AMSC Receives for Follow-up Order for Chinese Wind Turbines

Doug Ford's Hydro One firing vow targets CEO pay, the utility's board, and privatization, amid Ontario politics over electricity rates, governance, and control, raising questions about legal tools, contracts, and impacts on customers and taxpayers.

Key Points

Ford vows to oust Hydro One's CEO and board to curb pay and signal rate restraint, subject to legal and governance limits.

✅ Province lacks direct control post-privatization

✅ Possible board removals to influence executive pay

✅ Impact on rates, contracts, and shareholders unclear

Ontario PC Leader Doug Ford is vowing to fire the head of Hydro One, and its entire board if he's elected premier in June.

Ford made the announcement, calling President and CEO Mayo Schmidt, Premier "Kathleen Wynne's $6-Million dollar man," referring to his yearly salary and bonuses, which now add up to $6.2 million.

"This board and this CEO are laughing themselves to the bank," Ford said.

However, it's unclear how Ford would do that since the province does not control the company anymore.

"We don't have the ability to go out and say we are firing the CEO at Hydro One," PC energy critic Todd Smith said while speaking to reporters after Ford's remarks.

#google#

However, he said "we do have tools at our disposal in the tool box. The unfortunate thing is that Kathleen Wynne and the Liberals have just let those tools sit there for the last couple of years and [have] not taken action on things like this."

Smith declined to provide details about what those tools are, but suggested Ford would have the right to fire Hydro's board.

He said that would send a message "that we're not going to accept these salaries."

Smith says the Ontario gov still has the right to fire Hydro One board. What about their contracts? Pay them out? Smith says they don't know the details of people's contacts

We will not engage in politics,' Hydro One says

A Hydro One spokesperson said the amount customers pay to compensate the CEO's salary is the same as before privatization — two cents on each monthly bill.

"We will not engage in politics, however our customers deserve the facts," said the email statement to CBC Toronto.

"Nearly 80 per cent of the total executive compensation package is paid for by shareholders."

Ontario NDP MPP Peter Tabuns says Ford is pro-privatization, and that won't help those struggling with high hydro bills. (Michelle Siu/The Canadian Press)

Peter Tabuns, the NDP's energy critic, said his government would aim to retake public control of Hydro One to cap CEO pay and control the CEO's "outrageous salary."

But while he shares Ford's goal of cutting Schmidt's pay, Tabuns blasted what he believes would be the PC leader's approach.

"Doug Ford has no idea how to reign [sic] in the soaring hydro bills that Ontario families are facing — in fact, if his threats of further privatization include hydro, he'll drive bills and executive salaries ever higher," he said in an email statement.

The only plan we've heard from Doug Ford so far is firing people and laying off people.- Glenn Thibeault, Energy Minister

​Tabuns says his party would aim to cut hydro bills by 30 per cent.

Meanwhile, Liberal Energy Minister Glenn Thibeault said Ford's plan will do nothing to address the actual issue of keeping hydro rates low, comparing his statement Thursday to the rhetoric and actions of U.S. President Donald Trump.

"The only plan we've heard from Doug Ford so far is firing people and laying off people," Thibeault said.

"What I'm seeing a very strong prevalence to is the person running the White House. He's been doing a lot of firing as well and that's not been working out so well for them."

Wynne government has taken steps to cut hydro bills, including legislation to lower electricity rates in Ontario.

Hydro prices have shot up in recent years prompting criticism from across Ontario. Wynne made the controversial move of privatizing part of the utility beginning in 2015.

By Oct. 2017, the Ontario Liberal government's "Fair Hydro Plan" had brought down the average household electricity bill by a 25% rate cut from the peak it hit in the summer of 2016. The Wynne government has also committed to keep rate increases below inflation for the next four years, but admits bills will rise significantly in the decade that follows as a recovery rate could drive costs higher.

Ford blasted the government's moves during a Toronto news conference, echoing calls to scrap the Fair Hydro Plan and review other options.

"The party's over with the tax payer's money, we're going to start respecting the tax payers," Ford said, repeatedly saying the money spent on Hydro One salaries is "morally indefensible."

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UK low-carbon electricity 2019 saw stalled growth as renewables rose slightly, wind expanded, nuclear output fell, coal hit record lows, and net-zero targets demand faster deployment to cut CO2 intensity below 100gCO2/kWh.

Key Points

Low-carbon sources supplied 54% of UK power in 2019, up just 1TWh; wind grew, nuclear fell, and coal dropped to 2%.

✅ Wind up 8TWh; nuclear down 9TWh amid outages

✅ Fossil fuels 43% of generation; coal at 2%

✅ Net-zero needs 15TWh per year added to 2030

The amount of electricity generated by low-carbon sources in the UK stalled in 2019, Carbon Brief analysis shows.

Low-carbon electricity output from wind, solar, nuclear, hydro and biomass rose by just 1 terawatt hour (TWh, less than 1%) in 2019. It represents the smallest annual increase in a decade, where annual growth averaged 9TWh. This growth will need to double in the 2020s to meet UK climate targets while replacing old nuclear plants as they retire.

Some 54% of UK electricity generation in 2019 came from low-carbon sources, including 37% from renewables and 20% from wind alone, underscoring wind's leading role in the power mix during key periods. A record-low 43% was from fossil fuels, with 41% from gas and just 2% from coal, also a record low. In 2010, fossil fuels generated 75% of the total.

Carbon Brief’s analysis of UK electricity generation in 2019 is based on figures from BM Reports and the Department for Business, Energy and Industrial Strategy (BEIS). See the methodology at the end for more on how the analysis was conducted.

The numbers differ from those published earlier in January by National Grid, which were for electricity supplied in Great Britain only (England, Wales and Scotland, but excluding Northern Ireland), including via imports from other countries.

Low-carbon low
In 2019, the UK became the first major economy to target net-zero greenhouse gas emissions by 2050, increasing the ambition of its legally binding Climate Change Act.

To date, the country has cut its emissions by around two-fifths since 1990, with almost all of its recent progress coming from the electricity sector.

Emissions from electricity generation have fallen rapidly in the decade since 2010 as coal power has been almost phased out and even gas output has declined. Fossil fuels have been displaced by falling demand and by renewables, such as wind, solar and biomass.

But Carbon Brief’s annual analysis of UK electricity generation shows progress stalled in 2019, with the output from low-carbon sources barely increasing compared to a year earlier.

The chart below shows low-carbon generation in each year since 2010 (grey bars) and the estimated level in 2019 (red). The pale grey bars show the estimated future output of existing low-carbon sources after old nuclear plants retire and the pale red bars show the amount of new generation needed to keep electricity sector emissions to less than 100 grammes of CO2 per kilowatt hour (gCO2/kWh), the UK’s nominal target for the sector.

 Annual electricity generation in the UK by fuel, terawatt hours, 2010-2019. Top panel: fuel by fuel. Bottom panel: cumulative total generation from all sources. Source: BEIS energy trends, BM Reports and Carbon Brief analysis. Chart by Carbon Brief using Highcharts.
As the chart shows, the UK will require significantly more low-carbon electricity over the next decade as part of meeting its legally binding climate goals.

The nominal 100gCO2/kWh target for 2030 was set in the context of the UK’s less ambitious goal of cutting emissions to 80% below 1990 levels by 2050. Now that the country is aiming to cut emissions to net-zero by 2050, that 100gCO2/kWh indicator is likely to be the bare minimum.

Even so, it would require a rapid step up in the pace of low-carbon expansion, compared to the increases seen over the past decade. On average, low-carbon generation has risen by 9TWh each year in the decade since 2010 – including a rise of just 1TWh in 2019.

Given scheduled nuclear retirements and rising demand expected by the Committee on Climate Change (CCC) – with some electrification of transport and heating – low-carbon generation would need to increase by 15TWh each year until 2030, just to meet the benchmark of 100gCO2/kWh.

For context, the 3.2 gigawatt (GW) Hinkley C new nuclear plant being built in Somerset will generate around 25TWh once completed around 2026. The world’s largest offshore windfarm, the 1.2GW Hornsea One scheme off the Yorkshire coast, will generate around 5TWh each year.

The new Conservative government is targeting 40GW of offshore wind by 2030, up from today’s figure of around 8GW. If policies are put in place to meet this goal, then it could keep power sector emissions below 100gCO2/kWh, depending on the actual performance of the windfarms built.

However, new onshore wind and solar, further new nuclear or other low-carbon generation, such as gas with carbon capture and storage (CCS), is likely to be needed if demand is higher than expected, or if the 100gCO2/kWh benchmark is too weak in the context of net-zero by 2050.

The CCC says it is “likely” to “reflect the need for more rapid deployment” of low-carbon towards net-zero emissions in its advice on the sixth UK carbon budget for 2033-2037, due in September.

Trading places
Looking more closely at UK electricity generation in 2019, Carbon Brief’s analysis shows why there was so little growth for low-carbon sources compared to the previous year.

There was another increase for wind power in 2019 (up 8TWh, 14%), with record wind generation as several large new windfarms were completed including the 1.2GW Hornsea One project in October and the 0.6GW Beatrice offshore windfarm in Q2 of 2019. But this was offset by a decline for nuclear (down 9TWh, 14%), due to ongoing outages for reactors at Hunterston in Scotland and Dungeness in Kent.

(Analysis of data held by trade organisation RenewableUK suggests some 0.6GW of onshore wind capacity also started operating in 2019, including the 0.2GW Dorenell scheme in Moray, Scotland.)

As a result of these movements, the UK’s windfarms overtook nuclear for the first time ever in 2019, becoming the country’s second-largest source of electricity generation, and earlier, wind and solar together surpassed nuclear in the UK as momentum built. This is shown in the figure below, with wind (green line, top panel) trading places with nuclear (purple) and gas (dark blue) down around 25% since 2010 but remaining the single-largest source.

 Annual electricity generation in the UK by fuel, terawatt hours, 2010-2019. Top panel: fuel by fuel. Bottom panel: cumulative total generation from all sources. Source: BEIS energy trends, BM Reports and Carbon Brief analysis. Chart by Carbon Brief using Highcharts.
The UK’s currently suspended nuclear plants are due to return to service in January and March, according to operator EDF, the French state-backed utility firm. However, as noted above, most of the UK’s nuclear fleet is set to retire during the 2020s, with only Sizewell B in Suffolk due to still be operating by 2030. Hunterston is scheduled to retire by 2023 and Dungeness by 2028.

Set against these losses, the UK has a pipeline of offshore windfarms, secured via “contracts for difference” with the government, at a series of auctions. The most recent auction, in September 2019, saw prices below £40 per megawatt hour – similar to current wholesale electricity prices.

However, the capacity contracted so far is not sufficient to meet the government’s target of 40GW by 2030, meaning further auctions – or some other policy mechanism – will be required.

Coal zero
As well as the switch between wind and nuclear, 2019 also saw coal fall below solar for the first time across a full year, echoing the 2016 moment when wind outgenerated coal across the UK, after it suffered another 60% reduction in electricity output. Just six coal plants remain in the UK, with Aberthaw B in Wales and Fiddlers Ferry in Cheshire closing in March.

Coal accounted for just 2% of UK generation in 2019, a record-low coal share since centralised electricity supplies started to operate in 1882. The fuel met 40% of UK needs as recently as 2012, but has plummeted thanks to falling demand, rising renewables, cheaper gas and higher CO2 prices.

The reduction in average coal generation hides the fact that the fuel is now often not required at all to meet the UK’s electricity needs. The chart below shows the number of days each year when coal output was zero in 2019 (red line) and the two previous years (blue).

 Cumulative number of days when UK electricity generation from renewable sources has been higher than that from fossil fuels. Source: BEIS energy trends, BM Reports and Carbon Brief analysis. Chart by Carbon Brief using Highcharts.
The 83 days in 2019 with zero coal generation amount to nearly a quarter of the year and include the record-breaking 18-day stretch without the fuel.

Great Britain has been running for a record TWO WEEKS without using coal to generate electricity – the first time this has happened since 1882.

The country’s grid has been coal-free for 45% of hours in 2019 so far.https://www.carbonbrief.org/countdown-to-2025-tracking-the-uk-coal-phase-out …

Coal generation was set for significant reductions around the world in 2019 – including a 20% reduction for the EU as a whole – according to analysis published by Carbon Brief in November.

Notably, overall UK electricity generation fell by another 9TWh in 2019 (3%), bringing the total decline to 58TWh since 2010. This is equivalent to more than twice the output from the Hinkley C scheme being built in Somerset. As Carbon Brief explained last year, falling demand has had a similar impact on electricity-sector CO2 emissions as the increase in output from renewables.

This is illustrated by the fact that the 9TWh reduction in overall generation translated into a 9TWh (6%) cut in fossil-fuel generation during 2019, with coal falling by 10TWh and gas rising marginally.

Increasingly renewable
As fossil-fuel output and overall generation have declined, the UK’s renewable sources of electricity have continued to increase. Their output has risen nearly five-fold in the past decade and their share of the UK total has increased from 7% in 2010 to 37% in 2019.

As a result, the UK’s increasingly renewable grid is seeing more minutes, hours and days during which the likes of wind, solar and biomass collectively outpace all fossil fuels put together, and on some days wind is the main source as well.

The chart below shows the number of days during each year when renewables generated more electricity than fossil fuels in 2019 (red line) and each of the previous four years (blue lines). In total, nearly two-fifths of days in 2019 crossed this threshold.

 Cumulative number of days when the UK has not generated any electricity from coal. Source: BEIS energy trends, BM Reports and Carbon Brief analysis. Chart by Carbon Brief using Highcharts.
There were also four months in 2019 when renewables generated more of the UK’s electricity than fossil fuels: March, August, September and December. The first ever such month came in September 2018 and more are certain to follow.

National Grid, which manages Great Britain’s high-voltage electricity transmission network, is aiming to be able to run the system without fossil fuels by 2025, at least for short periods. At present, it sometimes has to ask windfarm operators to switch off and gas plants to start running in order to keep the electricity grid stable.

Note that biomass accounted for 11% of UK electricity generation in 2019, nearly a third of the total from all renewables. Some two-thirds of the biomass output is from “plant biomass”, primarily wood pellets burnt at Lynemouth in Northumberland and the Drax plant in Yorkshire. The remainder was from an array of smaller sites based on landfill gas, sewage gas or anaerobic digestion.

The CCC says the UK should “move away” from large-scale biomass power plants, once existing subsidy contracts for Drax and Lynemouth expire in 2027.

Using biomass to generate electricity is not zero-carbon and in some circumstances could lead to higher emissions than from fossil fuels. Moreover, there are more valuable uses for the world’s limited supply of biomass feedstock, the CCC says, including carbon sequestration and hard-to-abate sectors with few alternatives.

Methodology
The figures in the article are from Carbon Brief analysis of data from BEIS Energy Trends chapter 5 and chapter 6, as well as from BM Reports. The figures from BM Reports are for electricity supplied to the grid in Great Britain only and are adjusted to include Northern Ireland.

In Carbon Brief’s analysis, the BM Reports numbers are also adjusted to account for electricity used by power plants on site and for generation by plants not connected to the high-voltage national grid. This includes many onshore windfarms, as well as industrial gas combined heat and power plants and those burning landfill gas, waste or sewage gas.

By design, the Carbon Brief analysis is intended to align as closely as possible to the official government figures on electricity generated in the UK, reported in BEIS Energy Trends table 5.1.

Briefly, the raw data for each fuel is in most cases adjusted with a multiplier, derived from the ratio between the reported BEIS numbers and unadjusted figures for previous quarters.

Carbon Brief’s method of analysis has been verified against published BEIS figures using “hindcasting”. This shows the estimates for total electricity generation from fossil fuels or renewables to have been within ±3% of the BEIS number in each quarter since Q4 2017. (Data before then is not sufficient to carry out the Carbon Brief analysis.)

For example, in the second quarter of 2019, a Carbon Brief hindcast estimates gas generation at 33.1TWh, whereas the published BEIS figure was 34.0TWh. Similarly, it produces an estimate of 27.4TWh for renewables, against a BEIS figure of 27.1TWh.

National Grid recently shared its own analysis for electricity in Great Britain during 2019 via its energy dashboard, which differs from Carbon Brief’s figures.

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Hitachi UK Nuclear Project Freeze reflects Horizon Nuclear Power's suspended Anglesey plant amid Brexit uncertainty, investor funding gaps, rising safety regulation costs, and a 300 billion yen write-down, impacting Britain's low-carbon electricity plans.

Key Points

Hitachi halted Horizon's Anglesey nuclear plant over funding and Brexit risks, recording a 300 billion yen write-down.

✅ 3 trillion yen UK nuclear project funding stalled

✅ 300 billion yen impairment wipes Horizon asset value

✅ Brexit, safety rules raised costs and investor risk

Japan’s Hitachi Ltd said on Thursday it has decided to freeze a 3 trillion yen ($28 billion) British nuclear power project and will consequently book a write down of 300 billion yen.

The suspension comes as Hitachi’s Horizon Nuclear Power failed to find private investors for its plans to build a plant in Anglesey, Wales, where local economic concerns have been raised, which promised to provide about 6 percent of Britain’s electricity.

“We’ve made the decision to freeze the project from the economic standpoint as a private company,” Hitachi said in a statement.

Hitachi had called on the British government to boost financial support for the project to appease investor anxiety, but turmoil over the country’s impending exit from the European Union limited the government’s capacity to compile plans, people close to the matter previously said.

Hitachi had called on the British government to boost financial support for the project to appease investor anxiety, but turmoil over the country’s impending exit from the European Union and setbacks at Hinkley Point C limited the government’s capacity to compile plans, people close to the matter previously said.

Hitachi had banked on a group of Japanese investors and the British government each taking a one-third stake in the equity portion of the project, the people said. The project would be financed one-third by equity and rest by debt.

The nuclear writedown wipes off the Horizon unit’s asset value, which stood at 296 billion yen as of September-end.

Hitachi stopped short of scrapping the northern Wales project. The company will continue to discuss with the British government on nuclear power, it said.

However, industry sources said hurdles to proceed with the project are high considering tighter safety regulations since a meltdown at Japan’s Fukushima nuclear power plant in 2011 drove up costs, even as Europe’s nuclear decline strains energy planning.

Analysts and investors viewed the suspension as an effective withdrawal and saw the decision as a positive step that has removed uncertainties for the Japanese conglomerate.

Hitachi bought Horizon in 2012 for 696 million pounds ($1.12 billion), fromE.ON and RWE as the German utilities decided to sell their joint venture following Germany’s nuclear exit after the Fukushima accident.

Hitachi’s latest decision further dims Japan’s export prospects, even as some peers pursue UK offshore wind investments to diversify.

Toshiba Corp last year scrapped its British NuGen project after its US reactor unit Westinghouse went bankrupt, while Westinghouse in China reported no major impact, and it failed to sell NuGen to South Korea’s KEPCO.

Mitsubishi Heavy Industries Ltd has effectively abandoned its Sinop nuclear project in Turkey, a person involved in the project previously told Reuters, as cost estimates had nearly doubled to around 5 trillion yen.

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UK Clean Energy Supply Chain Delays are slowing decarbonization as transformer lead times, grid infrastructure bottlenecks, and battery storage contractors raise costs and risk 2030 targets despite manufacturing expansions by Siemens Energy and GE Vernova.

Key Points

Labor and equipment bottlenecks delay transformers and grid upgrades, risking the UK's 2030 clean power target.

✅ Transformer lead times doubled or tripled, raising project costs

✅ Grid infrastructure and battery storage contractors in short supply

✅ Firms expand capacity cautiously amid uncertain demand signals

The United Kingdom's ambitious plans to transition to clean energy are encountering significant obstacles due to prolonged delays in obtaining essential equipment such as transformers and other electrical components. These supply chain challenges are impeding the nation's progress toward decarbonizing its power sector by 2030, even as wind leads the power mix in key periods.

Supply Chain Challenges

The global surge in demand for renewable energy infrastructure, including large-scale storage solutions, has led to extended lead times for critical components. For example, Statera Energy's storage plant in Thurrock experienced a 16-month delay for transformers from Siemens Energy. Such delays threaten the UK's goal to decarbonize power supplies by 2030.

Economic Implications

These supply chain constraints have doubled or tripled lead times over the past decade, resulting in increased costs and straining the energy transition as wind became the main source of UK electricity in a recent milestone. Despite efforts to expand manufacturing capacity by companies like GE Vernova, Hitachi Energy, and Siemens Energy, the sector remains cautious about overinvesting without predictable demand, and setbacks at Hinkley Point C have reinforced concerns about delivery risks.

Workforce and Manufacturing Capacity

Additionally, there is a limited number of companies capable of constructing and maintaining battery sites, adding to the challenges. These issues underscore the necessity for new factories and a trained workforce to support the electrification plans and meet the 2030 targets.

Government Initiatives

In response to these challenges, the UK government is exploring various strategies to bolster domestic manufacturing capabilities and streamline supply chains while supporting grid reform efforts underway to improve system resilience. Investments in infrastructure and workforce development are being considered to mitigate the impact of global supply chain disruptions and advance the UK's green industrial revolution for next-generation reactors.

The UK's energy transition is at a critical juncture, with supply chain delays posing substantial risks to achieving decarbonization goals, including the planned end of coal power after 142 years for the UK. Addressing these challenges will require coordinated efforts between the government, industry stakeholders, and international partners to ensure a sustainable and timely shift to clean energy.

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Southeast Alaska Energy Projects advance hydroelectric, biomass, and heat pumps, displacing diesel via grants. Inside Passage Electric Cooperative and Alaska Energy Authority support Kake, Hoonah, Ketchikan with wood pellets, feasibility studies, and rate relief.

Key Points

Programs using hydro, biomass, and heat pumps to cut diesel use and lower electricity costs in Southeast Alaska.

✅ Hydroelectric at Gunnuk Creek to replace diesel in Kake

✅ Biomass and wood pellets displacing fuel oil in facilities

✅ Free feasibility studies; heat pumps where economical

New projects are under development throughout the region to help reduce energy costs for Southeast Alaska residents. A panel presented some of those during last week’s Southeast Conference annual fall meeting in Ketchikan.

Jodi Mitchell is with Inside Passage Electric Cooperative, which is working on the Gunnuk Creek hydroelectric project for Kake. IPEC is a non-profit, she said, with the goal of reducing electric rates for its members.

The Gunnuk Creek project will be built at an existing dam.

“The benefits for the project will be, of course, renewable energy for Kake. And we estimate it will save about 6.2 million gallons over its 50-year life,” she said. “Although, as you heard earlier, these hydro projects last forever.”

The gallons saved are of diesel fuel, which currently is used to power generators for electricity, though in places with limited options some have even turned to new coal plants to keep the lights on.

IPEC operates other hydro projects in Klukwan and Hoonah. Mitchell said they’re looking into future projects, one near Angoon and another that would add capacity to the existing Hoonah project, even as an independent power project in British Columbia is in limbo.

Mitchell said they fund much of their work through grants, which helps keep electric rates at a reasonable level.

Devany Plentovich with the Alaska Energy Authority talked about biomass projects in the state. She said the goal is to increase wood energy use in Alaska, even as some advocates call for a reduction in biomass electricity in other regions.

“We offer any community, any entity, a free feasibility study to see if they have a potential heating system in their community,” she said. “We do advocate for wood heating, but we are trying to get a community to pick the best heating technology for their situation, including options that use more electricity for heat when appropriate. So in a lot of situations, our consultants will give you the economics on a wood heating system but they’ll also recommend maybe you should look at heat pumps or look at waste energy.”

Plentovich said they recently did a study for Ketchikan’s Holy Name Church and School. The result was a recommendation for a heat pump rather than wood.

But, she said, wood energy is on the rise, and utilities elsewhere are increasing biomass for electricity as well. There are more than 50 systems in the state displacing more than 500,000 gallons of fuel oil annually. Those include systems on Prince of Wales Island and in Ketchikan.

Ketchikan recently experienced a supply issue, though. A local wood-pellet manufacturer closed, which is a problem for the airport and the public library, among other facilities that use biomass heaters.

Karen Petersen is the biomass outreach coordinator for Southeast Conference. She said this opens up a great opportunity for someone.

“Devany and I are working on trying to find a supplier who wants to go into the pellet business,” she said. “Probably importing initially, and then converting over to some form of manufacturing once the demand is stabilized.”

So, Petersen said, if anyone is interested in this entrepreneurial opportunity, contact her through Southeast Conference for more information.

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Ontario Battery Energy Storage anchors IESO strategy, easing peak demand and boosting grid reliability. Projects like Oneida BESS (250MW) and nearly 3GW procurements integrate renewables, wind and solar, enabling flexible, decarbonized power.

Key Points

Provincewide grid batteries help IESO manage peaks, integrate renewables, and strengthen reliability across Ontario.

✅ IESO forecasts 1,000MW peak growth by 2026

✅ Oneida BESS adds 250MW with 20-year contract

✅ Nearly 3GW storage procured via LT1 and other RFPs

Ontario’s electricity grid is facing increasing demand amid a looming supply crunch, prompting the province to invest heavily in battery energy storage systems (BESS) as a key solution. The Ontario Independent Electricity System Operator (IESO) has highlighted that these storage technologies will be crucial for managing peak demand in the coming years.

Ontario's energy demands have been on the rise, driven by factors such as population growth, electric vehicle manufacturing, data center expansions, and heavy industrial activity. The IESO's latest assessment, and its work on enabling storage, covering the period from April 2025 to September 2026, indicates that peak demand will increase by approximately 1,000MW between the summer of 2025 and 2026. This forecasted rise in energy use is attributed to the acceleration of various sectors within the province, underscoring the need for reliable, scalable energy solutions.

A significant portion of this solution will be met by large-scale energy storage projects. Among the most prominent is the Oneida BESS, a flagship project that will contribute 250MW of storage capacity. This project, developed by a consortium including Northland Power and NRStor, will be located on land owned by the Six Nations of the Grand River. Expected to be operational soon, it will play a pivotal role in ensuring grid stability during high-demand periods. The project benefits from a 20-year contract with the IESO, guaranteeing payments that will support its financial viability, alongside additional revenue from participating in the wholesale energy market.

In addition to Oneida, Ontario has committed to acquiring nearly 3GW of energy storage capacity through various procurement programs. The 2023 Expedited Long-Term 1 (LT1) request for proposals (RfP) alone secured 881MW of storage, with additional projects in the pipeline. A notable example is the Hagersville Battery Energy Storage Park, which, upon completion, will be the largest such project in Canada. The success of these procurement efforts highlights the growing importance of BESS in Ontario's energy strategy.

The IESO’s proactive approach to energy storage is not only a response to rising demand but also a step toward decarbonizing the province’s energy system. As Ontario transitions away from traditional fossil fuels, BESS will provide the necessary flexibility to accommodate increasing renewable energy generation, a clean energy solution widely recognized in jurisdictions like New York, particularly from intermittent sources like wind and solar. By storing excess energy during periods of low demand and dispatching it when needed, these systems will help maintain grid stability, and as many utilities see benefits even without mandates, reduce reliance on fossil fuel-based power plants.

Looking ahead, Ontario's energy storage capacity is expected to grow significantly, complemented by initiatives such as the Hydrogen Innovation Fund, with projects from the 2023 LT1 RfP expected to come online by 2027. As more storage resources are integrated into the grid, the province is positioning itself to meet its rising energy needs while also advancing its environmental goals.

Ontario’s increasing reliance on battery energy storage is a clear indication of the province’s commitment to a sustainable and resilient energy future, aligning with perspectives from Sudbury sustainability advocates on the grid's future. With substantial investments in storage technology, Ontario is not only addressing current energy challenges but also paving the way for a cleaner, more reliable energy system in the years to come.

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