New England, eastern Canada consider power collaboration

Ontario Clean Grid Plan outlines emissions-free electricity growth, renewable energy procurement, nuclear expansion at Bruce and Darlington, reduced natural gas, grid reliability, and net-zero alignment to meet IESO demand forecasts and EV manufacturing loads.

Key Points

A plan to expand emissions-free power via renewables and nuclear, cut natural gas use, and meet growing demand.

✅ Targets renewables, hydro, and nuclear capacity growth

✅ Aims to reduce reliance on gas for grid reliability

✅ Aligns with IESO demand forecasts and EV manufacturing loads

Ontario is working toward filling all of the province’s quickly growing electricity needs with emissions-free sources, including a plan to secure new renewable generation and clean power options, but isn’t quite ready to commit to a moratorium on natural gas.

Energy Minister Todd Smith announced Monday a plan to address growing energy needs for 2030 to 2050 — the Independent Electricity System Operator projects Ontario’s electricity demand could double by mid-century — and next steps involve looking for new wind, solar and hydroelectric power.

“While we may not need to start building today, government and those in the energy sector need to start planning immediately, so we have new clean, zero-emissions projects ready to go when we need them,” Smith said in Windsor, Ont.

The strategy also includes two nuclear projects announced last week — a new large-scale nuclear plant at Bruce Power on the shore of Lake Huron and three new small modular reactors at the site of the Darlington nuclear plant east of Toronto.

Those projects, enough to power six million homes, will help Ontario end its reliance on natural gas to generate electricity, said Smith, but committing to a natural gas moratorium in 2027 and eliminating natural gas by 2050 is contingent on the federal government helping to speed up the new nuclear facilities.

“Today’s report, the Powering Ontario’s Growth plan, commits us to working towards a 100 per cent clean grid,” Smith said in an interview.

“Hopefully the federal government can get on board with our intentions to build this clean generation as quickly as possible … That will put us in a much better position to use our natural gas facilities less in the future, if we can get those new projects online.”

The IESO has said that natural gas is required to ensure supply and stability in the short to medium term, as Ontario works on balancing demand and emissions across the grid, but that it will also increase greenhouse gas emissions from the electricity sector.

The province is expected to face increased demand for electricity from expanded electric vehicle use and manufacturing in the coming years, even as a $400-billion cost estimate for greening the grid is debated.

Keith Brooks, programs director for Environmental Defence, said the provincial plan could have been much more robust, containing firm timelines and commitments.

“This plan does not commit to getting emissions out of the system,” he said.

“It doesn’t commit to net zero, doesn’t set a timeline for a net zero goal or have any projection around emissions from Ontario’s electricity sector going forward. In fact, it’s not really a plan. It doesn’t set out any real goals and it doesn’t it doesn’t project what Ontario’s supply mix might look like.”

The Canadian Climate Institute applauded the plan’s focus on reducing reliance on gas-fired generation and emphasizing non-emitting generation, but also said there are still some question marks.

“The plan is silent on whether the province intends to construct new gas-fired generation facilities,” even as new gas plant expansions are proposed, senior research director Jason Dion wrote in a statement.

“The province should avoid building new gas plants since cost-effective alternatives are available, and such facilities are likely to end up as stranded assets. The province’s timeline for reaching net zero generation is also unclear. Canada and other G7 countries have set a target for 2035, something Ontario will need to address if it wants to remain competitive.”

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Canadian Energy Infrastructure Tariffs are reshaping pipelines, deregulation, and energy independence, as U.S. trade tensions accelerate approvals for Alberta oil sands, Trans Mountain expansion, and CAPP proposals amid regulatory reform and market diversification.

Key Points

U.S. tariff threats drive approvals, infrastructure, and diversification to strengthen Canada energy security.

✅ Tariff risk boosts support for pipelines and export routes

✅ Faster project approvals and deregulation gain political backing

✅ Diversifying markets reduces reliance on U.S. buyers

In recent months, the Canadian energy sector has experienced a shift in public and political attitudes toward infrastructure projects, particularly those related to oil and gas production. This shift has been largely influenced by the threat of tariffs from the United States, as well as growing concerns about energy independence and U.S.-Canada trade tensions more broadly.

Scott Burrows, the CEO of Pembina Pipeline Corp., noted in a conference call that the potential for U.S. tariffs on Canadian energy imports has spurred a renewed sense of urgency and receptiveness toward energy infrastructure projects in Canada. With U.S. President Donald Trump’s proposed tariffs Trump tariff threat on Canadian imports, particularly a 10% tariff on energy products, there is increasing recognition within Canada that these projects are essential for the country’s long-term economic and energy security.

While the direct impact of the tariffs is not immediate, industry leaders are optimistic about the long-term benefits of deregulation and faster project approvals, even as some see Biden as better for Canada’s energy sector overall. Burrows highlighted that while it will take time for the full effects to materialize, there are significant "tailwinds" in favor of faster energy infrastructure development. This includes the possibility of more streamlined regulatory processes and a shift toward more efficient project timelines, which could significantly benefit the Canadian energy sector.

This changing landscape is particularly important for Alberta’s oil production, which is one of the largest contributors to Canada’s energy output. The Canadian Association of Petroleum Producers (CAPP) has responded to the growing tariff threat by releasing an “energy platform,” outlining recommendations for Ottawa to help mitigate the risks posed by the evolving trade situation. The platform includes calls for improved infrastructure, such as pipelines and transportation systems, and priorities like clean grids and batteries, to ensure that Canadian energy can reach global markets more effectively.

The tariff threat has also sparked a wider conversation about the need for Canada to strengthen its energy infrastructure and reduce its dependency on the U.S. for energy exports. With the potential for escalating trade tensions, there is a growing push for Canadian energy resources to be processed and utilized more domestically, though cutting Quebec’s energy exports during a tariff war. This has led to increased political support for projects like the Trans Mountain pipeline expansion, which aims to connect Alberta’s oil sands to new markets in Asia via the west coast.

However, the energy sector’s push for deregulation and quicker approvals has raised concerns among environmental groups and Indigenous communities. Critics argue that fast-tracking energy projects could lead to inadequate environmental assessments and greater risks to local ecosystems. These concerns underscore the tension between economic development and environmental protection in the energy sector.

Despite these concerns, there is a clear consensus that Canada’s energy industry needs to evolve to meet the challenges posed by shifting trade dynamics, even as polls show support for energy and mineral tariffs in the current dispute. The proposed U.S. tariffs have made it increasingly clear that the country’s energy infrastructure needs significant investment and modernization to ensure that Canada can maintain its status as a reliable and competitive energy supplier on the global stage.

As the deadline for the tariff decision approaches, and as Ford threatens to cut U.S. electricity exports, Canada’s energy sector is bracing for the potential fallout, while also preparing to capitalize on any opportunities that may arise from the changing trade environment. The next few months will be critical in determining how Canadian policymakers, businesses, and environmental groups navigate the complex intersection of energy, trade, and regulatory reform.

While the threat of U.S. tariffs may be unsettling, it is also serving as a catalyst for much-needed changes in Canada’s energy policy. The push for faster approvals and deregulation may help address some of the immediate concerns facing the sector, but it will be crucial for the government to balance economic interests with environmental and social considerations as the country moves forward in its energy transition.

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BC Hydro Deferred Regulatory Assets detail $5.5 billion in costs under rate-regulated accounting, to be recovered from ratepayers, highlighting B.C. Utilities Commission oversight, audit scrutiny, financial reporting impacts, and public utility governance.

Key Points

BC Hydro defers costs as regulatory assets to recover from ratepayers, influencing rates and financial reporting.

✅ $5.5B in deferred costs recorded as net regulatory assets

✅ Rate impacts tied to B.C. Utilities Commission oversight

✅ Auditor General to assess accounting and governance

Auditor General Carol Bellringer says BC Hydro has deferred $5.5 billion in expenses that it plans to recover from ratepayers in the future, as rates to rise by 3.75% over two years.

Bellringer focuses on the deferred expenses in a report on the public utility's use of rate-regulated accounting to control electricity rates for customers.

"As of March 31, 2018, BC Hydro reported a total net regulatory asset of $5.455 billion, which is what ratepayers owe," says the report. "BC Hydro expects to recover this from ratepayers in the future. For BC Hydro, this is an asset. For ratepayers, this is a debt."

She says rate-regulated accounting is used widely across North America, but cautions that Hydro has largely overridden the role of the independent B.C. Utilities Commission to regulate rates.

"We think it's important for the people of B.C. and our members of the legislative assembly to better understand rate-regulated accounting in order to appreciate the impact it has on the bottom line for BC Hydro, for government as a whole, for ratepayers and for taxpayers, especially following a three per cent rate increase in April 2018," Bellringer said in a conference call with reporters.

Last June, the B.C. government launched a two-phase review of BC Hydro to find cost savings and look at the direction of the Crown utility, amid calls for change from advocates.

The review came shortly after a planned government rate freeze was overturned by the utilities commission, which resulted in a three per cent rate increase in April 2018.

A statement by BC Hydro and the government says a key objective of the review due this month is to enhance the regulatory oversight of the commission.

Bellringer's office will become BC Hydro's auditor next year — and will be assessing the impact of regulation on the utility's financial reporting.

"It is a complex area and confidence in the regulatory system is critical to protect the public interest," wrote Bellringer.

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European Power Demand During Second Lockdowns remains resilient as winter heating offsets commercial losses; electricity consumption tracks seasonal norms, with weather sensitivity, industrial activity, natural gas shielding, and coal decline shaping dynamics under COVID-19 restrictions.

Key Points

It is expected to remain near seasonal norms, driven by heating, industry activity, and weather sensitive consumption.

✅ Winter heating offsets retail and hospitality closures

✅ Demand sensitivity rises with colder weather in France

✅ Gas generation shielded; coal likely to curtail first

European power demand is likely to hold up in the second round of national lockdown restrictions, with fluctuations most likely driven by changes in the weather.

Traders and analysts expect normal consumption this time around as home heating during the chilly season replaces commercial demand.

Last week electricity consumption in France, Germany and the U.K. was close to business-as-usual levels for the time of year, according to BloombergNEF data. By contrast, power demand had dropped 16% in the first seven days of the springtime lockdown, as reflected by the U.K.’s 10% daily decline reported then.

How power demand performs has significance outside the sector. It’s often seen as a proxy for economic growth and during lockdowns earlier this year, electricity use slumped along with GDP, and stunted hydro and nuclear output could further hobble recovery. For Western Europe, annual demand is expected to be 5% lower than the previous year, a bigger decline than after the global financial crisis in 2008, according to S&P Global Platts.

The Covid-19 limits are lighter than those from earlier in the year “with an explicit drive to preserve economic activity, particularly at the more energy-intensive industrial end of the spectrum,” said Glenn Rickson, head of European power analysis at S&P Global Platts.

Higher levels of working from home will offset some of the losses from shop and hospitality closures, “but also increase the temperature sensitivity of overall gas and power demand, as heat-driven demand records have shown in recent summers,” he said.

The latest wave of national lockdowns began in France, Germany, Spain, Italy and Britain, with Spain having seen April demand plummet earlier in the year, as coronavirus cases surged and officials struggled to keep the spread of the virus under control.

Much of the manufacturing industry remains working for now despite additional restrictions to contain the coronavirus. With the peak of the second wave yet to be reached, “it seems almost inevitable that the fourth quarter will prove economically challenging,” analysts at Alfa Energy said.

There will initially be significantly less of an impact on demand compared with this spring when global daily demand dipped about 15% and electricity consumption in Europe was down 30%, Johan Sigvardsson, power price analyst at Swedish utility Bixia AB said.

The prevalence of electric heating systems in France means that power demand is particularly sensitive to cold weather. A cold spell would significantly boost demand and drive record electricity prices in tight markets.

Similar to the last round of shutdowns, it’s use of coal that will probably be hit first if power demand sags, as transition-focused responses gather pace, leaving natural gas mostly shielded from fluctuations in the market.

“We expect that another drop in power demand would again impact coal-fired generation and shield gas power to some extent,” said Carlos Torres Diaz, an analyst at Rystad Energy.

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Twin States Clean Energy Link connects New England to Hydro-Quebec via a 1,200 MW transmission line, DOE-backed capacity, underground segments, existing corridors, boosting renewable energy reliability across Vermont and New Hampshire with cross-border grid flexibility.

Key Points

DOE-backed 1,200 MW line linking Hydro-Quebec to New England, adding clean capacity with underground routes.

✅ 1,200 MW cross-border capacity for the New England grid

✅ Uses existing corridors; underground in VT and northern NH

✅ DOE capacity contract lowers risk and spurs investment

A proposal to build a new transmission line to connect New England with Canadian hydropower is one step closer to reality.

The U.S. Department of Energy announced Monday that it has selected the Twin States Clean Energy Link as one of three transmission projects that will be part of its $1.3 billion cross-border transmission initiative to add capacity to the grid.

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Twin States is a proposal from National Grid, a utility company that serves Massachusetts, New York, and Rhode Island, and also owns transmission in England and Wales as the region advances projects like the Scotland-to-England subsea link that expand renewable flows, and the non-profit Citizens Energy Corporation.

The transmission line would connect New England with power from Hydro-Quebec, moving into the United States from Canada in Northern Vermont and crossing into New Hampshire near Dalton. It would run through parts of Grafton, Merrimack, and Hillsborough counties, routing through a substation in Dunbarton and ending at a proposed new substation in Londonderry. (Here's a map of the Twin States proposal.)

The federal funding will allow the U.S. Department of Energy to purchase capacity on the planned transmission line, which officials say reduces the risk for other investors and can help encourage others to purchase capacity.

The project has gotten support from local officials in Vermont and New Hampshire, but there are still hurdles to cross. The contract negotiation process is beginning, National Grid said, and the proposal still needs approvals from regulators before construction could begin.

First Nations communities in Canada have opposed transmission lines connecting Hydro-Quebec with New England in the past, and the company has faced scrutiny from environmental groups.

What would Twin States look like?
Transmission projects, like the failed Northern Pass proposal, have been controversial in New England, though the Great Northern Transmission Line progressed in Minnesota.

But Reihaneh Irani-Famili, vice president of capital delivery, project management and construction at National Grid, said this one is different because the developers listened to community concerns before planning the project.

“They did not want new corridors of infrastructure, so we made sure that we're using existing right of way,” she said. “They did not want the visual impact and some of the newer corridors of infrastructure, we're making sure we're undergrounding portions of the line.”

In Vermont and northern New Hampshire, the transmission lines would be buried underground along state roads. South of Littleton, they would be located within existing transmission corridors.

The developers say the lines could provide 1,200 megawatts of transmission capacity. The project would have the ability to carry electricity from hydro facilities in Quebec to New England, and would also be able to bring electricity from New England into Quebec, a step toward broader macrogrid connectivity across regions.

“Those hydro dams become giant green batteries for the region, and they hold that water until we need the electrons,” Irani-Famili said. “So if you think about our energy system not as one that sees borders, but one that sees resources, this is connecting the Quebec resources to the New England resources and helping all of us get into that cleaner energy future with a lot less build than we otherwise would have.”

Irani-Famili says the transmission line could help facilitate more clean energy resources like offshore wind coming online. In a report released last week by New Hampshire’s Department of Energy, authors said importing Canadian hydropower could be one of the most cost-effective ways to move away from fossil fuels on the electric grid.

National Grid estimates the project will help save energy customers $8.3 billion in its first 12 years. The developers are constructing a $260 million “community benefits plan” that would take some profits from the transmission line and give that money back to communities that host the transmission lines and environmental justice communities in New England.

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Octopus Energy and DTEK Partnership explores licensing the Kraken platform to rebuild Ukraine's power grid, enabling real-time analytics, smart-home integration, renewable energy orchestration, and distributed resilience amid ongoing attacks on critical energy infrastructure.

Key Points

Collaboration to deploy Kraken and renewables to modernize Ukraine's grid with analytics, smart control, and resilience.

✅ Kraken licensing for grid operations and customer analytics

✅ Shift to distributed solar, wind, and smart-home devices

✅ Real-time monitoring to mitigate outages and cyber risks

Octopus Energy, a prominent UK energy firm, has begun preliminary conversations with Ukraine's DTEK regarding potential collaboration to refurbish Ukraine's heavily damaged electric infrastructure as ongoing strikes threaten the power grid across the country.

Persistent assaults by Russia on Ukraine's power network, including a five-hour attack on Kyiv's grid, have led to significant electricity shortages in numerous regions.

Octopus Energy, the largest electricity and second-largest gas supplier in the UK, collaborates with energy firms in 17 countries using its Kraken software platform, and Ukraine joined Europe's power grid with unprecedented speed to bolster resilience. This platform is currently being trialled by the Abu Dhabi National Energy Company (Taqa) for power and water customers in the UAE.

A spokesperson from Octopus revealed to The National that the company is "in the early stages of discussions with DTEK to explore potential collaborative opportunities.”

One of the possibilities being considered is licensing Octopus's Kraken technology platform to DTEK, a platform that presently serves 54 million customer accounts globally.

Russian drone and missile attacks, which initially targeted Ukrainian ports and export channels last summer, shifted focus to energy infrastructure by October, ahead of the winter season as authorities worked to protect electricity supply before winter across the country.

These initial talks between Octopus CEO Greg Jackson and DTEK CEO Maxim Timchenko took place at the World Economic Forum in Davos, set against the backdrop of these ongoing challenges.

DTEK, Ukraine's leading private energy provider, might integrate Octopus's advanced Kraken software to manage and optimize data systems ranging from large power plants to smart-home devices, with a growing focus on protecting the grid against emerging threats.

Kraken is described by Octopus as a comprehensive technology platform that supports the entire energy supply chain, from generation to billing. It enables detailed analytics, real-time monitoring, and control of energy devices like heat pumps and electric vehicles, underscoring the need to counter cyber weapons that can disrupt power grids as systems become more connected.

Octopus Energy, with its focus on renewable sources, can also assist Ukraine in transitioning its power infrastructure from centralized coal-fired power stations, which are vulnerable targets, to a more distributed network of smaller solar and wind projects.

DTEK, serving approximately 3.5 million customers in the Kyiv, Donetsk, and Dnipro regions, is already engaged in renewable initiatives. The company constructed a wind farm in southern Ukraine within nine months last year and has plans for additional projects in Italy and Croatia.

Emphasizing the importance of rebuilding Ukraine's economy, Timchenko recently expressed at Davos the need for Ukrainian and international companies to work together to create a sustainable future for Ukraine, noting that incidents such as Russian hackers accessed U.S. control rooms highlight the urgency.

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