Due to the progress of enabling technologies and a host of positive drivers, pure electric vehicles (PEVs) are garnering plenty of attention from manufacturers and suppliers. The auto sector is now attracting strong venture capital interest in nascent companies providing this technology.
To make it into the mainstream globally, however, further technological and infrastructural barriers need to be overcome first.
"Pure electric vehicles are not a new phenomenon in the auto industry," says Mark Walters, leader of the PwC Canada Tax Automotive Practice. "In the early 20th Century they were produced in greater numbers than internal combustion engine powered vehicles. Until recently, the lack of suitable battery technology has prevented manufacturers investing in them. While technological issues move closer to solutions, the lack of infrastructure for electric vehicles usage has stunted growth."
However, despite increasing local demand for zero-emissions cars and trucks and robust exports of electric vehicles, Canada will not allow them on its roads. The regulatory agency has so far certified only five models as road-worthy and two others that are no longer in production. Furthermore most provinces, which have jurisdiction over the vast majority of roads and highways in the country, have not given electric cars the green light, citing Transport Canada's safety concerns.
To date, only British Columbia allows low speed electric vehicles on its urban roads. Quebec recently announced a three-year pilot project that allows for one car and an electric truck on its roads with posted speed limits of 50 kilometres (31 miles) per hour. Manufacturers are hoping Quebec's pilot may spur other provinces to jump on the bandwagon and eventually make it possible to drive an electric car from coast to coast across all 10 of Canada's provinces.
"There is no doubt that the current discussions around climate change are indicative of an ever increasing receptive business environment for electric vehicles," says Walters. "Advancing battery development in this area will however compete with the industry's already over-burdened R&D needs while current high battery costs dictate the level of consumer demand."
Battery costs vary significantly depending on the technology so tempering these costs will be crucial. The sustainability of electric vehicles is heavily dependent on the energy mix of a country's electricity. Using non-renewable resources to generate electricity is unlikely to achieve net reductions in CO2 emissions.
While electricity is cheaper than existing automotive fuels, and running an electric car costs less, acquisition costs are the main hurdle.
Incentivising, subsidising and promoting electric vehicles are all contributing factors to their success while letting the auto manufacturers concentrate on expanding their mobility.
For consumers, in Canada, as part of the Government of Canada's plan to protect the environment, the ecoAUTO Rebate Program encourages Canadians to buy new fuel-efficient vehicles. Applicants can apply for the rebate on eligible 2006, 2007 and 2008 model-year vehicles purchased or leased (12 months or more) between March 20, 2007 and December 31, 2008. While further incentives such as those recently announced by the U.S. government, in the form of a maximum [US]$7,500 tax credit depending on the kWh capacity of the vehicle's battery, would help.
While there are a few home-grown success stories in Canada, for instance Toronto, Ontario's Zenn Motor which has been selling its electric low speed vehicles since late 2006, many international automotive companies are getting involved in Canada, including Changan Automobile Group, Ford Motor's China partner who is set to roll out 30 electric cars developed jointly with Electrovaya in Canada before the end of this year, potentially becoming the first Chinese auto maker to tap the North American market.
Other Chinese players, such as BYD auto, an auto-making unit of Hong Kong-listed rechargeable battery maker BYD Co, are also eager to tap the clean energy vehicle market at home and overseas.
Electricity Security and Firm Capacity underpin reliable supply, balancing variable renewables with grid flexibility via gas plants, nuclear power, hydropower, battery storage, and demand response, safeguarding telework, e-commerce, and critical healthcare operations.
Key Points
Ability to meet demand by combining firm generation and flexible resources, keeping grids stable as renewables grow.
✅ Balances variable renewables with dispatchable generation
✅ Rewards flexibility via capacity markets and ancillary services
✅ Enhances grid stability for critical loads during low demand
The huge disruption caused by the coronavirus crisis, and the low-carbon electricity lessons drawn from it, has highlighted how much modern societies rely on electricity and how firm capacity, such as that provided by nuclear power, is a crucial element in ensuring supply, International Energy Agency (IEA) Executive Director Fatih Birol said.
In a commentary posted on LinkedIn, Birol said: "The coronavirus crisis reminds us of electricity's indispensable role in our lives. It's also providing insights into how that role is set to expand and evolve in the years and decades ahead."
Reliable electricity supply is crucial for teleworking, e-commerce, operating ventilators and other medical equipment, among all its other uses, he said, adding that the hundreds of millions of people who live without any access to electricity are far more vulnerable to disease and other dangers.
"Although new forms of short-term flexibility such as battery storage are on the rise, and initiatives like UK home virtual power plants are emerging, most electricity systems rely on natural gas power plants - which can quickly ramp generation up or down at short notice - to provide flexibility, underlining the critical role of gas in clean energy transitions," Birol said.
"Today, most gas power plants lose money if they are used only from time to time to help the system adjust to shifts in demand. The lower levels of electricity demand during the current crisis are adding to these pressures. Hydropower, an often forgotten workhorse of electricity generation, remains an essential source of flexibility.
"Firm capacity, including nuclear power in countries that have chosen to retain it as an option, is a crucial element in ensuring a secure electricity supply even as soaring electricity and coal use complicate transitions. Policy makers need to design markets that reward different sources for their contributions to electricity security, which can enable them to establish viable business models."
In most economies that have taken strong confinement measures in response to the coronavirus - and for which the IEA has available data - electricity demand has declined by around 15%, largely as a result of factories and businesses halting operations, and in New York City load patterns were notably reshaped during lockdowns. If electricity demand falls quickly while weather conditions remain the same, the share of variable renewables like wind and solar can become higher than normal, and low-emissions sources are set to cover almost all near-term growth.
"With weaker electricity demand, power generation capacity is abundant. However, electricity system operators have to constantly balance demand and supply in real time. People typically think of power outages as happening when surging electricity demand overwhelms supply. But in fact, some of the most high-profile blackouts in recent times took place during periods of low demand," Birol said.
"When electricity from wind and solar is satisfying the majority of demand, and renewables poised to eclipse coal by 2025 are reshaping the mix, systems need to maintain flexibility in order to be able to ramp up other sources of generation quickly when the pattern of supply shifts, such as when the sun sets. A very high share of wind and solar in a given moment also makes the maintenance of grid stability more challenging."
Atlantic Canada Energy Regulatory Reform accelerates smart grids, renewables, hydrogen, and small modular reactors to meet climate targets, enabling interprovincial transmission, EV charging, and decarbonization toward a net-zero grid by 2035 with agile, collaborative policies.
Key Points
A policy shift enabling smart grids, clean energy, and transmission upgrades to decarbonize Atlantic Canada by 2035.
✅ Agile rules for smart grids, EV load, and peak demand balancing
✅ Supports hydrogen, SMRs, and renewables to cut GHG emissions
Atlantica Centre for Energy Senior Policy Consultant Neil Jacobsen says the future of Atlantic Canada’s electricity grid depends on agile regulations, supported by targeted research such as the $2M Atlantic grid study, that match the pace at which renewable technologies are being developed in the race to meet Canada’s climate goals.
In an interview, Jacobsen stressed the need for a more modernized energy regulatory framework, so the Atlantic Provinces can collaborate to quickly develop and adopt cleaner energy.
To this end, Atlantica released a paper that makes the case for responsive smart grid technology, the adaptation of alternative forms of clean energy, the adaptation of hydrogen as an energy source, petroleum price regulation in Atlantic Canada and small modular reactors.
Jacobsen said regulations need to match Canada’s urgency around reducing greenhouse gas emissions by 40 to 45 percent by 2030, achieving a net-neutral national power grid by 2035 and ultimately a net-zero grid by 2050 in Canada – and the goal that 50 percent of Canadian vehicle sales being electric by 2030.
“It’s an evolution of policy and regulations to adapt to a very aggressive timeline of aggressive climate change and decarbonization targets,” said Jacobsen.
“These are transformational energy and environmental commitments, so the path forward really requires the ability to introduce and adapt and move forward with new clean renewable energy technologies.”
Jacobsen said Atlantica’s recommendations are not a criticism of existing regulations– but an acknowledgment that they need to evolve.
He noted newer, clearer regulations will make way for new energy sources – particularly a region that has the countries highest rates of dependency on fossil fuels and growing climate risks, with Atlantic grids under threat from more intense storms.
“We have a long way to go, but at the same time, we have a lot to celebrate. Atlantic Canada is leading the country in reducing greenhouse gas emissions,” said Jacobsen.
“There are new ways of producing energy that requires us to be able to be much more responsive and this is an opportunity to create a higher level of alignment here, in Atlantic Canada.”
Jacobsen said Atlantica is looking to aid interprovincial cooperation in providing power, echoing calls for a western Canadian grid elsewhere, through projects like the 500-megawatt, 170-kilometre Maritime Link that transports power from the Muskrat Falls hydroelectric dam in Labrador, through Newfoundland and across the Cabot Strait, to Nova Scotia – or NB Power’s export of electricity to P.E.I., via sub-sea cables crossing the Northumberland Strait.
He noted streamlined regulations may allow for more potential wider-scale partnerships, like the proposed Atlantic Loop project, aligning with macrogrid investments that would involve upgrading transmission capacity on the East Coast to allow hydroelectric power from Labrador and Quebec to displace coal use in the region.
Atlantic Canada has led the way with adaption new renewable technologies, noted Jacobsen, referring to nuclear startups Moltex Energy and ARC Nuclear Canada’s efforts to develop small modular nuclear reactor technology in New Brunswick, as well as the potential of adopting hydrogen fuel technology and Nova Scotia’s strides in developing offshore renewable energy.
“I don’t think we have any choice other than to be forceful and aggressive in driving forward a renewable energy agenda.”
Jacobsen said cooperation between the Atlantic provinces is crucial because of how challenging it is to meet energy demand with heavy seasonal and daily variations in energy demand in the region – something smart grid technology could address.
Smart Grid Atlantic is a four-year research and demonstration program testing technologies that provide cleaner local power, support a smarter electricity infrastructure across the region, more renewable power, more information and control over power use and more reliable electricity.
“It can be challenging for utilities to meet those cyclical demands, especially as grids are increasingly exposed to harsh weather across Canada. Smart girds add knowledge of the flow of electrons in a way that can help even out those electricity demands – and quite frankly, those demands will only increase when you look at the electrification of the transportation sector,” he said.
Jacobsen said Atlantica’s paper and call for modernized regulations are only the beginning of a conversation.
ITER Nuclear Fusion advances tokamak magnetic confinement, heating deuterium-tritium plasma with superconducting magnets, targeting net energy gain, tritium breeding, and steam-turbine power, while complementing laser inertial confinement milestones for grid-scale electricity and 2025 startup goals.
Key Points
ITER Nuclear Fusion is a tokamak project confining D-T plasma with magnets to achieve net energy gain and clean power.
✅ Tokamak magnetic confinement with high-temp superconducting coils
✅ Deuterium-tritium fuel cycle with on-site tritium breeding
✅ Targets net energy gain and grid-scale, low-carbon electricity
It sounds like the stuff of dreams: a virtually limitless source of energy that doesn’t produce greenhouse gases or radioactive waste. That’s the promise of nuclear fusion, often described as the holy grail of clean energy by proponents, which for decades has been nothing more than a fantasy due to insurmountable technical challenges. But things are heating up in what has turned into a race to create what amounts to an artificial sun here on Earth, one that can provide power for our kettles, cars and light bulbs.
Today’s nuclear power plants create electricity through nuclear fission, in which atoms are split, with next-gen nuclear power exploring smaller, cheaper, safer designs that remain distinct from fusion. Nuclear fusion however, involves combining atomic nuclei to release energy. It’s the same reaction that’s taking place at the Sun’s core. But overcoming the natural repulsion between atomic nuclei and maintaining the right conditions for fusion to occur isn’t straightforward. And doing so in a way that produces more energy than the reaction consumes has been beyond the grasp of the finest minds in physics for decades.
But perhaps not for much longer. Some major technical challenges have been overcome in the past few years and governments around the world have been pouring money into fusion power research as part of a broader green industrial revolution under way in several regions. There are also over 20 private ventures in the UK, US, Europe, China and Australia vying to be the first to make fusion energy production a reality.
“People are saying, ‘If it really is the ultimate solution, let’s find out whether it works or not,’” says Dr Tim Luce, head of science and operation at the International Thermonuclear Experimental Reactor (ITER), being built in southeast France. ITER is the biggest throw of the fusion dice yet.
Its $22bn (£15.9bn) build cost is being met by the governments of two-thirds of the world’s population, including the EU, the US, China and Russia, at a time when Europe is losing nuclear power and needs energy, and when it’s fired up in 2025 it’ll be the world’s largest fusion reactor. If it works, ITER will transform fusion power from being the stuff of dreams into a viable energy source.
Constructing a nuclear fusion reactor ITER will be a tokamak reactor – thought to be the best hope for fusion power. Inside a tokamak, a gas, often a hydrogen isotope called deuterium, is subjected to intense heat and pressure, forcing electrons out of the atoms. This creates a plasma – a superheated, ionised gas – that has to be contained by intense magnetic fields.
The containment is vital, as no material on Earth could withstand the intense heat (100,000,000°C and above) that the plasma has to reach so that fusion can begin. It’s close to 10 times the heat at the Sun’s core, and temperatures like that are needed in a tokamak because the gravitational pressure within the Sun can’t be recreated.
When atomic nuclei do start to fuse, vast amounts of energy are released. While the experimental reactors currently in operation release that energy as heat, in a fusion reactor power plant, the heat would be used to produce steam that would drive turbines to generate electricity, even as some envision nuclear beyond electricity for industrial heat and fuels.
Tokamaks aren’t the only fusion reactors being tried. Another type of reactor uses lasers to heat and compress a hydrogen fuel to initiate fusion. In August 2021, one such device at the National Ignition Facility, at the Lawrence Livermore National Laboratory in California, generated 1.35 megajoules of energy. This record-breaking figure brings fusion power a step closer to net energy gain, but most hopes are still pinned on tokamak reactors rather than lasers.
In June 2021, China’s Experimental Advanced Superconducting Tokamak (EAST) reactor maintained a plasma for 101 seconds at 120,000,000°C. Before that, the record was 20 seconds. Ultimately, a fusion reactor would need to sustain the plasma indefinitely – or at least for eight-hour ‘pulses’ during periods of peak electricity demand.
A real game-changer for tokamaks has been the magnets used to produce the magnetic field. “We know how to make magnets that generate a very high magnetic field from copper or other kinds of metal, but you would pay a fortune for the electricity. It wouldn’t be a net energy gain from the plant,” says Luce.
One route for nuclear fusion is to use atoms of deuterium and tritium, both isotopes of hydrogen. They fuse under incredible heat and pressure, and the resulting products release energy as heat
The solution is to use high-temperature, superconducting magnets made from superconducting wire, or ‘tape’, that has no electrical resistance. These magnets can create intense magnetic fields and don’t lose energy as heat.
“High temperature superconductivity has been known about for 35 years. But the manufacturing capability to make tape in the lengths that would be required to make a reasonable fusion coil has just recently been developed,” says Luce. One of ITER’s magnets, the central solenoid, will produce a field of 13 tesla – 280,000 times Earth’s magnetic field.
The inner walls of ITER’s vacuum vessel, where the fusion will occur, will be lined with beryllium, a metal that won’t contaminate the plasma much if they touch. At the bottom is the divertor that will keep the temperature inside the reactor under control.
“The heat load on the divertor can be as large as in a rocket nozzle,” says Luce. “Rocket nozzles work because you can get into orbit within minutes and in space it’s really cold.” In a fusion reactor, a divertor would need to withstand this heat indefinitely and at ITER they’ll be testing one made out of tungsten.
Meanwhile, in the US, the National Spherical Torus Experiment – Upgrade (NSTX-U) fusion reactor will be fired up in the autumn of 2022, while efforts in advanced fission such as a mini-reactor design are also progressing. One of its priorities will be to see whether lining the reactor with lithium helps to keep the plasma stable.
Choosing a fuel Instead of just using deuterium as the fusion fuel, ITER will use deuterium mixed with tritium, another hydrogen isotope. The deuterium-tritium blend offers the best chance of getting significantly more power out than is put in. Proponents of fusion power say one reason the technology is safe is that the fuel needs to be constantly fed into the reactor to keep fusion happening, making a runaway reaction impossible.
Deuterium can be extracted from seawater, so there’s a virtually limitless supply of it. But only 20kg of tritium are thought to exist worldwide, so fusion power plants will have to produce it (ITER will develop technology to ‘breed’ tritium). While some radioactive waste will be produced in a fusion plant, it’ll have a lifetime of around 100 years, rather than the thousands of years from fission.
At the time of writing in September, researchers at the Joint European Torus (JET) fusion reactor in Oxfordshire were due to start their deuterium-tritium fusion reactions. “JET will help ITER prepare a choice of machine parameters to optimise the fusion power,” says Dr Joelle Mailloux, one of the scientific programme leaders at JET. These parameters will include finding the best combination of deuterium and tritium, and establishing how the current is increased in the magnets before fusion starts.
The groundwork laid down at JET should accelerate ITER’s efforts to accomplish net energy gain. ITER will produce ‘first plasma’ in December 2025 and be cranked up to full power over the following decade. Its plasma temperature will reach 150,000,000°C and its target is to produce 500 megawatts of fusion power for every 50 megawatts of input heating power.
“If ITER is successful, it’ll eliminate most, if not all, doubts about the science and liberate money for technology development,” says Luce. That technology development will be demonstration fusion power plants that actually produce electricity, where advanced reactors can build on decades of expertise. “ITER is opening the door and saying, yeah, this works – the science is there.”
TransLink Electric Bus Pilot launches zero-emission service in Metro Vancouver, cutting greenhouse gas emissions with fast-charging stations on Route 100, supporting renewable energy goals alongside trolley buses, CNG, and hybrid fleets.
Key Points
TransLink's Metro Vancouver program deploying charging, zero-emission buses on Route 100 to cut emissions and fuel costs.
✅ Cuts ~100 tonnes GHG and saves $40k per bus annually
✅ Five-minute on-route charging at terminals on Route 100
✅ Pilot data to guide zero-emission fleet transition by 2050
TransLink's first battery-electric buses are taking to the roads in Metro Vancouver as part of a pilot project to reduce emissions, joining other initiatives like electric school buses in B.C. that aim to cut pollution in transportation.
The first four zero-emission buses picked up commuters in Vancouver, Burnaby and New Westminster on Wednesday. Six more are expected to be brought in, and similar launches like Edmonton's first electric bus are underway across Canada.
"With so many people taking transit in Vancouver today, electric buses will make a real difference," said Merran Smith, executive director of Clean Energy Canada, a think tank at Simon Fraser University, in a release.
According to TransLink, each bus is expected to reduce 100 tonnes of greenhouse gas emissions and save $40,000 in fuel costs per year compared to a conventional diesel bus.
"Buses already help tackle climate change by getting people out of cars, and Vancouver is ahead of the game with its electric trolleys," Smith said.
She added there is still more work to be done to get every bus off diesel, as seen with the TTC's battery-electric buses rollout in Toronto.
The buses will run along the No. 100 route connecting Vancouver and New Westminster. They recharge — it takes about five minutes — at new charging stations installed at both ends of the route while passengers load and unload or while the driver has a short break.
Right now, more than half of TransLink's fleet currently operates with clean technology, offering insights alongside Toronto's large battery-electric fleet for other cities.
In addition to the four new battery-electric buses, the fleet also includes hundreds of zero-emission electric trolley buses, compressed natural gas buses and hybrid diesel-electric buses, while cities like Montreal's first STM electric buses continue to expand adoption.
"Our iconic trolley buses have been running on electricity since 1948 and we're proud to integrate the first battery-electric buses to our fleet," said TransLink CEO Kevin Desmond in a press release.
TransLink has made it a goal to operate its fleet with 100 per cent renewable energy in all operations by 2050. Desmond says, the new buses are one step closer to meeting that goal.
The new battery-electric buses are part of a two-and-a-half year pilot project that looks at the performance, maintenance, and customer experience of making the switch to electric, complementing BC Hydro's vehicle-to-grid pilot initiative underway in the province.
PG&E Camp Fire Guilty Plea underscores involuntary manslaughter charges as the utility admits sparking Paradise's wildfire; Butte County prosecution, CAL FIRE findings, bankruptcy oversight, victim compensation trust, and safety reforms shape accountability.
Key Points
The legal admission by PG&E to 84 involuntary manslaughter counts and unlawfully starting the 2018 Camp Fire.
✅ $3,486,950 fine, $500,000 DA costs; no prison terms.
✅ $13.5B victim trust, Paradise and Butte County payments.
California utility Pacific Gas and Electric Company pleaded guilty Tuesday to 84 counts of involuntary manslaughter and one count of unlawfully starting the Camp Fire, the deadliest blaze in the state's history.
Butte County District Attorney Michael L. Ramsey said the "historic moment" should be a signal that corporations will be held responsible for "recklessly endangering" lives. The 84 people "did not need to die," Ramsey said. He said the deaths were "of the most unimaginable horror, being burned to death."
Before sentencing, survivors will testify Wednesday about the losses of their loved ones, and many have pursued lawsuits against the utility seeking accountability.
No individuals will be sent to prison, Ramsey said.
"This is the first time that PG&E or any major utility has been charged with homicide as the result of a reckless fire. It killed a town," Ramsey said, referring to Paradise, which was annihilated by the blaze. According to court documents filed in March, the company will be fined "no more than $3,486,950," and it must reimburse the Butte County District Attorney's Office $500,000 for the costs of its investigation into the blaze, and under separate oversight a federal judge ordered dividends to be directed to wildfire risk reduction to prioritize safety.
Among other provisions, PG&E must establish a trust, compensating victims of the 2018 Camp Fire and other wildfires to the tune of $13.5 billion as part of its bankruptcy plan, according to the plea agreement included in a regulatory filing. It has to pay hundreds of millions to the town of Paradise and Butte County and cooperate with prosecutors' investigation, the plea deal says. PG&E also waived its right to appeal.
"I have heard the pain and the anguish of victims as they've described the loss they continue to endure, and the wounds that can't be healed," PG&E Corporation CEO and President Bill Johnson said after the plea. "No words from me could ever reduce the magnitude of such devastation or do anything to repair the damage. But I hope that the actions we are taking here today will help bring some measure of peace, including aid through a Wildfire Assistance Program the company announced."
Johnson was in court Tuesday, where Butte County Superior Court Judge Michael Deems read the names of each victim as their photos were shown on a screen, CNN affiliate KTLA reported. Johnson said the utility would never put profits ahead of safety again. He told the judge that PG&E took responsibility for the devastation "with eyes wide open to what happened and to what must never happen again," KTLA reported.
In March, the utility and the state agreed to bankruptcy terms, which included an overhaul of PG&E's board selection process, financial structure and oversight, with rates expected to stabilize in 2025 as reforms take hold. According to investigators with the California Department of Forestry and Fire Protection, PG&E was responsible for the devastating Camp Fire.
Electrical lines owned and operated by PG&E started the fire November 8, 2018, CAL Fire said in a news release, after the company acknowledged its power lines may have started two fires that day.
"The tinder dry vegetation and Red Flag conditions consisting of strong winds, low humidity and warm temperatures promoted this fire and caused extreme rates of spread," CAL Fire said. PG&E had previously said it was "probable" that its equipment started the Camp Fire but that it wasn't conclusive whether its lines ignited a second fire, as CAL Fire alleged. The power company filed for bankruptcy in January 2019 as it came under pressure from billions of dollars in claims tied to deadly wildfires, and other utilities such as Southern California Edison have faced similar lawsuits.
Ontario Comprehensive Electricity Plan delivers Global Adjustment reductions for industrial and commercial non-RPP customers, lowering electricity rates, shifting renewable energy costs, and enhancing competitiveness across Ontario businesses in 2022, with additional 4 percent savings.
Key Points
Ontario's plan lowers Global Adjustment by shifting renewable costs, cutting industrial and commercial bills 15-17%.
✅ Shifts above-market non-hydro renewable costs to the Province
✅ Reduces GA for industrial and commercial non-RPP customers
✅ Additional 4% savings on 2022 bills after GA deferral
As of January 1, 2022, industrial and commercial electricity customers will benefit from the full savings introduced through the Ontario government’s Comprehensive Electricity Plan, which supports stable electricity pricing for industrial and commercial companies, announced in Budget 2020, and first implemented in January 2021. This year customers could see an additional four percent savings compared to their bills last year, bringing the full savings from the Comprehensive Electricity Plan to between 15 and 17 per cent, making Ontario a more competitive place to do business.
“Our Comprehensive Electricity Plan has helped reverse the trend of skyrocketing electricity prices that drove jobs out of Ontario,” said Todd Smith, Minister of Energy. “Over 50,000 customers are benefiting from our government’s plan which has reduced electricity rates on clean and reliable power, allowing them to focus on reinvesting in their operations and creating jobs here at home.”
Starting on January 1, 2021, the Comprehensive Electricity Plan reduced overall Global Adjustment (GA) costs for industrial and commercial customers who do not participate in the Regulated Price Plan (RPP) by shifting the forecast above-market costs of non-hydro renewable energy, such as wind, solar and bioenergy, from the rate base to the Province, alongside energy-efficiency programs that complement demand reduction efforts.
“Since taking office, our government has listened to job creators and worked to lower the costs of doing business in the province. Through these significant reductions in electricity prices through the Comprehensive Electricity Plan, customers all across Ontario will benefit from significant savings in their business operations in 2022,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By continuing to reduce electricity costs, lowering taxes, and cutting red tape our government has reduced the cost of doing business in Ontario by nearly $7 billion annually to ensure that we remain competitive, innovative and poised for economic recovery.”
As part of its COVID response, including electricity relief for families and small businesses, Ontario had deferred a portion of GA between April and June 2020 for industrial and non-RPP commercial customers, with more than 50,000 customers benefiting. Those same businesses paid back these deferred GA costs over 12 months, between January 2021 and December 2021, while the province prepared to extend disconnect moratoriums for residential customers.
During the pandemic, residential electricity use rose even as overall consumption dropped, underscoring shifts in load patterns.
Now that the GA deferral repayment period is over, industrial and non-RPP commercial customers will benefit from the full cost reductions provided to them by the Comprehensive Electricity Plan, alongside temporary off-peak rate relief that supported families and small businesses. This means that, beginning January 1, 2022, these businesses could see an additional four per cent savings on their bills compared to 2021, as new ultra-low overnight pricing options emerge depending on their location and consumption.
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