retraining for displaced workers

✅ On-site transition services; about 2,000 workers affected

Alberta is putting aside $40 million to help workers losing their jobs as the province transitions away from thermal coal mines and coal-fired power plants, a shift connected to the future of work in the electricity sector over the next decade.

Labour Minister Christina Gray says the money will top up benefits to 75 per cent of a worker’s previous earnings during the time they collect employment insurance, amid regional shifts such as how COVID-19 reshaped Saskatchewan in recent months.

Alberta is asking the federal government to not claw back existing benefits as the province tops up those EI benefits, as utilities face pressures like Manitoba Hydro cost-cutting during the pandemic, while also extending EI benefits for retiring coal workers.

Gray says even if the federal government does not step up, the province will provide the funds to match that 75 per cent threshold, a contrast to problems such as Kentucky miners' cold checks seen elsewhere.

There will also be help for workers in the form of tuition vouchers, retraining programs like the Nova Scotia energy training program that connects youth to the sector, and on-site transitioning advice.

The province estimates there are 2,000 workers affected.

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Brain Stimulation is transforming neuromodulation, from TMS and DBS to closed loop devices, targeting neural circuits for addiction, depression, Parkinsons, epilepsy, and chronic pain, powered by advanced imaging, AI analytics, and the NIH BRAIN Initiative.

Key Points

Brain stimulation uses pulses to modulate neural circuits, easing symptoms in depression, Parkinsons, and epilepsy.

✅ Noninvasive TMS and invasive DBS modulate specific brain circuits

✅ Closed loop systems adapt stimulation via real time biomarker detection

✅ Emerging uses: addiction, depression, Parkinsons, epilepsy, chronic pain

In June 2015, biology professor Colleen Hanlon went to a conference on drug dependence. As she met other researchers and wandered around a glitzy Phoenix resort’s conference rooms to learn about the latest work on therapies for drug and alcohol use disorders, she realized that out of the 730 posters, there were only two on brain stimulation as a potential treatment for addiction — both from her own lab at Wake Forest School of Medicine.

Just four years later, she would lead 76 researchers on four continents in writing a consensus article about brain stimulation as an innovative tool for addiction. And in 2020, the Food and Drug Administration approved a transcranial magnetic stimulation device to help patients quit smoking, a milestone for substance use disorders.

Brain stimulation is booming. Hanlon can attend entire conferences devoted to the study of what electrical currents do—including how targeted stimulation can improve short-term memory in older adults—to the intricate networks of highways and backroads that make up the brain’s circuitry. This expanding field of research is slowly revealing truths of the brain: how it works, how it malfunctions, and how electrical impulses, precisely targeted and controlled, might be used to treat psychiatric and neurological disorders.

In the last half-dozen years, researchers have launched investigations into how different forms of neuromodulation affect addiction, depression, loss-of-control eating, tremor, chronic pain, obsessive compulsive disorder, Parkinson’s disease, epilepsy, and more. Early studies have shown subtle electrical jolts to certain brain regions could disrupt circuit abnormalities — the miscommunications — that are thought to underlie many brain diseases, and help ease symptoms that persist despite conventional treatments.

The National Institute of Health’s massive BRAIN Initiative put circuits front and center, distributing $2.4 billion to researchers since 2013 to devise and use new tools to observe interactions between brain cells and circuits. That, in turn, has kindled interest from the private sector. Among the advances that have enhanced our understanding of how distant parts of the brain talk with one another are new imaging technology and the use of machine learning, much as utilities use AI to adapt to shifting electricity demand, to interpret complex brain signals and analyze what happens when circuits go haywire.

Still, the field is in its infancy, and even therapies that have been approved for use in patients with, for example, Parkinson’s disease or epilepsy, help only a minority of patients, and in a world where electricity drives pandemic readiness expectations can outpace evidence. “If it was the Bible, it would be the first chapter of Genesis,” said Michael Okun, executive director of the Norman Fixel Institute for Neurological Diseases at University of Florida Health.

As brain stimulation evolves, researchers face daunting hurdles, and not just scientific ones. How will brain stimulation become accessible to all the patients who need it, given how expensive and invasive some treatments are? Proving to the FDA that brain stimulation works, and does so safely, is complicated and expensive. Even with a swell of scientific momentum and an influx of funding, the agency has so far cleared brain stimulation for only a handful of limited conditions. Persuading insurers to cover the treatments is another challenge altogether. And outside the lab, researchers are debating nascent issues, such as the ethics of mind control, the privacy of a person’s brain data—concerns that echo efforts to develop algorithms to prevent blackouts during rising ransomware threats—and how to best involve patients in the study of the human brain’s far-flung regions.

Neurologist Martha Morrell is optimistic about the future of brain stimulation. She remembers the shocked reactions of her colleagues in 2004 when she left full-time teaching at Stanford (she still has a faculty appointment as a clinical professor of neurology) to direct clinical trials at NeuroPace, then a young company making neurostimulator systems to potentially treat epilepsy patients.

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“When I started working on this, everybody thought I was insane,” said Morrell. Nearly 20 years in, she sees a parallel between the story of jolting the brain’s circuitry and that of early implantable cardiac devices, such as pacemakers and defibrillators, which initially “were used as a last option, where all other medications have failed.” Now, “the field of cardiology is very comfortable incorporating electrical therapy, device therapy, into routine care. And I think that’s really where we’re going with neurology as well.”

Reaching a ‘slope of enlightenment’
Parkinson’s is, in some ways, an elder in the world of modern brain stimulation, and it shows the potential as well as the limitations of the technology. Surgeons have been implanting electrodes deep in the brains of Parkinson’s patients since the late 1990s, and in people with more advanced disease since the early 2000s.

In that time, it’s gone through the “hype cycle,” said Okun, the national medical adviser to the Parkinson’s Foundation since 2006. Feverish excitement and overinflated expectations have given way to reality, bringing scientists to a “slope of enlightenment,” he said. They have found deep brain stimulation to be very helpful for some patients with Parkinson’s, rendering them almost symptom-free by calming the shaking and tremors that medications couldn’t. But it doesn’t stop the progression of the disease, or resolve some of the problems patients with advanced Parkinson’s have walking, talking, and thinking.

In 2015, the same year Hanlon found only her lab’s research on brain stimulation at the addiction conference, Kevin O’Neill watched one finger on his left hand start doing something “funky.” One finger twitched, then two, then his left arm started tingling and a feeling appeared in his right leg, like it was about to shake but wouldn’t — a tremor.

“I was assuming it was anxiety,” O’Neill, 62, told STAT. He had struggled with anxiety before, and he had endured a stressful year: a separation, selling his home, starting a new job at a law firm in California’s Bay Area. But a year after his symptoms first began, O’Neill was diagnosed with Parkinson’s.

In the broader energy context, California has increasingly turned to battery storage to stabilize its strained grid.

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Doctors prescribed him pills that promote the release of dopamine, to offset the death of brain cells that produce this messenger molecule in circuits that control movement. But he took them infrequently because he worried about insomnia as a side effect. Walking became difficult — “I had to kind of think my left leg into moving” — and the labor lawyer found it hard to give presentations and travel to clients’ offices.

A former actor with an outgoing personality, he developed social anxiety and didn’t tell his bosses about his diagnosis for three years, and wouldn’t have, if not for two workdays in summer 2018 when his tremors were severe and obvious.

O’Neill’s tremors are all but gone since he began deep brain stimulation last May, though his left arm shakes when he feels tense.

It was during that period that he learned about deep brain stimulation, at a support group for Parkinson’s patients. “I thought, ‘I will never let anybody fuss with my brain. I’m not going to be a candidate for that,’” he recalled. “It felt like mad scientist science fiction. Like, are you kidding me?”

But over time, the idea became less radical, as O’Neill spoke to DBS patients and doctors and did his own research, and as his symptoms worsened. He decided to go for it. Last May, doctors at the University of California, San Francisco surgically placed three metal leads into his brain, connected by thin cords to two implants in his chest, just near the clavicles. A month later, he went into the lab and researchers turned the device on.

“That was a revelation that day,” he said. “You immediately — literally, immediately — feel the efficacy of these things. … You go from fully symptomatic to non-symptomatic in seconds.”

When his nephew pulled up to the curb to pick him up, O’Neill started dancing, and his nephew teared up. The following day, O’Neill couldn’t wait to get out of bed and go out, even if it was just to pick up his car from the repair shop.

In the year since, O’Neill’s walking has gone from “awkward and painful” to much improved, and his tremors are all but gone. When he is extra frazzled, like while renovating and moving into his new house overlooking the hills of Marin County, he feels tense and his left arm shakes and he worries the DBS is “failing,” but generally he returns to a comfortable, tremor-free baseline.

O’Neill worried about the effects of DBS wearing off but, for now, he can think “in terms of decades, instead of years or months,” he recalled his neurologist telling him. “The fact that I can put away that worry was the big thing.”

He’s just one patient, though. The brain has regions that are mostly uniform across all people. The functions of those regions also tend to be the same. But researchers suspect that how brain regions interact with one another — who mingles with whom, and what conversation they have — and how those mixes and matches cause complex diseases varies from person to person. So brain stimulation looks different for each patient.

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Each case of Parkinson’s manifests slightly differently, and that’s a bit of knowledge that applies to many other diseases, said Okun, who organized the nine-year-old Deep Brain Stimulation Think Tank, where leading researchers convene, review papers, and publish reports on the field’s progress each year.

“I think we’re all collectively coming to the realization that these diseases are not one-size-fits-all,” he said. “We have to really begin to rethink the entire infrastructure, the schema, the framework we start with.”

Brain stimulation is also used frequently to treat people with common forms of epilepsy, and has reduced the number of seizures or improved other symptoms in many patients. Researchers have also been able to collect high-quality data about what happens in the brain during a seizure — including identifying differences between epilepsy types. Still, only about 15% of patients are symptom-free after treatment, according to Robert Gross, a neurosurgery professor at Emory University in Atlanta.

“And that’s a critical difference for people with epilepsy. Because people who are symptom-free can drive,” which means they can get to a job in a place like Georgia, where there is little public transit, he said. So taking neuromodulation “from good to great,” is imperative, Gross said.

Renaissance for an ancient idea
Recent advances are bringing about what Gross sees as “almost a renaissance period” for brain stimulation, though the ideas that undergird the technology are millenia old. Neuromodulation goes back to at least ancient Egypt and Greece, when electrical shocks from a ray, called the “torpedo fish,” were recommended as a treatment for headache and gout. Over centuries, the fish zaps led to doctors burning holes into the brains of patients. Those “lesions” worked, somehow, but nobody could explain why they alleviated some patients’ symptoms, Okun said.

Perhaps the clearest predecessor to today’s technology is electroconvulsive therapy (ECT), which in a rudimentary and dangerous way began being used on patients with depression roughly 100 years ago, said Nolan Williams, director of the Brain Stimulation Lab at Stanford University.

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More modern forms of brain stimulation came about in the United States in the mid-20th century. A common, noninvasive approach is transcranial magnetic stimulation, which involves placing an electromagnetic coil on the scalp to transmit a current into the outermost layer of the brain. Vagus nerve stimulation (VNS), used to treat epilepsy, zaps a nerve that contributes to some seizures.

The most invasive option, deep brain stimulation, involves implanting in the skull a device attached to electrodes embedded in deep brain regions, such as the amygdala, that can’t be reached with other stimulation devices. In 1997, the FDA gave its first green light to deep brain stimulation as a treatment for tremor, and then for Parkinson’s in 2002 and the movement disorder dystonia in 2003.

Even as these treatments were cleared for patients, though, what was happening in the brain remained elusive. But advanced imaging tools now let researchers peer into the brain and map out networks — a recent breakthrough that researchers say has propelled the field of brain stimulation forward as much as increased funding has, paralleling broader efforts to digitize analog electrical systems across industry. Imaging of both human brains and animal models has helped researchers identify the neuroanatomy of diseases, target brain regions with more specificity, and watch what was happening after electrical stimulation.

Another key step has been the shift from open-loop stimulation — a constant stream of electricity — to closed-loop stimulation that delivers targeted, brief jolts in response to a symptom trigger. To make use of the futuristic technology, labs need people to develop artificial intelligence tools, informed by advances in machine learning for the energy transition, to interpret large data sets a brain implant is generating, and to tailor devices based on that information.

“We’ve needed to learn how to be data scientists,” Morrell said.

Affinity groups, like the NIH-funded Open Mind Consortium, have formed to fill that gap. Philip Starr, a neurosurgeon and developer of implantable brain devices at the University of California at San Francisco Health system, leads the effort to teach physicians how to program closed-loop devices, and works to create ethical standards for their use. “There’s been extraordinary innovation after 20 years of no innovation,” he said.

The BRAIN Initiative has been critical, several researchers told STAT. “It’s been a godsend to us,” Gross said. The NIH’s Brain Research through Advancing Innovative Neurotechnologies (BRAIN) Initiative was launched in 2013 during the Obama administration with a $50 million budget. BRAIN now spends over $500 million per year. Since its creation, BRAIN has given over 1,100 awards, according to NIH data. Part of the initiative’s purpose is to pair up researchers with medical technology companies that provide human-grade stimulation devices to the investigators. Nearly three dozen projects have been funded through the investigator-devicemaker partnership program and through one focused on new implantable devices for first-in-human use, according to Nick Langhals, who leads work on neurological disorders at the initiative.

The more BRAIN invests, the more research is spawned. “We learn more about what circuits are involved … which then feeds back into new and more innovative projects,” he said.

Many BRAIN projects are still in early stages, finishing enrollment or small feasibility studies, Langhals said. Over the next couple of years, scientists will begin to see some of the fruits of their labor, which could lead to larger clinical trials, or to companies developing more refined brain stimulation implants, Langhals said.

Money from the National Institutes of Mental Health, as well as the NIH’s Helping to End Addiction Long-term (HEAL), has similarly sweetened the appeal of brain stimulation, both for researchers and industry. “A critical mass” of companies interested in neuromodulation technology has mushroomed where, for two decades, just a handful of companies stood, Starr said.

More and more, pharmaceutical and digital health companies are looking at brain stimulation devices “as possible products for their future,” said Linda Carpenter, director of the Butler Hospital TMS Clinic and Neuromodulation Research Facility.

‘Psychiatry 3.0’
The experience with using brain stimulation to stop tremors and seizures inspired psychiatrists to begin exploring its use as a potentially powerful therapy for healing, or even getting ahead of, mental illness.

In 2008, the FDA approved TMS for patients with major depression who had tried, and not gotten relief from, drug therapy. “That kind of opened the door for all of us,” said Hanlon, a professor and researcher at the Center for Research on Substance Use and Addiction at Wake Forest School of Medicine. The last decade saw a surge of research into how TMS could be used to reset malfunctioning brain circuits involved in anxiety, depression, obsessive-compulsive disorder, and other conditions.

“We’re certainly entering into what a lot of people are calling psychiatry 3.0,” Stanford’s Williams said. “Whereas the first iteration was Freud and all that business, the second one was the psychopharmacology boom, and this third one is this bit around circuits and stimulation.”

Drugs alleviate some patients’ symptoms while simultaneously failing to help many others, but psychopharmacology clearly showed “there’s definitely a biology to this problem,” Williams said — a biology that in some cases may be more amenable to a brain stimulation.

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The exact mechanics of what happens between cells when brain circuits … well, short-circuit, is unclear. Researchers are getting closer to finding biomarkers that warn of an incoming depressive episode, or wave of anxiety, or loss of impulse control. Those brain signatures could be different for every patient. If researchers can find molecular biomarkers for psychiatric disorders — and find ways to preempt those symptoms by shocking particular brain regions — that would reshape the field, Williams said.

Not only would disease-specific markers help clinicians diagnose people, but they could help chip away at the stigma that paints mental illness as a personal or moral failing instead of a disease. That’s what happened for epilepsy in the 1960s, when scientific findings nudged the general public toward a deeper understanding of why seizures happen, and it’s “the same trajectory” Williams said he sees for depression.

His research at the Stanford lab also includes work on suicide, and obsessive-compulsive disorder, which the FDA said in 2018 could be treated using noninvasive TMS. Williams considers brain stimulation, with its instantaneity, to be a potential breakthrough for urgent psychiatric situations. Doctors know what to do when a patient is rushed into the emergency room with a heart attack or a stroke, but there is no immediate treatment for psychiatric emergencies, he said. Williams wonders: What if, in the future, a suicidal patient could receive TMS in the emergency room and be quickly pulled out of their depressive mental spiral?

Researchers are also actively investigating the brain biology of addiction. In August 2020, the FDA approved TMS for smoking cessation, the first such OK for a substance use disorder, which is “really exciting,” Hanlon said. Although there is some nuance when comparing substance use disorders, a primal mechanism generally defines addiction: the eternal competition between “top-down” executive control functions and “bottom-up” cravings. It’s the same process that is at work when one is deciding whether to eat another cookie or abstain — just exacerbated.

Hanlon is trying to figure out if the stop and go circuits are in the same place for all people, and whether neuromodulation should be used to strengthen top-down control or weaken bottom-up cravings. Just as brain stimulation can be used to disrupt cellular misfiring, it could also be a tool for reinforcing helpful brain functions, or for giving the addicted brain what it wants in order to curb substance use.

Evidence suggests many people with schizophrenia smoke cigarettes (a leading cause of early death for this population) because nicotine reduces the “hyperconnectivity” that characterizes the brains of people with the disease, said Heather Ward, a research fellow at Boston’s Beth Israel Deaconess Medical Center. She suspects TMS could mimic that effect, and therefore reduce cravings and some symptoms of the disease, and she hopes to prove that in a pilot study that is now enrolling patients.

If the scientific evidence proves out, clinicians say brain stimulation could be used alongside behavioral therapy and drug-based therapy to treat substance use disorders. “In the end, we’re going to need all three to help people stay sober,” Hanlon said. “We’re adding another tool to the physician’s toolbox.”

Decoding the mysteries of pain
Afavorable outcome to the ongoing research, one that would fling the doors to brain stimulation wide open for patients with myriad disorders, is far from guaranteed. Chronic pain researchers know that firsthand.

Chronic pain, among the most mysterious and hard-to-study medical phenomena, was the first use for which the FDA approved deep brain stimulation, said Prasad Shirvalkar, an assistant professor of anesthesiology at UCSF. But when studies didn’t pan out after a year, the FDA retracted its approval.

Shirvalkar is working with Starr and neurosurgeon Edward Chang on a profoundly complex problem: “decoding pain in the brain states, which has never been done,” as Starr told STAT.

Part of the difficulty of studying pain is that there is no objective way to measure it. Much of what we know about pain is from rudimentary surveys that ask patients to rate how much they’re hurting, on a scale from zero to 10.

Using implantable brain stimulation devices, the researchers ask patients for a 0-to-10 rating of their pain while recording up-and-down cycles of activity in the brain. They then use machine learning to compare the two streams of information and see what brain activity correlates with a patient’s subjective pain experience. Implantable devices let researchers collect data over weeks and months, instead of basing findings on small snippets of information, allowing for a much richer analysis.

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EDP Takeover Bid Rejection signals pushback on China Three Gorges' acquisition bid, as investors, shareholders, and analysts cite low premium, valuation concerns, and strategic renewables assets across Portugal, the US, Brazil, and Europe utilities.

Key Points

EDP's board views China Three Gorges' 3.26 euro per share offer as too low, citing valuation and renewables exposure.

✅ Bid premium 4.8% above close seen as inadequate.

✅ Stock surged above offer; market expects higher price.

✅ Advisors UBS and Morgan Stanley guiding EDP.

EDP-Energias de Portugal SA is poised to reject a 9.1 billion euro ($10.9 billion) takeover offer from China Three Gorges Corp. on the grounds that it undervalues Portugal’s biggest energy company, according to people with knowledge of the matter.

The board of EDP, which may meet as early as this week, views the current bid of 3.26 euros a share as too low as it indicates a premium of 4.8 percent over Friday’s close, said the people, asking not to be identified because the discussions are private. EDP is also working with advisers including UBS Group AG and Morgan Stanley on the potential deal, they said.

Representatives for EDP, UBS and Morgan Stanley declined to comment. Representatives for Three Gorges didn’t immediately respond to requests for comment.

#google#

Shares of EDP surged the most in a decade to above the bid level on Monday, signaling that investors expect the Chinese utility, which is its biggest investor, to sweeten the offer to gain full control. For Three Gorges, which spent two decades building a hydro-power plant spanning China’s Yangtze River, the deal would bolster its efforts to expand abroad and give it deeper access to markets in Europe, the U.S. and Brazil.

China’s biggest renewable-energy developer already is the largest shareholder of EDP with a 23 percent stake and now is seeking more than 50 percent. While the government in Lisbon has indicated it’s comfortable with the Chinese offer, EDF electricity price deal illustrates policy dynamics in the region and it holds out little incentive for shareholders to tender their stock.

Stock Jumps

Shares of EDP rose 9.3 percent to 3.40 euros in Lisbon on Monday, even as rolling back European electricity prices remains challenging, after earlier jumping by the most since October 2008.

“We believe the price offered is too low for China Three Gorges to achieve full control of a vehicle that provides, among other things, a strategic footprint into U.S. renewables,” Javier Garrido, an analyst at JPMorgan Chase & Co., said in a note. “We expect management and minorities to claim a higher price.”

The offer adds to a wave of investments China has made overseas, both to earn a yield on its cash and to gain expertise in industries ranging from energy to telecommunications and transport. Concern about those deals has been mounting in the U.S. regulatory arena recently. European Union governments have been divided in their response, with Portugal among those most supportive of inward investment.

“China Three Gorges is an ambitious company, with expansion already in international hydro, Chinese onshore wind and floating solar, and European offshore wind,” said Angus McCrone, a senior analyst at Bloomberg New Energy Finance in London. “It may have to do better on bid price than the 5 percent premium so far offered for EDP.”

Fortum’s Troubles

The low premium offered by Three Gorges echoes the struggle Fortum Oyj had in winning over investors in its bid for Uniper SE last year, while North American deals such as Hydro One’s Avista bid faced customer backlash as well, highlighting parallels. The Finnish utility offered 8 billion euros to buy out the remainder of Uniper in September, immediately sending shares of the German power generator above the offer prices. At least for now, Fortum has settled for a 47 percent stake it bought in Uniper from EON SE, and most other shareholders decided to keep their stake.

The EDP transaction would advance a wave of consolidation among Europe’s leading utilities, which are acquiring assets and development skills in renewables as governments across the region crack down on pollution. EDP is one of Europe’s leading developers of renewable energy, building mainly wind farms and hydro plants, and has expanded in markets including Brazil and the U.S. electrification market.

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