Ontario faces uncertain electricity future in election's wake

By Platts


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Ontario's electricity markets face an uncertain future following the re-election Thursday of the Liberal Party, but this time under minority rule, a situation not seen in nearly three decades.

"We have a lot of questions and I don't think a lot of answers," said David Butters, president and CEO of the Association of Power Producers of Ontario. "Folks are going to have to figure out how to run the government without stepping on mines and getting blown up."

Premier Dalton McGuinty was re-elected Thursday, with the Liberal Party capturing 53 electoral district, but Progressive Conservatives won 37 votes and the New Democrat Party won 17 votes, leaving the Liberals in charge but without a majority vote in the Legislative Assembly.

The shift in power follows heated debate over renewable energy, electricity prices, and power plant siting in the province. Conservatives attacked Liberal backing of green energy feed-in tariffs and smart meters, while the NDP pushed for more public and less private ownership of renewable energy projects.

With pressure from the right and left, the McGuinty government is going to have to engage in a lot of "brokerage," Butters said. This will represent a shift in business-as-usual, since Ontario's winning party for almost three decades has had the votes to simply put its policies in place.

Some of the brokering likely will center on energy prices, according to Butters. "There are cost pressures building up in the electricity sector. They will not want that fire to ignite. They will be looking at ways to manage costs."

Ontario's regulated electricity prices have risen about 6.3 annually since 2006, according to a report that the London Economics International published last month. The report cited integration of high-priced renewable energy, a lack of competitive procurement and market distortions for the rise. Ontario functions under what is known as a "hybrid market," which has elements of central planning and competition.

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PG&E restoring power after intentional shut-offs affect 20,500 customers

PG&E power restoration continues across Butte and Yuba counties after PSPS shut-offs from high winds and dry weather, with crews patrolling overhead lines, repairing damage, and reopening community resource centers near Lake Berryessa.

 

Key Points

PG&E power restoration safely re-energizes lines after PSPS, using inspections and repairs to restore service.

✅ Crews patrolled 800 miles of overhead lines for hazards

✅ Repairs followed wind damage; gradual re-energization

✅ Resource centers offered water, outlets, air conditioning

 

Pacific Gas and Electric Co. field crews have begun restoring power to approximately 20,500 customers in Butte and Yuba counties after the utility shut off electricity to reduce wildfire risk because of gusty winds and dry weather conditions.

More than half of the affected customers had electricity again as of 1:47 p.m. Sunday, according to PG&E, and by 4 p.m. all of Yuba County power had been restored.

The utility also cut electricity for about 1,600 customers in parts of Napa, Solano and Yolo counties, primarily in the Lake Berryessa area, in a PSPS event separate from statewide grid conservation alerts that can trigger rolling blackouts. Power to those areas was switched off at 6:15 a.m. Saturday but was restored by the evening.

As the danger subsided Sunday, utility workers, as part of PG&E's local response planning for winter storms, worked throughout Butte and Yuba counties to re-energize power lines. The shut-offs affected areas including eastern Chico, Oroville and fire-ravaged Paradise.

Technicians checked lines for damage or fire hazards, like vegetation that could interfere with live wires, Pasion said, as part of broader pandemic grid preparedness that informed utility protocols.

PG&E “patrolled approximately 800 miles of overhead power lines,” the company said in a statement. “Crews found instances of damage to de-energized equipment caused by the extreme weather event and are making necessary repairs.”

While the shut-offs inconvenienced businesses and homeowners, they also highlighted energy inequality across impacted neighborhoods, and some called 911 with emergencies and confusion.

A half hour into the shut-off Saturday night, Butte County sheriff’s dispatchers received a call from a person requesting a welfare check on an individual whose care required electricity, according to department call logs. Two calls overnight from the Magalia area requested medical assistance because residents had oxygen concerns for medically sensitive spouses.

One woman requested an ambulance because her “husband was running out of oxygen,” according to the logs.

Around 4:11 a.m. Sunday, a resident of Hidden Valley Mobile Home Park in Oroville called about a tree falling into a trailer, causing a power line to fall, but noted that the electricity was off.

In a comparable storm-related outage, Sudbury Hydro crews worked to reconnect service after severe weather in Ontario.

And there were multiple calls asking for information about the shut-off, including one caller around midnight who was “demanding PG&E turn his power back on.”

The calls led the Butte County Sheriff’s Office to tweet a reminder Sunday afternoon that 911 is reserved for emergencies and requests for information about the power shutdown should be done through PG&E.

The utility opened a community resource center at Harrison Stadium in Oroville (Butte County) on Sunday morning to provide restrooms, bottled water, power outlets and air conditioning to residents. About 40 people showed up at the center in the first few hours, officials said.

“It’s a small but steady stream,” Pasion said.

Power was being restored to parts of Oroville as of 11 a.m. Sunday.

PG&E officials said it could take up to 48 hours for power to be restored in some areas.

For perspective, during severe storms in Ontario, Hydro One crews restored power to more than 277,000 customers within days.

 

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Extreme Heat Boosts U.S. Electricity Bills

Extreme Heat and Rising Electricity Bills amplify energy costs as climate change drives air conditioning demand, stressing the power grid and energy affordability, with low income households facing outsized burdens during prolonged heat waves.

 

Key Points

Heat waves from climate change raise AC demand, driving up electricity costs and straining energy affordability.

✅ More AC use spikes electricity demand during heat waves

✅ Low income households face higher energy burden

✅ Grid reliability risks rise with peak cooling loads

 

Extreme heat waves are not only straining public health systems but also having a significant impact on household finances, particularly through rising electricity bills. According to a recent AP-NORC poll, a growing number of Americans are feeling the financial pinch as soaring temperatures drive up the cost of cooling their homes. This development underscores the broader implications of climate change and its effects on everyday life.

The AP-NORC poll highlights that a majority of Americans are experiencing increased electricity costs as a direct result of extreme heat. As temperatures climb, so does the demand for air conditioning and other cooling systems. This increased energy consumption is contributing to higher utility bills, which can put additional strain on household budgets.

Extreme heat waves have become more frequent and intense due to climate change, which has led to a greater reliance on air conditioning to maintain comfortable indoor environments. Air conditioners and fans work harder during heat waves, and wasteful air conditioning can add around $200 to summer bills, consuming more electricity and consequently driving up energy bills. For many households, particularly those with lower incomes, these increased costs can be a significant burden.

The poll reveals that the impact of rising electricity bills is widespread, affecting a diverse range of Americans. Households across different income levels and geographic regions are feeling the heat, though the extent of the financial strain can vary. Lower-income households are particularly vulnerable, as they often have less flexibility in their budgets to absorb higher utility costs. For these families, the choice between cooling their homes and other essential expenses can be a difficult one.

In addition to financial strain, the poll highlights concerns about energy affordability and access. As electricity bills rise, some Americans may face challenges in paying their bills, leading to potential utility shut-offs or the need to make difficult choices between cooling and other necessities. This situation is exacerbated by the fact that many utility companies do not offer sufficient assistance or relief programs to help low-income households manage their energy costs.

The increasing frequency of extreme heat events and the resulting spike in electricity consumption also have broader implications for the energy infrastructure. Higher demand for electricity can strain power grids, as seen when California narrowly avoided blackouts during extreme heat, potentially leading to outages or reduced reliability. Utilities and energy providers may need to invest in infrastructure upgrades and maintenance to ensure that the grid can handle the increased load during heat waves.

Climate change is a key driver of the rising temperatures that contribute to higher electricity bills. As global temperatures continue to rise, extreme heat events are expected to become more common and severe, and experts warn the US electric grid was not designed to withstand these impacts. This trend underscores the need for comprehensive strategies to address both the causes and consequences of climate change. Efforts to reduce greenhouse gas emissions, improve energy efficiency, and invest in renewable energy sources are critical components of a broader climate action plan.

Energy efficiency measures can play a significant role in mitigating the impact of extreme heat on electricity bills. Upgrading to more efficient cooling systems, improving home insulation, and adopting smart thermostats can help reduce energy consumption and lower utility costs. Additionally, utility companies and government programs can offer incentives and rebates, including ways to tap new funding that help encourage energy-saving practices and support households in managing their energy use.

The poll also suggests that there is a growing awareness among Americans about the connection between climate change and rising energy costs. Many people are becoming more informed about the ways in which extreme weather events and rising temperatures impact their daily lives. This increased awareness can drive demand for policy changes and support for initiatives aimed at addressing climate change and improving energy efficiency, with many willing to contribute income to climate efforts, about the connection between climate change and rising energy costs.

In response to the rising costs and the impact of extreme heat, there are calls for policy interventions and support programs to help manage energy affordability. Proposals include expanding assistance programs for low-income households, investing in infrastructure improvements, and promoting energy efficiency initiatives alongside steps to make electricity systems more resilient to climate risks. By addressing these issues, policymakers can help alleviate the financial burden on households and support a more resilient and sustainable energy system.

Debates over policy impacts on electricity prices continue; in Alberta, federal policies are blamed by some for higher rates, illustrating how regulation can affect affordability.

In conclusion, the AP-NORC poll highlights the growing financial impact of extreme heat on American households, with rising electricity bills being a significant concern for many. The increased demand for cooling during heat waves is straining household budgets and raising broader questions about energy affordability and infrastructure resilience. Addressing these challenges requires a multifaceted approach, including efforts to combat climate change, improve energy efficiency, and provide support for those most affected by rising energy costs. As extreme heat events become more common, finding solutions to manage their impact will be crucial for both individual households and the broader energy system.

 

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Ontario’s Electricity Future: Balancing Demand and Emissions 

Ontario Electricity Transition faces surging demand, GHG targets, and federal regulations, balancing natural gas, renewables, battery storage, and grid reliability while pursuing net-zero by 2035 and cost-effective decarbonization for industry, EVs, and growing populations.

 

Key Points

Ontario Electricity Transition is the province's shift to a reliable, low-GHG grid via renewables, storage, and policy.

✅ Demand up 75% by 2050; procurement adds 4,000 MW capacity.

✅ Gas use rises to 25% by 2030, challenging GHG goals.

✅ Tripling wind and solar with storage can cut costs and emissions.

 

Ontario's electricity sector stands at a pivotal crossroads. Once a leader in clean energy, the province now faces the dual challenge of meeting surging demand while adhering to stringent greenhouse gas (GHG) reduction targets. Recent developments, including the expansion of natural gas infrastructure and proposed federal regulations, have intensified debates about the future of Ontario's energy landscape, as this analysis explains in detail.

Rising Demand and the Need for Expansion

Ontario's electricity demand is projected to increase by 75% by 2050, equivalent to adding four and a half cities the size of Toronto to the grid. This surge is driven by factors such as industrial electrification, population growth, and the transition to electric vehicles. In response, as Ontario confronts a looming shortfall in the coming years, the provincial government has initiated its most ambitious energy procurement plan to date, aiming to secure an additional 4,000 megawatts of capacity by 2030. This includes investments in battery storage and natural gas generation to ensure grid reliability during peak demand periods.

The Role of Natural Gas: A Controversial Bridge

Natural gas has become a cornerstone of Ontario's strategy to meet immediate energy needs. However, this reliance comes with environmental costs. The Independent Electricity System Operator (IESO) projects that by 2030, natural gas will account for 25% of Ontario's electricity supply, up from 4% in 2017. This shift raises concerns about the province's ability to meet its GHG reduction targets and to embrace clean power in practice. 

The expansion of gas-fired plants, including broader plans for new gas capacity, such as the Portlands Energy Centre in Toronto, has sparked public outcry. Environmental groups argue that these expansions could undermine local emissions reduction goals and exacerbate health issues related to air quality. For instance, emissions from the Portlands plant have surged from 188,000 tonnes in 2017 to over 600,000 tonnes in 2021, with projections indicating a potential increase to 1.65 million tonnes if the expansion proceeds as planned. 

Federal Regulations and Economic Implications

The federal government's proposed clean electricity regulations aim to achieve a net-zero electricity sector by 2035. However, Ontario's government has expressed concerns that these regulations could impose significant financial burdens. An analysis by the IESO suggests that complying with the new rules would require doubling the province's electricity generation capacity, potentially adding $35 billion in costs by 2050, while other estimates suggest that greening Ontario's grid could cost $400 billion over time. This could result in higher residential electricity bills, ranging from $132 to $168 annually starting in 2033.

Pathways to a Sustainable Future

Experts advocate for a diversified approach to decarbonization that balances environmental goals with economic feasibility. Investments in renewable energy sources, such as new wind and solar resources, along with advancements in energy storage technologies, are seen as critical components of a sustainable energy strategy. Additionally, implementing energy efficiency measures and modernizing grid infrastructure can enhance system resilience and reduce emissions. 

The Ontario Clean Air Alliance proposes phasing out gas power by 2035 through a combination of tripling wind and solar capacity and investing in energy efficiency and storage solutions. This approach not only aims to reduce emissions but also offers potential cost savings compared to continued reliance on gas-fired generation. 

Ontario's journey toward a decarbonized electricity grid is fraught with challenges, including balancing reliability, clean, affordable electricity, and environmental sustainability. While natural gas currently plays a significant role in meeting the province's energy needs, its long-term viability as a bridge fuel remains contentious. The path forward will require careful consideration of technological innovations, regulatory frameworks, and public engagement to ensure a clean, reliable, and economically viable energy future for all Ontarians.

 

 

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This Floating Hotel Will Generate Electricity By Rotating All Day

Floating Rotating Eco Hotel harnesses renewable energy via VAWTAU, recycles rainwater for greywater, and follows zero-waste principles. This mobile, off-grid, Qatar-based resort generates electricity by slow 360-degree rotation while offering luxury amenities.

 

Key Points

A mobile, off-grid hotel that rotates to generate power, uses VAWTAU, recycles greywater, and targets zero-waste.

✅ Rotates 360 deg in 24 hours to produce electricity

✅ VAWTAU system: vertical-axis turbine and sun umbrella

✅ Rain capture and greywater recycling minimize waste

 

A new eco-friendly, floating hotel plans to generate its own electricity by rotating while guests relax on board, echoing developments like the solar Marriott hotel in sustainable hospitality.

Led by Hayri Atak Architectural Design Studio (HAADS), the structure will be completely mobile, meaning it can float from place to place, never sitting in a permanent position. Building began in March 2020 and the architects aim for it to be up and running by 2025.

It will be based in Qatar, but has the potential to be located in different areas due to its mobility, and it sits within a region advancing projects such as solar hydrogen production that signal a broader clean-energy shift.

The design includes minimum energy loss and a zero waste principle at its core, aligning with progress in wave energy research that aims to power a clean future. As it will rotate around all day long, this will generate electrical energy to power the whole hotel.

But guests won’t feel too dizzy, as it takes 24 hours for the hotel to spin 360 degrees.

The floating hotel will stay within areas with continuous currents, to ensure that it is always rotating, drawing on ideas from ocean and river power systems that exploit natural flows. This type of green energy production is called ‘vawtau’ (vertical axis wind turbine and umbrella) which works like a wind turbine on the vertical axis, while alternative approaches like kite-based wind energy target stronger, high-altitude currents as well, and functions as a sun umbrella on the coastal band.

Beyond marine-current concepts such as underwater kites, the structure will also make use of rainwater to create power. A cover on the top of the hotel will collect rain to be used for greywater recycling. This is when wastewater is plumbed straight back into toilets, washing machines or outside taps to maximise efficiency.

The whole surface area is around 35,000 m², comparable in scale to emerging floating solar plants that demonstrate modular, water-based infrastructure, and there are a total of 152 rooms. It will have three different entrances so that there is access to the land at any time of the day, thanks to the 140-degree pier that surrounds it.

There will also be indoor and outdoor swimming pools, a sauna, spa, gym, mini golf course and other activity areas.

 

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Could selling renewable energy be Alberta's next big thing?

Alberta Renewable Energy Procurement is surging as corporate PPAs drive wind and solar growth, with the Pembina Institute and the Business Renewables Centre linking buyers and developers in Alberta's energy-only market near Medicine Hat.

 

Key Points

A market-led approach where corporations use PPAs to secure wind and solar power from Alberta projects.

✅ Corporate PPAs de-risk projects and lock in clean power.

✅ Alberta's energy-only market enables efficient transactions.

✅ Skilled workforce supports wind, solar, legal, and financing.

 

Alberta has big potential when it comes to providing renewable energy, advocates say.

The Pembina Institute says the practice of corporations committing to buy renewable energy is just taking off in Canada, and Alberta has both the energy sector and the skilled workforce to provide it.

Earlier this week, a company owned by U.S. billionaire Warren Buffett announced a large new wind farm near Medicine Hat. It has a buyer for the power.

Sara Hastings-Simon, director of the Pembina's Business Renewables Centre, says this is part of a trend.

"We're talking about the practice of corporate institutions purchasing renewables to meet their own electricity demand. And this is a really well-established driver for renewable energy development in the U.S.," she said. "You may be hearing headlines like Google, Apple and others that are buying renewables and we're helping to bring this practice to Canada."

The Business Renewables Centre (BRC) is a not-for-profit working to accelerate corporate and institutional procurement of renewables in Canada. The group held its inaugural all members event in Calgary on Thursday.

Hastings-Simon says shareholders and investors are encouraging more use of solar and wind power in Canada.

"We have over 10 gigawatts of renewable energy projects in the pipeline that are ready for buyers. And so we see multinational companies coming to Canada to start to procure here, as well as Canadian companies understanding that this is an opportunity for them as well," Hastings-Simon said.

"It's really exciting to see business interests driving renewable energy development."

Sara Hastings-Simon is the director of the Pembina Institute's Business Renewables Centre, which seeks to build up Alberta's renewable energy industry. (Mike Symington/CBC)

Hastings-Simon says renewable procurement could help dispel the narrative that it's all about oil and gas in Alberta by highlighting Alberta as a powerhouse for both green energy and fossil fuels in Canada.

She says the practice started with a handful of tech companies in the U.S. and has become more mainstream there, even as Canada remains a solar laggard to some observers, with more and more large companies wanting to reduce their energy footprint.

He says his U.S.-based organization has been working for years to speed up and expand the renewables market for companies that want to address their own sustainability.

"We try and make that a little bit easier by building out a community that can help to really reinforce each other, share lessons learned, best practices and then drive for transactions to have actual material impact worldwide," he said.

"We're really excited to be working with the Pembina group and the BRC Canada team," he said. "We feel our best value for this is just to support them with our experiences and lessons. They've been basically doing the same thing for many years helping to grow and grow and cultivate the market."

 

Porter says Alberta's market is more than ready.

"There are some precedent transactions already so people know it can work," he said. "The way Alberta is structured, being an energy-only market is useful. And I think that there is a strong ecosystem of both budget developers and service providers … that can really help these transactions get over the line."

As procurement ramps up, Hastings-Simon says Alberta already has the skilled workers needed to fill renewable energy jobs across the province.

"We have a lot of the knowledge that's needed, and that's everybody from the construction down through the legal and financing — all those pieces of building big projects," she said. "We are seeing increasing interest in people that want to become involved in that industry, and so there is increasing demand for training in things like solar power installation and wind technicians."

Hastings-Simon predicts an increase in demand for both the services and the workers.

"As this industry ramps up, we're going to need to have more workers that are active in those areas," she said. "So I think we can see a very nice increase — both the demand and the number of folks that are able to work in this field."

 

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A resilient Germany is weathering the energy crunch

German Energy Price Brakes harness price signals in a market-based policy, cutting gas consumption, preserving industrial output, and supporting CO2 reduction, showcasing Germany's resilience and adaptation while protecting households and businesses across Europe.

 

Key Points

Fixed-amount subsidies preserving price signals to curb gas use, shield consumers, and sustain industrial output.

✅ Maintains incentives via market-based price signals

✅ Cuts gas consumption without distorting EU markets

✅ Protects households and industry while curbing CO2

 

German industry and society are once again proving much more resilient and adaptable than certain people feared. Horror scenarios of a dangerous energy rationing or a massive slump in our economy have often been bandied about. But we are nowhere near that. With a challenging year just behind us, this is good news — not only for Germany, but also for Europe, where France-Germany energy cooperation has strengthened solidarity.

Companies and households reacted swiftly to the sharp increases in energy prices, in line with momentum in the global energy transition seen across markets. They installed more efficient heating or production facilities, switched to alternatives and imported intermediate products. The results are encouraging: German households and businesses have reduced gas consumption significantly, despite recent cold weather. From the start of the war in Ukraine to mid-December industrial gas consumption in Germany was (temperature-adjusted) around 20 per cent lower than the average level for the preceding three years. Even if some firms have cut back production, especially in energy-intensive sectors, industrial output as a whole has only fallen by about 1 per cent since the start of 2022. Added to this, in a survey released by the Ifo institute in November, over a third of German companies saw the potential to reduce gas consumption further without endangering output.

Instead of imposing excessive laws and regulations, we have relied on price signals and the prudence of market participants to create the right incentives and reduce gas consumption, as falling costs like record-low solar power prices continue to reinforce those signals across sectors.

We will follow this approach in coming months, when energy savings will remain important, even as the EU electricity outlook anticipates sharply higher demand by 2050. Our latest relief measures will not distort price signals. To this end, the Bundestag approved gas and electricity price brakes in its final session in 2022. They are designed to function without any intervention in markets or prices. This system will pay out a fixed amount relative to previous years’ consumption and the current difference to a reference price — regardless of current consumption.

Energy price brakes are the main component of Germany’s “protective shield”, which makes up to €200bn available for measures in 2022 to 2024. Seen in relation to the German economy’s size, its past heavy reliance on Russian energy imports and the fact that the measures will expire in 2024, these are balanced and expedient mechanisms. In contrast to instruments used in other countries, our new arrangements will not affect the price formation process driven by supply and demand, or on incentives to save gas. Companies and households will continue to save the full market price when they reduce consumption by a unit of gas or electricity. In this way, the price brakes also avoid the creation of additional demand for gas at the expense of consumers in other European countries, even as Europe’s Big Oil turning electric signals broader structural shifts in energy markets. No one need fear that competition will be distorted or that gas will be bought up. Indeed, a recent IMF working paper on cushioning the impact of high energy prices on households explicitly praises the German energy price brakes.

Current developments confirm the effectiveness of a market-based approach — and show that we should also rely on price signals when it comes to reducing CO₂ emissions, as suggested by IEA CO2 trends in recent years. Last year, households and companies had only a few weeks to adapt, yet we have already seen a strong response. The effect of CO₂ prices can be even stronger, as adaptation is possible over a much longer time and they additionally affect expectations and long-term decisions. Regulatory interventions and subsidy schemes, even if well targeted, cannot compete with market co-ordination and incentives that support individual decision-making and promote innovation.

Europe and Germany can weather this crisis without a collapse in industrial production. We also have an opportunity to deal efficiently with the move to climate neutrality, aligned with Germany’s hydrogen strategy for imported low-carbon fuels. In both cases, we should have confidence in price signals as well as in the power of people and business to innovate and adapt.

 

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