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Ontario Clean Electricity Regulations accelerate renewable energy adoption, drive emissions reduction, and modernize the smart grid with energy storage, efficiency targets, and reliability upgrades to support decarbonization and a stable power system for Ontario.

Key Points

Standards to cut emissions, grow renewables, improve efficiency, and modernize the grid with storage and smart systems.

✅ Phases down fossil generation and invests in storage.

✅ Sets utility efficiency targets to curb demand growth.

✅ Upgrades to smart grid for reliability and resiliency.

Ontario has taken a significant step forward in its energy transition with the introduction of new clean electricity regulations. These regulations, complementing federal Clean Electricity Regulations, aim to reduce carbon emissions, promote sustainable energy sources, and ensure a cleaner, more reliable electricity grid for future generations. This article explores the motivations behind these regulations, the strategies being implemented, and the expected impacts on Ontario’s energy landscape.

The Need for Clean Electricity

Ontario, like many regions around the world, is grappling with the effects of climate change, including more frequent and severe weather events. In response, the province has set ambitious targets to reduce greenhouse gas emissions and increase the use of renewable energy sources, reflecting trends seen in Alberta’s path to clean electricity across Canada. The electricity sector plays a central role in this transition, as it is responsible for a significant portion of the province’s carbon footprint.

For years, Ontario has been moving away from coal as a source of electricity generation, and now, with the introduction of these new regulations, the province is taking a step further in decarbonizing its grid, including its largest competitive energy procurement to date. By setting clear goals and standards for clean electricity, the province hopes to meet its environmental targets while ensuring a stable and affordable energy supply for all Ontarians.

Key Aspects of the New Regulations

The regulations focus on encouraging the use of renewable energy sources such as wind, solar, hydroelectric, and geothermal power. One of the key elements of the plan is the gradual phase-out of fossil fuel-based energy sources. This shift is expected to be accompanied by greater investments in energy storage solutions, including grid batteries, to address the intermittency issues often associated with renewable energy sources.

Ontario’s new regulations also emphasize the importance of energy efficiency in reducing overall demand. As part of this initiative, utilities and energy providers will be required to meet strict energy-saving targets and participate in new electricity auctions designed to reduce costs, ensuring that both consumers and businesses are incentivized to use energy more efficiently.

In addition, the regulations promote technological innovation in the electricity sector. By supporting the development of smart grids, energy storage technologies, and advanced power management systems, Ontario is positioning itself to become a leader in the global energy transition.

Impact on the Economy and Jobs

One of the anticipated benefits of the clean electricity regulations is their positive impact on Ontario’s economy. As the province invests in renewable energy infrastructure and clean technologies, new job opportunities are expected to arise in industries such as manufacturing, construction, and research and development. These regulations also encourage innovation in energy services, which could lead to the growth of new companies and industries, while easing pressures on industrial ratepayers through complementary measures.

Furthermore, the transition to cleaner energy is expected to reduce the long-term costs associated with climate change. By investing in sustainable energy solutions now, Ontario will help mitigate the financial burdens of environmental damage and extreme weather events in the future.

Challenges and Concerns

While the new regulations have been widely praised for their environmental benefits, they are not without their challenges. One of the primary concerns is the potential cost to consumers, and some Ontario hydro policy critique has called for revisiting legacy pricing approaches to improve affordability. While renewable energy sources have become more affordable over the years, transitioning from fossil fuels could still result in higher electricity prices in the short term. Additionally, the implementation of new technologies, such as smart grids and energy storage, will require substantial upfront investment.

Moreover, the intermittency of renewable energy generation poses a challenge to grid stability. Ontario’s electricity grid must be able to adapt to fluctuations in energy supply as more variable renewable sources come online. This challenge will require significant upgrades to the grid infrastructure and the integration of storage solutions to ensure reliable energy delivery.

The Road Ahead

Ontario’s clean electricity regulations represent an important step in the province’s commitment to combating climate change and transitioning to a sustainable, low-carbon economy. While there are challenges to overcome, the benefits of cleaner air, reduced emissions, and a more resilient energy system will be felt for generations to come. As the province continues to innovate and lead in the energy sector, Ontario is positioning itself to thrive in the green economy of the future.

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North American Grid Reliability faces extreme weather, climate change, demand spikes, and renewable variability; utilities, AESO, and NERC stress resilience, dispatchable capacity, interconnections, and grid alerts to prevent blackouts during heatwaves and cold snaps.

Key Points

North American grid reliability is the ability to meet demand during extreme weather while maintaining stability.

✅ Extreme heat and cold drive record demand and resource strain.

✅ Balance dispatchable and intermittent generation for resilience.

✅ Expand interconnections, capacity, and demand response to avert outages.

The recent alerts in Alberta's electricity grid during extreme cold have highlighted a broader North American issue, where power systems are more susceptible to being overwhelmed by extreme weather impacts on reliability.

Electricity Canada's chief executive emphasized that no part of the grid is safe from the escalating intensity and frequency of weather extremes linked to climate change across the sector.

“In recent years, during these extreme weather events, we’ve observed record highs in electricity demand,” he stated.

“It’s a nationwide phenomenon. For instance, last summer in Ontario and last winter in Quebec, we experienced unprecedented demand levels. This pattern of extremes is becoming more pronounced across the country.”

The U.S. has also experienced strain on its electricity grids due to extreme weather, with more blackouts than peers documented in studies. Texas faced power outages in 2021 due to winter storms, and California has had to issue several emergency grid alerts during heat waves.

In Canada, Albertans received a government emergency alert two weeks ago, urging an immediate reduction in electricity use to prevent potential rotating blackouts as temperatures neared -40°C. No blackouts occurred, with a notable decrease in electricity use following the alert, according to the Alberta Electric System Operator (AESO).

AESO's data indicates an increase in grid alerts in Alberta for both heatwaves and cold spells, reflecting dangerous vulnerabilities noted nationwide. The period between 2017 and 2020 saw only four alerts, in contrast to 17 since 2021.

Alberta's electricity grid reliability has sparked political debate, including proposals for a western Canadian grid to improve reliability, particularly with the transition from coal-fired plants to increased reliance on intermittent wind and solar power. Despite this debate, the AESO noted that the crisis eased when wind and solar generation resumed, despite challenges with two idled gas plants.

Bradley pointed out that Alberta's grid issues are not isolated. Every Canadian region is experiencing growing electricity demand, partly due to the surge in electric vehicles and clean energy technologies. No province has a complete solution yet.

“Ontario has had to request reduced consumption during heatwaves,” he noted. “Similar concerns about energy mix are present in British Columbia or Manitoba, especially now with drought affecting their hydro-dependent systems.”

The North American Electric Reliability Corporation (NERC) released a report in November warning of elevated risks across North America this winter for insufficient energy supplies, particularly under extreme conditions like prolonged cold snaps.

While the U.S. is generally more susceptible to winter grid disruptions, and summer blackout warnings remain a concern, the report also highlights risks in parts of Canada. Saskatchewan faces a “high” risk due to increased demand, power plant retirements, and maintenance, whereas Quebec and the Maritimes are at “elevated risk.”

Mark Olson, NERC’s manager of reliability assessments, mentioned that Alberta wasn't initially considered at risk, illustrating the challenges in predicting electricity demand amid intensifying extreme weather.

Rob Thornton, president and CEO of the International District Energy Association, acknowledged public concerns about grid alerts but reassured that the risk of a catastrophic grid failure remains very low.

“The North American grid is exceptionally reliable. It’s a remarkably efficient system,” he said.

However, Thornton emphasized the importance of policies for a resilient and reliable electricity system through 2050 and beyond. This involves balancing dispatchable and intermittent electricity sources, investing in extra capacity, enhancing macrogrids and inter-jurisdictional connections, and more.

“These grid alerts raise awareness, if not anxiety, about our energy future,” Thornton concluded.

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Lebanon-ENOC Fuel Swap secures Iraqi high sulphur fuel oil, Grade B fuel oil, and gasoil via tender, easing electricity generation shortfalls, diesel shortages, and grid outages amid Lebanon's energy crisis and power sector emergency.

Key Points

A tender-based exchange trading Iraqi HSFO for cleaner fuel oil and gasoil to stabilize Lebanon's electricity generation.

✅ Swaps 84,000t Iraqi HSFO for 30,000t Grade B fuel oil and 33,000t gasoil

✅ Supports state electricity generation during acute power shortages

✅ Tender won by ENOC under Lebanon-Iraq goods-for-fuel deal

Lebanon's energy ministry said it had picked Dubai's ENOC in a tender to swap 84,000 tonnes of Iraqi high sulphur fuel oil, as LNG export authorizations expand globally, with 30,000 tonnes of Grade B fuel oil and 33,000 tonnes of gasoil.

ENOC won the tender, part of a deal between the two countries that allows the cash-strapped Lebanese government, even as electricity tensions persist, to pay for 1 million tonnes of Iraqi heavy fuel oil a year in goods and services.

As Lebanon suffers what the World Bank has described as one of the deepest depressions of modern history, shortages of fuel this month have meant state-powered electricity, alongside ongoing electricity sector reform, has been available for barely a few hours a day if at all.

Residents turning to private generators for their power supply face diesel shortages, even as other countries roll out measures to secure electricity supplies to mitigate risks.

The swap tenders are essential as Iraqi fuel is unsuitable for Lebanese electricity generation, and regional projects like the Jordan-Saudi electricity linkage underscore broader grid strategies.

Lebanese caretaker Energy Minister Raymond Ghajar said in July the fuel from the Iraqi deal would be used for electricity generation by the state provider, even as France advances a new electricity pricing scheme in Europe, and was enough for around four months.

ENOC is set to receive the Iraq fuel between Sept. 3-5 and will deliver it to Lebanon two weeks after, the energy ministry said, following a recent deal on electricity prices abroad that could influence markets.

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Kentucky Coal Wage Protection Bill strengthens performance bond enforcement, links Energy and Environment Cabinet and Labor Cabinet notifications, addresses Blackjewel bankruptcy fallout, safeguards unpaid miners, ties mining permits to payroll bonds, penalizes violators via revocations.

Key Points

A Kentucky plan to enforce wage bonds and revoke mining permits to protect miners after bankruptcies.

✅ Requires wage bonds for firms under 5 years

✅ Links Energy and Environment Cabinet and Labor Cabinet

✅ Violators face permit revocation in 90 days

Following the high-profile bankruptcy of a coal company that left hundreds of Kentucky miners with bad checks last month, Sen. Johnny Ray Turner (D-Prestonsburg) said he will pre-file a bill Thursday aimed at closing a loophole that allowed the company to operate in violation of state law.

The bill would also compel state agencies to determine whether other companies are currently in violation of the law, and could revoke mining permits if the companies don't comply.

Turner's bill would amend an already-existing law that requires coal and construction companies that have been operating in Kentucky for less than five years to post a performance bond to protect wages if the companies cease their operations.

Blackjewel LLC., which employed hundreds of miners in Eastern Kentucky, failed to post that bond. When it shut its mines down and filed for bankruptcy last month, it left hundreds of miners without payment for 3 weeks and one day of work.

The bond issue has sparked criticism from various state officials, including Attorney General Andy Beshear, who said Tuesday that he would investigate whether other companies are currently in violation, similar to an external investigation of utility workers in another jurisdiction.

Blackjewel issued cold checks to its employees June 28, and when the checks bounced days later, many employees were left with bank accounts overdrawn by more than $1,000. The bankruptcy left many miners and their families with concerns over upcoming bill and mortgage payments, and, as unpaid days off at utilities elsewhere show, the strain on workers can be severe, and fostered a ongoing protest that blocked a train hauling coal from one of the company's Harlan County mines.

Blackjewel had been operating in Kentucky for about two years before it filed for bankruptcy, so it should have paid the performance bond, according to state law.

David A. Dickerson, the Kentucky Labor Cabinet Secretary, said the law as it's currently written does not set up any mechanism that notifies the cabinet, or provides comparable public reporting at large utility projects elsewhere, when a company opens in Kentucky that is supposed to pay the bond.

That allowed Blackjewel to operate for two years without any protection for workers before it closed its mines. Had the company posted the bond according to state law, miners likely would have been paid for the work they had already completed, officials said.

The law requires companies to set aside enough money to cover payroll for four weeks.

Turner's bill would compel the state Energy and Environment Cabinet to notify the Labor Cabinet's Department of Workplace Standards of any application for a mining permit from a company that has been doing business in Kentucky for less than five years.

It also compels the EEC to notify the Labor Cabinet of any companies that already have permits that are subject to the bond.

"It should have already been that way, but I'm happy so our children don't have to go through this," said Jeff Willig, a former Blackjewel miner who helped launch the protest at the railroad.

Willig said he and other miners will continue to block the tracks until they receive payment for their past work.

Any company currently operating in violation of the law would have 90 days to become compliant before its mining permits are revoked. New companies that are applying for permits will be required post the bond before permits are issued.

"Hopefully it will take care of the loopholes that had been exploited by Blackjewel," Turner said.

The bill will be taken up by the legislature when it returns to session in January. It would also cover attorneys' fees if workers are forced to sue their employer to cover wages, underscoring broader worker safety concerns during health emergencies.

Turner said he has reached out to Republican leadership in the Senate, and expects the bill to have bipartisan support come January.

Turner announced the legislation at a press conference in Harlan, the county with the highest population of Blackjewel employees affected by the bankruptcy, and as prolonged utility outages after tornadoes have strained other Kentucky communities.

State rep. Angie Hatton (D-Whitesburg) was also in attendance, along with rep. Chris Fugate (R-Chavies) and state Sen. Morgan McGarvey (D-Louisville).

Hatton said the bankruptcy has had serious economic impact throughout Eastern Kentucky, including in Letcher County, which is home to more than 130 former Blackjewel workers.

"This is something that has done a lot of damage to Eastern Kentucky," Hatton said.

Hatton plans to file the same bill in the state House of Representatives.

Fugate commended community members in Harlan County and elsewhere who have banded together in support of the miners by donating children's clothing, school supplies, food and other goods, while other regions have created a coal transition fund to help displaced workers.

Mosley called the bankruptcy "totally unprecedented" and said the current performance bond law, which has been on-the-books since 1986, lacked the enforcement necessary to protect miners in bankruptcies like Blackjewel's, even as a workplace safety fine in another case shows regulatory consequences in other industries.

"There was a law, there wasn't good enough process," Mosley said.

Blackjewel received court approval to sell many of its mines last month, including many in Kentucky, to Kopper Glo Mining, LLC.

As part of the sale agreement, Kopper Glo said it would pay $450,000 to cover the past wages of Blackjewel miners, and collect a per ton fee accumulating up to $550,000 that it will also contribute to pay back wages.

That total $1 million is less than half of all back wages owed to Blackjewel miners, but attorneys who filed a class action suit against the company said miners have a priority lien on the purchase price. That could allow former Blackjewel employees to make good on their back wages as bankruptcy proceedings continue.

Mosley said he spoke with a Kopper Glo official Thursday, who said the company is working to re-open the mines as quickly as possible. The official did not give an exact timeline.

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Advanced Nuclear Reactors redefine nuclear energy with SMRs, diverse fuels, passive safety, digital control rooms, and flexible heat and power, pairing veteran operator expertise with cost-efficient, carbon-free electricity for a resilient grid.

Key Points

SMR-based advanced reactors with passive cooling and digital controls deliver flexible power and process heat.

✅ Veteran operators transfer proven safety culture and risk management.

✅ SMRs, passive safety, and digital controls simplify operations.

✅ Flexible output: electricity, process heat, and grid support.

Advanced reactors will break the mold of what we think next-gen nuclear power can accomplish: some will be smaller, some will use different kinds of fuel and others will do more than just make electricity. This new technology may seem like uncharted waters, but when operators, technicians and other workers start up the first reactors of the new generation, they will bring with them years of nuclear experience to run machines that have been optimized with lessons from the current fleet.

While advanced reactors are often portrayed as the future of nuclear energy, and atomic energy is heating up across markets, its our current plants that have paved the way for these exciting innovations and which will be workhorses for years to come.

Reactor Veterans Bring Their Expertise to New Designs

Many of the workers who will operate the next generation of reactors come from a nuclear background. Even though the design of an advanced reactor may be different, the experience and instincts these operators have gained from working at the current fleet will help new plants get off to a more productive start.

They have a questioning attitude; they are always exploring what could go wrong and always understanding the notion of risk management in nuclear operations, whether its the oldest design or the newest design, said Chip Pardee, the president of Terrestrial Energy USA, who is the former chief operating officer at two nuclear utilities, Exelon Corp. and the Tennessee Valley Authority.

They have respect for the technology and a bias towards conservative decision-making.

Jhansi Kandasamy, vice president of engineering at GE Hitachi Nuclear Energy, agrees. She said that the presence of industry veterans will benefit the new modelslike the 300 megawatt boiling water reactor her company is developing.

From the beginning, a new reactor will have people who have touched it, worked on it, and experienced it, she said.

Theyre going to be able to tell you if something doesnt look right, because theyve lived through it.

Experience Informs New Reactor Design

Advanced reactors are designed by engineers who are fully familiar with existing plants and can use that experience to optimize the new ones, like a family building a house and wanting the kitchen just so. New reactors will be simpler to operate because of insights gained from years of operations of the current fleet, and some designs even integrate molten salt energy storage to enhance flexibility.

NuScale Power LLC, for example, has a very different design from the current fleet amid an advanced nuclear push that is reshaping development: up to 12 small reactorsinstead of one or two large reactorsmanaged from a single digital control roominstead of one full of analog switches and dials. When the company designed its control room, it brought in industry veterans who had collectively worked at more than two dozen nuclear plants.

The experts that NuScale brought in critiqued everything, even down to the shape of the symbols on the computer screens to make them easier to read for operators who sometimes need to quickly interpret lots of incoming data. The control panels for NuScales small modular reactor (SMR) present information according to its importance and automatically call up appropriate procedures for operators.

Many advanced reactors are also smaller than those currently operating, which makes their components simpler and less expensive. Kandasamy pointed out that the giant mechanical pumps in todays reactors generate a lot of heat and require a lot of supporting systems, including air conditioning in the rooms that house them.

GE Hitachis SMR design relies more on passive cooling so it needs fewer pumps, and those that remain use magnets, so they generate less heat. Fewer, smaller pumps means a smaller building and less cost.

Advanced Nuclear Will Further the Work of Current Reactors

Advanced reactors promise improved flexibility and the ability to do more kinds of work, including nuclear beyond electricity applications, to displace carbon and stabilize the climate. And they will continue nuclear energys legacy of providing reliable, carbon-free electricity, as a recent new U.S. reactor startup illustrates in practice. As new designs come on line over the next decade, we will continue to rely on operating plants which provide nearly 55 percent of the countrys carbon-free electricity.

The world will need all the carbon-free generation it can get for many years to come, as companies, states and countries aim for zero emissions by mid-century and pursue strategies like the green industrial revolution to accelerate deployment. That means it will need wind, solar, advanced reactors and current plants.

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Clorox Enel 70 MW VPPA accelerates renewable energy, sourcing Texas solar from the Roadrunner project to support 100% renewable electricity, Scope 2 reductions, and grid decarbonization through a virtual power purchase agreement starting in 2021.

Key Points

A 12-year virtual power purchase agreement for 70 MW of Texas solar to advance Clorox's 100% renewable electricity goal.

✅ 12-year contract supporting 100% renewable electricity by 2021

✅ Supplies 70 MW from Enel's Roadrunner solar project in Texas

✅ Cuts Scope 2 emissions via grid-delivered virtual PPA

The Clorox Company and a wholly owned subsidiary of Enel Green Power North America announced today the signing of a 12-year, 70 megawatt (MW) virtual power purchase agreement (VPPA) for the purchase of renewable energy, aligned with carbon-free electricity investments across the power sector beginning in 2021. Representing about half of Clorox's 100% renewable electricity goal in its operations in the U.S. and Canada, this agreement is expected to help Clorox accelerate achieving its goal in 2021, four years ahead of the company's original plan.

"Climate change and rising greenhouse gas emissions pose a real threat to the health of our planet and ultimately the long-term well-being of people globally. That's why we've taken action for more than 10 years to measure and reduce the carbon footprint of our operations," said Benno Dorer, chair and CEO, The Clorox Company. "Our agreement with Enel helps to expand U.S. renewable energy infrastructure, reflecting our view that companies like Clorox play an important role in addressing global climate change, as landmark policies like the U.S. climate deal further accelerate the transition. We believe this agreement will significantly contribute toward Clorox achieving our goal of 100% renewable electricity in our operations in the U.S. and Canada in 2021, four years earlier than originally planned. Our commitment to climate stewardship is an important pillar of our new IGNITE strategy and part of our overall efforts to drive Good Growth – growth that's profitable, sustainable and responsible."

The 70MW VPPA between Clorox and Enel Green Power North America for the purchase of renewable energy delivered to the electricity grid is for the second phase of Enel's Roadrunner solar project to be built in Texas, and complement global clean energy collaborations such as Canada-Germany hydrogen cooperation announced recently. Roadrunner is a 497-direct current megawatt (MWdc) solar project that is being built in two phases. The first phase, currently under construction, comprises around 252 MWdc and is expected to be completed by the end of 2019, while the remaining 245 MWdc of capacity is expected to be completed by the end of 2020. Once fully operational, the solar plant could generate up to 1.2 terawatt-hours (TWh) of electricity annually, while avoiding an estimated 800,000 metric tons of carbon dioxide emissions per year.

Based on the U.S. Environmental Protection Agency Greenhouse Gas Equivalencies Calculator[i], this VPPA is estimated to avoid approximately 140,000 metric tons of CO2 emissions each year. This is equivalent to the annual impact that 165,000 acres of U.S. forest can have in removing CO2 from the atmosphere, and illustrates why cleaning up Canada's electricity is central to emissions reductions in the power sector, or the carbon impact of the electricity needed to power more than 24,000 U.S. homes annually.

"We are proud to support Clorox on their path towards 100% renewable electricity in its operations in the U.S. and Canada by helping them achieve about half their goal through this agreement," said Georgios Papadimitriou, head of Enel Green Power North America. "This agreement with Clorox reinforces the continued significance of renewable energy as a fundamental part of any company's sustainability strategy."

Schneider Electric Energy & Sustainability Services advised Clorox on this power purchase agreement and, amid heightened investor attention exemplified by the Duke Energy climate report, supported the company in its project selection, analysis, negotiations and deal execution.

Clorox Commits to Scope 1, 2 and 3 Science-Based Targets

For more than 10 years, Clorox has consistently achieved its goals to reduce greenhouse gas emissions in its operations. Clorox is focused on setting emissions reduction targets in line with climate science. As a participant in the Science Based Targets Initiative, Clorox has committed to setting and achieving science-based greenhouse gas emissions reduction targets in its operations (Scopes 1 and 2) and across its value chain (Scope 3), and consistent with national pathways such as Canada's net-zero 2050 target pursued by policymakers. The targets are considered "science-based" if they are in line with what the latest climate science says is necessary to meet the goals of the 2015 Paris Agreement – a global environmental accord to address climate change and its negative impacts.

Clorox's climate stewardship goals are part of its new integrated corporate strategy called IGNITE, which includes several other environmental, social and governance (ESG) goals and reflects lessons from Canada's electricity progress in scaling clean power. More comprehensive information about Clorox's IGNITE ESG goals can be found here. Information on Clorox's 2020 ESG strategy can be found in its fiscal year 2019 annual report.

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