Safety concerns raised about Pickering B plant

Alberta Energy-Only Electricity Market faces capacity market debate, AESO price cap review, and coal-to-gas shifts by TransAlta and Capital Power, balancing reliability with volatility as investment signals evolve across Alberta's grid.

Key Points

An energy market paying generators only for electricity sold, with AESO oversight and a price cap guiding new capacity.

✅ AESO reviewing $999 per MW-h wholesale price cap.

✅ UCP retained energy-only; capacity market plan cancelled.

✅ TransAlta and Capital Power shift to coal-to-gas.

The Kenney government’s decision to cancel the redesign of Alberta’s electricity system to a capacity market won’t side-track two of the province’s largest power generators from converting coal-fired facilities to burn natural gas as part of Alberta’s shift from coal to cleaner energy overall.

But other changes could be coming to the province’s existing energy-only electricity market — including the alteration of the $999 per megawatt-hour (MW-h) wholesale price cap in Alberta.

The heads of TransAlta Corp. and Capital Power Corp. are proceeding with strategies to convert existing coal-fired power generating facilities to use natural gas in the coming years.

Calgary-based TransAlta first announced in 2017 that it would make the switch, as the NDP government was in the midst of overhauling the electricity sector and wind generation began to outpace coal in the province.

At the time, the Notley government planned to phase out coal-fired power by 2030, even as Alberta moved to retire coal by 2023 in practice, and shift Alberta into an electricity capacity market in 2021.

Such a move, made on the recommendation of the Alberta Electric System Operator (AESO), was intended to reduce price volatility and ensure system reliability.

Under the energy-only market, generators receive payments for electricity produced and sold into the grid. In a capacity market, generators are also paid for having power available on demand, regardless of how often they sell energy into the provincial grid.

The UCP government decided last month to ditch plans for a capacity market after consulting with the sector, saying it would be better for consumers.

On a conference call, TransAlta CEO Dawn Farrell said the company will convert coal-fired generating plants to burn gas, although it may alter the mix between simple conversions and switching to so-called “hybrid” plants.

(A hybrid conversion is a larger and more-expensive switch, as it includes installing a new gas turbine and heat-recovery steam generator, but it creates a highly efficient combined cycle unit.)

“Our view is fundamentally that carbon will be priced over the next 20 years no matter what,” she said Friday.

“We cannot get off coal fast enough in this company, and gas right now in Alberta is extremely inexpensive…

“So our coal-to-gas strategy is completely predicated on our belief that it’s not smart to be in carbon-intensive fuels for the future.”

Elsewhere in Canada, the Stop the Shock campaign has advocated for reviving coal power, underscoring ongoing policy debates.

The company said it’s planning the coal-to-gas conversion and re-powering of some or all of the units at its Keephills and Sundance facilities to gas-fired generation sometime between 2020 and 2023.

Similarly, Capital Power CEO Brian Vaasjo said the Edmonton-based company is moving ahead with a project that will allow it to burn both coal and natural gas at its Genesee generating station, even as Ontario’s energy minister sought to explore a halt to natural gas generation elsewhere.

In June, the company announced it would spend an estimated $50 million between 2019 and 2021 to allow it to use gas at the facility.

“What we’re doing is going to be dual fuel, so we will be able to operate 100 per cent natural gas or 100 per cent coal and everything in between,” Vaasjo said in an interview.

“You can expect to see we will be burning coal in the winter when natural gas prices are high, and we will be burning natural gas in summer when gas prices are real low.”

The transition comes as the government’s decision to stick with the energy-only market has been welcomed by players in the industry, and as Alberta's electricity future increasingly leans on wind resources.

A study by electricity consultancy EDC Associates found the capacity market would result in consumers paying an extra $1.4 billion in direct costs in 2021-22, as it required more generation to come online earlier than expected.

These additional costs would have accumulated to $10 billion by 2030, said EDC chief executive Duane-Reid Carlson.

For Capital Power, the decision to stick with the current system makes the province more investable in the future. Vaasjo said there was great uncertainty about the transition to a capacity market, and the possibility of rules shifting further.

Officials with Enmax Corp. said the city-owned utility would not have invested in future generation under the proposed capacity market.

“There is no short-term need (today) for new generation, so we’re just looking at the market and saying, ‘OK, as it evolves, we will see what happens,’” said Enmax vice-president Tim Boston.

Sticking with the energy-only market doesn’t mean Alberta will keep the existing rules.

In a July 25 letter, Alberta Energy Minister Sonya Savage directed AESO chair Will Bridge to examine if changes to the existing market are needed and report back by July 2020.

AESO, which manages the power grid, has been asked to investigate whether the current price cap of $999 per megawatt-hour (MW-h) should be changed.

The price ceiling hasn’t been altered since the energy-only market was implemented by the Klein government about two decades ago.

While allowing prices to go higher would increase volatility, reflecting lessons from Europe’s power crisis about scarcity pricing, during periods of rising demand and limited supply, it would send a signal to generators when investment in new generation is required, said Kent Fellows, a research associate at the University of Calgary’s School of Public Policy.

“Keeping the price (cap) too low could end up costing us more in the long run,” he said.

In a 2016 report, AESO said the province examined raising the price cap to $5,000 per MW-h, but “determined that it was unlikely to be successful in attracting investment due to increased price volatility.”

However, the amount of future generation that will be required in Alberta has been scaled back by the province.

In the United States, the Electricity Reliability Council of Texas (ERCOT) allows wholesale power prices in the state to climb to a cap of $9,000 per megawatt hours as demand rises — as it did Tuesday in the midst of a heat wave, according to Bloomberg.

Jim Wachowich, legal counsel for the Consumers’ Coalition of Alberta, said while few players are exposed to spot electricity prices, he has yet to be convinced raising the cap would be good for Albertans.

“Someone has to show me the evidence, and I suspect that’s what the minister has asked the AESO to do,” he said.

Generators say they believe some tinkering is needed to the energy-only market to ensure new generation is built when it’s required.

“The No. 1 change that the government has to … think about is in pricing,” added Farrell.

“If you don’t have enough of a price signal in an energy-only market to attract new capital, you won’t get new capital — and you’ll run up against the wall.”

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Nordic Power Grid Dispute highlights cross-border interconnector congestion, curtailed exports and imports, hydropower priorities, winter demand spikes, rising spot prices, and transmission grid security amid decarbonization efforts across Sweden, Norway, Finland, and Denmark.

Key Points

A clash over interconnectors and capacity cuts reshaping trade, prices, and reliability in the Nordic power market.

✅ Sweden cuts interconnector capacity to protect grid stability

✅ Norway prioritizes higher-priced exports via new cables

✅ Finland and Denmark seek EU action on capacity curtailments

A spat over electricity supplies is heating up in northern Europe. Sweden is blocking Norway from using its grids to transfer power from producers throughout the region. That’s angered Norway, which in turn has cut flows to its Nordic neighbor.

The dispute has built up around the use of cross-border power cables, which are a key part of Europe’s plans to decarbonize since they give adjacent countries access to low-carbon resources such as wind or hydropower. The electricity flows to wherever prices are higher, informed by how electricity is priced across Europe, without interference from grid operators -- but in the event of a supply squeeze, flows can be stopped.

Sweden moved to safeguard the security of its grid after Norway started increasing electricity exports through huge new cables to Germany and the U.K. Those exports at times have drawn energy away from Sweden, resulting in the country’s system operator cutting capacity at its Nordic borders, preventing exports but also hindering imports, which it relies on to handle demand spikes during winter.

“This is not a good situation in the long run,” Christian Holtz, a energy market consultant for Merlin & Metis AB.

Norway hit back last week by cutting flows to Sweden, this will prioritize better paying customers in Europe, amid Irish price spikes that highlight dispatchable shortages, giving them access to its vast hydro resources at the expense of its Nordic neighbors. 

By partially closing its borders Sweden can’t access imports either, which it relies on to handle demand spikes during the coldest days of the winter. 

In Denmark, unusual summer and autumn winds have at times delivered extraordinarily low electricity prices that ripple through regional markets.

The Swedish grid manager Svenska Kraftnat has reduced export capacity at cables across its borders by as much as half this year to keep operations secure. Finland and Denmark rely on imports too and the cuts will come at a cost for millions of homes and industries across the four nations already contending with record electricity rates this year. 

Finland and Denmark want the European Union to end the exemption to regulations that make such reductions possible in the first place, as Europe is losing nuclear power and facing tighter supply.

“Imports from our neighboring countries ensure adequacy at times of peak consumption,” said Reima Paivinen, head of operation at the Finland’s Fingrid. “The recent surge in electricity prices throughout Europe does not directly affect the adequacy of electricity, but prices may rise dramatically for short periods.”

Svenska Kraftnat says it’s not political -- it has no choice but to cut capacity until its old grids are expanded to handle the new direction of flows, a challenge mirrored by grid expansion woes in Germany that slow integration. That could take at least until 2030 to complete, it said earlier this year. At the same time, Norway halving available export capacity to about 1,200 megawatts will increase risk of shortages. 

“If we need more we will have to count on imports from other countries,” said Erik Ek, head of strategic operation at Svenska Kraftnat. “If that is not available, we will have to disconnect users the day it gets cold.”

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Carbon Price Support, the UK carbon tax on power, slashed coal generation, cut CO2 emissions, boosted gas and imports via interconnectors, and signaled effective electricity market decarbonization across Great Britain and the EU.

Key Points

A UK power-sector carbon tax that drove coal off the grid, cut emissions, and shifted generation toward gas and imports.

✅ Coal generation fell from 40% to 3% in six years

✅ Rate rose to £18/tCO2 in 2015, boosting the coal-to-gas switch

✅ Added ~£39 to 2018 bills; imports via interconnectors eased prices

A tax on carbon dioxide emissions in Great Britain, introduced in 2013, has led to the proportion of electricity generated from coal falling from 40% to 3% over six years, a trend mirrored by global coal decline in power generation, according to research led by UCL.

British electricity generated from coal fell from 13.1 TWh (terawatt hours) in 2013 to 0.97 TWh in September 2019, and was replaced by other less emission-heavy forms of generation such as gas, as producers move away from coal in many markets. The decline in coal generation accelerated substantially after the tax was increased in 2015.

In the report, 'The Value of International Electricity Trading', researchers from UCL and the University of Cambridge also showed that the tax—called Carbon Price Support—added on average £39 to British household electricity bills, within the broader context of UK net zero policies shaping the energy transition, collecting around £740m for the Treasury, in 2018.

Academics researched how the tax affected electricity flows to connected countries and interconnector (the large cables connecting the countries) revenue between 2015—when the tax was increased to £18 per tonne of carbon dioxide—and 2018. Following this increase, the share of coal-fired electricity generation fell from 28% in 2015 to 5% in 2018, reaching 3% by September 2019. Increased electricity imports from the continent, alongside the EU electricity demand outlook across member states, reduced the price impact in the UK, and meant that some of the cost was paid through a slight increase in continental electricity prices (mainly in France and the Netherlands).

Project lead Dr. Giorgio Castagneto Gissey (Bartlett Institute for Sustainable Resources, UCL) said: "Should EU countries also adopt a high carbon tax we would likely see huge carbon emission reductions throughout the Continent, as we've seen in Great Britain over the last few years."

Lead author, Professor David Newbery (University of Cambridge), said: "The Carbon Price Support provides a clear signal to our neighbours of its efficacy at reducing CO2 emissions."

The Carbon Price Support was introduced in England, Scotland and Wales at a rate of £4.94 per tonne of carbon dioxide-equivalent and is now capped at £18 until 2021.The tax is one part of the Total Carbon Price, which also includes the price of EU Emissions Trading System permits and reflects global CO2 emissions trends shaping policy design.

Report co-author Bowei Guo (University of Cambridge) said: "The Carbon Price Support has been instrumental in driving coal off the grid, but we show how it also creates distortions to cross-border trade, making a case for EU-wide adoption."

Professor Michael Grubb (Bartlett Institute for Sustainable Resources, UCL) said: "Great Britain's electricity transition is a monumental achievement of global interest, and has also demonstrated the power of an effective carbon price in lowering dependence on electricity generated from coal."

The overall report on electricity trading also covers the value of EU interconnectors to Great Britain, measures the efficiency of cross-border electricity trading and considers the value of post-Brexit decoupling from EU electricity markets, setting these findings against the global energy transition underway.

Published today, the report annex focusing on the Carbon Price Support was produced by UCL to focus on the impact of the tax on British energy bills, with comparisons to Canadian climate policy debates informing grid impacts.

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Hydro-Quebec Crypto Mining Pause signals a temporary halt as blockchain power requests surge; energy regulator review will weigh electricity demand, winter peak constraints, tariffs, investments, and local jobs to optimize grid stability and revenues.

Key Points

A provincial halt on new miner power requests as Hydro-Quebec sets rules to safeguard demand, winter peaks, and rates.

✅ Temporary halt on new electricity sales to crypto miners

✅ Regulator to rank projects by jobs, investment, and revenue

✅ Winter peak demand and tariffs central to new framework

Major Canadian electricity provider Hydro-Québec will temporarily stop processing requests from cryptocurrency miners in order for the company to fulfil its obligations to supply energy to the entire province, while its global ambitions adjust to changing demand, according to a press release published June 7.

Hydro-Québec is experiencing “unprecedented” demand from blockchain companies, which reportedly exceeds the electric utility’s short and medium-term capacity. In this regard, the Quebec provincial government has ordered Hydro-Québec to halt electric power sales to cryptocurrency miners, and, following the New Hampshire rejection of Northern Pass announced a new framework for this category of electricity consumers.

In the coming days, Hydro-Québec will reportedly file an application to local energy regulator Régie de l'énergie, proposing a selection process for blockchain industry projects so as “not to miss the opportunities offered by this industry.” Regulators will reportedly target companies which can offer the province the most profitable economic advantages, including investments and local job creation.

#google#

Régie de l'énergie is instructed to consider “the need for a reserved block of energy for this category of consumers, the possibility of maximizing Hydro-Québec's revenues, and issues related to the winter peak period” as well as interprovincial arrangements like the Ontario-Québec electricity deal under discussion. Éric Filion, President of Hydro-Québec Distribution, said:

"The blockchain industry is a promising avenue for Hydro-Québec. Guidelines are nevertheless required to ensure that the development of this industry maximizes spinoffs for Québec without resulting in rate increases for our customers. We are actively participating in the Régie de l'énergie's process so that these guidelines can be produced as quickly as possible."

With this move, the government of Québec deviates from its decision to reportedly open the electricity market to miners at the end of last month, even as an Ontario-Quebec energy swap helps manage electricity demands. In March, the government said it was not interested in providing cheap electricity to Bitcoin miners, stating that cryptocurrency mining at a discount without any sort of “added value” for the local economy was unfavorable.

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Germany 2025 Energy Costs forecast electricity and heating price trends amid gas volatility, renewables expansion, grid upgrades, and policy subsidies, highlighting impacts on households, industries, efficiency measures, and the Energiewende transition dynamics.

Key Points

Electricity stabilizes, gas-driven heating stays high; renewables, subsidies, and efficiency measures moderate costs.

✅ Power prices stabilize above pre-crisis levels

✅ Gas volatility keeps heating bills elevated

✅ Subsidies and efficiency upgrades offset some costs

As Germany moves into 2025, the country is facing significant shifts in heating and electricity costs. With a variety of factors influencing energy prices, including geopolitical tensions, government policies, and the ongoing transition to renewable energy sources, consumers and businesses alike are bracing for potential changes in their energy bills. In this article, we will explore how heating and electricity costs are expected to evolve in Germany in the coming year and what that means for households and industries.

Energy Price Trends in Germany

In recent years, energy prices in Germany have experienced notable fluctuations, particularly due to the aftermath of the global energy crisis, which was exacerbated by the Russian invasion of Ukraine. This geopolitical shift disrupted gas supplies, which in turn affected electricity prices and strained local utilities across the country. Although the German government introduced measures to mitigate some of the price increases, many households have still felt the strain of higher energy costs.

For 2024, experts predict that electricity prices will likely stabilize but remain higher than pre-crisis levels. While electricity prices nearly doubled in 2022, they have gradually started to decline, and the market has adjusted to the new realities of energy supply and demand. Despite this, the cost of electricity is expected to stay elevated as Germany continues to phase out coal and nuclear energy while ramping up the use of renewable sources, which often require significant infrastructure investments.

Heating Costs: A Mixed Outlook

Heating costs in Germany are heavily influenced by natural gas prices, which have been volatile since the onset of the energy crisis. Gas prices, although lower than the peak levels seen in 2022, are still considerably higher than in the years before. This means that households relying on gas heating can expect to pay more for warmth in 2024 compared to previous years.

The government has implemented measures to cushion the impact of these increased costs, such as subsidies for vulnerable households and efforts to support energy efficiency upgrades. Despite these efforts, consumers will still feel the pinch, particularly in homes that use older, less efficient heating systems. The transition to more sustainable heating solutions, such as heat pumps, remains a key goal for the German government. However, the upfront cost of such systems can be a barrier for many households.

The Role of Renewable Energy and the Green Transition

Germany has set ambitious goals for its energy transition, known as the "Energiewende," which aims to reduce reliance on fossil fuels and increase the share of renewable energy sources in the national grid. In 2024, Germany is expected to see further increases in renewable energy generation, particularly from wind and solar power. While this transition is essential for reducing carbon emissions and improving long-term energy security, the shift comes with its own challenges already documented in EU electricity market trends reports.

One of the main factors influencing electricity costs in the short term is the intermittency of renewable energy sources. Wind and solar power are not always available when demand peaks, requiring backup power generation from fossil fuels or stored energy. Additionally, the infrastructure needed to accommodate a higher share of renewables, including grid upgrades and energy storage solutions, is costly and will likely contribute to rising electricity prices in the near term.

On a positive note, Germany's growing investment in renewable energy is expected to make the country less reliant on imported fossil fuels, particularly natural gas, which has been a major source of price volatility. Over time, as the share of renewables in the energy mix grows, the energy system should become more stable and less susceptible to geopolitical shocks, which could lead to more predictable and potentially lower energy costs in the long run.

Government Interventions and Subsidies

To help ease the burden on consumers, the German government has continued to implement various measures to support households and businesses. One of the key programs is the reduction in VAT (Value Added Tax) on electricity, which has been extended in some regions. This measure is designed to make electricity more affordable for all households, particularly those on fixed incomes facing EU energy inflation pressures that have hit the poorest hardest.

Moreover, the government has been providing financial incentives for households and businesses to invest in energy-efficient technologies, such as insulation and energy-saving heating systems, complementing the earlier 200 billion euro energy shield announced to buffer surging prices. These incentives are intended to reduce overall energy consumption, which could offset some of the rising costs.

The outlook for heating and electricity costs in Germany for 2024 is mixed, even as energy demand hit a historic low amid economic stagnation. While some relief from the extreme price spikes of 2022 may be felt, energy costs will still be higher than they were in previous years. Households relying on gas heating will likely see continued elevated costs, although those who invest in energy-efficient solutions or renewable heating technologies may be able to offset some of the increases. Similarly, electricity prices are expected to stabilize but remain high due to the country’s ongoing transition to renewable energy sources.

While the green transition is crucial for long-term sustainability, consumers must be prepared for potentially higher energy costs in the short term. Government subsidies and incentives will help alleviate some of the financial pressure, but households should consider strategies to reduce energy consumption, such as investing in more efficient heating systems or adopting renewable energy solutions like solar panels.

As Germany navigates these changes, the country’s energy future will undoubtedly be shaped by a delicate balance between environmental goals and the economic realities of transitioning to a greener energy system.

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Ontario Starlink Contract Cancellation underscores rising tariffs, trade tensions, and retaliation, as SpaceX's Elon Musk loses a rural broadband deal; Ontario pivots to procurement bans, energy resilience, and nuclear power to boost grid independence.

Key Points

Ontario ended a C$100M Starlink deal over U.S. tariffs, prompting a shift to rural broadband alternatives.

✅ Triggered by U.S. tariffs; Ontario adopts retaliatory procurement bans.

✅ Ends plan to connect 15,000 rural homes and businesses with broadband.

✅ Signals push for energy resilience, nuclear power, and grid independence.

In a decisive move, Ontario Premier Doug Ford announced the cancellation of a C$100 million contract with Elon Musk's Starlink, a subsidiary of SpaceX, in direct response to U.S. President Donald Trump's imposition of tariffs on Canadian imports. This action underscores the escalating trade tensions between Canada and the United States, a theme highlighted during Ford's Washington meeting on energy tariffs earlier this month, and highlights Ontario's efforts to safeguard its economic interests.

The now-terminated agreement, established in November, aimed to provide high-speed internet access to 15,000 homes and businesses in Ontario's remote areas. Premier Ford's decision to "rip up" the contract signifies a broader strategy to distance the province from U.S.-based companies amid the current trade dispute. He emphasized, "Ontario won't do business with people hell-bent on destroying our economy."

This move is part of a series of retaliatory measures by Canadian provinces, including Ford's threat to cut electricity exports to the U.S., following President Trump's announcement of a 25% tariff on nearly all Canadian imports, excluding oil, which faces a 10% surcharge. These tariffs, set to take effect imminently, have prompted concerns about potential economic downturns in Canada. In response, Prime Minister Justin Trudeau declared that Canada would impose 25% tariffs on C$155 billion worth of U.S. goods, aiming to exert pressure on the U.S. administration to reconsider its stance.

Premier Ford's actions reflect a broader sentiment of economic nationalism, as he also announced a ban on American companies from provincial contracts until the U.S. tariffs are lifted. He highlighted that Ontario's government and its agencies allocate $30 billion annually on procurement, and reiterated his earlier vow to fire the Hydro One CEO and board as part of broader reforms aimed at efficiency.

The cancellation of the Starlink contract raises concerns about the future of internet connectivity in Ontario's rural regions. The original deal with Starlink was seen as a significant step toward bridging the digital divide, offering high-speed internet to underserved communities. With the contract's termination, the province faces the challenge of identifying alternative solutions to fulfill this critical need.

Beyond the immediate implications of the Starlink contract cancellation, Ontario is confronting broader challenges in ensuring the resilience and independence of its energy infrastructure. The province's reliance on external entities for critical services, such as internet connectivity and energy, has come under scrutiny, as Canada's electricity exports are at risk amid ongoing trade tensions and policy uncertainty.

Premier Ford has expressed a commitment to expanding Ontario's capacity to generate nuclear power as a means to bolster energy self-sufficiency. While this strategy aims to reduce dependence on external energy sources, it presents its own set of challenges that critics argue require cleaning up Ontario's hydro mess before new commitments proceed. Developing nuclear infrastructure requires substantial investment, rigorous safety protocols, and long-term planning. Moreover, the integration of nuclear power into the province's energy mix necessitates careful consideration of environmental impacts and public acceptance.

The concept of "Trump-proofing" Ontario's electricity grid involves creating a robust and self-reliant energy system capable of withstanding external political and economic pressures. Achieving this goal entails diversifying energy sources, including building on Ontario's electricity deal with Quebec to strengthen interties, investing in renewable energy technologies, and enhancing grid infrastructure to ensure stability and resilience.

However, the path to energy independence is fraught with complexities. Balancing the immediate need for reliable energy with long-term sustainability goals requires nuanced policy decisions, including Ontario's Supreme Court challenge to the global adjustment fee and related regulatory reviews to clarify cost impacts. Additionally, fostering collaboration between government entities, private sector stakeholders, and the public is essential to navigate the multifaceted challenges associated with overhauling the province's energy framework.

Ontario's recent actions, including the cancellation of the Starlink contract, underscore the province's proactive stance in safeguarding its economic and infrastructural interests amid evolving geopolitical dynamics. While such measures reflect a commitment to self-reliance, they also highlight the intricate challenges inherent in reducing dependence on external entities. As Ontario charts its course toward a more autonomous future, strategic planning, investment in sustainable technologies, and collaborative policymaking will be pivotal in achieving long-term resilience and prosperity.

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