OEB Announces Reduction in Prices

By Canada News Wire


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The Ontario Energy Board (the Board) released electricity commodity prices that will take effect November 1, 2007.

Effective November 1st, the Regulated Price Plan (RPP) prices will be 5.0 cents per kilowatt hour up to the consumption threshold each month and 5.9 cents per kilowatt hour above that. The new prices represent a 0.3 cents per kilowatt hour, or 4.8%, decrease relative to the prices that went into effect in May 2007. The impact of this price reduction on each consumer will depend on how much electricity the consumer uses.

The period from November 1st until April 30th marks the winter price period where residential consumers can use more electricity at a lower price.

As in previous years, the amount of electricity charged at the lower price will change from the summer threshold of 600 kilowatt hours per month to the winter threshold of 1,000 kilowatt hours per month. Non-residential consumers eligible for the price plan can continue to use 750 kilowatt hours each month at the lower price throughout the year.

The reduction in electricity prices announced today is primarily due to the need to reduce the surplus in the RPP variance account balance. As a result, a credit of 0.3 cents per kilowatt hour has been included in RPP prices to clear the variance account surplus over the next 12 months.

Another reason for the drop in electricity prices is the expected decrease in the cost of fuels, such as natural gas, used by some electricity generators, relative to the previous forecast. The recent appreciation in the Canadian dollar is a major contributing factor since such fuels are purchased by generators in U.S. dollars.

These prices are reflected on the "Electricity" line of consumers' bills.

The commodity prices announced today apply to consumers who buy their electricity through their utility. Consumers who currently buy their electricity from a retailer and pay their contract price will continue to do so.

The price plan is designed to ensure consumers pay what it costs to supply their electricity while smoothing the daily price variations that occur in the market. When the Board sets prices, it adjusts for past differences between what consumers have paid and what it has cost to supply them, and it incorporates a 12-month forecast for future electricity costs. RPP prices are reviewed and can change twice a year at set dates in the spring and in the fall, taking into account a number of factors.

Time-of-Use (TOU) prices will also be reduced and have been set at 3.0 cents per kilowatt hour (Off-peak), 7.0 cents per kilowatt hour (Mid-peak) and 8.7 cents per kilowatt hour (On-peak). The overall impact for average consumers paying these TOU prices is calculated to be about the same as those paying the regular two-tier prices discussed above.

Currently, Milton Hydro and Chatham-Kent Hydro are the only utilities in Ontario charging TOU prices for some of their residential and small business consumers.

The Ontario Energy Board regulates the province's electricity and natural gas sectors in the public interest. It envisions a viable and efficient energy sector with informed consumers served by responsive regulatory processes that are effective, fair and transparent.

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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.

 

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US nuclear innovation act becomes law

NEIMA advances NRC regulatory modernization, creating a licensing framework for advanced reactors, improving uranium permitting, capping reactor fees, and mandating DOE planning for excess uranium, boosting transparency, accountability, and innovation across the US nuclear sector.

 

Key Points

NEIMA is a US law modernizing NRC rules and enabling advanced reactor licensing while reforming fees.

✅ Modernizes NRC licensing for advanced reactors

✅ Caps annual reactor fees and boosts transparency

✅ Streamlines uranium permitting; directs DOE plans

 

Bipartisan legislation modernising US nuclear regulation and supporting the establishment of a licensing framework for next-generation advanced reactors has been signed by US President Donald Trump, whose order boosting U.S. uranium and nuclear energy underscored the administration's focus on the sector.

The Nuclear Energy Innovation and Modernisation Act (NEIMA) became law on 14 January.

As well as directing the Nuclear Regulatory Commission (NRC) to modify the licensing process for commercial advanced nuclear reactor facilities, the bill establishes new transparency and accountability measures to the regulator's budget and fee programmes, and caps fees for existing reactors. It also directs the NRC to look at ways of improving the efficiency of uranium licensing, including investigating the safety and feasibility of extending uranium recovery licences from ten to 20 years' duration, and directs the Department of Energy, which oversees nuclear cleanup and related projects, to issue at least every ten years a long-term plan detailing the management of its excess uranium inventories.

Maria Korsnick, president and CEO of the US Nuclear Energy Institute, described NEIMA as a "significant, positive step" toward the reform of the NRC's fee collection process. "This legislation establishes a more equitable and transparent funding structure which will benefit all operating reactors and future licensees," she said. "The bill also reaffirms Congress’s support for nuclear innovation by working to establish an efficient and stable regulatory structure that is prepared to license the advanced reactors of the future."

Marilyn Kray, president-elect of the American Nuclear Society, said the passage of the legislation was a "big win" for the nation and its nuclear community. "By reforming outdated laws, NRC will now be able to invest more freely in advanced nuclear R&D and licensing activities. This in turn will accelerate deployment of cutting-edge American nuclear systems and better prepare the next generation of nuclear engineers and technologists," she said.

The bill was introduced in 2017 by Senator John Barrasso of Wyoming. It was approved by Congress on 21 December by 361 votes to 10, having been passed by the Senate the previous day, even as later Biden's climate law developments produced mixed results.

NEIMA is one of several bipartisan bills that support advanced nuclear innovation considered by the 115th US Congress, which ended on 2 January. These are: the Nuclear Energy Innovation Capabilities Act (NEICA); the Nuclear Energy Leadership Act; the Nuclear Utilisation of Keynote Energy Act; the Advanced Nuclear Fuel Availability Act, a focus sharpened by the U.S. ban on Russian uranium in the fuel market; and legislation to expedite so-called part 810 approvals, which are needed for the export of technology, equipment and components. NEICA, which supports the deployment of advanced reactors and also directs the DOE to develop a reactor-based fast neutron source for the testing of advanced reactor fuels and materials, was signed into law in October.

 

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Energy chief says electricity would continue uninterrupted if coal phased out within 30 years

Australia Energy Policy Debate highlights IPCC warnings, Paris Agreement goals, coal phase-out, emissions reduction, renewables, gas, pumped hydro, storage, reliability, and investment certainty amid NEG uncertainty and federal-state tensions over targets.

 

Key Points

Debate over coal, emissions targets, and grid reliability, guided by IPCC science, Paris goals, and market reforms.

✅ IPCC urges rapid cuts and coal phase-out by 2050

✅ NEG's emissions pillar stalled; reliability obligation alive

✅ States, market operators push investment certainty and storage

 

The United Nation’s climate body, the Intergovernmental Panel on Climate Change, on Monday said radical emissions reduction across the world’s economies, including a phase-out of coal by 2050, was required to avoid the most devastating climate change impacts.

The Morrison government dismissed the findings. Treasurer Josh Frydenberg insisted this week that “coal is an important part of the energy mix”.

“If we were to take coal out of the system the lights would go out on the east coast of Australia overnight. It provides more than 60 per cent of our power," he said.

Ms Zibelman, whose organisation operates the nation’s largest gas and electricity markets, said if Australia was to make an orderly transition to low-emissions electricity generation, aligning with the sustainable electric planet vision, “then certainly we would keep the lights on”.

Ms Zibelman said coal assets should be maintained “as long as they are economically viable and we should have a plan to replace them with resources that are lowest cost”.

Those options comprised gas, renewables, pumped hydro and other energy storage, she told ABC radio, as New Zealand weighs electrification to replace fossil fuels.

Under the Paris treaty the government has pledged to lower emissions by 26 per cent by 2030, based on 2005 levels, even as national emissions rose 2% recently according to industry reports.

Labor would increase the goal to a 45 per cent cut - a policy Prime Minister Scott Morrison said last month would " shut down every coal-fired power station in the country and ... increase people’s power bill by about $1,400 on average for every single household”.

The federal government has scrapped its proposed National Energy Guarantee, which would have cut emissions in the electricity sector, but the reliability component of the plan may continue in some form.

The policy was being developed by the Energy Security Board. The group’s chairwoman Kerry Schott has expressed anger at its demise but on Thursday revealed the board was still working on the policy because “nobody told us to stop”.

Speaking at the Melbourne Institute's Outlook conference, she urged the government to revive the emissions reduction component of the plan to provide investment certainty, noting the IEA net-zero report on Canada shows electricity demand rises in decarbonisation.

Energy Minister Angus Taylor, an energy consultant before entering Parliament, on Thursday said the electricity sector would reduce emissions in line with the Paris deal without a mandated target.

Mr Taylor said only a “very brave state” would not support the policy’s reliability obligation.

The federal government has called a COAG energy council meeting for October 26 in Sydney to discuss electricity reliability.

It is understood Mr Taylor has not contacted Victoria, Queensland or the ACT since taking the portfolio, despite needing unanimous support from the states to progress the issue.

The Victorian government goes into caretaker mode on October 30 ahead of that state's election.

Victorian Energy Minister Lily D’Ambrosio said the federal government was “a rabble when it comes to energy policy, and we won’t be signing anything until after the election".

Speaking at the Melbourne Institute conference, prominent business leaders on Thursday bemoaned a lack of political leadership on energy policy and climate change, saying the only way forward appeared to be for companies to take action themselves, with some pointing to Canada's race to net-zero as a case study in the role of renewables.

Jayne Hrdlicka, chief executive of ASX-listed dairy and infant-formula company a2 Milk, said "we all have an obligation to do the very best job we can in managing our carbon footprint".

"We just need to get on doing what we can .. and then hope that policy will catch up. But we can’t wait," she said.

Ms Hrdlicka said the recent federal political turmoil had been frustrating "because if you invest in building relationships as most of us do in Canberra and then overnight they are all changed, you’re starting from scratch".

 

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In a record year for clean energy purchases, Southeast cities stand out

Municipal Renewable Energy Procurement surged as cities contracted 3.7 GW of solar and wind, leveraging green tariffs, community solar, and utility partnerships across the Southeast, led by Houston, RMI, and WRI data.

 

Key Points

The process by which cities contract solar and wind via utilities or green tariffs to meet climate goals.

✅ 3.7 GW procured in 2020, nearly 25% year-over-year growth

✅ Houston runs city ops on 500 MW solar, a record purchase

✅ Southeast cities use green tariffs and community solar

 

Cities around the country bought more renewable energy last year than ever before, reflecting how renewables may soon provide one-fourth of U.S. electricity across the grid, with some of the most remarkable projects in the Southeast, according to new data unveiled Thursday.

Even amid the pandemic, about eight dozen municipalities contracted to buy nearly 3.7 gigawatts of mostly solar and wind energy — enough to power more than 800,000 homes. The figure is almost a quarter higher than the year before.

Half of the cites listed as “most noteworthy” in Thursday’s release —  from research groups Rocky Mountain Institute and World Resources Institute — are in the region that stretches from Texas to Washington, D.C. 

Houston stands out for the sheer enormity of its purchase: In July, it began powering city operations entirely from nearly 500 megawatts of solar power — the largest municipal purchase of renewable energy ever in the United States, as renewable electricity surpassed coal nationwide.

The groups also feature smaller deals in North Carolina and Tennessee, achieved through a utility partnership called a green tariff.

“We wanted to recognize that Nashville and Charlotte were really blazing a new trail,” said Stephen Abbott, principal at the Rocky Mountain Institute.

And the nation’s capital shows how renewable energy can be a source of revenue: It’s leasing out its public transit station rooftops for 10 megawatts of community solar.

All of these strategies will be necessary for scores of U.S. cities to meet their ambitious climate goals, researchers believe. An interactive clean energy targets tracker shows all 95 clean energy procurements from the year in detail.


Tracker 
Even before former President Donald Trump promised to remove the United States from the Paris Climate Accord, a lack of federal action on climate left a void that some cities and counties were beginning to fill, as renewables hit a record 28% in a recent month. In 2015, the first year tracked by researchers at the Rocky Mountain Institute and the World Resources Institute, municipalities contracted to buy more than 1 gigawatt of wind, solar and other forms of clean energy. 

But when Trump officially set in motion the withdrawal from the climate agreement, the ranks of municipalities dedicated to 100% clean energy multiplied. Today there are nearly 200 of them. The growth in activity last year reflects, in part, that surge of new pledges.

“It takes a while to get city staff up to speed and understand the options, and create the roadmap and then start executing,” Abbott said. “There is a bit of a lag, but we’re starting to see the impact.”

Even in Houston — one of the earliest to begin procuring renewable energy — there has been a steep learning curve as market forces change and prices drop, including cheaper solar batteries shaping procurement strategies, said Lara Cottingham, Houston’s chief of staff and chief sustainability officer.

No matter how well resourced and educated their staff, cities have to clear a thicket of structural, political and economic challenges to procure renewable energy. Most don’t own their own sources of power. Nearly all face budget constraints. Few have enough land or government rooftops to meet their goals within city limits.

“Cities face a situation where it’s a square peg in a round hole,” Cottingham said.

The hurdles are especially steep in much of the Southeast, where only publicly regulated utilities can sell electricity to retail customers, even large ones such as major cities. That’s where a green tariff regime comes in: Cities can purchase clean energy from a third party, such as a solar company, using the utility as a go-between.

Early last year, Charlotte became the largest city to use such a program, partnering with Duke Energy and two North Carolina solar developers to build a solar farm 50 miles north in Iredell County. At first, the city will pay a premium for the energy, but in the latter half of the 20-year contract, as gas prices rise, it will save money compared to business as usual.

“Over the course of 20 years, it’s projected we would save about $2 million,” Katie Riddle, sustainability analyst with Charlotte, told the Energy News Network last year.

The growing size of projects, innovative partnerships like green tariff programs, and the improving economics all give Abbott hope that renewable energy investments from cities will only grow — even with the Trump presidency over and the country back in the Paris agreement.

And when cities meet their goals for procuring renewable energy for their own operations, they must then turn to an even bigger task: reducing the carbon footprint of every person in their jurisdiction with broader decarbonization strategies and community engagement.

“The city needs to do its part for sure,” said Houston’s Cottingham. “Then we have this challenge of how do we get everyone else to.”

 

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Most Energy Will Come From Fossil Fuels, Even In 2040

2040 Energy Outlook projects a shifting energy mix as renewables scale, EV adoption accelerates, and IEA forecasts plateauing oil demand alongside rising natural gas, highlighting policy, efficiency, and decarbonization trends that shape global consumption.

 

Key Points

A data-driven view of future energy mix, covering renewables, fossil fuels, EVs, oil demand, and policy impacts.

✅ Renewables reach 16-30% by 2040, higher with strong policy support.

✅ Fossil fuels remain dominant, with oil flat and natural gas rising.

✅ EV share surges, cutting oil use; efficiency curbs demand growth.

 

Which is more plausible: flying taxis, wind turbine arrays stretching miles into the ocean, and a solar roof on every house--or a scorched-earth, flooded post-Apocalyptic world? 

We have no way of peeking into the future, but we can certainly imagine it. There is plenty of information about where the world is headed and regardless of how reliable this information is—or isn’t—we never stop wondering. Will the energy world of 20 years from now be better or worse than the world we live in now? 

The answer may very well lie in the observable trends.


A Growing Population

The global population is growing, and it will continue to grow in the next two decades. This will drive a steady growth in energy demand, at about 1 percent per year, according to the International Energy Agency.

This modest rate of growth is good news for all who are concerned about the future of the planet. Parts of the world are trying to reduce their energy consumption, and this should have a positive effect on the carbon footprint of humanity. The energy thirst of most parts of the world will continue growing, however, hence the overall growth.

The world’s population is currently growing at a rate of a little over 1 percent annually. This rate of growth has been slowing since its peak in the 1960s and forecasts suggest that it will continue to slow. Growth in energy demand, on the other hand, may at some point stop moving in tune with population growth trends as affluence in some parts of the world grows. The richer people get, the more energy they need. So, to the big question: where will this energy come from?


The Rise of Renewables

For all the headline space they have been claiming, it may come as a disappointing surprise to many that renewable energy, excluding hydropower, to date accounts for just 14 percent of the global primary energy mix. 

Certainly, adoption of solar and wind energy has been growing in leaps and bounds, with their global share doubling in five years in many markets, but unless governments around the world commit a lot more money and effort to renewable energy, by 2040, solar and wind’s share in the energy mix will still only rise to about 16 to 17 percent. That’s according to the only comprehensive report on the future of energy that collates data from all the leading energy authorities in the world, by non-profit Resources for the Future.

The growth in renewables adoption, however, would be a lot more impressive if governments do make serious commitments. Under that scenario, the share of renewables will double to over 30 percent by 2040, echoing milestones like over 30% of global electricity reached recently: that’s the median rate of all authoritative forecasts. Amongst them, the adoption rates of renewables vary between 15 percent and 61 percent by 2040.

Even the most bullish of the forecasts on renewables is still far below the 100-percent renewable future many would like to fantasize about, although BNEF’s 50% by 2050 outlook points to what could be possible in the power sector. 

But in 2040, most of the world’s energy will still come from fossil fuels.


EV Energy

Here, forecasters are more optimistic. Again, there is a wide variation between forecasts, but in each and every one of them the share of electric vehicles on the world’s roads in 2040 is a lot higher than the meagre 1 percent of the global car fleet EVs constitute today.
Related: Gas Prices Languish As Storage Falls To Near-Record Lows

Government policy will be the key, as U.S. progress toward 30% wind and solar shows how policy steers the power mix that EVs ultimately depend on. Bans of internal combustion engines will go a long way toward boosting EV adoption, which is why some forecasters expect electric cars to come to account for more than 50 percent of cars on the road in 2040. Others, however, are more guarded in their forecasts, seeing their share of the global fleet at between 16 percent and a little over 40 percent.

Many pin their hopes for a less emission-intensive future on electric cars. Indeed, as the number of EVs rises, they displace ICE vehicles and, respectively, the emission-causing oil that fuels for ICE cars are made from.  It should be a no brainer that the more EVs we drive, the less emissions we produce. Unfortunately, this is not necessarily the case: China is the world’s biggest EV market, and its solar PV expansion has been rapid, it has the most EVs—including passenger cars and buses—but it is also one of the biggest emitters.

Still, by 2040, if the more optimistic forecasts come true, the world will be consuming less oil than it is consuming now: anywhere from 1.2 million bpd to 20 million bpd less, the latter case envisaging an all-electric global fleet in 2040. 


This Ain’t Your Daddy’s Oil

No, it ain’t. It’s your grandchildren’s oil, for good or for bad. The vision of an oil-free world where renewable power is both abundant and cheap enough to replace all the ways in which crude oil and natural gas are used will in 2040 still be just that--a vision, with practical U.S. grid constraints underscoring the challenges. Even the most optimistic energy scenarios for two decades from now see them as the dominant source of energy, with forecasts ranging between 60 percent and 79 percent. While these extremes are both below the over-80 percent share fossil fuels have in the world’s energy mix, they are well above 50 percent, and in the U.S. renewables are projected to reach about one-fourth of electricity soon, even as fossil fuels remain foundational.

Still, there is good news. Fuel efficiency alone will reduce oil demand significantly by 2040. In fact, according to the IEA, demand will plateau at a little over 100 million bpd by the mid-2030s. Combined with the influx of EVs many expect, the world of 20 years from now may indeed be consuming a lot less oil than the world of today. It will, however, likely consume a lot more natural gas. There is simply no way around fossil fuels, not yet. Unless a miracle of politics happens (complete with a ripple effect that will cost millions of people their jobs) in 2040 we will be as dependent on oil and gas as we are but we will hopefully breathe cleaner air.

By Irina Slav for Oilprice.com

 

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Canadian Electricity Grids Increasingly Exposed to Harsh Weather

North American Grid Reliability faces extreme weather, climate change, demand spikes, and renewable variability; utilities, AESO, and NERC stress resilience, dispatchable capacity, interconnections, and grid alerts to prevent blackouts during heatwaves and cold snaps.

 

Key Points

North American grid reliability is the ability to meet demand during extreme weather while maintaining stability.

✅ Extreme heat and cold drive record demand and resource strain.

✅ Balance dispatchable and intermittent generation for resilience.

✅ Expand interconnections, capacity, and demand response to avert outages.

 

The recent alerts in Alberta's electricity grid during extreme cold have highlighted a broader North American issue, where power systems are more susceptible to being overwhelmed by extreme weather impacts on reliability.

Electricity Canada's chief executive emphasized that no part of the grid is safe from the escalating intensity and frequency of weather extremes linked to climate change across the sector.

“In recent years, during these extreme weather events, we’ve observed record highs in electricity demand,” he stated.

“It’s a nationwide phenomenon. For instance, last summer in Ontario and last winter in Quebec, we experienced unprecedented demand levels. This pattern of extremes is becoming more pronounced across the country.”

The U.S. has also experienced strain on its electricity grids due to extreme weather, with more blackouts than peers documented in studies. Texas faced power outages in 2021 due to winter storms, and California has had to issue several emergency grid alerts during heat waves.

In Canada, Albertans received a government emergency alert two weeks ago, urging an immediate reduction in electricity use to prevent potential rotating blackouts as temperatures neared -40°C. No blackouts occurred, with a notable decrease in electricity use following the alert, according to the Alberta Electric System Operator (AESO).

AESO's data indicates an increase in grid alerts in Alberta for both heatwaves and cold spells, reflecting dangerous vulnerabilities noted nationwide. The period between 2017 and 2020 saw only four alerts, in contrast to 17 since 2021.

Alberta's electricity grid reliability has sparked political debate, including proposals for a western Canadian grid to improve reliability, particularly with the transition from coal-fired plants to increased reliance on intermittent wind and solar power. Despite this debate, the AESO noted that the crisis eased when wind and solar generation resumed, despite challenges with two idled gas plants.

Bradley pointed out that Alberta's grid issues are not isolated. Every Canadian region is experiencing growing electricity demand, partly due to the surge in electric vehicles and clean energy technologies. No province has a complete solution yet.

“Ontario has had to request reduced consumption during heatwaves,” he noted. “Similar concerns about energy mix are present in British Columbia or Manitoba, especially now with drought affecting their hydro-dependent systems.”

The North American Electric Reliability Corporation (NERC) released a report in November warning of elevated risks across North America this winter for insufficient energy supplies, particularly under extreme conditions like prolonged cold snaps.

While the U.S. is generally more susceptible to winter grid disruptions, and summer blackout warnings remain a concern, the report also highlights risks in parts of Canada. Saskatchewan faces a “high” risk due to increased demand, power plant retirements, and maintenance, whereas Quebec and the Maritimes are at “elevated risk.”

Mark Olson, NERC’s manager of reliability assessments, mentioned that Alberta wasn't initially considered at risk, illustrating the challenges in predicting electricity demand amid intensifying extreme weather.

Rob Thornton, president and CEO of the International District Energy Association, acknowledged public concerns about grid alerts but reassured that the risk of a catastrophic grid failure remains very low.

“The North American grid is exceptionally reliable. It’s a remarkably efficient system,” he said.

However, Thornton emphasized the importance of policies for a resilient and reliable electricity system through 2050 and beyond. This involves balancing dispatchable and intermittent electricity sources, investing in extra capacity, enhancing macrogrids and inter-jurisdictional connections, and more.

“These grid alerts raise awareness, if not anxiety, about our energy future,” Thornton concluded.

 

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