New law extends tax incentives for biopower into 2011

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USA Biomass, the nation’s leading association of biopower companies, applauds the recent passage of federal legislation which extends through 2011 important tax credits for the biopower industry — which “recycles” wood chips, forest waste, orchard prunings, sugar cane and other renewable, organic materials into electricity.

“By extending these tax credits, the President and Congress are making a significant and prudent investment in the renewable energy industry — today and for years to come,” said USA Biomass President Robert Cleaves.

“While this new law will benefit all renewable energy, it’s most important to biopower — because we depend on these tax credits to provide renewable, greenhouse gas-friendly electricity throughout the country,” said Cleaves. “This is just the first step in larger and larger investments in biopower — which has the ability to provide over 20% of our nation’s power.

“According to recent studies, the greenhouse gas reductions from operating biopower plants are significant,” said Cleaves. “For every megawatt hour of biomass power, approximately 1.6 tons of CO2 are avoided — resulting in a projected reduction of almost 30 million tons of greenhouse gas emissions annually. Our nation’s leaders should be doing everything possible to increase our use of clean biopower — for consumers and our environment.”

According to Department of Energy (DOE) estimates, biomass-powered plants currently provide about 2% of the nation’s energy. DOE projects that the potential for biomass could grow to 15% by 2020 — a goal that must be realized to meet federal and state renewable energy and greenhouse gas reduction goals.

USA Biomass is the only national organization devoted solely to the growth and long-term viability of biomass-powered electric generation — a growing industry that is strengthening America’s rural economy, promoting energy independence and reducing carbon emissions. It has 41 member companies operating 80 power plants in 20 different states. These power plants use a broad range of biomass fuels — from wood chips in Maine, bagasse in Florida and rice hulls in Louisiana, to forest waste in Arizona and orchard prunings in California.

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Feds "changing goalposts" with 2035 net-zero electricity grid target: Sask. premier

Canada Clean Electricity Regulations outline a 2035 net-zero grid target, driving decarbonization via wind, solar, hydro, SMRs, carbon capture, and efficiency, balancing reliability, affordability, and federal-provincial collaboration while phasing out coal and limiting fossil-fuel generation.

 

Key Points

Federal rules to cap CO2 from power plants and deliver a reliable, affordable net-zero grid by 2035.

✅ Applies to fossil-fired units; standards effective by Jan 1, 2035.

✅ Promotes wind, solar, hydro, SMRs, carbon capture, and efficiency.

✅ Balances reliability, affordability, and emissions cuts; ongoing consultation.

 

Saskatchewan’s premier said the federal government is “changing goalposts” with its proposed target for a net-zero electricity grid.

“We were looking at a net-zero plan in Saskatchewan and across Canada by the year 2050. That’s now been bumped to 2035. Well there are provinces that quite frankly aren’t going to achieve those types of targets by 2035,” Premier Scott Moe said Wednesday.

Ottawa proposed the Clean Electricity Regulations – formerly the Clean Electricity Standard – as part of its target for Canada to transition to net-zero emissions by 2050.

The regulations would help the country progress towards an updated proposed goal of a net-zero electricity grid by 2035.

“They’re un-consulted, notional targets that are put forward by the federal government without working with industries, provinces or anyone that’s generating electricity,” Moe said.

The Government of Canada was seeking feedback from stakeholders on the plan’s regulatory framework document earlier this year, up until August 2022.

“The clean electricity standard is something that’s still being consulted on and we certainly heard the views of Saskatchewan – not just Saskatchewan, many other provinces – and I think that’s something that’s being reflected on,” Jonathan Wilkinson, Canada’s minister of natural resources, said during an event near Regina Wednesday.

“We also recognize that the federal government has a role to play in helping provinces to make the kinds of changes that would need to be made in order to actually achieve a clean grid,” Wilkinson added.

The information received during the consultation will help inform the development of the proposed regulations, which are expected to be released before the end of the year, according to the federal government.


NET-ZERO ELECTRICITY GRID
The federal government said its Clean Electricity Regulations (CER) is part of a suite of measures, as the country moves towards a broad “decarbonization” of the economy, with Alberta's clean electricity path illustrating provincial approaches as well.

Net-zero emissions would mean Canada’s economy would either emit no greenhouse gas emissions or offset its emissions.

The plan encourages energy efficiency, abatement and non-emitting generation technologies such as carbon capture and storage and electricity generation options such as solar, wind, geothermal, small modular nuclear reactors (SMRs) and hydro, among others.

The government suggests consumer costs could be lowered by using some of these energy efficiency techniques, alongside demand management and a shift to lower-cost wind and solar power, echoing initiatives like the SaskPower 10% rebate aimed at affordability.

The CER focuses on three principles, each tied to affordability debates like the SaskPower rate hike in Saskatchewan:

 Maximize greenhouse gas reductions to achieve the 2035 target
 Ensure a reliable electrical grid to support Canadians and the economy
 Maintain electrical affordability

“Achieving a net-zero electricity supply is key to reaching Canada’s climate targets in two ways,” the government said in its proposed regulations.

“First, it will reduce [greenhouse gas] emissions from the production of electricity. Second, using clean electricity instead of fossil fuels in vehicles, heating and industry will reduce emissions from those sectors too.

The regulations would regulate carbon dioxide emissions from electricity generating units that combust any amount of fossil fuel, have a capacity above a small megawatt threshold and sell electricity onto a regulated electricity system.

New rules would also be implemented for the development of new electricity generation units firing fossil fuels in or after 2025 and existing units. All units would be subject to emission standards by Jan. 1, 2035, at the latest.

The federal government launched consultations on the proposed regulations in March 2022.

Canada also has a 2030 emissions reduction plan that works towards meeting its Paris Agreement target to reduce emissions by 40-45 per cent from 2005 levels by 2030. This plan includes regulations to phase out coal-fired electricity by 2030.


COLLABORATION
The province recently introduced the Saskatchewan First Act, in an attempt to confirm its own jurisdiction and sovereignty when it comes to natural resources.

The act would amend Saskatchewan’s constitution to exert exclusive legislative jurisdiction under the Constitution of Canada.

The province is seeking jurisdiction over the exploration of non-renewable resources, the development, conservation and management of non-renewable natural and forestry resources, and the operation of sites and facilities for the generation and production of electrical energy.

While the federal government and Saskatchewan have come head-to-head publicly over several policy concerns in the past year, both sides remain open to collaborating on issues surrounding natural resources.

“We do have provincial jurisdiction in the development of these natural resources. We’d like to work collaboratively with the federal government on developing some of the most sustainable potash, uranium, agri-food products in the world,” Moe said.

Minister Wilkinson noted that while both the federal and provincial governments aim to respect each other’s jurisdiction, there is often some overlap, particularly in the case of environmental and economic policies, with Alberta's electricity sector changes underscoring those tensions as well.

“My view is we should endeavour to try to figure out ways that we can work together, and to ensure that we’re actually making progress for Saskatchewanians and for Canadians,” Wilkinson said.

“I think that Canadians expect us to try to figure out ways to work together, and where there are some disputes that can’t get resolved, ultimately the Supreme Court will decide on the issue of jurisdiction as they did in the case on the price on pollution.”

Moe said Saskatchewan is always open to working with the federal government, but not at the expense of its “provincial, constitutional autonomy.”

 

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Energy Security Support to Ukraine

U.S. Energy Aid to Ukraine delivers emergency electricity grid equipment, generators, transformers, and circuit breakers, supports ENTSO-E integration, strengthens energy security, and advances decarbonization to restore power and heat amid Russian attacks.

 

Key Points

U.S. funding and equipment stabilize Ukraine's power grid, strengthen energy security, and advance ENTSO-E integration.

✅ $53M for transformers, breakers, surge arresters, disconnectors

✅ $55M for generators and emergency heat to municipalities

✅ ENTSO-E integration, cybersecurity, nuclear safety support

 

In the midst of Russia’s continued brutal attacks against Ukraine’s energy infrastructure, Secretary of State Blinken announced today during a meeting of the G7+ on the margins of the NATO Ministerial in Bucharest that the United States government is providing over $53 million to support acquisition of critical electricity grid equipment. This equipment will be rapidly delivered to Ukraine on an emergency basis to help Ukrainians persevere through the winter, as the country prepares for winter amid energy challenges. This supply package will include distribution transformers, circuit breakers, surge arresters, disconnectors, vehicles and other key equipment.

This new assistance is in addition to $55 million in emergency energy sector support for generators and other equipment to help restore emergency power and heat to local municipalities impacted by Russia’s attacks on Ukraine’s power system, while both sides accuse each other of energy ceasefire violations that complicate repairs. We will continue to identify additional support with allies and partners, and we are also helping to devise long-term solutions for grid restoration and repair, along with our assistance for Ukraine’s effort to advance the energy transition and build an energy system decoupled from Russian energy.

Since Russia’s further invasion on February 24, working together with Congress, the Administration has provided nearly $32 billion in assistance to Ukraine, including $145 million to help repair, maintain, and strengthen Ukraine’s power sector in the face of continued attacks. We also have provided assistance in areas such as EU integration and regional electricity trade, including electricity imports to stabilize supply, natural gas sector support to maximize resource development, support for nuclear safety and security, and humanitarian relief efforts to help Ukrainians to overcome the impacts of energy shortages.

Since 2014, the United States has provided over $160 million in technical support to strengthen Ukraine’s energy security, including to strengthen EU interconnectivity, increase energy supply diversification, and promote investments in energy efficiency, renewable energy, and clean energy technologies and innovation.  Much of this support has helped prepare Ukraine for its eventual interconnection with Europe’s ENTSO-E electricity grid, aligning with plans to synchronize with ENTSO-E across the integrated power system, including the island mode test in February 2022 that not only demonstrated Ukraine’s progress in meeting the EU’s technical requirements, but also proved to be critical considering Russia’s subsequent military activity aimed at disrupting power supplies and distribution in Ukraine.

 

Department of Energy (DOE)

  • With the increased attacks on Ukraine’s electricity grid and energy infrastructure in October, DOE worked with the Ukrainian Ministry of Energy and DOE national laboratories to collate, vet, and help prioritize lists of emergency electricity equipment for grid repair and stabilization amid wider global energy instability affecting supply chains.
  • Engaged at the CEO level U.S. private sector and public utilities and equipment manufacturers to identify $35 million of available electricity grid equipment in the United States compatible with the Ukrainian system for emergency delivery. Identified $17.5 million to support purchase and transportation of this equipment.
  • With support from Congress, initiated work on full integration of Ukraine with ENTSO-E to support resumption of Ukrainian energy exports to other European countries in the region, including funding for energy infrastructure analysis, collection of satellite data and analysis for system mapping, and work on cyber security, drawing on the U.S. rural energy security program to inform best practices.
  • Initiated work on a new dynamic model of interdependent gas and power systems of Europe and Ukraine to advance identification and mitigation of critical vulnerabilities.
  • Delivered emergency diesel fuel and other critical materials needed for safe operation of Ukrainian nuclear power plants, as well as initiated the purchase of three truck-mounted emergency diesel backup generators to be delivered to improve plant safety in the event of the loss of offsite power.

U.S. Department of State

  • Building on eight years of technical engagement, the State Department continued to provide technical support to Naftogaz and UkrGasVydobuvannya to advance corporate governance reform, increase domestic gas production, provide strategic planning, and assess critical sub-surface and above-ground technical issues that impact the company’s core business functions.
  • The State Department is developing new programs focused on emissions abatement, decarbonization, and diversification, acknowledging the national security benefits of reducing reliance on fossil fuels to support Ukraine’s ambitious clean energy and climate goals and address the impacts of reduced supplies of natural gas from Russia.
  • The State Department led a decades-long U.S. government engagement to develop and expand natural gas reverse flow (west-to-east) routes to enhance European and Ukrainian energy security. Ukraine is now able to import natural gas from Europe, eliminating the need for Ukraine to purchase natural gas from Gazprom.

 

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Report: Duke Energy to release climate report under investor pressure

Duke Energy zero-coal 2050 plan outlines a decarbonized energy mix, aligning with Paris goals, cutting greenhouse gas emissions, driven by investor pressure, shifting to natural gas, extending nuclear power, and phasing out coal.

 

Key Points

An investor-driven scenario to end coal by 2050, shift to natural gas, extend nuclear plants, and manage climate risk.

✅ Eliminates coal from the generation mix by 2050

✅ Prioritizes natural gas transitions without CCS breakthroughs

✅ Extends nuclear plant licenses to limit carbon emissions

 

One of America’s largest utility companies, Duke Energy, is set to release a report later this month that sketches a drastically changed electricity mix in a carbon-constrained future.

The big picture: Duke is the latest energy company to commit to releasing a report about climate change in response to investor pressure, echoing shifts such as Europe's oil majors going electric across the sector, conveyed by non-binding but symbolically important shareholder resolutions. Duke provides electricity to more than seven million customers in the Carolinas, the Midwest and Florida.

Gritty details: The report is expected to find that coal, currently 33% of Duke’s mix, gone entirely from its portfolio by 2050 in a future scenario where the world has taken steps to cut greenhouse gas emissions, and where global coal-fired electricity use is falling markedly, to a level consistent with keeping global temperatures from rising two degrees Celsius. That’s the big ambition of the 2015 Paris climate deal, but the current commitments aren’t close to reaching that.

What they're saying: “What’s difficult about this is we are trying to overlay what we understand currently about technology,” Lynn Good, Duke CEO, told Axios in an interview on the sidelines of a major energy conference here.

She went on to say that this scenario of zero coal by 2050 doesn’t assume any breakthroughs in technology that captures carbon emissions from coal-fired power plants. “We don’t see that technology today, and we need to make economic decisions to get those units moving and replacing them with natural gas.”

Good also stressed the benefits of its several nuclear power plants, highlighting the role of sustaining U.S. nuclear power in decarbonization, which emit no carbon emissions. She said Duke isn’t considering investing in new nuclear plants, but plans to seek federal relicensing of current plants.

“If I turn them off, the resource that would replace them today is natural gas, so carbon will go up,” Good said. “Our objective is to continue to keep those plants as long as possible.”

What’s next: A spokesman said the other details of their 2050 scenario estimates will be available when the report is officially released by month’s end.

Axios reports that Duke Energy will release a report later this month that detail the utility's efforts to mitigate climate change risks and plan carbon-free electricity investments across its operations. The report includes a scenario that eliminates coal entirely from the company's power mix by 2050. Coal currently makes up about a third of Duke's generation.

Duke CEO Lynn Good told the news outlet the scenario ending coal-fired generation assumes no technological advances in emissions capture, seemingly leaving open the possibility.

Last year, a report by the Union of Concerned Scientists concluded one in four of the remaining operating coal-fired plants in the U.S. are slated for closure or conversion to natural gas, amid falling power-sector carbon emissions across the country. Duke's report is expected to be released by the end of the month.

Duke's report on its carbon plans comes at the behest of shareholders, a trend utility companies have seen growing among investors who are increasingly concerned about companies' sustainability and their financial exposure to climate policy.

Last year, a majority of shareholders of Pennsylvania utility PPL Corp. called on company management to publish a report on how climate change policies and technological innovations will affect the company's bottom line. Almost 60% of shareholders voted in favor of the non-binding proposal.

The vote, reportedly a first for the power sector, followed a similar decision by shareholders of Occidental Petroleum, which was supported by about 66% of shareholders.

Duke's Good told Axios that right now the utility does not see the coal technology on the horizon that would keep it operating plants. “We don't see that technology today, and we need to make economic decisions to get those units moving and replacing them with natural gas," Good said. However, it does not mean the utility is making near-term efforts to erase coal from its power mix. However, some utilities are taking those steps as they prepare for en energy landscape with more carbon regulations.

In addition to the 25% of coal plants heading for closure or conversion, the UCS report also said that another 17% of the nation’s operating coal plants are uneconomic compared with natural gas-fired generation, and could face retirement soon. But there is plenty of ongoing research into "clean coal" possibilities, and the federal government has expressed an interest in smaller, modular coal units.

 

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Ukraine Resumes Electricity Exports

Ukraine Electricity Exports resume as the EU grid links stabilize; ENTSO-E caps, megawatt capacity, renewables, and infrastructure repairs enable power flows to Moldova, Poland, Slovakia, and Romania despite ongoing Russian strikes.

 

Key Points

Resumed cross-border power sales showing grid stability under ENTSO-E limits and surplus generation.

✅ Exports restart to Moldova; Poland, Slovakia, Romania next.

✅ ENTSO-E cap limits to 400 MW; more capacity under negotiation.

✅ Revenues fund grid repairs after Russian strikes.

 

Ukraine began resuming electricity exports to European countries on Tuesday, its energy minister said, a dramatic turnaround from six months ago when fierce Russian bombardment of power stations plunged much of the country into darkness in a bid to demoralize the population.

The announcement by Energy Minister Herman Halushchenko that Ukraine was not only meeting domestic consumption demands but also ready to restart exports to its neighbors was a clear message that Moscow’s attempt to weaken Ukraine by targeting its infrastructure did not work.

Ukraine’s domestic energy demand is “100%” supplied, he told The Associated Press in an interview, and it has reserves to export due to the “titanic work” of its engineers and international partners.

Russia ramped up infrastructure attacks in September, when waves of missiles and exploding drones destroyed about half of Ukraine's energy system, even as it built lines to reactivate the Zaporizhzhia plant in occupied territory. Power cuts were common across the country as temperatures dropped below freezing and tens of millions struggled to keep warm.

Moscow said the strikes were aimed at weakening Ukraine’s ability to defend itself, and both sides have floated a possible agreement on power plant attacks amid mounting civilian harm, while Western officials said the blackouts that caused civilians to suffer amounted to war crimes. Ukrainians said the timing was designed to destroy their morale as the war marked its first anniversary.


Ukraine had to stop exporting electricity in October to meet domestic needs.

Engineers worked around the clock, often risking their lives to come into work at power plants and keep the electricity flowing. Kyiv’s allies also provided help. In December, U.S. Secretary of State Antony Blinken announced $53 million in bilateral aid to help the country acquire electricity grid equipment, on top of $55 million for energy sector support.

Much more work remains to be done, Halushchenko said. Ukraine needs funding to repair damaged generation and transmission lines, and revenue from electricity exports would be one way to do that.

The first country to receive Ukraine’s energy exports will be Moldova, he said.

Besides the heroic work by engineers and Western aid, warmer temperatures are enabling the resumption of exports by making domestic demand lower, and across Europe initiatives like virtual power plants for homes are helping balance grids. Nationwide consumption was already down at least 30% due to the war, Halushchenko said, with many industries having to operate with less power.

Renewables like solar and wind power also come into play as temperatures rise, taking some pressure off nuclear and coal-fired power plants.

But it’s unclear if Ukraine can keep up exports amid the constant threat of Russian bombardment.

“Unfortunately now a lot of things depend on the war,” Halushchenko said. “I would say we feel quite confident now until the next winter.”

Exports to Poland, Slovakia and Romania are also on schedule to resume, he said.

“Today we are starting with Moldova, and we are talking about Poland, we are talking about Slovakia and Romania,” Halushchenko added, noting that how much will depend on their needs.

“For Poland, we have only one line that allows us to export 200 megawatts, but I think this month we will finish another line which will increase this to an additional 400 MW, so these figures could change,” he said.

Export revenue will depend on fluctuating electricity prices in Europe, where stunted hydro and nuclear output may hobble recovery efforts. In 2022, while Ukraine was still able to export energy, Ukrainian companies averaged 40 million to 70 million euros a month depending on prices, Halushchenko said.

“Even if it’s 20 (million euros) it’s still good money. We need financial resources now to restore generation and transmission lines,” he said.

Ukraine has the ability to export more than the 400 megawatt capacity limit imposed by the European Network of Transmission System Operators for Electricity, or ENTSO-E, and rising EU wind and solar output is reshaping cross-border flows. “We are in negotiations to increase this cap because today we can export even more, we have the necessary reserves in the system,” the minister said.

The current capacity limit is in line with what Ukraine was exporting in September 2022 before Ukraine diverted resources to meet domestic needs amid the Russian onslaught.

 

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Reload.Land 2025: Berlin's Premier Electric Motorcycle Festival Returns

Reload.Land 2025 returns to Berlin with electric motorcycles, e-scooters, test rides, a conference on sustainability, custom builds, a silent ride, networking, innovators, brands, enthusiasts, and an electronic afterparty, spotlighting Europe's cutting-edge electromobility scene.

 

Key Points

Reload.Land 2025 is Berlin's electric motorcycle festival with test rides, panels, custom bikes, and a city silent ride.

✅ Test rides for electric motorcycles and e-scooters

✅ Conference on technology, sustainability, and policy

✅ Custom exhibition, Silent Ride, and electronic afterparty

 

Reload.Land, Europe's pioneering festival dedicated to electric motorcycles, is set to return for its third edition on June 7–8, 2025. Held at the Napoleon Komplex in Berlin, a city advancing sustainable mobility initiatives, this event promises to be a significant gathering for enthusiasts, innovators, and industry leaders in the realm of electric mobility.

A Hub for Electric Mobility Enthusiasts

Reload.Land serves as a platform for showcasing the latest advancements in electric two-wheelers, reflecting broader electricity innovation trends, including motorcycles, e-scooters, and custom electric bikes. Attendees will have the opportunity to test ride a diverse selection of electric vehicles from various manufacturers, providing firsthand experience of the evolving landscape of electromobility.

Highlights of the Festival

  • Custom Exhibition: A curated display of unique electric motorcycles and vehicles, highlighting the creativity and innovation within the electric mobility sector, from custom builders to Daimler's electrification plan shaping supply chains.

  • Reload.Land Conference: Engaging panel discussions and presentations from industry experts, focusing on topics such as cutting-edge technology, sustainability, including electricity demand from e-mobility projections, and the future of electric transportation.

  • Silent Ride: A group electric-only ride through the streets of Berlin, alongside projects like the city's electric flying ferry initiative, offering participants a unique experience of the city while promoting the quiet and clean nature of electric vehicles.

  • Official Afterparty: An evening celebration featuring electronic music, providing attendees with an opportunity to unwind and network in a vibrant atmosphere.
     

Community and Networking Opportunities

Reload.Land is not just an event; it's a movement that brings together a global community of riders, innovators, and brands. The festival fosters an environment where like-minded individuals can connect, share ideas, and collaborate on shaping the future of electric mobility, with similar gatherings like Everything Electric in Vancouver amplifying awareness worldwide. 

Event Details

  • Dates: June 7–8, 2025

  • Location: Napoleon Komplex, Modersohnstraße 35–45, 10245 Berlin, Germany.

  • Entry Fee: €10 (Children up to 14 years free)

Reload.Land 2025 promises to be a landmark event in the electric mobility calendar, offering a comprehensive look at the innovations shaping the future of transportation, echoing the public enthusiasm seen at EV events in Regina this year. Whether you're a seasoned rider, an industry professional, or simply curious about electric vehicles, Reload.Land provides a unique opportunity to immerse yourself in the world of electric motorcycles.

 

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Opinion: Cleaning Up Ontario's Hydro Mess - Ford government needs to scrap the Fair Hydro Plan and review all options

Ontario Hydro Crisis highlights soaring electricity rates, costly subsidies, nuclear refurbishments, and stalled renewables in Ontario. Policy missteps, weak planning, and rising natural gas emissions burden ratepayers while energy efficiency and storage remain underused.

 

Key Points

High power costs and subsidies from policy errors, nuclear refurbishments, stalled efficiency and renewables in Ontario.

✅ $5.6B yearly subsidy masks electricity rates and deficits

✅ Nuclear refurbishments embed rising costs for decades

✅ Efficiency, storage, and DERs stalled amid weak planning

 

By Mark Winfield

While the troubled Site C and Muskrat Falls hydroelectric dam projects in B.C. and Newfoundland and Labrador have drawn a great deal of national attention over the past few months, Ontario has quietly been having a hydro crisis of its own.

One of the central promises in the 2018 platform of the Ontario Progressive Conservative party was to “clean up the hydro mess,” and then-PC leader Doug Ford vowed to fire Hydro One's leadership as part of that effort. There certainly is a mess, with the costs of subsidies taken from general provincial revenues to artificially lower hydro rates nearing $7 billion annually. That is a level approaching the province’s total pre-COVID-19 annual deficit. After only two years, that will also exceed total expected cost overruns of the Site C and Muskrat Falls projects, currently estimated at $12 billion ($6 billion each).

There is no doubt that Doug Ford’s government inherited a significant mess around the province’s electricity system from the previous Liberal governments of former premiers Dalton McGuinty and Kathleen Wynne. But the Ford government has also demonstrated a remarkable capacity for undoing the things its predecessors had managed to get right while doubling down on their mistakes.

The Liberals did have some significant achievements. Most notably: coal-fired electricity generation, which constituted 25 per cent of the province’s electricity supply in the early 2000s, was phased out in 2014. The phaseout dramatically improved air quality in the province. There was also a significant growth in renewable energy production. From  virtually zero in 2003, the province installed 4,500 MW of wind-powered generation, and 450 MW of solar photovoltaic by 2018, a total capacity more than double that of the Sir Adam Beck Generating Stations at Niagara Falls.

At the same time, public concerns over rising hydro rates flowing from a major reconstruction of the province’s electricity system from 2003 onwards became a central political issue in the province. But rather than reconsider the role of the key drivers of the continuing rate increases – namely the massively expensive and risky refurbishments of the Darlington and Bruce nuclear facilities, the Liberals adopted a financially ruinous Fair Hydro Plan. The central feature of the 2017 plan was a short-term 25 per cent reduction in hydro rates, financed by removing the provincial portion of the HST from hydro bills, and by extending the amortization period for capital projects within the system. The total cost of the plan in terms of lost revenues and financing costs has been estimated in excess of $40 billion over 29 years, with the burden largely falling on future ratepayers and taxpayers.


Decision-making around the electricity system became deeply politicized, and a secret cabinet forecast of soaring prices intensified public debate across Ontario. Legislation adopted by the Wynne government in 2016 eliminated the requirement for the development of system plans to be subject to any form of meaningful regulatory oversight or review. Instead, the system was guided through directives from the provincial cabinet. Major investments like the Darlington and Bruce refurbishments proceeded without meaningful, public, external reviews of their feasibility, costs or alternatives.

The Ford government proceeded to add more layers to these troubles. The province’s relatively comprehensive framework for energy efficiency was effectively dismantled in March, 2019, with little meaningful replacement. That was despite strong evidence that energy efficiency offered the most cost-effective strategy for reducing greenhouse gas emissions and electricity costs.

The Ford government basically retained the Fair Hydro Plan and promised further rate reductions, later tabling legislation to lower electricity rates as well. To its credit, the government did take steps to clarify real costs of the plan. Last year, these were revealed to amount to a de facto $5.6 billion-per-year subsidy coming from general revenues, and rising. That constituted the major portion of the province’s $7.4 billion pre-COVID-19 deficit. The financial hole was deepened further through November’s financial statement, with the addition of a further $1.3 billion subsidy to commercial and industrial consumers. The numbers can only get worse as the costs of the Darlington and Bruce refurbishments become embedded more fully into electricity rates.

The government also quietly dispensed with the last public vestige of an energy planning framework, relieving itself of the requirement to produce a Long-Term Energy Plan every three years. The next plan would normally have been due next month, in February.

Even the gains from the 2014 phaseout of coal-fired electricity are at risk. Major increases are projected in emissions of greenhouse gases, smog-causing nitrogen oxides and particulate matter from natural gas-fired power plants as the plants are run to cover electricity needs during the Bruce and Darlington refurbishments over the next decade. These developments could erode as much as 40 per cent of the improvements in air quality and greenhouse gas emission gained through the coal phaseout.

The province’s activities around renewable energy, energy storage and distributed energy resources are at a standstill, with exception of a few experimental “sandbox” projects, while other jurisdictions face profound electricity-sector change and adapt. Globally, these technologies are seen as the leading edge of energy-system development and decarbonization. Ontario seems to have chosen to make itself an energy innovation wasteland instead.

The overall result is a system with little or no space for innovation that is embedding ever-higher costs while trying to disguise those costs at enormous expense to the provincial treasury and still failing to provide effective relief to low-income electricity consumers.

The decline in electricity demand associated with the COVID-19 pandemic, along with the introduction of a temporary recovery rate for electricity, gives the province an opportunity to step back and consider its next steps with the electricity system. A phaseout of the Fair Hydro Plan electricity-rate reduction and its replacement with a more cost-effective strategy of targeted relief aimed at those most heavily burdened by rising hydro rates, particularly rural and low-income consumers, as reconnection efforts for nonpayment have underscored the hardship faced by many households, would be a good place to start.

Next, the province needs to conduct a comprehensive, public review of electricity options available to it, including additional renewables – the costs of which have fallen dramatically over the past decade – distributed energy resources, hydro imports from Quebec and energy efficiency before proceeding with further nuclear refurbishments.

In the longer term, a transparent, evidence-based process for electricity system planning needs to be established – one that is subject to substantive public and regulatory oversight and review. Finally, the province needs to establish a new organization to be called Energy Efficiency Ontario to revive its efforts around energy efficiency, developing a comprehensive energy-efficiency strategy for the province, covering electricity and natural gas use, and addressing the needs of marginalized communities.

Without these kinds of steps, the province seems destined to continue to lurch from contradictory decision after contradictory decision as the economic and environmental costs of the system’s existing trajectory continue to rise.

Mark Winfield is a professor of environmental studies at York University and co-chair of the university’s Sustainable Energy Initiative.

 

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