Gretzky plugs electric hockey skates

Bay of Fundy Tidal Energy advances as Nova Scotia permits Jupiter Hydro to test floating barge platforms with helical turbines in Minas Passage, supporting renewable power, grid-ready pilots, and green jobs in rural communities.

Key Points

A Nova Scotia tidal energy project using helical turbines to generate clean power and create local jobs.

✅ Permits enable 1-2 MW prototypes near Minas Passage

✅ Floating barge platforms with patented helical turbines

✅ PPA at $0.50/kWh with Nova Scotia Power

An Alberta-based company has been granted permission to try to harness electricity from the powerful tides of the Bay of Fundy.

Nova Scotia has issued two renewable energy permits to Jupiter Hydro.

Backers have long touted the massive energy potential of Fundy's tides -- they are among the world's most powerful -- but large-scale commercial efforts to harness them have borne little fruit so far, even as a Scottish tidal project recently generated enough power to supply nearly 4,000 homes elsewhere.

The Jupiter application says it will use three "floating barge type platforms" carrying its patented technology. The company says it uses helical turbines mounted as if they were outboard motors.

"Having another company test their technology in the Bay of Fundy shows that this early-stage industry continues to grow and create green jobs in our rural communities," Energy and Mines Minister Derek Mombourquette said in a statement.

The first permit allows the company to test a one-megawatt prototype that is not connected to the electricity grid.

The second -- a five-year permit for up to two megawatts -- is renewable if the company meets performance standards, environmental requirements and community engagement conditions.

Mombourquette also authorized a power purchase agreement that allows the company to sell the electricity it generates to the Nova Scotia grid through Nova Scotia Power for 50 cents per kilowatt hour.

On its web site, Jupiter says it believes its approach "will prove to be the most cost effective marine energy conversion technology in the world," even as other regional utilities consider initiatives like NB Power's Belledune concept for turning seawater into electricity.

The one megawatt unit would have screws which are about 5.5 metres in diameter.

The project is required to obtain all other necessary approvals, permits and authorizations.

It will be located near the Fundy Ocean Research Center for Energy in the Minas Passage and will use existing electricity grid connections.

A study commissioned by the Offshore Energy Research Association of Nova Scotia says by 2040, the tidal energy industry could contribute up to $1.7 billion to Nova Scotia's gross domestic product and create up to 22,000 full-time jobs, a transition that some argue should be planned by an independent body to ensure reliability.

Last month, Nova Scotia Power said it now generates 30 per cent of its power from renewables, as the province moves to increase wind and solar projects after abandoning the Atlantic Loop.

The utility says 18 per cent came from wind turbines, nine per cent from hydroelectric and tidal turbines and three per cent by burning biomass across its fleet.

However, over half of the province's electrical generation still comes from the burning of coal or petroleum coke, even as environmental advocates push to reduce biomass use in the mix. Another 13 per cent come from burning natural gas and five per cent from imports.

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California fossil fuel grid reliability plan addresses heat wave demand, rolling blackouts, and grid stability by temporarily procuring gas generation while accelerating renewables, storage, and transmission to meet clean energy and carbon-neutral targets by 2045.

Key Points

A stop-gap policy to prevent blackouts by buying fossil power while fast-tracking renewables, storage, and grid upgrades.

✅ Temporary procurement of gas to avoid rolling blackouts

✅ Accelerates renewables, storage, transmission permitting

✅ Aims for carbon neutrality by 2045 without new gas plants

California wants to quit fossil fuels. Just not yet Faced with a fragile electrical grid and the prospect of summertime blackouts, the state agreed to put aside hundreds of millions of dollars to buy power from fossil fuel plants that are scheduled to shut down as soon as next year.

That has prompted a backlash from environmental groups and lawmakers who say Democratic Gov. Gavin Newsom’s approach could end up extending the life of gas plants that have been on-track to close for more than a decade and could threaten the state’s goal to be carbon neutral by 2045.

“The emphasis that the governor has been making is ‘We’re going to be Climate Leaders; we’re going to do 100 percent clean energy; we’re going to lead the nation and the world,’” said V. John White, executive director of the Sacramento-based Center for Energy Efficiency and Renewable Technologies, a non-profit group of environmental advocates and clean energy companies. “Yet, at least a part of this plan means going the opposite direction.”

That plan was a last-minute addition to the state’s energy budget, which lawmakers in the Democratic-controlled Legislature reluctantly passed. Backers say it’s necessary to avoid the rolling blackouts like the state experienced during a heat wave in 2020. Critics see a muddled strategy on energy, and not what they expected from a nationally ambitious governor who has made climate action a centerpiece of his agenda.

The legislation, which some Democrats labeled as “lousy” and “crappy,” reflects the reality of climate change. Heat waves are already straining power capacity, and the transition to cleaner energy isn’t coming fast enough to meet immediate needs in the nation’s most populous state.

Officials have warned that outages would be possible this summer, as the grid faces heat wave tests again, with as many as 3.75 million California homes losing power in a worst-case scenario of a West-wide heat wave and insufficient electrical supplies, particularly in the evenings.

It’s also an acknowledgment of the political reality that blackout politics are hazardous to elected officials, even in a state dominated by one party.

Newsom emphasized that the money to prop up the power grid, part of a larger $4.3 billion energy spending package, is meant as a stop-gap measure. The bill allows the Department of Water Resources to spend $2.2 billion on “new emergency and temporary generators, new storage systems, clean generation projects, and funding on extension of existing generation operations, if any occur,” the governor said in a statement after signing the bill.

“Action is needed now to maintain reliable energy service as the State accelerates the transition to clean energy,” Newsom said.

Following the signing, the governor called for the state California Air Resources Board to add a set of ambitious goals to its 2022 Scoping Plan, which lays out California’s path for reducing carbon emissions.

Among Newsom’s requested changes is a move away from fossil fuels, asking state agencies to prepare for an energy transition that avoids the need for new natural gas plants.

Alex Stack, a spokesman for the governor, said in a statement that California has been a global leader in reducing pollution and exporting energy policies across Western states, and pointed to Newsom’s recent letter to the Air Resources Board as well as one sent to President Joe Biden outlining how states can work with the federal government to combat climate change.

“California took action to streamline permitting for clean energy projects to accelerate the build out of clean energy that is needed to meet our climate goals and help maintain reliability in the face of extreme heat, wildfires, and drought,” Stack said.

But the prospect of using state money on fossil fuel power, even in the short term, has raised ire among the state’s many environmental advocacy groups, and raised questions about whether California will be able to achieve its goals.

“What is so frustrating about an energy bill like this is that we are at crunch time to meet these goals,” said Mary Creasman, CEO of California Environmental Voters. “And we’re investing a scale of funding into things that exacerbate those goals.”
 
Emmanuelle Chriqui and Mary Creasman speak during the 2021 Environmental Media Association IMPACT Summit at Pendry West Hollywood on September 2, 2021 in West Hollywood, California. | Jesse Grant/Getty Images for Environmental Media Association

With climate change-induced drought and high temperatures continuing to ravage the West, California anticipates the demand on the grid will only continue to grow. Despite more than a decade of bold posturing and efforts to transition to solar, wind and hydropower, the state worries it doesn’t have enough renewable energy sources on hand to keep the power on in an emergency right now, amid a looming shortage that will test reliability.

The specter of power outages poses a hazard to Newsom, and Democrats in general, especially ahead of November. While the governor is widely expected to sail to reelection, rolling blackouts are a serious political liability — in 2003, they were the catalyst for recalling Democratic Gov. Gray Davis. A lack of power isn’t just about people sweating in the dark, said Steven Maviglio, a longtime Democratic consultant who served as communications director for Davis, it can affect businesses, travel and have an outsized impact on the economy.

It behooves any state official to keep the power on, but, unlike Davis, Newsom is under serious pressure to make sure the state also adheres to its climate goals.

“Gavin Newsom’s brand is based on climate change and clean air, so it’s a little more difficult for him to say ‘well that’s not as important as keeping the power on,’” Maviglio said.

The same bill effectively ends local government control over those projects, for the time being. It hopes to speed up the state’s production of renewable energy sources by giving exclusive authority over the siting of those projects to a single state agency for the next seven years.

Environmental advocates say the state is now scrambling to address an issue they’ve long known was coming. In 2010, California officials set a schedule to retire a number of coastal gas plants that rely on what’s known as once-through cooling systems, which are damaging to the environment, especially marine life, even as regulators weigh more power plants to maintain reliability today. Many of those plants have been retired since 2010, but others have received extensions.

The remaining plants have various deadlines for when they must cease operations, with the soonest being the end of 2023.

Also at issue is the embattled Diablo Canyon nuclear power plant, California’s largest electricity source. The Pacific Gas & Electric-owned plant is scheduled to close in 2025, but the strain on the grid has officials considering the possibility of seeking an extension. Newsom said earlier this spring he would be open to extending the life of the plant. Doing so would also require federal approval.

Al Muratsuchi stands and talks into a microphone with a mask on. 
Assemblyman Al Muratsuchi speaks during an Assembly session in Sacramento, Calif., on Jan. 31, 2022. | Rich Pedroncelli/AP Photo

The International Brotherhood of Electrical Workers 1245, a labor union, sees the energy package as a way to preserve Diablo Canyon, and jobs at the plant.

“The value to 1245 PG&E members at Diablo Canyon is clear — funding to keep the plant open,” the union said of the bill.

Assemblymember Al Muratsuchi (D-Los Angeles) criticized the bill as “crappy” when it came to the floor in late June, describing it as “a rushed, unvetted and fossil-fuel-heavy response” to the state’s need to bolster the grid.

“The state has had over 12 years to procure and bring online renewable energy generation to replace these once through cooling gas power plants,” Muratsuchi said. “Yet, the state has reneged on its promise to shut down these plants, not once, but twice already.”

Not all details of the state’s energy budget are final. Lawmakers still have $3.8 billion to allocate when they return on Aug. 1 for the final stretch of the year.

Creasman, at California Environmental Voters, said she wants lawmakers to set specific guidelines for how and where it will spend the $2.2 billion when they return in August to dole out the remaining money in the budget. Newsom and legislators also need to ensure that this is the last time California has to spend money on fossil fuel, she said.

“Californians deserve to see what the plan is to make sure we’re not in this position again of having to choose between making climate impacts worse or keeping our lights on,” Creasman said. “That’s a false choice.”

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Energy equity in utility regulation prioritizes fair rates, clean energy access, and DERs, addressing fixed charges and energy burdens on low-income households through stakeholder engagement and public utility commission reforms.

Key Points

Fairly allocates clean energy benefits and rate burdens, ensuring access and protections for low-income households.

✅ Reduces fixed charges that burden low-income households

✅ Funds community participation in utility proceedings

✅ Prioritizes DERs, energy efficiency, and solar in impacted areas

By Kiran Julin

Pouring over the line items on your monthly electricity bill may not sound like an enticing way to spend an afternoon, but the way electricity bills are structured has a significant impact on equitable energy access and distribution. For example, fixed fees can have a disproportionate impact on low-income households. And combined with other factors, low-income households and households of color are far more likely to report losing home heating service, with evidence from pandemic power shut-offs highlighting these disparities, according to recent federal data.

Advancing Equity in Utility Regulation, a new report published by the U.S. Department of Energy’s (DOE’s) Lawrence Berkeley National Laboratory (Berkeley Lab), makes a unifying case that utilities, regulators, and stakeholders need to prioritize energy equity in the deployment of clean energy technologies and resources, aligning with a people-and-planet electricity future envisioned by advocacy groups. Equity in this context is the fair distribution of the benefits and burdens of energy production and consumption. The report outlines systemic changes needed to advance equity in electric utility regulation by providing perspectives from four organizations — Portland General Electric, a utility company; the National Consumer Law Center, a consumer advocacy organization; and the Partnership for Southern Equity and the Center for Biological Diversity, social justice and environmental organizations.
 
“While government and ratepayer-funded energy efficiency programs have made strides towards equity by enabling low-income households to access energy-efficiency measures, that has not yet extended in a major way to other clean-energy technologies,” said Lisa Schwartz, a manager and strategic advisor at Berkeley Lab and technical editor of the report. “States and utilities can take the lead to make sure the clean-energy transition does not leave behind low-income households and communities of color. Decarbonization and energy equity goals are not mutually exclusive, and in fact, they need to go hand-in-hand.”

Energy bills and electricity rates are governed by state laws and utility regulators, whose mission is to ensure that utility services are reliable, safe, and fairly priced. Public utility commissions also are increasingly recognizing equity as an important goal, tool, and metric, and some customers face major changes to electric bills as reforms advance. While states can use existing authorities to advance equity in their decision-making, several, including Illinois, Maine, Oregon, and Washington, have enacted legislation over the last couple of years to more explicitly require utility regulators to consider equity.

“The infrastructure investments that utility companies make today, and regulator decisions about what goes into electricity bills, including new rate design steps that shape customer costs, will have significant impacts for decades to come,” Schwartz said.

Solutions recommended in the report include considering energy justice goals when determining the “public interest” in regulatory decisions, allocating funding for energy justice organizations to participate in utility proceedings, supporting utility programs that increase deployment of energy efficiency and solar for low-income households, and accounting for energy inequities and access in designing electricity rates, while examining future utility revenue models as technologies evolve.

The report is part of the Future of Electric Utility Regulation series that started in 2015, led by Berkeley Lab and funded by DOE, to encourage informed discussion and debate on utility trends and tackling the toughest issues related to state electric utility regulation. An advisory group of utilities, public utility commissioners, consumer advocates, environmental and social justice organizations, and other experts provides guidance.

Taking stock of past and current energy inequities

One focus of the report is electricity bills. In addition to charges based on usage, electricity bills usually also have a fixed basic customer charge, which is the minimum amount a household has to pay every month to access electricity. The fixed charge varies widely, from $5 to more than $20. In recent years, utility companies have sought sizable increases in this charge to cover more costs, amid rising electricity prices in some markets.

This fixed charge means that no matter what a household does to use energy more efficiently or to conserve energy, there is always a minimum cost. Moreover, low-income households often live in older, poorly insulated housing. Current levels of public and utility funding for energy-efficiency programs fall far short of the need. The combined result is that the energy burden – or percent of income needed to keep the lights on and their homes at a healthy temperature – is far greater for lower-income households.

“While all households require basic lighting, heating, cooling, and refrigeration, low-income households must devote a greater proportion of income to maintain basic service,” explained John Howat and Jenifer Bosco from the National Consumer Law Center and co-authors of Berkeley Lab’s report. Their analysis of data from the most recent U.S. Energy Information Administration’s Residential Energy Consumption Survey shows households with income less than $20,000 reported losing home heating service at a pace more than five times higher than households with income over $80,000. Households of color were far more likely than those with a white householder to report loss of heating service. In addition, low-income households and households of color are more likely to have to choose between paying their energy bill or paying for other necessities, such as healthcare or food.

Based on the most recent data (2015) from the U.S. Energy Information Administration (EIA), households with income less than $20,000 reported losing home heating service at a rate more than five times higher than households with income over $80,000. Households of color were far more likely than those with a white householder to report loss of heating service. Click on chart for larger view. (Credit: John Howat/National Consumer Law Center, using EIA data)

Moreover, while many of the infrastructure investment decisions that utilities make, such as whether and where to build a new power plant, often have long-term environmental and health consequences, impacted communities often are not at the table. “Despite bearing an inequitable proportion of the negative impacts of environmental injustices related to fossil fuel-based energy production and climate change, marginalized communities remain virtually unrepresented in the energy planning and decision-making processes that drive energy production, distribution, and regulation,” wrote Chandra Farley, CEO of ReSolve and a co-author of the report.

Engaging impacted communities
Each of the perspectives in the report identify a need for meaningful engagement of underrepresented and disadvantaged communities in energy planning and utility decision-making. “Connecting the dots between energy, racial injustice, economic disinvestment, health disparities, and other associated equity challenges becomes a clarion call for communities that are being completely left out of the clean energy economy,” wrote Farley, who previously served as the Just Energy Director at Partnership for Southern Equity. “We must prioritize the voices and lived experiences of residents if we are to have more equity in utility regulation and equitably transform the energy sector.”

In another essay in the report, Nidhi Thaker and Jake Wise from Portland General Electric identify the importance of collaborating directly with the communities they serve. In 2021, the Oregon Legislature passed Oregon HB 2475, which allows the Oregon Public Utility Commission to allocate ratepayer funding for organizations representing people most affected by a high energy burden, enabling them to participate in utility regulatory processes.

The report explains why energy equity requires correcting inequities resulting from past and present failures as well as rethinking how we achieve future energy and decarbonization goals. “Equity in energy requires adopting an expansive definition of the ‘public interest’ that encompasses energy, climate, and environmental justice. Energy equity also means prioritizing the deployment of distributed energy resources and clean energy technologies in areas that have been hit first and worst by the existing fossil fuel economy,” wrote Jean Su, energy justice director and senior attorney at the Center for Biological Diversity.

This report was supported by DOE’s Grid Modernization Laboratory Consortium, with funding from the Office of Energy Efficiency and Renewable Energy and the Office of Electricity.

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Columbia River Treaty Negotiations involve Canada-U.S. talks on B.C. dams, flood control, hydropower sharing, and downstream benefits, prioritizing ecosystem health, First Nations rights, and salmon restoration while balancing affordable electricity for northwest consumers.

Key Points

Talks to update flood control, hydropower, and ecosystem terms for fair benefits to B.C. and U.S. communities.

✅ Public consultations across B.C.'s Columbia Basin

✅ First Nations priorities include salmon restoration

✅ U.S. seeks cheaper power; B.C. defends downstream benefits

With talks underway between Canada and the U.S. on the future of the Columbia River Treaty, the B.C. New Democrats have launched public consultations in the region most affected by the high-stakes negotiation.

“We want to ensure Columbia basin communities are consulted, kept informed and have their voices heard,” said provincial cabinet minister Katrine Conroy via a press release announcing meetings this month in Castlegar, Golden, Revelstoke, Nakusp, Nelson and other communities.

As well as having cabinet responsibility for the talks, Conroy’s Kootenay West riding includes several places that were inundated under the terms of the 1964 flood control and power generation treaty.

“We will continue to work closely with First Nations affected by the treaty, to ensure Indigenous interests are reflected in the negotiations,” she added by way of consolation to Indigenous people who’ve been excluded from the negotiating teams on both sides of the border.

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The stakes are also significant for the province as a whole. The basics of the treaty saw B.C. build dams to store water on this side of the border, easing the flood risk in the U.S. and allowing the flow to be evened out through the year. In exchange, B.C. was entitled to a share of the additional hydro power that could be generated in dams on the U.S. side.

B.C.’s sale of those downstream benefits to the U.S has poured almost $1.4 billion into provincial coffers over the past 10 years, albeit at a declining rate these days amid scrutiny from a regulator report on BC Hydro that raised concerns, because of depressed prices for cross-border electricity sales.

Politicians on the U.S. side have long sought to reopen the treaty, believing there was now a case for reducing B.C.’s entitlement.

They did not get across the threshold under President Barack Obama.

Then, last fall his successor Donald Trump served notice of intent, initiating the formal negotiations that commenced with a two day session last week in Washington, D.C. The next round is set for mid-August in B.C.

American objectives in the talks include “continued, careful management of flood risk; ensuring a reliable and economical power supply; and better addressing ecosystem concerns,” with recognition of recent BC Hydro demand declines during the pandemic.

“Economical power supply,” being a diplomatic euphemism for “cheaper electricity for consumers in the northwest states,” achievable by clawing back most of B.C.’s treaty entitlement.

On taking office last summer, the NDP inherited a 14-point statement of principles setting out B.C. hopes for negotiations to “continue the treaty” while “seeking improvements within the existing framework” of the 54-year-old agreement.

The New Democrats have endorsed those principles in a spirit of bipartisanship, even as Manitoba Hydro governance disputes play out elsewhere in Canada.

“Those principles were developed with consultation from throughout the region,” as Conroy advised the legislature this spring. “So I was involved, as well, in the process and knew what the issues were, right as they would come up.”

The New Democrats did chose to put additional emphasis on some concerns.

“There is an increase in discussion with Canada and First Nations on the return of salmon to the river,” she advised the house, recalling how construction of the enormous Grand Coulee Dam on the U.S. side in the 1930s wiped out salmon runs on the upper Columbia River.

“There was no consideration then for how incredibly important salmon was, especially to the First Nations people in our region. We have an advisory table that is made up of Indigenous representation from our region, and also we are discussing with Canada that we need to see if there’s feasibility here.”

As to feasibility, the obstacles to salmon migration in the upper reaches of the Columbia include the 168-metre high Grand Coulee and the 72-metre Chief Joseph dams on the U.S. side, plus the Keenleyside (52 metres), Revelstoke (175 metres) and Mica (240 metres) dams on the Canadian side.

Still, says Conroy “the First Nations from Canada and the tribes from the United States, have been working on scientific and technical documents and research to see if, first of all, the salmon can come up, how they can come up, and what the things are that have to be done to ensure that happens.”

The New Democrats also put more emphasis on preserving the ecosystem, aligning with clean-energy efforts with First Nations that support regional sustainability.

“I know that certainly didn’t happen in 1964, but that is something that’s very much on the minds of people in the Columbia basin,” said Conroy. “If we are going to tweak the treaty, what can we do to make sure the voices of the basin are heard and that things that were under no consideration in the ’60s are now a topic for consideration?”

With those new considerations, there’s still the status quo concern of preserving the downstream benefits as a trade off for the flooding and other impacts on this side of the border.

The B.C. position on that score is the same under the New Democrats as it was under the Liberals, despite a B.C. auditor general report on deferred BC Hydro costs.

“The level of benefits to B.C., which is currently solely in the form of the (electricity) entitlement, does not account for the full range of benefits in the U.S. or the impacts in B.C.,” says the statement of principle.

“All downstream U.S. benefits such as flood risk management, hydropower, ecosystems, water supply (including municipal, industrial and agricultural uses), recreation, navigation and other related benefits should be accounted for and such value created should be shared equitably between the two countries.”

No surprise if the Americans do not see it the same way.  But that is a topic for another day.

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Ontario Electricity Rebate clarifies hydro rates as OEB aligns bills with inflation, shows true cost per kilowatt hour, and replaces Fair Hydro Plan; transparent on-bill credit offsets increases tied to nuclear refurbishment and supply costs.

Key Points

A line-item credit on Ontario hydro bills that offsets higher electricity costs and reflects OEB-set rates.

✅ Starts Nov. 1 with rates in line with inflation

✅ Shows true per-kWh cost plus separate rebate line

✅ Driven by nuclear refurbishment and supply costs

The Ontario Energy Board says electricity rate changes for households and small businesses will be going up starting next week.

The agency says rates are scheduled to increased by about $1.99 or nearly 2% for a typical residential customer who uses 700 kilowatt hours per month.

The provincial government said in March it would continue to subsidize hydro rates, through legislation to lower rates, and hold any increases to the rate of inflation.

The OEB says the new rates, which the board says are “in line” with inflation, will take effect Nov. 1 as changes for electricity consumers roll out and could be noticed on bills within a few weeks of that date.

Prices are increasing partly due to government legislation aimed at reflecting the actual cost of supply on bills, and partly due to the refurbishment of nuclear facilities, contributing to higher hydro bills for some consumers.

So, effective November 1, Ontario electricity bills will show the true cost of power, after a period of a fixed COVID-19 hydro rate, and will include the new Ontario Electricity Rebate.

Previously the electricity rebate was concealed within the price-per-kilowatt-hour line item on electricity statements, prompting Hydro One bill redesign discussions to improve clarity. This meant customers could not see how much the government rebate was reducing their monthly costs, and bills did not display the true cost of electricity used.

"People deserve facts and accountability, especially when it comes to hydro costs," said Energy Minister Rickford.

The new Ontario Electricity Rebate will appear as a transparent on-bill line item and will replace the former government's Fair Hydro Plan says a government news release. This change comes in response to the Auditor General's special report on the former government's Fair Hydro Plan which revealed that "the government created a needlessly complex accounting/financing structure for the electricity rate reduction in order to avoid showing a deficit or an increase in net debt."

"The Electricity Distributors Association commends the government's commitment to making Ontario's electricity bills more transparent," said Teresa Sarkesian, President of the Electricity Distributors Association. "As the part of our electricity system that is closest to customers, local hydro utilities appreciated the opportunity to work with the government on implementing this important initiative. We worked to ensure that customers who receive their electricity bill will have a clear understanding of the true cost of power and the amount of their on-bill rebate. Local hydro utilities are focused on making electricity more affordable, reducing red tape, and providing customers with a modern and reliable electricity system that works for them."

The average customer will see the electricity line on their bill rise, showing the real cost per kilowatt hour. The new Ontario Electricity Rebate will compensate for that rise, and will be displayed as a separate line item on hydro bills. The average residential bill will rise in line with the rate of inflation.

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China Unified Power Market enables carbon neutrality through renewable integration, cross-provincial electricity trading, smart grid upgrades, energy storage, and market reform, reducing coal dependence and improving grid flexibility, efficiency, and emissions mitigation.

Key Points

A national power market integrating renewables and grids to cut coal use and accelerate carbon neutrality.

✅ Harmonizes pricing and cross-provincial electricity trading.

✅ Boosts renewable integration with storage and smart grids.

✅ Improves dispatch efficiency, reliability, and emissions cuts.

China's ambitious goal to achieve carbon neutrality has become a focal point in global climate discussions around the global energy transition worldwide, with experts emphasizing the pivotal role of a unified power market in realizing this objective. This article explores China's commitment to carbon neutrality, the challenges it faces, and how a unified power market could facilitate the transition to a low-carbon economy.

China's Commitment to Carbon Neutrality

China, as the world's largest emitter of greenhouse gases, has committed to achieving carbon neutrality by 2060. This ambitious goal signals a significant shift towards reducing carbon emissions and mitigating climate change impacts. Achieving carbon neutrality requires transitioning away from fossil fuels, including investing in carbon-free electricity pathways and enhancing energy efficiency across sectors such as industry, transportation, and residential energy consumption.

Challenges in China's Energy Landscape

China's energy landscape is characterized by its heavy reliance on coal, which accounts for a substantial portion of electricity generation and contributes significantly to carbon emissions. Transitioning to renewable energy sources such as wind, solar, hydroelectric, and nuclear power is essential to reducing carbon emissions and achieving carbon neutrality. However, integrating these renewable sources into the existing energy grid poses technical, regulatory, and financial challenges that often hinge on adequate clean electricity investment levels and policy coordination.

Role of a Unified Power Market

A unified power market in China could play a crucial role in facilitating the transition to a low-carbon economy. By integrating regional power grids and promoting cross-provincial electricity trading, a unified market can optimize the use of renewable energy resources, incorporate lessons from decarbonizing electricity grids initiatives to enhance grid stability, and reduce reliance on coal-fired power plants. This market mechanism encourages competition among energy producers, incentivizes investment in renewable energy projects, and improves overall efficiency in electricity generation and distribution.

Benefits of a Unified Power Market

Implementing a unified power market in China offers several benefits in advancing its carbon neutrality goals. It promotes renewable energy development by providing a larger market for electricity generated from wind, solar, and other clean sources that underpin the race to net-zero in many economies. It also enhances grid flexibility, enabling better management of fluctuations in renewable energy supply and demand. Moreover, a unified market encourages innovation in energy storage technologies and smart grid infrastructure, essential components for integrating variable renewable energy sources.

Policy and Regulatory Considerations

Achieving a unified power market in China requires coordinated policy efforts and regulatory reforms. This includes harmonizing electricity pricing mechanisms, streamlining administrative procedures for electricity trading across provinces, and ensuring fair competition among energy producers. Clear and consistent policies that support renewable energy deployment and grid modernization, and align with insights on climate policy and grid implications from other jurisdictions, are essential to attracting investment and fostering a sustainable energy transition.

International Collaboration and Leadership

China's commitment to carbon neutrality presents opportunities for international collaboration and leadership in climate action. Engaging with global partners, sharing best practices, and promoting technology transfer, as seen with Canada's 2050 net-zero target commitments, can accelerate progress towards a low-carbon future. By demonstrating leadership in clean energy innovation and climate resilience, China can contribute to global efforts to mitigate climate change and achieve sustainable development goals.

Conclusion

China's pursuit of carbon neutrality by 2060 represents a monumental endeavor that requires transformative changes in its energy sector. A unified power market holds promise as a critical enabler in this transition, facilitating the integration of renewable energy sources, enhancing grid flexibility, and optimizing energy efficiency. By prioritizing policy coherence, regulatory reform, and international cooperation, China can pave the way towards a sustainable energy future while addressing global climate challenges.

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