Being down in the dumps can pay dividends

By Globe and Mail


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Most Members of Parliament arrive in Ottawa with a pet project. For Bob Mills, who was part of the original Reform Party wave of 1993, it was all about garbage.

Throughout his career, he and his wife Nicole have traveled the globe researching ways to turn garbage into clean energy.

Now, on the eve of his political retirement, the affable Conservative MP from Red Deer, Alta., has won a small victory.

When the government released its detailed framework for regulating industrial greenhouse-gas emissions, it also announced that environmental projects would be able to earn carbon credits. Those credits could then be sold to companies who need them to comply with the regulations.

In time, the government's move will open up an entirely new market in the country for individuals, businesses or municipalities to make money by reducing emissions.

These projects could include large tree-planting operations or new solar power plants. But prominent among the government's examples of qualifying projects are efforts to turn garbage into clean electricity - the very subject of the Mills' obsession.

"I think he was quite excited about it," said Nicole Mills, who started touring the world's dumps with her husband 28 years ago, studying each new twist in the emerging technology. "He's been working on this for years and years and flippin' years."

A pilot gasification plant has been built in Ottawa that uses extreme heat to break down garbage into a clean gas that is then used to create electricity in a similar way to natural gas. The technology is seen as a low-emission option to avoid landfills and produce electricity without mining fossil fuels.

The company behind the project has plans to build another in the Mills' hometown of Red Deer. The MP hopes the extra carbon credit incentive will see traditional landfills become a thing of the past.

"Our biggest city dumps its garbage in a landfill, when they should be gasifying it and producing electricity," Mr. Mills said.

"It's sort of like when we talk about Canada and dumping raw sewage into the ocean and everybody just shudders that an industrialized country would do that. I think garbage is the same. Putting it in a landfill, where it can seep into your aquifers and release into your air, is just as bad as dumping sewage into an ocean or a river."

Mr. Mills announced this month that he won't run in the next election, bringing an end to a 15-year political career. As the environment critic for the Official Opposition from 2001 to 2006, Mr. Mills took a lot of heat for criticizing the Kyoto Protocol on greenhouse gases. Mr. Mills insisted throughout that he believed global warming was a serious issue, but felt Kyoto was too flawed to make a difference.

Environmentalist Aaron Freeman, a long-time follower of the House of Commons environment committee that Mr. Mills now chairs, said the MP's collaborative style has earned him the respect of those who may disagree with his political views.

"He's certainly one of the most enlightened MPs in the caucus on the environment and has been for a long time," Mr. Freeman said. "He was always operating out of a place of integrity. I had all kinds of disagreements with his views, but I never questioned that he was operating out of principle."

As for the Mills' foreign travels, the couple has visited dump sites throughout North America as well as Denmark, Spain and a quick tour last Christmas while in Maui.

"She puts up with it because she gets to go somewhere different," Mr. Mills said. "Denmark was the worst, because I promised her that the shopping would be interesting and we never got back to our hotel before nine o'clock any night ... So yeah, she's a long-suffering garbage tour person."

Interviewed later by phone, Ms. Mills acknowledged she now shares her husband's excitement in the possibilities of garbage - but the first visits were a challenge.

"The odours would get to you and it was pretty bad," she said. "But in the last few years that we've been doing this - when we were in Barcelona for instance and we went to the landfill site there - well I mean, it was so clean that there was little if any odour. And that to me is what was the most amazing of all of the garbage facilities that we've gone to see."

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New England Emergency fuel stock to cost millions

Inventoried Energy Program pays ISO-NE generators for fuel security to boost winter reliability, with FERC approval, covering fossil, nuclear, hydropower, and batteries, complementing capacity markets to enhance grid resilience during severe cold snaps.

 

Key Points

ISO-NE program paying generators to hold fuel or energy reserves for emergencies, boosting winter reliability.

✅ FERC-approved stopgap for 2023 and 2024 winter seasons

✅ Pays for on-site fuel or stored energy during cold-trigger events

✅ Open to fossil, nuclear, hydro, batteries; limited gas participation

 

Electricity ratepayers in New England will pay tens of millions of dollars to fossil fuel and nuclear power plants later this decade under a program that proponents say is needed to keep the lights on during severe winters but which critics call a subsidy with little benefit to consumers or the grid, even as Connecticut is pushing a market overhaul across the region.

Last week the Federal Energy Regulatory Commission said ISO-New England, which runs the six-state power grid, can create what it calls the Inventoried Energy Program or IEP. This basically will pay certain power plants to stockpile of fuel for use in emergencies during two upcoming winters as longer-term solutions are developed.

The federal commission called it a reasonable short-term solution to avoid brownouts which doesn’t favor any given technology.

Not all agree, however, including FERC Commissioner Richard Glick, who wrote a fiery dissent to the other three commissioners.

“The program will hand out tens of millions of dollars to nuclear, coal and hydropower generators without any indication that those payments will cause the slightest change in those generators’ behavior,” Glick wrote. “Handing out money for nothing is a windfall, not a just and reasonable rate.”

The program is the latest reaction by ISO-NE to the winter of 2013-14 when New England almost saw brownouts because of a shortage of natural gas to create electricity during a pair of week-long deep freezes.

ISO-New England says the situation is more critical now because of the possible retirement of the gas-fired Mystic Generating Station in Massachusetts. As with closed nuclear plants such as Vermont Yankee and Pilgrim in Massachusetts, power plant owners say lower electricity prices, partly due to cheap renewables and partly to stagnant demand, means they can’t be profitable just by selling power.

Programs like the IEP are meant to subsidize such plants – “incentivize” is the industry term – even though some argue there is no need to subsidize nuclear in deregulated markets so they’ll stay open if they are needed.

The IEP approved last week will be applied to the winters of 2023 and 2024, after a different subsidy program expires. It sets prices, despite warnings about rushing pricing changes from industry groups, for stocking certain amounts of fuel and payments during any “trigger” event, defined as a day when the average of high and low temperatures at Bradley International Airport in Connecticut is no more than 17 degrees Fahrenheit.

These payments will be made on top of a complex system of grid auctions used to decide how much various plants get paid for generating electricity at which times.

ISO-NE estimates the new program will cost between $102 million and $148 million each winter, depending on weather and market conditions.

It says the payments are open to plants that burn oil, coal, nuclear fuel, wood chips or trash; utility-scale battery storage facilities; and hydropower dams “that store water in a pond or reservoir.” Natural gas plants can participate if they guarantee to have fuel available, but that seems less likely because of winter heating contracts.

A major complaint and groups that filed petitions opposing the project is that ISO-NE presented little supporting evidence of how prices, amount and overall cost were determined. ISO-NE argued that there wasn’t time for such analysis before the Mystic shutdown, and FERC agreed.

“The proposal is a step in the right direction … while ISO-NE finishes developing a long-term market solution,” the commission said in its ruling.

The program is the latest example of complexities facing the nation’s electricity system evolves in the face of solar and wind power, which produce electricity so cheaply that they can render traditional power uneconomic but which can’t always produce power on demand, prompting discussions of Texas grid improvements among policymakers. Another major factor is climate change, which has increased the pressure to support renewable alternatives to plants that burn fossil fuels, as well as stagnant electricity demand caused by increased efficiency.

Opponents, including many environmental groups, say electricity utilities and regulators are too quick to prop up existing systems, as the 145-mile Maine transmission line debate shows, built when electricity was sent one way from a few big plants to many customers. They argue that to combat climate change as well as limit cost, the emphasis must be on developing “non-wire alternatives” such as smart systems for controlling demand, in order to take advantage of the current system in which electricity goes two ways, such as from rooftop solar back into the grid.

 

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Ontario Teachers' Plan Acquires Brazilian Electricity Transmission Firm Evoltz

Ontario Teachers' Evoltz Acquisition expands electricity transmission in Brazil, adding seven grid lines across ten states, aligning infrastructure strategy with inflation-linked cash flows, renewable energy integration, Latin America and net-zero objectives pending regulatory approvals.

 

Key Points

A 100% purchase of Brazil's Evoltz, adding seven grid lines and delivering stable, inflation-linked cash flows.

✅ 100% stake in Evoltz with seven transmission lines

✅ Aligns with net-zero and renewable energy strategy

✅ Inflation-linked, core infrastructure cash flows in Brazil

 

The Ontario Teachers’ Pension Plan has acquired Evoltz Participações, an electricity transmission firm in Brazil, from US asset manager TPG. 

The retirement system took a 100% stake in the energy firm, Ontario Teachers’ said Monday. The acquisition has netted the pension fund seven electricity transmission lines that service consumers and businesses across 10 states in Brazil, amid dynamics similar to electricity rate reductions for businesses seen in Ontario. The firm was founded by TPG just three years ago. 

“Our strategy focuses on allocating significant capital to high-quality core infrastructure assets with lower risks and stable inflation-linked cash flows,” Dale Burgess, senior managing director of infrastructure and natural resources at Ontario Teachers, said in a statement. “Electricity transmission businesses are particularly attractive given their importance in facilitating a transition to a low-carbon economy.” 

The pension fund has invested in other electricity distribution companies recently. In March, Ontario Teachers’ took a 40% stake in Finland’s Caruna, and agreed to acquire a 25% stake in SSEN Transmission in the UK grid. For more than a decade, it has maintained a 50% stake in Chile-based transmission firm Saesa. 

The investment into Evoltz demonstrates Ontario Teachers’ growing portfolio in Brazil and Latin America, while activity in Ontario such as the Peterborough Distribution sale reflects ongoing utility consolidation. In 2016, the firm, with the Canada Pension Plan Investment Board (CPPIB), invested in toll roads in Mexico. They took a 49% stake with Latin American infrastructure group IDEAL. 

Evoltz, which delivers renewable energy, will also help decarbonize the pension fund’s portfolio. In January, the fund pledged to reach net-zero carbon emissions by 2050. Last year, Ontario Teachers’ issued its first green bond offering. The $890 million 10-year bond will help the retirement system fund sustainable investments aligned with policy measures like Ontario's subsidized hydro plan during COVID-19. 

However, Ontario Teachers’ has also received criticism for its investment into parts of Abu Dhabi’s gas pipeline network, and investor concerns about Hydro One highlight sector uncertainties. Last summer, it joined other institutional investors in investing $10.1 billion for a 49% stake. 

As of December, Ontario Teachers’ reached a portfolio with C$221.2 billion (US$182.5 billion) in assets. Since 1990, the fund has maintained a 9.6% annualized return. Last year, it missed its benchmark with an 8.6% return, with examples such as Hydro One shares fall after shake-up underscoring market volatility.

The pension fund expects the deal will close later this fall, pending closing conditions and regulatory approvals, including decisions such as the OEB combined T&D rates ruling that shape utility economics. 

 

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Louisiana power grid needs 'complete rebuild' after Hurricane Laura, restoration to take weeks

Louisiana Grid Rebuild After Hurricane Laura will overhaul transmission lines and distribution networks in Lake Charles, as Entergy restores power after catastrophic outages, replacing poles, transformers, and spans to stabilize critical electric infrastructure.

 

Key Points

Entergy's project replacing transmission and distribution in Lake Charles to restore power after the Cat 4 storm

✅ 1,000+ transmission structures and 6,637 poles damaged

✅ Entergy targets first energized line into Lake Charles in 2 weeks

✅ Full rebuild of Calcasieu and Cameron lines will take weeks

 

The main power utility for southwest Louisiana will need to "rebuild" the region's grid after Hurricane Laura blasted the region with 150 mph winds last week, top officials said.

The Category 4 hurricane made landfall last Thursday just south of Lake Charles near Cameron, damaging or destroying thousands of electric poles as well as leaving "catastrophic damages" to the transmission system for southwest Louisiana, similar to impacts seen during Typhoon Mangkhut outages in Hong Kong that left many without electricity.

“This is not a restoration," Entergy Louisiana president and CEO Phillip May said in a statement. "It’s almost a complete rebuild of our transmission and distribution system that serves Calcasieu and Cameron parishes.”

According to Entergy, all nine transmission lines that deliver power into the Lake Charles area are currently out service due to storm damage to multiple structures and spans of wire.

The transmission system is a critical component in the delivery of power to customers’ homes, and failures at substations can trigger large outages, as seen in Los Angeles station fire outage reported recently, according to the company.

Of those structures impacted, many were damaged "beyond repair" and require complete replacement.

Broken electrical poles are seen in Holly Beach, La., in the aftermath of Hurricane Laura, Saturday, Aug. 29, 2020. (AP Photo/Gerald Herbert)

Entergy said the damage in southwest Louisiana includes 1,000 transmission structures, 6,637 broken poles, 2,926 transformers and 338 miles of downed distribution wire, highlighting why proactive reliability investments in Hamilton are being pursued by other utilities.

Some 8,300 workers are now in the area working to rebuild the transmission lines, but Entergy said that it will be about two to three weeks before power is available to customers in the Lake Charles area, a timeline similar to Tennessee outages after severe storms reported recently in other states.

"Restoring power will take longer to customers in inaccessible areas of the region," the company said. "While not impacting the expected restoration of service to residential customers, initial estimates are it will take weeks to rebuild all transmission lines in Calcasieu and Cameron parishes."

Entergy Louisiana expects to energize the first of its transmission lines into Lake Charles in two weeks.

“We understand going without power for this extended period will be challenging, and this is not the news customers want to hear. But we have thousands of workers dedicated to rebuilding our grid as quickly as they safely can to return some normalcy to our customers’ lives,” May said.

According to power outage tracking website poweroutage.us, over 164,000 customers remain without service in Louisiana as of Thursday morning, while a Carolinas outage update shows hundreds of thousands affected there as well.

On Wednesday, the Edison Electric Institute, the association of investor-owned electric companies in the U.S., said in a statement to FOX Business that electricity has been restored to approximately 737,000 customers, or 75% of those impacted by the storm across Louisiana, eastern Texas, Mississippi, and Arkansas, even as utilities adapt to climate change to improve resilience.

At least 29,000 workers from 29 states, the District of Columbia and Canada are working to restore power in the region, according to the Electricity Subsector Coordinating Council (ESCC), which is coordinating efforts from government and power industry.

“The transmission loss in Louisiana is significant, with more than 1,000 transmission structures damaged or destroyed by the storm," Department of Energy (DOE) Deputy Secretary Mark Menezes said in a statement. Rebuilding the transmission system is essential to the overall restoration effort and will take weeks given the massive scale and complexity of the work. We will continue to coordinate closely to ensure the full capabilities of the industry and government are marshaled to rebuild this critical infrastructure as quickly as possible.” 

At least 17 deaths in Louisiana have been attributed to the storm; more than half of those killed by carbon monoxide poisoning from the unsafe operation of generators, and residents are urged to follow generator safety tips to reduce these risks. Two additional deaths were verified on Wednesday in Beauregard Parish, which health officials said were due to heat-related illness following the storm.

 

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18% of electricity generated in Canada in 2019 came from fossil fuels

EV Decarbonization Strategy weighs life-cycle emissions and climate targets, highlighting mode shift to public transit, cycling, and walking, grid decarbonization, renewable energy, and charging infrastructure to cut greenhouse gases while reducing private car dependence.

 

Key Points

A plan to cut transport emissions by pairing EV adoption with mode shift, clean power, and less private car use.

✅ Prioritize mode shift: transit, cycling, and walking.

✅ Electrify remaining vehicles with clean, renewable power.

✅ Expand charging, improve batteries, and manage critical minerals.

 

California recently announced that it plans to ban the sales of gas-powered vehicles by 2035, a move similar to a 2035 electric vehicle mandate seen elsewhere, Ontario has invested $500 million in the production of electric vehicles (EVs) and Tesla is quickly becoming the world's highest-valued car company.

It almost seems like owning an electric vehicle is a silver bullet in the fight against climate change, but it isn't, as a U of T study explains today. What we should also be focused on is whether anyone should use a private vehicle at all.
 
As a researcher in sustainable mobility, I know this answer is unsatisfying. But this is where my latest research has led.

Battery EVs, such as the Tesla Model 3 - the best selling EV in Canada in 2020 - have no tailpipe emissions. But they do have higher production and manufacturing emissions than conventional vehicles, and often run on electricity that comes from fossil fuels.

Almost 18 per cent of the electricity generated in Canada came from fossil fuels in 2019, and even as Canada's EV goals grow more ambitious today, the grid mix varies from zero in Quebec to 90 per cent in Alberta.
 
Researchers like me compare the greenhouse gas emissions of an alternative vehicle, such as an EV, with those of a conventional vehicle over a vehicle lifetime, an exercise known as a life-cycle assessment. For example, a Tesla Model 3 compared with a Toyota Corolla can provide up to 75 per cent reduction in greenhouse gases emitted per kilometre travelled in Quebec, but no reductions in Alberta.

 

Hundreds of millions of new cars

To avoid extreme and irreversible impacts on ecosystems, communities and the overall global economy, we must keep the increase in global average temperatures to less than 2 C - and ideally 1.5 C - above pre-industrial levels by the year 2100.

We can translate these climate change targets into actionable plans. First, we estimate greenhouse gas emissions budgets using energy and climate models for each sector of the economy and for each country. Then we simulate future emissions, taking alternative technologies into account, as well as future potential economic and societal developments.

I looked at the U.S. passenger vehicle fleet, which adds up to about 260 million vehicles, while noting the potential for Canada-U.S. collaboration in this transition, to answer a simple question: Could the greenhouse gas emissions from the sector be brought in line with climate targets by replacing gasoline-powered vehicles with EVs?

The results were shocking. Assuming no changes to travel behaviours and a decarbonization of 80 per cent of electricity, meeting a 2 C target could require up to 300 million EVs, or 90 per cent of the projected U.S. fleet, by 2050. That would require all new purchased vehicles to be electric from 2035 onwards.

To put that into perspective, there are currently 880,000 EVs in the U.S., or 0.3 per cent of the fleet. Even the most optimistic projections, despite hype about an electric-car revolution gaining steam, from the International Energy Agency suggest that the U.S. fleet will only be at about 50 per cent electrified by 2050.

 

Massive and rapid electrification

Still, 90 per cent is theoretically possible, isn't it? Probably, but is it desirable?

In order to hit that target, we'd need to very rapidly overcome all the challenges associated with EV adoption, such as range anxiety, the higher purchase cost and availability of charging infrastructure.
 
A rapid pace of electrification would severely challenge the electricity infrastructure and the supply chain of many critical materials for the batteries, such as lithium, manganese and cobalt. It would require vast capacity of renewable energy sources and transmission lines, widespread charging infrastructure, a co-ordination between two historically distinct sectors (electricity and transportation systems) and rapid innovations in electric battery technologies. I am not saying it's impossible, but I believe it's unlikely.

Read more: There aren't enough batteries to electrify all cars - focus on trucks and buses instead

So what? Shall we give up, accept our collective fate and stop our efforts at electrification?

On the contrary, I think we should re-examine our priorities and dare to ask an even more critical question: Do we need that many vehicles on the road?

 

Buses, trains and bikes

Simply put, there are three ways to reduce greenhouse gas emissions from passenger transport: avoid the need to travel, shift the transportation modes or improve the technologies. EVs only tackle one side of the problem, the technological one.

And while EVs do decrease emissions compared with conventional vehicles, we should be comparing them to buses, including leading electric bus fleets in North America, trains and bikes. When we do, their potential to reduce greenhouse gas emissions disappears because of their life cycle emissions and the limited number of people they carry at one time.

If we truly want to solve our climate problems, we need to deploy EVs along with other measures, such as public transit and active mobility. This fact is critical, especially given the recent decreases in public transit ridership in the U.S., mostly due to increasing vehicle ownership, low gasoline prices and the advent of ride-hailing (Uber, Lyft)

Governments need to massively invest in public transit, cycling and walking infrastructure to make them larger, safer and more reliable, rather than expanding EV subsidies alone. And we need to reassess our transportation needs and priorities.

The road to decarbonization is long and winding. But if we are willing to get out of our cars and take a shortcut through the forest, we might get there a lot faster.

Author: Alexandre Milovanoff - Postdoctoral Researcher, Environmental Engineering, University of Toronto The Conversation

 

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"Everything Electric" Returns to Vancouver

Everything Electric Vancouver spotlights EV innovation, electric vehicles, charging infrastructure, battery technology, autonomous driving, and sustainability, with test drives, consumer education, and incentives accelerating mainstream adoption and shaping the future of clean transportation.

 

Key Points

Everything Electric Vancouver is a premier EV expo for vehicles, charging tech, and clean mobility solutions.

✅ New EV models: better range, battery tech, autonomous features

✅ Focus on charging networks: ultra-fast and home solutions

✅ Consumer education: test drives, incentives, ownership costs

 

Vancouver has once again become the epicenter of electric vehicle (EV) innovation with the return of the "Everything Electric" event. This prominent showcase, as reported by Driving.ca, highlights the accelerating shift towards electric mobility, echoing momentum seen at the Quebec Electric Vehicle Show and the growing role of EVs in shaping the future of transportation. The event, held at the Vancouver Convention Centre, provided a comprehensive look at the latest advancements in electric vehicles, infrastructure, and technologies, drawing attention from industry experts, enthusiasts, and consumers alike.

A Showcase of Electric Mobility

"Everything Electric" has established itself as a key platform for unveiling new electric vehicles and technologies. This year’s event was no exception, featuring a diverse range of electric vehicles from leading manufacturers. Attendees had the opportunity to explore a wide array of models, from sleek sports cars and luxury sedans to practical SUVs and compact city cars. The showcase underscored the significant progress in EV design, performance, and affordability, reflecting a broader trend towards mainstream adoption of electric mobility.

One of the highlights of this year’s event was the unveiling of several cutting-edge electric models. Automakers used the platform to debut their latest innovations, including enhanced battery technologies, improved range capabilities, and advanced autonomous driving features. This not only demonstrated the rapid evolution of electric vehicles but also underscored the commitment of the automotive industry to addressing environmental concerns and meeting consumer demands for sustainable transportation solutions.

Expanding Charging Infrastructure

Beyond showcasing vehicles, "Everything Electric" also emphasized the critical role of charging infrastructure in supporting the growth of electric mobility. The event featured exhibits on the latest developments in charging technology, including ultra-fast chargers, innovative home charging solutions, and corridor networks such as B.C.'s Electric Highway that connect communities. With the increasing number of electric vehicles on the road, expanding and improving charging infrastructure is essential for ensuring convenience and reducing range anxiety among EV owners.

Industry experts and policymakers discussed strategies for accelerating the deployment of charging stations and integrating them into urban planning, while considering the B.C. Hydro bottleneck projections as demand grows. The event highlighted initiatives aimed at expanding public charging networks, particularly in underserved areas, and improving the overall user experience. As electric vehicles become more prevalent, the development of a robust and accessible charging infrastructure will be crucial for supporting their widespread adoption.

Driving Innovation and Sustainability

"Everything Electric" also served as a platform for discussions on the broader impact of electric vehicles on sustainability and innovation. Panels and presentations explored topics such as the environmental benefits of reducing greenhouse gas emissions, the role of renewable energy in powering EVs, insights from the evolution of U.S. EV charging infrastructure, and advancements in battery recycling and second-life applications. The event underscored the interconnected nature of electric mobility and sustainability, highlighting how innovations in one area can drive progress in others.

The emphasis on sustainability was evident throughout the event, with many exhibitors showcasing eco-friendly technologies and practices. From energy-efficient manufacturing processes to sustainable materials used in vehicle interiors, the event highlighted the automotive industry's efforts to reduce its environmental footprint and contribute to a more sustainable future.

Consumer Engagement and Education

A key aspect of "Everything Electric" was its focus on consumer engagement and education. The event offered test drives and interactive demonstrations, mirroring interest at the Regina EV event as well, allowing attendees to experience firsthand the benefits and performance of electric vehicles. This hands-on approach helped demystify electric mobility for many consumers and provided valuable insights into the practical aspects of owning and operating an EV.

In addition to vehicle demonstrations, the event featured workshops and informational sessions on topics such as EV financing, government incentives, and the benefits of transitioning to electric vehicles, reflecting how EVs in southern Alberta are a growing topic today. These educational opportunities were designed to empower consumers with the knowledge they need to make informed decisions about adopting electric mobility.

Looking Ahead

The successful return of "Everything Electric" to Vancouver highlights the growing importance of electric vehicles in the automotive landscape. As the event demonstrated, the electric vehicle market is rapidly evolving, with new technologies and innovations driving progress towards a more sustainable future. The increased focus on charging infrastructure, sustainability, and consumer education reflects a comprehensive approach to supporting the transition to electric mobility, exemplified by B.C.'s charging expansion across the province.

As Canada continues to advance its climate goals and promote sustainable transportation, events like "Everything Electric" play a crucial role in showcasing the possibilities and driving forward the adoption of electric vehicles. With ongoing advancements and increased consumer interest, the future of electric mobility in Vancouver and beyond looks increasingly promising.

 

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U.S. Ends Support for Ukraine’s Energy Grid Restoration

US Termination of Ukraine Energy Grid Support signals a policy shift: USAID halts aid for grid restoration amid Russia attacks, impacting energy security, infrastructure resilience, winter readiness, and negotiations leverage with Moscow and allies.

 

Key Points

A US policy reversal ending USAID support for Ukraine's grid, impacting energy security, resilience, and leverage.

✅ USAID halt reduces funds for grid restoration and winter prep

✅ Policy shift may weaken Kyiv's leverage in talks with Russia

✅ Ukraine seeks EU, IFIs, private capital for energy resilience

 

The U.S. government has recently decided to terminate its support for Ukraine's energy grid restoration, a critical initiative managed by the U.S. Agency for International Development (USAID). This decision, reported by NBC News, comes at a time when Ukraine is grappling with significant challenges to its energy infrastructure due to ongoing Russian attacks. The termination of support was reportedly finalized before Ukrainian President Volodymyr Zelensky's scheduled visit to Washington, marking a significant shift in U.S. policy and raising concerns about the broader implications for Ukraine's energy resilience and its negotiations with Russia.

The Critical Role of U.S. Support

Since Russia's invasion of Ukraine, the country’s energy infrastructure has been one of the primary targets of military strikes. Russia has launched numerous attacks on Ukraine's power generation facilities, substations, and power lines, causing power outages across multiple regions. These attacks have led to significant material losses, with damage reaching billions of dollars. As part of its commitment to Ukraine, the U.S. government, through USAID, had been instrumental in funding restoration efforts aimed at rebuilding and reinforcing Ukraine’s energy grid.

USAID's support was crucial in helping Ukraine withstand the damage inflicted by Russian missile strikes. This aid was not just about restoring basic services but also about fortifying the energy grid to ensure that Ukraine could continue functioning amidst the war and keep the lights on this winter as temperatures drop. The U.S. contribution to Ukraine's energy sector, alongside international support, helped reduce the immediate vulnerabilities faced by Ukraine's civilians and industries.

The Abrupt Change in U.S. Policy

The decision to cut support for energy grid restoration is seen as a sharp reversal in U.S. policy, particularly as the Biden administration has previously shown strong backing for Ukraine in the aftermath of the invasion. This shift in policy was reportedly made by the U.S. State Department, which directed USAID to halt its involvement in the energy sector.

According to NBC News, USAID officials expressed concern about the timing of this decision. One official noted that terminating support for Ukraine’s energy grid restoration would severely undermine the U.S. government's ability to negotiate on issues like ceasefires and peace talks with Russia. The official argued that such a move would signal to Russia that the U.S. is backing away from its long-term investments in Ukraine, potentially weakening Ukraine's position in the ongoing war.

The abrupt end to this support is also seen as a blow to the morale of Ukraine’s government and people. Ukraine had been heavily reliant on the U.S. for resources to repair its critical infrastructure, and the decision to cut this support without warning has created uncertainty about the future of such recovery efforts.

Ukraine’s Response and Search for Alternatives

In response to the termination of U.S. support, Ukrainian officials have been seeking alternative sources of funding to continue the restoration of their energy grid. Deputy Prime Minister Olha Stefanishyna reported that Ukraine has already reached preliminary agreements with other international partners to secure financial support for energy resilience, cyber defense, and recovery programs including new energy solutions for winter blackouts.

These efforts come at a time when Ukraine is working to rebuild its war-torn economy and safeguard critical sectors like energy and infrastructure. The termination of U.S. support for energy restoration projects underscores the growing pressure on Ukraine to diversify its sources of aid and not become overly dependent on any one nation. Ukrainian leaders are in ongoing talks with European governments, international financial institutions, and private investors to ensure that essential programs do not stall due to the lack of funding from the U.S., as energy cooperation grows and Ukraine helps Spain amid blackouts in solidarity.

Implications for Ukraine’s Energy Security

Ukraine's energy security remains a critical issue in the context of the ongoing conflict with Russia. The war has made the country’s energy infrastructure vulnerable to repeated attacks, and the restoration of this infrastructure is essential for ensuring that Ukraine can keep the lights on and recover in the long term. The U.S. has been one of the largest contributors to Ukraine's energy security efforts, and its withdrawal could force Ukraine to look for other partners who may not have the same level of financial or technological resources.

This development also raises questions about the future of U.S. involvement in Ukraine's recovery efforts more broadly. As the war continues and winter looms over the battlefront for frontline communities, the need for reliable and sustained support from international partners will only increase. If the U.S. significantly scales back its aid, Ukraine may face even greater challenges in maintaining its energy infrastructure and achieving long-term recovery.

Moving Forward

The termination of U.S. support for Ukraine’s energy grid restoration serves as a reminder of the complexities involved in international aid and geopolitics during wartime. As Ukraine faces the ongoing realities of the war, it must adapt to a shifting international landscape where traditional allies may not always be reliable sources of support. Ukraine’s leadership will need to be strategic in its search for alternative sources of aid, while also focusing on strengthening its energy grid, managing electricity reserves to stabilize supply, and reducing its vulnerabilities to Russian attacks.

While the end of U.S. support for Ukraine's energy restoration is a significant setback, it also underscores the urgent need for Ukraine to diversify its international partnerships. The future of Ukraine’s energy resilience may depend on how effectively it can navigate these changing dynamics while maintaining the support of the international community in the fight against Russian aggression.

 

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