Spain buys 6 million emissions rights from Hungary

By Reuters


Electrical Testing & Commissioning of Power Systems

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$599
Coupon Price:
$499
Reserve Your Seat Today
Spain has bought rights from Hungary to emit 6 million tons of greenhouse gas through a government-level emissions trading scheme under the Kyoto Protocol, a Hungarian government official said.

"We have sold 6 million (emissions rights) to the Spanish government. According to our knowledge this is the biggest single sale (of its kind) in the world so far," said Lajos Olah, state secretary for Hungary's Ministry of Environment and Water.

Spain plans to buy 159 million tons of carbon credits and offsets over the next four years in an effort to meet emissions reduction goals under Kyoto, a spokeswoman for Spain's environment ministry told Reuters.

The Kyoto Protocol lets industrialized countries meet greenhouse gas targets by buying emissions credits under three different trading schemes.

One scheme under Kyoto allows nations that are comfortably below their emissions targets to sell excess quotas to other signatories in the form of credits, called Assigned Amount Units (AAUs), that are not necessarily related to emissions cuts.

Another scheme allows rich nations to invest in clean energy projects in poor nations, and in exchange receive offsets called CERs. The third scheme sees rich countries buy offsets called ERUs from similar projects in former communist countries.

"The strategy is to get as many CERs as possible and the rest will be in AAUs and ERUs," the Spanish spokeswoman said.

In a separate deal, U.S.-based project developers Natsource said that the government of Portugal will purchase $15 million in CERs through one of its funds.

Hungary's Ministry would not confirm terms of the AAU deal with Spain, saying it could affect future negotiations.

In a similar deal done in September, Hungary sold Belgium 2 million AAUs, also for an undisclosed price.

Latvia, Russia and Poland have said they are in similar discussions with nations like Ireland and Japan.

Olah said Hungary is also in talks with countries in and outside Europe, but will likely not sell all its AAUs this year.

"The total amount which we have can be estimated around 60 million units, but that's not a final figure and it has not been decided yet how many units we intend to sell," he said.

The majority of AAUs are held by former communist countries whose emissions dropped significantly in the 1990's when Eastern European industry slowed.

Critics have dubbed the credits "hot air", saying they are not generated as a result of investment in clean energy and are a cheap way for countries to meet commitments under Kyoto.

Such criticism has forced governments to introduce binding clauses to the deals that force the seller to re-invest proceeds in low-emissions technologies. Transactions that carry this caveat are known as Green Investment Scheme agreements.

In both deals, Hungary said it will invest proceeds in energy efficiency in residential and public sector buildings in order to cut emissions by 30 percent below 1990 levels by 2020.

"The spending of the proceeds will be audited, in this way the buyers can check how their money is spent," Olah said.

Related News

B.C. ordered to pay $10M for denying Squamish power project

Greengen Misfeasance Ruling details a B.C. Supreme Court decision awarding $10.125 million over wrongfully denied Crown land and water licence permits for a Fries Creek run-of-river hydro project under a BC Hydro contract.

 

Key Points

A B.C. Supreme Court ruling awarding $10.125M for wrongful denial of Crown land and water licences on Greengen's project.

✅ $10.125M damages for misfeasance in public office

✅ Denial of Crown land tenure and water licence permits

✅ Tied to Fries Creek run-of-river and BC Hydro EPA

 

A B.C. Supreme Court judge has ordered the provincial government to pay $10.125 million after it denied permits to a company that wanted to build a run-of-the river independent power project near Squamish.

In his Oct. 10 decision, Justice Kevin Loo said the plaintiff, Greengen Holdings Ltd., “lost an opportunity to achieve a completed and profitable hydro-electric project” after government representatives wrongfully exercised their legal authority, a transgression described in the ruling as “misfeasance,” with separate concerns reflected in an Ontario market gaming investigation reported elsewhere.

Between 2003 and 2009, the company sought to develop a hydro-electric project on and around Fries Creek, which sits opposite the Brackendale neighbourhood on the other side of the Squamish River. To do so, Greengen Holdings Ltd. required a water licence from the Minister of the Environment and tenure over Crown land from the Minister of Agriculture.

After a lengthy process involving extensive communications between Greengen and various provincial and other ministries and regulatory agencies, the permits were denied, according to Loo. Both decisions cited impacts on Squamish Nation cultural sites that could not be mitigated.

Elsewhere, an Indigenous-owned project in James Bay proceeded despite repeated denials, underscoring varied approaches to community participation.

40-year electricity plan relied on Crown land
The case dates back to December 2005, when BC Hydro issued an open call for power with Greengen. The company submitted a tender several months later.

On July 26, 2006, BC Hydro awarded Greengen an energy purchase agreement, amid evolving LNG electricity demand across the province, under which Greengen would be entitled to supply electricity at a fixed price for 40 years.

Unlike conventional hydroelectric projects, such as new BC generating stations recently commissioned, which store large volumes of water in reservoirs, and in so doing flood large tracts of land, a run of the river project often requires little or no water storage. Instead, from a high elevation, they divert water from a stream or river channel.

Water is then sent into a pressured pipeline known as a penstock, and later passed through turbines to generate electricity, Loo explained, as utilities pursue long-term plans like the Hydro-Québec strategy to reduce fossil fuel reliance. The system returns water to the original stream or river, or into another body of water. 

The project called for most of that infrastructure to be built on Crown land, according to the ruling.

All sides seemed to support the project
In early 2005, company principle Terry Sonderhoff discussed the Fries Creek project in a preliminary meeting with Squamish Nation Chief Ian Campbell.

“Mr. Sonderhoff testified that Chief Campbell seemed supportive of the project at the time,” Loo said.

 

Related News

View more

California Regulators Face Calls for Action as Electricity Bills Soar

California Electricity Rate Hikes strain households as CPUC weighs fixed charges, utility profit caps, and stricter oversight. Wildfire mitigation, transmission upgrades, and aging grid costs push bills higher amid renewable integration and consumer protection debates.

 

Key Points

California power rates are rising from wildfire mitigation, transmission costs, and grid upgrades under CPUC review.

✅ CPUC mulls fixed charges to stabilize bills and rate design.

✅ Advocates push profit caps; utilities cite investment needs.

✅ Stronger oversight sought to curb waste and boost transparency.

 

California residents and consumer groups are demanding relief as their electricity bills continue to climb, putting increasing pressure on state regulators to intervene.  A recent op-ed in the San Francisco Chronicle highlights the growing frustration, emphasizing that California already has some of the highest electricity rates in the country, as coverage on why prices are soaring underscores, and these costs are only getting more burdensome.


Factors Driving High Bills

The rising electricity bills are attributed to several factors:

  • Wildfire Mitigation and Liability: Utility companies are investing heavily in wildfire prevention measures, such as vegetation management and infrastructure hardening. The costs of these initiatives, along with the increasing financial liabilities associated with wildfire risk, are being passed on to consumers.
  • Transmission Costs: California's vast geography and move towards renewable energy sources necessitate significant investments in transmission lines to deliver electricity from remote locations. These infrastructure costs also contribute to higher bills.
  • Aging Infrastructure: California's electricity grid is aging and requires upgrades and maintenance, and the expenses associated with these efforts are reflected in consumer rates.


Proposed Solutions and Debates

Consumer advocates and some lawmakers are calling for various actions to address the issue, including a potential revamp of electricity rates to clean the grid:

  • Fixed Charge Proposal: The California Public Utilities Commission (CPUC) is considering a proposal to introduce an income-based fixed charge on electricity bills. This change aims to make rates more predictable and encourage investment in renewable energy sources. However, opponents argue that it could disproportionately impact low-income households and discourage conservation.
  • Utility Profit Caps: Some advocate for capping utility companies' profits. They believe excessive profits should be returned to customers in the form of lower rates. However, utility companies counter that they need a certain level of profit to invest in infrastructure and maintain a reliable grid.
  • Increased Oversight: Consumer groups are calling for stricter oversight of utility company spending, and legislators are preparing to crack down on utility spending through upcoming votes as well. They demand transparency and want to ensure that funds collected from customers are being used for necessary investments and not for lobbying or excessive executive compensation.

 

Comparisons and National Implications

Similar concerns about rising utility bills are emerging in other parts of the country as more states transition to renewable energy and invest in infrastructure upgrades.

A report by the Energy Information Administration (EIA) shows that average residential electricity rates across the country have been on the rise for the past decade. While California currently ranks amongst the highest, major changes to electric bills are being debated, and other states are following suit, demonstrating the nationwide challenge of balancing affordability with necessary investments.

 

Uncertain Future

The California Public Utilities Commission is reviewing the fixed charge proposal and is expected to make a decision later this year, with income-based flat-fee utility bills moving closer in the process. The outcome of this decision and potential additional regulatory changes will have significant ramifications for California residents, and some lawmakers plan to overturn income-based charges if adopted, which could set a precedent for how other states handle the rising costs associated with the energy transition.

 

Related News

View more

Coronavirus and the U.S. grid: What to know

COVID-19 Impact on US Electric Grid: utilities, ERCOT, PJM, and MISO brace for load shifts as remote work rises, industrial demand falls, and nuclear plants enforce pandemic planning to maintain reliability and resilience.

 

Key Points

Pandemic-driven changes in electricity demand and operations as utilities shift to remote work and reduced industrial use.

✅ Utilities enact remote work and suspend disconnections

✅ Grid operators model load shifts and maintain reliability

✅ Nuclear plants sustain operations with pandemic protocols

 

Operators of the nation's electric grid and energy companies are bracing for the spread of a virus that is undercutting power demand in countries across Asia and Europe as daily activities grind to a halt.

Owners of U.S. utilities and nuclear plants are canceling events, halting travel, pushing remote work and testing ill workers to slow the spread of the novel coronavirus.

So far, grid operators in the United States say no substantial effect on the electricity demand has emerged, but that could change, even though some reports indicate the U.S. grid is safe for now amid COVID-19. Texas' main grid operator, the Electric Reliability Council of Texas (ERCOT), expressed uncertainty when asked whether it will see changes in demand patterns for power due to the virus.

"It's too early to tell," Leslie Sopko, a spokeswoman for ERCOT, said in an email.

The virus has already taken a toll on power demand overseas. The chairman of Japan's federation of electric utilities and president of Chubu Electric Power Co., Satoru Katsuno, told reporters Friday the country's power demand has weakened as industrial activity slows due to the outbreak, according to Reuters.

The news outlet similarly reported China's industrial power demand this year may decline as the virus curtailed factory output and prevented some employees from returning to work. And, according to Bloomberg, power use in Italy slumped 7.4% last week after the government there shut down schools and told workers to remain home, while Ontario electricity demand also declined as people stayed home.

U.S. utility executives said the sector is well prepared and has faced the threat of spreading infections before. More than a decade ago, global virus scares like SARS pushed companies to hammer out extensive disaster planning, and those have stuck.

"A lot of the foundational work on contingency planning is actually rooted in pandemic planning because of those experiences in the mid-2000s," Scott Aaronson, the Edison Electric Institute's vice president of security and preparedness, told E&E News. "There is a good body of work and a lot of planning and exercises that have gone into being able to operate through these challenges."

Keeping the nation's electric grid running is a top priority at the Department of Energy, said Chris Fall, the agency's point person for COVID-19, which the new coronavirus causes. "Our responsibility is to make sure the electrical grid is resilient and working," said Fall, who directs the department's Office of Science.

He told an agency podcast, called "Direct Current," that the department is working with the private sector and other elements of the energy system. "Obviously we are connected with other agencies like Homeland Security or [the Federal Energy Regulatory Commission] on things like the electrical grid and making sure we have power, and if those people get sick or impacted, we have backups for all of that," he said.

According to a bulletin EEI released on the issue, 40% of a company's employees could be out sick, be quarantined or stay home to care for sick family members. And pandemics may prevent "traditional mutual assistance programs that help companies restore service after natural disasters and weather events," EEI said, such as restoring power in Florida after major storms.

The utility sector is also juggling the needs of its customers. Many major utilities across the nation have vowed to suspend shut-offs and keep power, heat and water on for all customers — a particular concern for people who may be out of work and cannot afford to pay their bills. Companies are also suspending disconnections for nonpayment, some under direction from officials and regulators in states like Ohio and Connecticut, while in Canada Hydro One's peak rate policy has drawn attention among self-isolating customers.

Like other businesses preparing for pandemics, utilities focus on keeping the workforce healthy and operations running. But EEI's Aaronson noted that a key difference with keeping critical infrastructure humming is the possible requirement for the sheltering in place of essential employees who are unable to do their jobs from home, as some operators contemplate locking down key staff at work sites to ensure continuity.

Grid operators are also well-equipped to handle shifts in power demand, and he acknowledged the sector could see changes as more offices and businesses move to remote working. He compared it to the load demand shifts between weekdays and weekends.

"So on the weekends, you're going to have a lot of people at home," Aaronson said. "During the week, it's people in offices. But generally speaking, the ability to have that resiliency and redundancy, the ability to shift resources and the way the grid balances, that is not going to change."

Electricity demand from high-intensity industries like manufacturing or theme parks like Disneyland could also wane, he added, even as electricity inequality in California influences who is most affected.

"It's not just a load shift to the residential, but it's also the load drop in some cases," Aaronson said. "Some of the commercial and industrial customers are going to be working a little bit less than they are presently."

Nuclear plants
Work is continuing at the Plant Vogtle nuclear construction project after Georgia Power Co. announced that one of the site workers is being tested for the coronavirus. The utility does not have the results of that test, a Georgia Power spokesman said late yesterday afternoon. The person works primarily in an office setting and is not on the construction site where two nuclear reactors are being built.

A second worker was tested Saturday, and those results were negative, spokesman John Kraft told E&E News.

Vogtle boasts a high worker count of 9,000 across the entire construction site, which includes office buildings. This is mostly craft laborers, but there are also administrators, executives and Nuclear Regulatory Commission safety inspectors.

A number of contractors and vendors are also on site given the complexity of the project.

Employees who were near the office worker being tested have been sent home until the company receives results. If the test is positive, then those workers will stay home for 14 days, Georgia Power said.

"The company is taking every action to prepare for impacts of the COVID-19 pandemic," Kraft said in a statement. This includes using advice from medical professionals and the Atlanta-based Centers for Disease Control and Prevention.

Georgia Power, owned by Atlanta-based Southern Co., informed regulators at the NRC that a worker was being tested. The federal commission itself has pandemic plans in place to ensure continued oversight, including robust work-from-home capabilities and "social distancing" practices to limit close contact among employees at headquarters.

NRC spokesman Scott Burnell said in an email that telework is not unusual for the agency, and about 75% of its workforce is already equipped to work remotely. The commission tested its telework readiness Friday. Some positions require workers to stay on-site to ensure safe reactor operations, Burnell added.

The nuclear industry has maintained pandemic preparedness plans and procedures since 2006, which have been shared with federal agencies, according to Mary Love, a spokeswoman for the Nuclear Energy Institute. "NEI members are participating in weekly calls to facilitate communications, coordination and best practices," she said.

According to NEI statistics, each plant averages 500 to 1,000 workers. While not every position is essential to operations, some areas like the control room cannot be conducted remotely.

"We know that nuclear power plant operations and the availability of electric service will be tremendously important in minimizing the impact of the situation on the general public," Love added. "We are confident, based on extensive planning, that the industry will continue to operate nuclear plants safely as this event unfolds."

Grid operators
Hundreds of workers responsible for overseeing critical operations of the U.S. electric grid are being encouraged to work from home, their offices are being sanitized, and in-person meetings are being moved online.

PJM Interconnection, the nation's largest grid operator covering some 65 million people across Mid-Atlantic and Midwest states, said Friday a forecast on load changes was not yet available.

PJM has moved all stakeholder meetings online. Employee travel has been suspended, as have external visits to its headquarters in Valley Forge, Pa.

Employees "are equipped to work remotely, if necessary, to maintain business continuity," and PJM "is prepared and able to run and support all market applications from its campus or remotely, as needed," the operator said.

"PJM recognizes that these measures have significant impacts to our staff, members and stakeholders," PJM said on its coronavirus response webpage. "We are dedicated to striking a balance between those impacts and our number one priority — the reliability of the grid."

Still pending at the operator is a decision about its annual meeting in Chicago at the beginning of May. That decision will be made by April 3, PJM said.

The Midcontinent Independent System Operator (MISO), which runs the bulk power grid across 15 states and the Canadian province of Manitoba, is also holding meetings via conference call or online and restricting all business travel.

MISO has encouraged "nonessential" employees to work remotely, leaving only those who actively monitor and manage the operation of the grid working on-site.

The grid operator employs nearly 1,000 people, including 780 at its headquarters in Carmel, Ind.

A board meeting set for the last week of March in New Orleans hasn't yet been canceled, with a final decision on whether to move forward with the meeting expected today.

MISO said it hasn't encountered other changes in normal operations and has not seen significant shifts in electricity demand.

In Texas, ERCOT has about 750 employees, mostly at its campus in the city of Taylor. ERCOT's Sopko said the grid operator is encouraging employees who are not required to be on-site to work from home. The policy is voluntary at this time, but that could change quickly, she said Friday.

ERCOT is also taking extra steps to keep workers safe, including alternating use of facilities, encouraging social distancing and imposing control room measures as part of its pandemic planning, she added.

Energy companies
In the Midwest, utilities including DTE Energy Co., Commonwealth Edison, Consumers Energy and Ameren Corp. said they're following CDC guidance and working with state and local officials to help slow the spread of the virus. That means asking employees who can do their jobs at home to do so, restricting visitors to company offices, canceling large assemblies and nonessential business travel, and holding meetings by phone or online.

Chicago-based ComEd, which serves 4 million customers, is imposing a moratorium on service disconnections and waiving new late payment charges through at least May 1, in addition to working with customers who are facing financial hardships on a case-by-case basis to establish payment arrangements and identify energy assistance options, spokesman Paul Elsberg said.

Many of the Southeast's major energy companies are also curbing travel and encouraging telework, among other steps, in response to the coronavirus.

For Southern Co., this includes its Georgia Power unit; Southern Power; and employees of Southern Company Gas, who are in Illinois, Tennessee and Virginia. Southern has not extended the policies to its Alabama and Mississippi electric companies, spokesman Schuyler Baehman said.

Charlotte, N.C.-based Duke Energy Corp. has suspended all business travel unless workers are traveling by car. The energy giant also is encouraging its employees to rethink their own vacations if upcoming trips take them out of the country.

"Circumstances are changing rapidly around the world," the company said in a statement.

For workers who must come to the office, or work at power plants or on the lines, utilities are doubling down on disinfectant in those areas.

"We're also reminding our employees that we provide a very critical service; we need you well, we need you able," said Le-Ha Anderson, a spokeswoman for Richmond, Va.-based Dominion Energy Inc.

Dominion started asking employees a few weeks ago to take mobile devices home and make sure they have what they need to work remotely. Anyone who has traveled to one of the CDC-identified hot spots is asked to stay home for 14 days with no questions asked, Anderson said.

The federally owned Tennessee Valley Authority has reviewed and updated its plans on how it will operate during a pandemic but has not yet reached the point to have employees telework if they are able to do so.

"We come at this at a very phased approach," TVA spokesman Jim Hopson said. "We can't just shut the doors."

State utility commissions, too, have begun taking steps. In response to a state of emergency declared by Ohio Gov. Mike DeWine (R), the Public Utilities Commission of Ohio on Thursday directed utilities to act where possible to avoid suspending service to customers.

Will Seuffert, executive secretary of the Minnesota Public Utilities Commission, said in an email that the regulator has canceled all public hearings and agenda meetings for the next two weeks and has been supporting telework "throughout the agency" in response to the virus.

 

Related News

View more

Sudbury, Ont., eco groups say sustainability is key to grid's future

Sudbury Electrification and Grid Expansion is driving record power demand, EV charging, renewable energy planning, IESO forecasts, smart grid upgrades, battery storage, and industrial electrification, requiring cleaner power plants and transmission capacity in northern Ontario.

 

Key Points

Rising electricity demand and clean energy upgrades in Sudbury to power EVs, industry, and a smarter, expanded grid.

✅ IESO projects system size may need to more than double

✅ EVs and smart devices increase peak and off-peak load

✅ Battery storage and V2G can support reliability and resiliency

 

Sudbury, Ont., is consuming more power than ever, amid an electricity supply crunch in Ontario, according to green energy organizations that say meeting the demand will require cleaner energy sources.

"This is the welfare of the entire city on the line and they are putting their trust in electrification," said David St. Georges, manager of communications at reThink Green, a non-profit organization focused on sustainability in Sudbury.

According to St. Georges, Sudbury and northern Ontario can meet the growing demand for electricity to charge clean power for EVs and smart devices. 

According to the Independent Electricity System Operator (IESO), making a full switch from fossil fuels to other renewable energy sources could require more power plants, while other provinces face electricity shortages of their own.

"We have forecasted that Ontario's electricity system will need significant expansion to meet this, potentially more than doubling in size," the IESO told CBC News in an emailed statement.

Electrification in the industrial sector is adding greater demand to the electrical grid as electric cars challenge power grids in many regions. Algoma Steel in Sault Ste. Marie and ArcelorMittal Dofasco in Hamilton both aim to get electric arc furnaces in operation. Together, those projects will require 630 megawatts.

"That's like adding four cities the size of Sudbury to the grid," IESO said.

Devin Arthur, chapter president of the Electric Vehicle society in Greater Sudbury, said the city is coming full circle with fully electrifying its power grid, reflecting how EVs are a hot topic in Alberta and beyond.

"We're going to need more power," he said.

"Once natural gas was introduced, that kind of switched back, and everyone was getting out of electrification and going into natural gas and other sources of power."

Despite Sudbury's increased appetite for electricity, Arthur added it's also easier to store now as Ontario moves to rely on battery storage solutions.

"What that means is you can actually use your electric vehicle as a battery storage device for the grid, so you can actually sell power from your vehicle that you've stored back to the grid, if they need that power," he said.

Harneet Panesar, chief operating officer for the Ontario Energy Board, told CBC the biggest challenge to going green is seeing if it can work around older infrastructure, while policy debates such as Canada's 2035 EV sales mandate shape the pace of change.

"You want to make sure that you're building in the right spot," he said.

"Consumers are shifting from combustion engines to EV drivetrains. You're also creating more dependency. At a very high level, I'm going to say it's probably going to go up in terms of the demand for electricity."

Fossil fuels are the first to go for generating electricity, said St. Georges.

"But we're not there yet, because it's not a light switch solution. It takes time to get to that, which is another issue of electrification," he said.

"It's almost impossible for us not to go that direction."

 

Related News

View more

BC Hydro Rates to Rise by 3.75% Over Two Years

British Columbia electricity rate increase will raise BC Hydro bills 3.75% over 2025-2026 to fund infrastructure, Site C, and clean energy, balancing affordability, reliability, and energy security while keeping prices below the North American average.

 

Key Points

BC will raise BC Hydro rates 3.75% in 2025-2026, about $3.75/month, to fund grid upgrades, Site C, and clean energy.

✅ 3.75% over 2025-2026; about $3.75/month on $100 average bill

✅ Funds Site C, grid maintenance, and clean energy capacity

✅ Keeps BC Hydro rates below North American averages

 

British Columbia's electricity rates will experience a 3.75% increase over the next two years, following an earlier 3% rate increase approval that set the stage, as confirmed by the provincial government on March 17, 2025. The announcement was made by Minister of Energy and Climate Solutions, Adrian Dix, who emphasized the decision's necessity for maintaining BC Hydro’s infrastructure while balancing affordability for residents.

For most households, the increase will amount to an additional $3.75 per month, based on an average BC Hydro bill of $100, though some coverage framed an earlier phase as a BC Hydro $2/month proposal that later evolved. While this may seem modest, the increase reflects a broader strategy to stabilize the utility's rates amidst economic challenges and ensure long-term energy security for the province.

Reasons Behind the Rate Hike

The rate increase comes during a period of rising costs in both global markets and local economies. According to Dix, the economic uncertainty stemming from trade dynamics and inflation has forced the government to act. Despite these pressures, and after a prior B.C. rate freeze to moderate impacts, the increase remains below cumulative inflation over the last several years, a move designed to shield consumers from the full force of these economic changes.

Dix also noted that, when adjusted for inflation, electricity rates in British Columbia in 2025 are effectively at the same price they were four decades ago. This stability, he argued, underscores the provincial government’s commitment to keeping rates as low as possible for residents, even as operating costs rise.

“We must take urgent action to protect British Columbians from the uncertainty posed by rising costs while building a strong, resilient electricity system for the long-term benefit of B.C.’s energy independence,” Dix said. He also highlighted the government's approach to minimizing the financial burden on consumers by keeping electricity costs well below the North American average.

Infrastructure and Maintenance Costs

The primary justification for the rate increase is to allow BC Hydro to continue its critical infrastructure development, including the Site C hydroelectric project, which is expected to become operational in the coming years. The increased costs of maintaining and upgrading the province's electricity grid also contribute to the need for higher rates.

The Site C project, a massive hydroelectric dam under construction on the Peace River, is expected to provide a substantial increase in clean, renewable energy capacity. However, such large-scale projects require significant investment and maintenance, both of which have contributed to the increased operating costs for BC Hydro.

A Strategic Move for Rate Stability

The provincial government has been clear that the rate increase will allow for a continuation of infrastructure development while keeping the rates manageable for consumers. The 3.75% increase will be spread across two years, with the first hike scheduled for April 1, 2025, reflecting the typical April rate changes BC Hydro implements, and the second for April 1, 2026.

Dix confirmed that the rate hike would still keep electricity costs among the lowest in North America, noting that British Columbians pay about half of what residents in Alberta pay for electricity. This is part of a broader effort by the provincial government to provide stable energy pricing while bolstering the transition to clean energy solutions, such as the Site C project and other renewable energy initiatives.

Addressing Public Concerns

Although the government has framed the increase as a necessary measure to ensure the province's long-term energy independence and reliability, the rate hikes are likely to face scrutiny from residents, particularly those already struggling with the rising cost of living, even as provinces like Ontario face their own Ontario hydro rate increase pressures this fall.

Public reactions to utility rate increases are often contentious, as residents feel the pressure of rising prices across various sectors, from housing to healthcare. However, the government has promised that the new rates will remain manageable, especially considering the relatively low rate increases compared to inflation and other regions where Manitoba Hydro scaled back a planned increase to temper impacts.

Furthermore, the increase comes as part of a broader strategy that aims to keep the overall impact on consumers as low as possible. Minister Dix emphasized that these rate increases were intended to ensure the continued reliability of BC Hydro’s services, without overwhelming ratepayers.

Long-Term Goals

Looking ahead, the province's strategy centers on not only maintaining affordable electricity rates but also reinforcing the importance of renewable energy, while some jurisdictions consider a 2.5% annual increase plan over multiple years to stabilize their grids. As climate change becomes an increasingly pressing issue, BC’s investments in clean energy projects like Site C aim to provide sustainable power for generations to come.

The government’s long-term vision involves building a resilient, energy-independent province that can weather future economic and environmental challenges. In this context, the rate increases are framed not just as a response to immediate inflationary pressures but as a necessary step in preparing BC’s energy infrastructure for the future.

The 3.75% rate increase set for 2025 and 2026 represents a balancing act between managing the financial health of BC Hydro and protecting consumers from higher costs. While the increase will have a modest effect on household bills, the long-term goal is to build a more robust and sustainable electricity system for British Columbia’s future. Through investments in clean energy and strategic infrastructure development, the province aims to keep electricity rates competitive while positioning itself as a leader in energy independence and climate action.

 

Related News

View more

Australia's energy transition stalled by stubbornly high demand

Australia Renewable Energy Transition: solar capacity growth, net-zero goals, rising electricity demand, coal reliance, EV adoption, grid decarbonization, heat waves, air conditioning loads, and policy incentives shaping clean power, efficiency, and emissions reduction.

 

Key Points

Australia targets net-zero by 2050 by scaling renewables, curbing demand, and phasing down coal and gas.

✅ Solar capacity up 200% since 2018, yet coal remains dominant.

✅ Transport leads energy use; EV uptake lags global average.

✅ Heat waves boost AC load, stressing grids and emissions goals.

 

A more than 200% increase in installed solar power generation capacity since 2018 helped Australia rank sixth globally in terms of solar capacity last year and emerge as one of the world's fastest-growing major renewable energy producers, aligning with forecasts that renewables to surpass coal in global power generation by 2025.

However, to realise its goal of becoming a net-zero carbon emitter by 2050, Australia must reverse the trajectory of its energy use, which remains on a rising path, even as Asia set to use half of electricity underscores regional demand growth, in contrast with several peers that have curbed energy use in recent years.

Australia's total electricity consumption has grown nearly 8% over the past decade, amid a global power demand surge that has exceeded pre-pandemic levels, compared with contractions over the same period of more than 7% in France, Germany and Japan, and a 14% drop in the United Kingdom, data from Ember shows.

Sustained growth in Australia's electricity demand has in turn meant that power producers must continue to heavily rely on coal for electricity generation on top of recent additions in supply of renewable energy sources, with low-emissions generation growth expected to cover most new demand.

Australia has sharply boosted clean energy capacity in recent years, but remains heavily reliant on coal & natural gas for electricity generation
To accomplish emissions reduction targets on time, Australia's energy use must decline while clean energy supplies climb further, as that would give power producers the scope to shut high-polluting fossil-powered energy generation systems ahead of the 2050 deadline.

DEMAND DRIVERS
Reducing overall electricity and energy use is a major challenge in all countries, where China's electricity appetite highlights shifting consumption patterns, but will be especially tough in Australia which is a relative laggard in terms of the electrification of transport systems and is prone to sustained heat waves that trigger heavy use of air conditioners.

The transport sector uses more energy than any other part of the Australian economy, including industry, and accounted for roughly 40% of total final energy use as of 2020, according to the International Energy Agency (IEA.)

Transport energy demand has also expanded more quickly than other sectors, growing by over 5% from 2010 to 2020 compared to industry's 1.3% growth over the same period.

Transport is Australia's main energy use sector, and oil products are the main source of energy type
To reduce energy use, and cut the country's fuel import bill which topped AUD $65 billion in 2022 alone, according to the Australian Bureau of Statistics, the Australian government is keen to electrify car fleets and is offering large incentives for electric vehicle purchases.

Even so, electric vehicles accounted for only 5.1% of total Australian car sales in 2022, according to the International Energy Agency (IEA).

That compares to 13% in New Zealand, 21% in the European Union, and a global average of 14%.

More incentives for EV purchases are expected, but any rapid adoption of EVs would only serve to increase overall electricity demand, and with surging electricity demand already straining power systems worldwide, place further pressure on power producers to increase electricity supplies.

Heating and cooling for homes and businesses is another major energy demand driver in Australia, and accounts for roughly 40% of total electricity use in the country.

Australia is exposed to harsh weather conditions, especially heat waves which are expected to increase in frequency, intensity and duration over the coming decades due to climate change, according to the New South Wales government.

To cope, Australians are expected to resort to increased use of air conditioners during the hottest times of the year, and with reduced power reserves flagged by the market operator, adding yet more strain to electricity systems.

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Download the 2025 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified