U.S. climate legislation poses risks for Canada

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CanadaÂ’s energy-intensive industries could be adversely affected by border tariffs if Canadian climate change policies are seen as less demanding than the eventual U.S. legislation, according to a Conference Board of Canada report.

“U.S. climate change legislation is unlikely to pass in 2010, and the prospects for a global climate breakthrough in Copenhagen next month are dim,” said Gary Hufbauer, co-author of U.S. Climate Legislation Implications and Prospects: Challenges for Canada, published by the Conference Board’s International Trade and Investment Centre. The publication provides a perspective from a U.S. expert on the implications of proposed legislation for Canada.

“We now have an idea of the future direction of U.S. policy, especially now that President Obama has announced that he is going to offer fixed targets for U.S. emission cuts in Copenhagen. The mechanisms envisaged in future U.S. federal and state legislation would affect numerous Canadian industries, and pose challenges to Alberta’s oil sands.”

Elements of the emerging U.S. legislation that would have repercussions for Canada include:

• a highly complex emissions cap-and-trade system with many industries given “free allowances”;

• punitive measures against U.S. trading partners that do not undertake similar climate action;

• renewable energy standards for electricity generation that could exclude Canadian hydro power (though Environmental Protection Agency emissions caps for electricity generators could encourage increased hydro exports);

• temporary prohibition against states running their own cap-and-trade programs — this could affect Canadian provinces that are members of the Western Climate Initiative;

• low-carbon fuel standards at the state level — most prominently in California — that could negatively affect Canada’s oil sands projects; and

• rebates extended to US firms in excess of their emission abatement costs that could lower the price of US goods relative to Canadian ones.

China — not Canada — is likely the intended target of punitive border measures. But if the proposed legislation eventually passes, and if Canada does not adopt similar measures, Canada’s energy-intensive industries could face carbon tariffs at the U.S. border.

In this circumstance, a number of Canadian industries might have to buy emissions permits at the U.S. border if Canada is seen to have climate policies that are less stringent than the United States. The most important in terms of trade value are: paper, petrochemicals, plastic materials, iron and steel, aluminum, and other non-ferrous metals. The report notes that some of the proposed U.S. measures could be challenged under World Trade Organization rules.

The Canadian government announced recently that it will delay its own climate policy until the shape of U.S. and global agreements become clearer.

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The crisis in numbers: How COVID-19 has reshaped Saskatchewan

Saskatchewan COVID-19 economic impact: real-time data shows drops in electricity demand, oil well licensing, traffic and tickets, plus spikes in internet usage, government site visits, remote work, and alcohol wholesale volumes.

 

Key Points

COVID-19 reduced energy use, drilling and traffic, while pushing activity online; jobs, rents and sales show strain.

✅ Electricity demand down 6.7%; residential usage up

✅ Oil well license applications fell 15-fold in April

✅ Internet traffic up 16%-46%; wireless LTE up 34%

 

We’re only just beginning to grasp how COVID-19 has upended Saskatchewan’s economy, its government and all of our lives.

The numbers that usually make headlines — job losses, economic contraction, bankruptcies — are still well behind the pace of the virus and its toll.

But other numbers change more quickly. Saskatchewan people are using less power, and the power industry is adopting on-site staffing plans to ensure reliability as conditions evolve. We’re racking up fewer speeding tickets. And as new restrictions come, we’re clicking onto Saskatchewan.ca as much as 10,000 times per minute.

Here’s some data that provides a first glimpse into how much our province has changed in just six weeks.

Electricity use tends to rise and fall in tandem with the health of the economy, and the most recent data from SaskPower suggests businesses are powering down, while regional utilities such as Manitoba Hydro seek unpaid days off to trim costs.

Peak load requirements between March 15 and April 26 were 220 MW lower than during the same period in 2019, and elsewhere BC Hydro is posting COVID-19 updates at Site C as it manages project impacts. That’s a decrease of 6.7 per cent, with total load on April 29 at 2,551 MW. A megawatt is enough electricity to power about 1,000 homes.

Separate from pandemic impacts, an external investigation at Manitoba Hydro has drawn attention to workplace conduct issues.

But it’s not homes that are turning off the lights. SaskPower spokesman Joel Cherry said commercial and industrial usage is down, while residential demand is up, with household electricity bills rising as more people stay home.

The timing of power demand has also shifted, a pattern seen as residential electricity use rises during work-from-home routines. Peak load would usually come around 8 or 9 p.m. in April. Now it’s coming earlier, typically between 5 and 6 p.m.

Oil well applications fall 15-fold
Oil prices have cratered since late February, and producers in Saskatchewan have reacted by pulling back on drilling plans, while neighbouring Alberta provides transition support for coal workers amid broader energy shifts.

Applications for well licences fell from 242 in January to 203 in February (including nine potash and one helium operations), before dropping to 84 in March. April, the month benchmark oil prices went negative for one day, producers submitted just 15 applications.

That’s 15 times fewer than the 231 applications the Ministry of Energy and Resources received in April 2019.

Well licences are needed for drilling, operating, injecting, producing or exploring an oil and gas or potash well in the province.

There has been no clear trend in well abandonment, however. There were 176 applications for abandonment in March and 155 in April, roughly in line with figures from the year before.

SGI spokesman Tyler McMurchy believes the lower numbers might stem from a combination of lower traffic volumes during part of the month, possibly combined with a shift in police priorities. The March 2020 numbers are also well below January and February figures.

Indeed, the Ministry of Highways and infrastructure reported a 16 per cent decrease in average daily traffic last month compared to March 2019, through its traffic counts at 11 different spots on highways across the province.

In Regina, traffic counts at 16 locations dropped from a high of 2.1 million in the first week of March to a low of 1.3 million during the week of March 22. That’s a 44 per cent decrease.

Counts have gradually recovered to 1.6 million in the weeks since. The data was fairly consistent at all 16 spots, which are largely major intersections, though the city cautioned they may not be representative of Regina as a whole.

Tickets for cellphone use while driving also fell, dropping from 562 in February to 314 in March. McMurchy noted that distracted driving numbers in general have been falling since November as stiffer penalties were announced. Impaired driving tickets were up, by contrast, but still within a typical range.

Internet traffic shoots up 16 per cent, far more for rural high speed
You may be spending a lot more time on Netflix and Facebook in the age of social distancing, and SaskTel has noticed.

From late February to late April, SaskTel has seen “very significant increases in provincial data traffic.” DSL and fibre optic networks have handled a 16 per cent increase in traffic, while demand on the wireless LTE network is up 34 per cent.

Usage on the Fusion network up 46 per cent. That network serves rural areas that don’t have access to other high-speed options.

The specific reference dates for comparison were February 24 and April 27.

“We attribute these changes in data usage to the pandemic and not expected seasonal or yearly shifts in usage patterns,” said spokesman Greg Jacobs.

Saskatchewan.ca was attracting just 70 page views per minute on average in February. But page views jumped over 10,000 per minute at 2:38 p.m. on March 18, as Moe was still announcing the new measures.

That’s a 14,000 per cent increase.

For all of March, visitor sessions on the site clocked in at 3,905,061, almost four times the 944,904 recorded for February.

Bureaucracy has increasingly migrated to cyberspace, with 62 per cent of civil servants now working from home. Government Skype calls, both audio and video, have tripled from 12,000 sessions per day to 35,000.Telephone conference calls increased by a factor of 14 from the first week of February to the second full week of April, with 25 times more weekly call participants. 

The Ministry of Central Services reported a 17 per cent jump in emails received by government over the past two months, excluding the Ministry of Health.

But as civil servants spend more time on their computers, the government’s fleet is spending a lot less time on the road. The ministry has purchased 40 per cent fewer litres of fuel for its vehicles over the past four weeks, compared to the same time last year.

Alcohol wholesale volumes up 22 per cent, then fall back to normal
Retailers bought more alcohol from the Saskatchewan Liquor and Gaming Authority (SLGA) last month, just as the government began tightening pandemic restrictions.

Wholesale sales volumes were up 22 per cent over March 15 to 28, compared to the same period in 2019. SLGA spokesman David Morris said the additional demand “was likely the result of retailers stocking-up as restrictions related to COVID-19 took effect.”

But the jump didn’t last. Wholesale volumes were back to normal for the first two weeks of April. SLGA did notice a very slight uptick last week, however, with volumes out of its distribution centre up three per cent. The numbers do not include Brewer’s Distributors Ltd.

It’s unclear how much more alcohol consumers actually purchased, since province-wide retail numbers were not available.

There was no discernible trend in March for anti-anxiety medication, however. The number of prescriptions filled for benzodiazepines like Valium, Xanax and Ativan see-sawed over March, according to data provided by the College of Physicians and Surgeons, but its associate registrar does not believe the trends are statistically relevant.

One-fifth of tenants miss April rent
About 20 per cent of residential rent went totally unpaid in the first six days of April, according to the Saskatchewan Landlord Association (SLA).

The precise number is 19.7 per cent, but there’s some uncertainty due to the survey method, which is based on responses from 300 residential landlords with 14,000 units. An additional 12 per cent of tenants paid a portion of their rent, but not the full amount. The figures do not include social housing.

Cameron Choquette, the association’s executive officer, partly blames the province’s decision to suspend most landlord tenant board hearings for evictions, saying it “allows more people to take advantage of landlords by not paying their rent and not facing any consequences.”

The government has defended the suspension by saying it’s needed to ensure everyone has a safe place to self-isolate if needed during the pandemic.

March’s jobs numbers were bad, with almost 21,000 fewer Saskatchewan people employed compared to February.

April’s labour force survey is expected on Friday. But new April numbers released Wednesday show that two-thirds of the province’s businesses managed to avoid laying off staff almost entirely.

According to Statistics Canada, 66.2 per cent of businesses reported laying off between zero and one per cent of their employees due to COVID-19. That was better than any other province. Just 7.6 per cent laid off all of their employees, again the best number outside the territories. The survey period was April 3 to 24.

Some businesses are even hiring. Walmart, for instance, has hired 300 people in Saskatchewan since mid-March.

Trade and Export Development Minister Jeremy Harrison chalked the data up to a relatively more optimistic business outlook in Saskatchewan, combined with “very targeted” restrictions and a support program for small and medium businesses.

That support program, which provides $5,000 grants to qualifying businesses affected by government restrictions, has only been around for three weeks. But it’s already been bombarded with 6,317 applications.

The total value of those applications would be $24,178,000, according to Harrison. Of them, 3,586 have been approved with a value of $11,755,000.

Businesses are coming to Harrison’s ministry with thousands of questions. Since it opened in March, the Business Response Team has received 4,125 calls and 1,758 emails.

The kinds of questions have changed over the course of the pandemic. Many are now asking when they can open their doors, according to Harrison, as they wonder about “grey areas” in the Re-Open Saskatchewan plan.

 

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Economic Crossroads: Bank Earnings, EV Tariffs, and Algoma Steel

Canada Economic Crossroads highlights bank earnings trends, interest rates, loan delinquencies, EV tariffs on Chinese imports, domestic manufacturing, Algoma Steel decarbonization, sustainability, and housing market risks shaping growth, investment, consumer prices, and climate policy.

 

Key Points

An overview of how bank earnings, EV tariffs, and Algoma Steel's transition shape Canada's economy.

✅ Higher rates lift margins but raise delinquencies and housing risks

✅ EV tariffs aid domestic makers but pressure consumer prices

✅ Algoma invests to decarbonize, boosting efficiency and compliance

 

In a complex economic landscape, recent developments have brought attention to several pivotal issues affecting Canada's business sector. The Globe and Mail’s latest report delves into three major topics: the latest bank earnings, the implications of new tariffs on Chinese electric vehicles (EVs), and Algoma Steel’s strategic maneuvers. These factors collectively paint a picture of the challenges and opportunities facing Canada's economy.

Bank Earnings Reflect Economic Uncertainty

The recent financial reports from major Canadian banks have revealed a mixed picture of the nation’s economic health. As the Globe and Mail reports, earnings results show robust performances in some areas while highlighting growing concerns in others. Banks have generally posted strong quarterly results, buoyed by higher interest rates which have improved their net interest margins. This uptick is largely attributed to the central bank's monetary policies aimed at combating inflation and stabilizing the economy.

However, the positive earnings are tempered by underlying economic uncertainties. Rising loan delinquencies and a slowing housing market are areas of concern. Increased interest rates, while beneficial for banks’ margins, have also led to higher borrowing costs for consumers and businesses. This dynamic has the potential to impact overall economic growth and consumer confidence.

Tariffs on Chinese EVs: A Strategic Shift

Another significant development is the imposition of new tariffs on Chinese electric vehicles. This move is part of a broader strategy to protect domestic automotive industries and address trade imbalances, aligning with public support for tariffs in key sectors. The tariffs are expected to increase the cost of Chinese EVs in Canada, which could have several implications for the market.

On one hand, the tariffs might provide a temporary boost to Canadian and North American manufacturers by reducing competition from lower-priced Chinese imports. This protectionist measure could encourage investments in local production and innovation, mirroring tariff threats boosting support for energy projects in other sectors. However, the increased cost of Chinese EVs may also lead to higher prices for consumers, potentially slowing the adoption of electric vehicles—a critical goal in Canada’s climate strategy.

The tariffs come at a time when the Canadian government is keen on accelerating the transition to electric mobility to meet its environmental targets, even as a critical crunch in electrical supply raises questions about grid readiness. Balancing the protection of domestic industries with the broader goal of reducing emissions will be a significant challenge moving forward.

Algoma Steel’s Strategic Evolution

In the steel industry, Algoma Steel has been making headlines with its strategic initiatives aimed at transforming its operations, in a broader shift toward clean grids and industrial decarbonization. The Globe and Mail highlights Algoma Steel's efforts to modernize its production processes and shift towards more sustainable practices. This includes significant investments in technology and infrastructure to enhance production efficiency and reduce environmental impact.

Algoma's focus on reducing carbon emissions aligns with broader industry trends towards sustainability. The company’s efforts are part of a larger push within the steel sector to address climate change and meet regulatory requirements. As one of Canada’s leading steel producers, Algoma’s actions could set a precedent for the industry, showcasing how traditional manufacturing sectors can adapt to evolving environmental standards.

Implications and Future Outlook

The interplay of these developments reflects a period of significant transition for Canada's economy, shaped in part by U.S. policy where Biden is seen as better for Canada's energy sector by some analysts. For banks, the challenge will be to navigate the balance between profitability and potential risks from a changing economic environment. The new tariffs on Chinese EVs represent a strategic shift with mixed implications for the automotive market, potentially influencing both domestic production and consumer prices. Meanwhile, Algoma Steel’s push towards sustainability could serve as a model for other industries seeking to align with environmental goals.

As these issues unfold, stakeholders across sectors will need to stay informed and adaptable. For policymakers, the challenge will be to support domestic industries while fostering innovation and sustainability, including the dilemma over electricity rates and innovation they must weigh. For businesses, the focus will be on navigating financial pressures and leveraging opportunities for growth. Consumers, in turn, will face the impact of these developments in their daily lives, from the cost of borrowing to the price of electric vehicles.

In summary, Canada’s current economic landscape is characterized by a blend of financial resilience, strategic adjustments, and evolving industry practices, amid policy volatility such as a tariff threat delaying Quebec's green energy bill earlier this year. As the country navigates these crossroads, the outcomes of these developments will play a crucial role in shaping the future economic environment.

 

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Yet another Irish electricity provider is increasing its prices

Electric Ireland Electricity Price Increase stems from rising wholesale costs as energy suppliers adjust tariffs. Customers face higher electricity bills, while gas remains unchanged; switching provider could deliver savings during winter.

 

Key Points

A 4% increase in Electric Ireland electricity prices from 1 Feb 2018, driven by wholesale costs; gas unchanged.

✅ 4% electricity rise effective 1 Feb 2018

✅ Increase attributed to rising wholesale energy costs

✅ Switching supplier may reduce bills and boost savings

 

ELECTRIC IRELAND has announced that it will increase its household electricity prices by 4% from 1 February 2018.

This comes just a week after both Bord Gáis Energy and SSE Airtricity announced increases in their gas and electricity prices, while national efforts to secure electricity supplies continue in parallel.

Electric Ireland has said that the electricity price increase is unavoidable due to the rising wholesale cost of electricity, with EU electricity prices trending higher as well.

The electricity provider said it has no plans to increase residential gas prices at the moment.

Commenting on the latest announcement, Eoin Clarke, managing director of Switcher.ie, said: “This is the third largest energy supplier to announce a price increase in the last week, so the other suppliers are probably not far behind.

“The fact that the rise is not coming into effect until 1 February will be welcomed by Electric Ireland customers who are worried about the rising cost of energy as winter sets in,” he said.

However, any increase is still bad news, especially as a quarter of consumers (27%) say their energy bill already puts them under financial pressure, and EU energy inflation has disproportionately affected lower-income households.

According to Electric Ireland, this will amount to a €2.91 per month increase for an average electricity customer, amounting to €35 per year.

Meanwhile, SSE Airtricity’s change amounts to an increase of 90 cent per week or €46.80 per year for someone with average consumption on their 24hr SmartSaver standard tariff, far below the dramatic Spain electricity price surge seen recently.

Bord Gáis Energy said its announcement will increase a typical gas bill by €2.12 a month and a typical electricity bill by €4.77 a month, reflecting wider trends such as the Germany power price spike reported recently.

In a statement, Bord Gáis Energy said: “The changes, which will take effect from 1st November 2017, are due to significant increases in the wholesale cost of energy as well as higher costs associated with distributing energy on the gas and electricity networks.

“In percentage terms, the increase represents 3.4% in a typical customer’s gas bill and an increase of 5.9% in a typical customer’s electricity bill.”

Clark said that if customers haven’t switched electricity provider in over a year that they should review the deals available at the moment.

“The market is highly competitive so there are huge savings to be made by switching,” he said.

“All suppliers use the same cables to supply electricity to your home, so you don’t need to worry about any loss in service, and you could save up to 324 by switching from typical standard tariffs to the cheapest deals on the market.”

 

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New York and New England Need More Clean Energy. Is Hydropower From Canada the Best Way to Get it?

Canadian Hydropower Transmission delivers HVDC clean energy via New England Clean Energy Connect and Champlain Hudson Power Express, linking HydroQuébec to Maine and New York grids for renewable energy, decarbonization, and lower wholesale electricity rates.

 

Key Points

HVDC delivery of HydroQuébec power to New England and New York via NECEC and CHPE, cutting emissions and costs.

✅ 1,200 MW via NECEC; 1,000 MW via CHPE.

✅ HVDC routes: 145-mile NECEC and 333-mile CHPE.

✅ Debates: land impacts, climate justice, wholesale rates.

 

As the sole residents of unorganized territory T5 R7 deep within Maine's North Woods, Duane Hanson and his wife, Sally Kwan, have watched the land around them—known for its natural beauty, diverse wildlife and recreational fishing—transformed by decades of development. 

But what troubles them most is what could happen in the next few months. State and corporate officials are pushing for construction of a 53-mile-long power line corridor cutting right through the woods and abutting the wild lands surrounding Hanson's property. 

If its proponents succeed, Hanson fears the corridor may represent the beginning of the end of his ability to live "off the land" away from the noise of technology-obsessed modern society. Soon, that noise may be in his backyard. 

"I moved here to be in the pristine wilderness," said Hanson.
 
With his life in what he considers the last "wild" place left on the East Coast on the line, the stakes have never felt higher to Hanson—and many across New England, as well.

The corridor is part of the New England Clean Energy Connect, one of two major and highly controversial transmission line projects meant to deliver Canadian hydropower from the government-owned utility HydroQuébec, in a province that has closed the door on nuclear power, to New England electricity consumers. 

As New England states rush to green their electric grids and combat the accelerating climate crisis, the simultaneous push from Canada to expand the market for hydroelectric power from its vast water resources, including Manitoba's clean energy, has offered these states a critical lifeline at just the right moment. 

The other big hydropower transmission line project will deliver 1,000 megawatts of power, or enough to serve approximately one million residential customers, to the New York City metropolitan area, which includes the city, Long Island, and parts of the Hudson Valley, New Jersey, Connecticut and Pennsylvania. 

The 333-mile-long Champlain Hudson Power Express project will consist of two high voltage direct current cables running underground and underwater from Canada, beneath Lake Champlain and the Hudson River, to Astoria, Queens. 

There, the Champlain Hudson project will interconnect to a sector of the New York electricity grid where city and corporate officials say the hydropower supplied can help reduce the fossil fuels that currently comprise significantly more of the base load than in other parts of the state. Though New York has yet to finalize a contract with HydroQuébec over its hydropower purchase, developers plan to start construction on the $2.2 billion project in 2021 and say it will be operational in 2025. 

The New England project consists of 145 miles of new HVDC transmission line that will run largely above ground from the Canadian border, through Maine to Massachusetts. The $1 billion project, funded by Massachusetts electricity consumers, is expected to deliver 1,200 megawatts of clean energy to the New England energy grid, becoming the region's largest clean energy source. 

Central Maine Power, which will construct the Maine transmission corridor, says the project will decrease wholesale electric rates and create thousands of jobs. Company officials expect to receive all necessary permits and begin construction by the year's end, with the project completed and in service by 2020. 

With only months until developers start making both projects on-the-ground realities, they have seized public attention within, and beyond, their regions. 

Hanson is one among many concerned New England and New York residents who've joined the ranks of environmental activists in a contentious battle with public and corporate officials over the place of Canadian hydropower in their states' clean energy futures. 

Officials and transmission line proponents say importing Canadian hydropower offers an immediate and feasible way to help decarbonize electricity portfolios in New York and New England and to address existing transmission constraints that limit cross-border flows today, supporting their broader efforts to combat climate change. 

But some environmental activists say hydropower has a significant carbon footprint of its own. They fear the projects will make states look "greener" at the expense of the local environment, Indigenous communities, and ultimately, the climate. 

"We're talking about the most environmentally and economically just pathway" to decarbonization, said Annel Hernandez, associate director of the NYC Environmental Justice Alliance. "Canadian hydro is not going to provide that." 

To that end, environmental groups opposing Canadian hydropower say New York and New England should seize the moment to expedite local development of wind and solar power. 

Paul Gallay, president of the nonprofit environmental organization Riverkeeper—which withdrew its initial support for the Champlain Hudson Power Express last November— believes New York has the capacity to develop enough in-state renewable energy sources to meet its clean energy goals, without the new transmission line. 

Yet New York City's analysis shows clearly that Canadian hydropower is critical for its clean energy strategy, said Dan Zarrilli, director of OneNYC and New York City's chief climate policy adviser. 

"We need every bit of clean energy we can get our hands on," he said, to meet the city's goal of carbon neutrality by 2050 and help achieve the state's clean energy mandates. 

Removing Canadian hydropower from the equation, said Zarilli, would commit the city to the "unacceptable outcome" of burning more gas. The city's marginalized communities would likely suffer most from the resulting air pollution and associated health impacts. 

While the two camps debate Canadian hydropower's carbon footprint and what climate justice requires, this much is clear: When it comes to pursuing a zero-carbon future, there are no easy answers. 

Hydropower's Carbon Footprint
Many people take for granted that because hydropower production doesn't involve burning fossil fuels, it's a carbon-neutral endeavor. But that's not always the case, depending on where hydropower is sourced. 

Large-scale hydropower projects often involve the creation of hydroelectric dams and reservoirs, and, in some cases, repowering existing dams to generate clean electricity. The release and flow of water from the reservoir through the dam provides the energy necessary to generate hydropower, which long-distance power lines, or transmission lines, carry to its intended destination—in this case, New England and New York. 

The initial process of flooding land to create a hydroelectric reservoir can have a sizable carbon footprint, especially in heavily vegetated areas. It causes the vegetation and soil underwater to decompose, releasing carbon dioxide and methane—a greenhouse gas 84 times more potent over a 20-year period than carbon dioxide. 

Hydropower accounts for 60 percent of Canada's electricity generation, and HydroQuébec has planned to increase capacity to 37,000 MW in 2021, with the nation second only to China in the percentage of the world's total hydroelectricity it generates. By contrast, hydropower only accounts for seven percent of U.S. utility-scale electricity generation, making it a foreign concept to many Americans. 

As New England works to introduce substantial amounts of Canadian hydropower to its electricity grid, hydropower proponents are promoting it as a prime source for clean electricity, and new NB Power agreements are expanding regional transfers within Canada as well. 

Last fall, Central Maine Power formed its own political action committee, Clean Energy Matters, to advance the New England hydropower project. Together with HydroQuébec, the Maine utility has spent nearly $17 million campaigning for the project this year. 

 

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SaskPower eyes buying $300M worth of electricity from Flying Dust First Nation

SaskPower-Flying Dust flare gas power deal advances a 20 MW, 20-year Power Purchase Agreement, enabling grid supply from FNPA-backed generation, supporting renewable strategy, lower carbon footprint targets, and First Nation economic development in Saskatchewan.

 

Key Points

A 20 MW, 20-year PPA converting flare gas to grid power, with SaskPower buying from Flying Dust First Nation via FNPA.

✅ 20 MW of flare gas generation linked to Saskatchewan's grid

✅ 20-year term; about $300M total value to SaskPower

✅ FNPA-backed project; PPA targeted in 6-12 months

 

An agreement signed between SaskPower, which reported $205M income in 2019-20, and Flying Dust First Nation is an important step toward a plan that could see the utility buy $300 million worth of electricity from Flying Dust First Nation, according to Flying Dust's chief.

"There's still a lot of groundwork that needs to be done before we get building but you know we're a lot closer today with this signing," Jeremy Norman told reporters Friday.

Norman's community was assisted by the First Nations Power Authority (FNPA), a non-profit that helps First Nations get into the power sector, with examples like the James Bay project showing what Indigenous ownership can achieve.

The agreement signed Friday says SaskPower will explore the possibility of buying 20 megawatts of flare gas power from FNPA, which it will look to Flying Dust to produce.

#google#

 

20-year plan

The proposed deal would span 20 years and cost SaskPower around $300 million over those years, as the utility also explores geothermal power to meet 2030 targets.

The exact price would be determined once a price per metawatt is brought forward.

"We won't be able to do this ourselves," Norman said.

Flare gas power generation works by converting flares from the oil and gas sector into electricity. Under this plan, SaskPower would take the electricity provided by Flying Dust and plug it into the provincial power grid, complementing a recent move to buy more power from Manitoba Hydro to support system reliability.

"This is a great opportunity as we advance our renewable strategy, including progress on doubling renewables by 2030, and try to achieve a lower carbon footprint by 2030 and beyond," Marsh said.

Ombudsman report details dispute between senior with breathing disorder, SaskPower

Norman said the business deal presents an opportunity to raise money to reinvest into the First Nation for things like more youth programming.

For the next steps, both parties will need to sign a power purchase agreement that spells out the exact prices for the power generation.

Marsh expects to do so in the next six to 12 months, with development of the required infrastructure to take place after that.

 

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Why the Texas Power Grid Is Facing Another Crisis

Texas Power Grid Reliability faces record peak demand as ERCOT balances renewable energy, wind and solar variability, gas-fired generation, demand response, and transmission limits to prevent blackouts during heat waves and extreme weather.

 

Key Points

Texas Power Grid Reliability is ERCOT's capacity to meet peak demand with diverse resources while limiting outages.

✅ Record heat drives peak demand across ERCOT.

✅ Variable wind/solar need firm, flexible capacity.

✅ Demand response and reserves reduce blackout risk.

 

The electric power grid in Texas, which collapsed dramatically during the 2021 winter storm across the state, is being tested again as the state suffers unusually hot summer weather. Demand for electricity has reached new records at a time of rapid change in the mix of power sources as wind and solar ramp up. That’s feeding a debate about the dependability of the state’s power. 

1. Why is the Texas grid under threat again? 

Already the biggest power user in the nation, electricity use in the second most-populous state surged to record levels during heat waves this summer. The jump in demand comes as the state becomes more dependent on intermittent renewable power sources, raising concerns among some critics that more reliance on wind and solar will leave the grid more vulnerable to disruption. Green sources will produce almost 40% of the power in Texas this year, US Energy Information Administration data show. While that trails California’s 52%, Texas is a bigger market. It’s already No. 1 in wind, making it the largest clean energy market in the US. 

2. How is Texas unique? 

The spirit of defiance of the Lone Star State extends to its power grid as well. The Electric Reliability Council of Texas, or Ercot as the grid operator is known, serves about 90% of the state’s electricity needs and has very few high-voltage transmission lines connecting to nearby grids. It’s a deliberate move to avoid federal oversight of the power market. That means Texas has to be mainly self-reliant and cannot depend on neighbors during extreme conditions. That vulnerability is a dramatic twist for a state that’s also the energy capital of the US, thanks to vast oil and natural gas producing fields. Favorable regulations are also driving a wind and solar boom in Texas. 

3. Why the worry? 

The summer of 2023 will mark the first time all of the state’s needs cannot be met by traditional power plants, like nuclear, coal and gas. A sign of potential trouble came on June 20 when state officials urged residents to conserve power because of low supplies from wind farms and unexpected closures of fossil-fuel generators amid supply-chain constraints that limited availability. As of late July, the grid was holding up, thanks to the help of renewable sources. Solar generation has been coming in close to expected summer capacity, or exceeding it on most days. This has helped offset the hours in the middle of the day when wind speeds died down in West Texas. 

4. Why didn’t the grid’s problems get fixed? 

There is no easy fix. The Texas system allows the price of electricity to swing to match supply and demand. That means high prices — and high profits — drive the development of new power plants. At times spot power prices have been as low as $20-$50 a megawatt-hour versus more than $4,000 during periods of stress. The limitation of this pricing structure was laid bare by the 2021 winter blackouts. Since then, state lawmakers have passed market reforms that require weatherization of critical infrastructure and changed rules to put more money in the pockets of the owners of power generation.  

5. What’s the big challenge? 

There’s a real clash going on over what the grid of the future should look like in Texas and across the country, especially as severe heat raises blackout risks nationally. The challenge is to make sure nuclear and fossil fuel plants that are needed right now don’t retire too early and still allow newer, cleaner technologies to flourish. Some conservative Republicans have blamed renewable energy for destabilizing the grid and have pushed for more fossil-fuel powered generators. Lawmakers passed a controversial $10 billion program providing low-interest loans and grants to build new gas-fired plants using taxpayer money, but Texans ultimately have to vote on the subsidy. 


6. Why do improvements take so long? 

Figuring out how to keep the lights on without overburdening consumers is becoming a greater challenge amid more extreme weather fueled by climate change. As such, changing the rules is often a hotly contested process pitting utilities, generators, manufacturers, electricity retailers and other groups against one another. The process became more politicized after the storm in 2021 with Republican Gov. Greg Abbott and lawmakers ordering Ercot to make changes. Building more transmission lines and connecting to other states can help, but such projects are typically tied up for years in red tape.

7. What can be done? 

The price cap for electricity was cut from $9,000/MWh to $5,000 to help avoid the punitive costs seen in the 2021 storm, though prices are allowed to spike more easily. Ercot is also contracting for more reserves to be online to help avoid supply shortfalls and improve reliability for customers, which added $1.7 billion in consumer costs alone last year. Another rule helps some gas generators pay for their fuel costs, while a more recent reform put in price floors when reserves fall to certain levels. Many power experts say that the easiest solution is to pay people to reduce their energy consumption during times of grid stress through so-called demand response programs. Factories, Bitcoin miners and other large users are already compensated to conserve during tight grid conditions.

 

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