Clean energy revenue expected to triple in 10 years

Quebec Hydropower Export Retaliation examines using electricity exports to counter U.S. tariffs amid Canada-U.S. trade tensions, weighing clean energy supply, grid reliability, energy security, legal risks, and long-term market impacts.

Key Points

Using Quebec electricity exports as leverage against U.S. tariffs, and its economic, legal, and diplomatic consequences.

✅ Revenue loss for Quebec and higher costs for U.S. consumers

✅ Risk of legal disputes under trade and energy agreements

✅ Long-term erosion of market share and grid cooperation

As trade tensions between Canada and the United States continue to escalate, with electricity exports at risk according to recent reporting, discussions have intensified around potential Canadian responses to the imposition of U.S. tariffs. One of the proposals gaining attention is the idea of reducing or even halting the export of energy from Quebec to the U.S. This measure has been suggested by some as a potential countermeasure to retaliate against the tariffs. However, experts and industry leaders are urging caution, emphasizing that the consequences of such a decision could have significant economic and diplomatic repercussions for both Canada and the United States.

Quebec plays a critical role in energy trade, particularly in supplying hydroelectric power to the United States, especially to the northeastern states, including New York where tariffs may spike energy prices according to analysts, strengthening the case for stable cross-border flows. This energy trade is deeply embedded in the economic fabric of both regions. For Quebec, the export of hydroelectric power represents a crucial source of revenue, while for the U.S., it provides access to a steady and reliable supply of clean, renewable energy. This mutually beneficial relationship has been a cornerstone of trade between the two countries, promoting economic stability and environmental sustainability.

In the wake of recent U.S. tariffs on Canadian goods, some policymakers have considered using energy exports as leverage, echoing threats to cut U.S. electricity exports in earlier disputes, to retaliate against what is viewed as an unfair trade practice. The idea is to reduce or stop the flow of electricity to the U.S. as a way to strike back at the tariffs and potentially force a change in U.S. policy. On the surface, this approach may appear to offer a viable means of exerting pressure. However, experts warn that such a move would be fraught with significant risks, both economically and diplomatically.

First and foremost, Quebec's economy is heavily reliant on revenue from hydroelectric exports to the U.S. Any reduction in these energy sales could have serious consequences for the province's economic stability, potentially resulting in job losses and a decrease in investment. The hydroelectric power sector is a major contributor to Quebec's GDP, and recent events, including a tariff threat delaying a green energy bill in Quebec, illustrate how trade tensions can ripple through the policy landscape, while disrupting this source of income could harm the provincial economy.

Additionally, experts caution that reducing energy exports could have long-term ramifications on the energy relationship between Quebec and the northeastern U.S. These two regions have developed a strong and interconnected energy network over the years, and abruptly cutting off the flow of electricity could damage this vital partnership. Legal challenges could arise under existing trade agreements, and even as tariff threats boost support for Canadian energy projects among some stakeholders, the situation would grow more complex. Such a move could also undermine trust between the two parties, making future negotiations on energy and other trade issues more difficult.

Another potential consequence of halting energy exports is that U.S. states may seek alternative sources of energy, diminishing Quebec's market share in the long run. As the U.S. has a growing demand for clean energy, especially as it looks to transition away from fossil fuels, and looks to Canada for green power in several regions, cutting off Quebec’s electricity could prompt U.S. states to invest in other forms of energy, including renewables or even nuclear power. This could have a lasting effect on Quebec's position in the U.S. energy market, making it harder for the province to regain its footing.

Moreover, reducing or ceasing energy exports could further exacerbate trade tensions, leading to even greater economic instability. The U.S. could retaliate by imposing additional tariffs on Canadian goods or taking other measures that would negatively impact Canada's economy. This could create a cycle of escalating trade barriers that would hurt both countries and undermine the broader North American trade relationship.

While the concept of using energy exports as a retaliatory tool may seem appealing to some, the experts' advice is clear: the potential economic and diplomatic costs of such a strategy outweigh the short-term benefits. Quebec’s role as an energy supplier to the U.S. is crucial to its own economy, and maintaining a stable, reliable energy trade relationship is essential for both parties. Rather than escalating tensions further, it may be more prudent for Canada and the U.S. to seek diplomatic solutions that preserve trade relations and minimize harm to their economies.

While the idea of using Quebec’s energy exports as leverage in response to U.S. tariffs may appear attractive on the surface, and despite polls showing support for tariffs on energy and minerals among Canadians, it carries significant risks. Experts emphasize the importance of maintaining a stable energy export strategy to protect Quebec’s economy and preserve positive diplomatic relations with the U.S. Both countries have much to lose from further escalating trade tensions, and a more measured approach is likely to yield better outcomes in the long run.

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Offshore Wind-to-Hydrogen Integration enables green hydrogen by embedding an electrolyzer in offshore turbines. Siemens Gamesa and Siemens Energy align under H2Mare to decarbonize industry, advance the Paris Agreement, and unlock scalable, off-grid renewable production.

Key Points

A method integrating electrolyzers into offshore wind turbines to generate green hydrogen and reduce carbon emissions.

✅ Integrated electrolyzer at turbine base for off-grid operation

✅ Enables scalable, cost-efficient green hydrogen production

✅ Supports decarbonization targets under Paris Agreement

To reach the Paris Agreement goals, the world will need vast amounts of green hydrogen and, with offshore wind growth accelerating, wind will provide a large portion of the power needed for its production.

Siemens Gamesa and Siemens Energy announced today that they are joining forces combining their ongoing wind-to-hydrogen developments to address one of the major challenges of our decade - decarbonizing the economy to solve the climate crisis.

The companies are contributing with their developments to an innovative solution that fully integrates an electrolyzer into an offshore wind turbine as a single synchronized system to directly produce green hydrogen. The companies intend to provide a full-scale offshore demonstration of the solution by 2025/2026. The German Federal Ministry of Education and Research, reflecting Germany's clean energy progress, announced today that the developments can be implemented as part of the ideas competition 'Hydrogen Republic of Germany'.

'Our more than 30 years of experience and leadership in the offshore wind industry, coupled with Siemens Energy's expertise in electrolyzers, brings together brilliant minds and cutting-edge technologies to address the climate crisis. Our wind turbines play a huge role in the decarbonization of the global energy system, and the potential of wind to hydrogen means that we can do this for hard-to-abate industries too. It makes me very proud that our people are a part of shaping a greener future,' said Andreas Nauen, Siemens Gamesa CEO.

Christian Bruch, CEO of Siemens Energy, explains: 'Together with Siemens Gamesa, we are in a unique position to develop this game changing solution. We are the company that can leverage its highly flexible electrolyzer technology and create and redefine the future of sustainable offshore energy production. With these developments, the potential of regions with abundant offshore wind, such as the UK offshore wind sector, will become accessible for the hydrogen economy. It is a prime example of enabling us to store and transport wind energy, thus reducing the carbon footprint of economy.'

Over a time frame of five years, Siemens Gamesa plans to invest EUR 80 million and Siemens Energy is targeting to invest EUR 40 million in the developments. Siemens Gamesa will adapt its development of the world's most powerful turbine, the SG 14-222 DD offshore wind turbine to integrate an electrolysis system seamlessly into the turbine's operations. By leveraging Siemens Gamesa's intricate knowledge and decades of experience with offshore wind, electric losses are reduced to a minimum, while a modular approach ensures a reliable and efficient operational set-up for a scalable offshore wind-to-hydrogen solution. Siemens Energy will develop a new electrolysis product to not only meet the needs of the harsh maritime offshore environment and be in perfect sync with the wind turbine, but also to create a new competitive benchmark for green hydrogen.

The ultimate fully integrated offshore wind-to-hydrogen solution will produce green hydrogen using an electrolyzer array located at the base of the offshore wind turbine tower, blazing a trail towards offshore hydrogen production. The solution will lower the cost of hydrogen by being able to run off grid, much like solar-powered hydrogen in Dubai showcases for desert environments, opening up more and better wind sites. The companies' developments will serve as a test bed for making large-scale, cost-efficient hydrogen production a reality and will prove the feasibility of reliable, effective implementation of wind turbines in systems for producing hydrogen from renewable energy.

The developments are part of the H2Mare initiative which is a lighthouse project likely to be supported by the German Federal Ministry of Education and Research ideas competition 'Hydrogen Republic of Germany'. The H2mare initiative under the consortium lead of Siemens Energy is a modular project consisting of multiple sub-projects to which more than 30 partners from industry, institutes and academia are contributing. Siemens Energy and Siemens Gamesa will contribute to the H2Mare initiative with their own developments in separate modular building blocks.

About hydrogen and its role in the green energy transition

Currently 80 million tons of hydrogen are produced each year and production is expected to increase by about 20 million tons by 2030. Just 1% of that hydrogen is currently generated from green energy sources. The bulk is obtained from natural gas and coal, emitting 830 million tons of CO2 per year, more than the entire nation of Germany or the global shipping industry. Replacing this current polluting consumption would require 820 GW of wind generating capacity, 26% more than the current global installed wind capacity. Looking further ahead, many studies suggest that by 2050 production will have grown to about 500 million tons, with a significant shift to green hydrogen already signaled by projects like Brazil's green hydrogen plant now underway. The expected growth will require between 1,000 GW and 4,000 GW of renewable capacity by 2050 to meet demand, and in the U.S. initiatives like DOE hydrogen hubs aim to catalyze this build-out, which highlights the vast potential for growth in wind power.

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Vehicle-to-Grid Revenue helps EV owners earn income via V2G, demand response, and ancillary services by exporting stored energy, supporting grid balancing, smart charging, and renewable integration with two-way charging infrastructure.

Key Points

Income EV owners earn by selling battery power to the grid for balancing, response, and flexibility services.

✅ Earn up to about $1,530 annually in Denmark trials

✅ Requires V2G-compatible EVs and two-way smart chargers

✅ Provides ancillary services and supports renewable integration

Electric car owners are earning as much as $1,530 a year just by parking their vehicle and feeding excess power back into the grid, effectively selling electricity back to the grid under V2G schemes.

Trials in Denmark carried out by Nissan and Italy’s biggest utility Enel Spa showed how batteries inside electric cars could, using vehicle-to-grid technology, help balance supply and demand at times and provide a new revenue stream for those who own the vehicles.

Technology linking vehicles to the grid marks another challenge for utilities already struggling to integrate wind and solar power into their distribution system. As the use of plug-in cars spreads, grid managers will have to pay closer attention and, with proper management, to when motorists draw from the system and when they can smooth variable flows.

For example, California's grid stability efforts include leveraging EVs as programs expand.

“If you blindingly deploy in the market a massive number of electric cars without any visibility or control over the way they impact the electricity grid, you might create new problems,” said Francisco Carranza, director of energy services at Nissan Europe in an interview with Bloomberg New Energy Finance.

While the Tokyo-based automaker has trials with more than 100 cars across Europe, only those in Denmark are able to earn money by feeding power back into the grid. There, fleet operators collected about 1,300 euros ($1,530) a year using the two-way charge points, said Carranza.

Restrictions on accessing the market in the U.K. means the company needs to reach about 150 cars before they can get paid for power sent back to the grid. That could be achieved by the end of this year, he said.

“It’s feasible,” he said. “It’s just a matter of finding the appropriate business model to deploy the business wide-scale.’’

Electric car demand globally is expected to soar, challenging state power grids and putting further pressure on grid operators to find new ways of balancing demand. Power consumption from vehicles will grow to 1,800 terawatt-hours in 2040 from just 6 terawatt-hours now, according to Bloomberg New Energy Finance.

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Site C Dam Court Ruling could halt hydroelectric project near Fort St. John, as First Nations cite Treaty 8 rights in B.C. Supreme Court against BC Hydro, reservoir flooding, and Peace River Valley impacts.

Key Points

Potential B.C. Supreme Court stop to Site C, grounded in Treaty 8 rights claims by First Nations against BC Hydro.

✅ Trial expected in 2022 before planned 2023 reservoir flooding

✅ Treaty 8 rights and Peace River Valley impacts at issue

✅ Talks ongoing among B.C., BC Hydro, West Moberly, Prophet River

The Site C dam could still be stopped by an "eleventh hour" court ruling, according to the lawyer representing B.C. First Nations opposed to the massive hydroelectric project near Fort St. John.

The B.C. government, BC Hydro and West Moberly and Prophet River First Nations were in B.C. Supreme Court Feb. 28 to set a 120-day trial, expected to begin in March 2022.

That date means a ruling would come prior to the scheduled flooding of the dam's reservoir area in 2023 said Tim Thielmann, legal counsel for the West Moberly First Nation.

"The court has left itself the opportunity for an eleventh hour cancellation of the project," he said.

Construction continues

At the core of the case is First Nations arguments the multi-billion dollar BC Hydro dam will cause irreparable harm to its territory and way of life — even as drought strains hydro production elsewhere — rights protected under Treaty 8.

The West Moberly have previously warned it believes Site C constitutes a $1 billion treaty violation.

​In 2018, the First Nations lost a bid for an injunction order, meaning construction of the dam is continuing despite warnings that delays could cost $600 million to the project.

First Nations 'deeply frustrated' after B.C. Supreme Court dismisses Site C injunction

The judge in the case said the ruling was made because if the First Nations lost the challenge, the project would be needlessly put into disarray.

Province, Nations enter talks to avoid litigation

Also this week the B.C. government announced it has entered into talks with BC Hydro and the two First Nations in an attempt to avoid the court process altogether, amid broader energy debates such as bridging the Alberta-B.C. electricity gap for climate goals.

Thielmann said the details of the talk are confidential, but his clients are willing to pursue all avenues in order to stop the dam from moving forward.

"They are trying to save what little is left [of the Peace River Valley]", he said.

Tim Thielmann of Sage Legal is representing the West Moberly First Nation in its lawsuit aimed at stopping Site C. (Sage Legal)

In the meantime, the parties will continue to prepare for the 2022 court dates.

The latest figure on the cost of the dam is $10.7 billion, in a billions-over-budget project that the premier says will proceed. When complete, it would power the equivalent of 450,000 homes a year, though use of Site C's electricity remains a point of debate.

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European Power Crisis intensifies as record electricity prices, nuclear output cuts, gas supply strain, heatwave drought, and Rhine shipping bottlenecks hit Germany, France, and Switzerland, tightening winter storage and driving long-term contracts higher.

Key Points

A surge in European power prices from heatwaves, nuclear curbs, Rhine coal limits, and reduced Russian gas supply.

✅ Record year-ahead prices in Germany and France

✅ Nuclear output curbed by warm river cooling limits

✅ Rhine low water disrupts coal logistics and generation

Benchmark power prices in Europe hit fresh records Friday as utilities are increasingly reducing electricity output in western Europe because of the hot weather. 

Next-year contracts in Germany and France, Europe’s biggest economies rose to new highs after Switzerland’s Axpo Holding AG announced curbs at one of its nuclear plants. Electricite de France SA is also reducing nuclear output because of high river temperatures and cooling water restrictions, while Uniper SE in Germany is struggling to get enough coal up the river Rhine. 

Europe is suffering its worst energy crunch in decades, and losing nuclear power is compounding the strain as gas cuts made by Russia in retaliation for sanctions drive a surge in prices. The extreme heat led to the driest July on record in France and is underscoring the impact that a warming climate is having on vital infrastructure.

Water levels on Germany’s Rhine have fallen so low that the river may effectively close soon, impacting supplies of coal to the plants next to it. The Rhone and Garonne in France and the Aare in Switzerland are all too warm to be used to cool nuclear plants effectively, forcing operators to limit energy output under environmental constraints. 

Northwest European weather forecast for the next two weeks:
relates to European Power Hits Records as Plants Start to Buckle in Heat
  
The German year-ahead contract gained as much as 2% to 413 euros a megawatt-hour on the European Energy Exchange AG. The French equivalent rose 1.9% to a record 535 euros. Long-term prices are coming under pressure because producing less power from nuclear and coal will increase the demand for natural gas, which is badly needed to fill storage sites ahead of the winter.  

France to Curb Nuclear Output as Europe’s Energy Crisis Worsens
Uniper SE said on Thursday that two of its coal-fired stations along the Rhine may need to curb output during the next few weeks as transporting coal along the Rhine becomes impossible. 

Plants on the river near Mannheim and Karlsruhe, operated by Grosskraftwerk Mannheim AG and EnBW AG, have previously struggled to source coal because of the shallow water, even as German renewables deliver more electricity than coal and nuclear at times. Both companies said generation hasn’t been affected yet. 

“The low tide is not currently affecting our generation of energy because our plants do not have the need for continuous fresh water,” a Steag GmbH spokesman said on Friday. “But the low tide level can make running plants and transporting coal more complicated than usual.”

The spokesman said though that there is slight reduction in output of about 10 to 15 megawatts, which would equate to a few percent, because of the hot temperatures. “This has been happening over some time now and is a problem for everyone because the plant system is not designed to withstand such hot temperatures,” he said.

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Site C Dam Controversy highlights Peace River risks, BC Hydro claims, Indigenous rights under Treaty 8, environmental assessment findings, and potential impacts to agriculture and the Peace-Athabasca Delta across Alberta and the Northwest Territories.

Key Points

Debate over BC Hydro's Site C dam: clean energy vs Indigenous rights, Peace-Athabasca Delta impacts, and agriculture.

✅ Potential drying of Peace-Athabasca Delta and wildlife habitat

✅ Treaty 8 rights and First Nations legal challenges

✅ Loss of prime Peace Valley farmland; alternatives in renewables

One of the leading opponents of the Site C dam in northeastern B.C. is sharing her concerns with northerners this week.

Proponents of the Site C dam say it will be a cost-effective source of clean electricity, even as a major Alberta wind farm was scrapped elsewhere in Canada, and that it will be able to produce enough energy to power the equivalent of 450,000 homes per year in B.C. But a number of Indigenous groups and environmentalists are against the project.

Wendy Holm is an economist and agronomist who did an environmental assessment of the dam focusing on its potential impacts on agriculture.

On Tuesday she spoke at a town hall presentation in Fort Smith, N.W.T., organized by the Slave River Coalition. She is also speaking at an event in Yellowknife on Friday, as small modular reactors in Yukon receive study as a potential long-term option.

Worried about downstream impacts, Northern leaders urge action on Site C dam

"I learned that people outside of British Columbia are as concerned with this dam as we are," Holm said.

"There's just a lot of concern with what's happening on the Peace River and this dam and the implications for Alberta, where hydro's share has diminished in recent decades, and the Northwest Territories."

If completed, BC Hydro's Site C energy project will be the third dam on the Peace River in northeast B.C. and the largest public works project in B.C. history. The $10.7-billion project was approved by both the provincial and federal governments as B.C. moves to streamline clean energy permitting for future projects.

Amy Lusk, co-ordinator of the Slave River Coalition, said many issues were discussed at the town hall, but she also left with a sense of hope.

"I think sometimes in our little corner of the world, we are up against so much when it comes to industrial development and threats to our water," she said.

"To kind of take away that message of, this is not a done deal, and that we do have a few options in place to try and stop this and not to lose hope, I think was a very important message for the community."

Drying of the Peace-Athabasca Delta

Holm said her main concern for the Northwest Territories is how it could affect the Peace-Athabasca Delta. She said the two dams already on the river are responsible for two-thirds of the drying that's happening in the delta.

"These are very real issues and very present in the minds of northerners who want to stay connected to a traditional lifestyle, want to have access to those wild foods," she said.

Lusk said northerners are fed up with defending waters "time after time after time."

BC Hydro, however, said studies commissioned during the environmental assessment of Site C show the project will have no measurable effect on the delta, which is located 1,100 kilometres away.

Holm said the fight against the Site C dam is also important when it comes to First Nations treaty rights.

The West Moberly and Prophet River First Nations applied for an injunction to halt construction on Site C, as well as a treaty infringement lawsuit against the B.C. government. They argue the dam would cause irreparable harm to their territories and way of life, which are rights protected under Treaty 8.

Agricultural land

While the project is located in B.C., Holm said its impacts on prime horticulture land would also affect northerners, something that's important given issues of food security and nutrition.

"This is some of the best agriculture land in all of Canada," she said of the Peace Valley.

According to BC Hydro, around 2.6 million hectares of land in the Peace agricultural region would remain available for agricultural production while 3,800 hectares would be unavailable. It has also proposed a number of mitigation efforts, including a $20-million agricultural compensation fund.

Holm said renewable energy, including tidal energy for remote communities, will be cheaper and less destructive than the dam, and there's a connection between the dams on the Peace River and water sharing with the U.S.

"When you run out of water there's nothing else you can use. You can't use orange juice to irrigate your fields or to run your industries or to power your homes," she said.

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