Green policy shows an insensitive side

By Globe and Mail


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When Dalton McGuinty visited The Globe and Mail's editorial board earlier this year, one topic seemed to catch him off guard.

How, the Ontario Premier was asked, could his government be considering putting wind turbines off the shores of Point Pelee, in Lake ErieÂ’s Pigeon Bay? As one of the most ecologically sensitive corners of the province, wasnÂ’t it the sort of place that should be deemed off limits for energy development?

After broadly extolling the virtues of his Green Energy Act, Mr. McGuinty stumbled through an acknowledgment that he hadn't really given this specific issue much consideration. “You’ve raised something which I’ve not thought about,” he said. “I’m glad you're not in opposition.”

It was a strange thing for the Premier to say, even taking into account the number of files that cross his desk. The proposal for Point Pelee raised the ire of everyone from deep-pocketed residents to local mayors to Margaret Atwood. Only a few weeks after his Globe visit, a pair of Mr. McGuinty’s own MPPs – Bruce Crozier and Pat Hoy – publicly came out against their own government's handling of the issue.

But Mr. McGuinty's answer to the editorial board epitomized one of the biggest flaws in his party's plans to attract wind energy development. Conceived in haste, with the aim of creating jobs and power as quickly as possible, the Liberal strategy was written too broadly to fully distinguish between good projects and bad ones.

In Point Pelee, a solution has come too late to avoid generating an avoidable degree of angst about green energy in general. And the solution itself is broad enough to have consequences elsewhere.

Compared to other areas of the province, such as Prince Edward County, the Essex region is not a hotbed for the not-in-my-backyard sentiments that Mr. McGuinty has identified as a barrier to spreading wind turbines across the land.

A fruit basket at the southernmost tip of Canada – the town of Leamington is the country’s “tomato capital” – it seems to have been predisposed to welcome the hundreds of wind turbines that have popped up on local farms or are in development. While a few people on neighbouring properties aren’t happy, there has been little organized opposition to land turbines.

A drive through the region, however, quickly shows that the proposal to put as many as 150 turbines in the bay has struck a nerve.

“No wind turbines in our lake” signs dot the lawns of properties around Leamington and the neighbouring town of Kingsville – not just on the shoreline properties, but farther inland as well. In conversation, everyone seems to be aware of the issue.

Jim Krushelniski, who leads the protest group that distributes the signs, insists his opposition has nothing to do with NIMBYism. This is a slightly dubious claim, coming as it does while Mr. Krushelniski – a former Heinz executive – sits in the office of a luxury home that looks out on the lake. It’s hard to believe that the prospect of wind turbines spoiling his magnificent view hasn’t crossed his mind.

Nevertheless, he’s able to rhyme off a list of other concerns, including the potential impacts on drinking water and commercial fishing. The one that seems to have gotten the most traction is the effect on bird and bat migration – a major tourist attraction for Point Pelee, which sees more than 300 bird species pass through in the spring. That’s also what’s attracted the attention of Ms. Atwood, a noted bird enthusiast with a home on Pelee Island, the popular destination about 18 kilometres from shore. Given the tendency of turbines to make mincemeat of things airborne, it doesn’t require great imagination to figure out what would happen.

Fuelling the various worries is the fact that this is uncharted territory. Although there are several other proposals to build wind farms in the Great Lakes, on both sides of the border, none have actually been built. So itÂ’s hard to know what exactly the environmental impact will be. And Essex, a place with a relatively dense population and a strong tourist industry, is a questionable place to test it out.

Indeed, very few people seem to think itÂ’s a good idea to put wind turbines in Pigeon Bay. But thereÂ’s one notable exception: the people who want to build them.

SouthPoint Wind embodies the risks of unleashing a gold rush by offering premium prices for green energy, as Ontario has done. The company is run by a local housing developer and is viewed with considerable skepticism by more established developers – some of whom looked at Point Pelee and decided it wasn’t suitable for development.

SouthPoint is widely accused of doing a poor job of engaging locals in its planning. Mr. Crozier, the MPP for much of the area, draws an unfavourable comparison with Brookfield Renewable Power, the company that’s building many of the local land turbines. “We have one proponent who has worked with the community and gone the extra kilometre to communicate with the community,” he says. “My view is that SouthPoint has not made any extra effort whatsoever.”

Since 2006, when SouthPoint first brought forward its proposal, it appears to have been in a battle with residents. In 2007, when the province imposed a moratorium on offshore projects on the Great Lakes, the residents seemed to be winning. But the moratorium was lifted in 2008 leading up to the introduction of the Green Energy Act – legislation that simultaneously increased the financial incentives for wind development and reduced the barriers.

Aiming to expedite applications, the act greatly reduced the role of municipalities in the process. As a result, much of the case against SouthPoint’s proposal – which Essex’s communities had invested considerable resources in building – had to be tossed out the window.

By this past spring, residents felt like they were fighting an uphill battle to stop the project from going forward. And there became a growing mistrust of the Green Energy Act in general.

In early June, Mr. Crozier and Mr. Hoy who represents the other part of the affected area presented a petition against the project in the Ontario Legislature. They also signed their names to it – an unusual move for a pair of MPPs not known as renegades.

Only three weeks later, the government announced a change that suggested the issue had finally arrived on Mr. McGuintyÂ’s radar. But rather than designating Point Pelee a no-go zone, it opted for something much less specific.

On June 25, the government brought forward a proposed new rule for offshore wind development: Any turbines would have to be placed at least five kilometres from the shore.

For the record, officials deny that the rule is aimed at any one project. But within the industry, itÂ’s widely believed it was a response to the Point Pelee dispute, and possibly to another controversial proposal for turbines in Lake Ontario off the shores of Scarborough.

Assuming the proposed rule becomes law this fall, most onlookers believe it will kill SouthPointÂ’s proposal. Leamington Mayor John Adams says heÂ’s now 80 per cent sure the project wonÂ’t move forward rival developers are even surer than that. SouthPoint is declining interview requests until the provinceÂ’s final decision.

But the reality is that it’s not just the Point Pelee development that’s likely to get killed. The Scarborough plan, being advanced by Toronto Hydro, also faces grim prospects – as do most other proposals for the Great Lakes.

Requiring the turbines to be so far from shore makes them much more expensive – that is if they can be built at all, since they require relatively shallow water. Only one or two developers notably Windstream Wolfe Island Shoals Inc., which plans to harvest offshore wind near Kingston are said to be confident they can move forward.

Mr. Crozier, among others, would argue that discouraging that kind of development is a good thing, since the Great Lakes are too valuable a resource to trifle with. And while he thinks offshore wind still has “potential,” even Energy Minister Brad Duguid says he doesn’t think it’s “critical to our future energy needs.”

But that prompts the question: If offshore wind isnÂ’t a priority, why did the government open the door to it in the first place?

The answer, it seems, is that it didnÂ’t really give it much thought. Senior Liberals concede they didnÂ’t anticipate the amount of interest, or the degree of controversy, it would generate.

So as on other fronts, such as the pricing of solar power, the government occasionally appears to be making up its green-energy strategy as it goes along.

If its one-size-fits-all policies caused problems, the Liberals now appear inclined to solve them with one-size-fits-all solutions.

“We said that if we really want to stand head and shoulders above others in North America in terms of being a welcoming economic environment, we would establish provincial standards,” Mr. McGuinty said during that editorial board meeting. “So you know what you get if you want to come here and invest.”

Those standards are evidently somewhat flexible. But before they change, theyÂ’re capable of creating a lot of bad will.

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Key Points

A risk-informed, performance-based NRC pathway streamlining licensing for advanced non-light water reactors.

✅ Aligned with NEIMA: risk-informed, performance-based, tech-inclusive

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The US Nuclear Regulatory Commission (NRC) voted 4-0 to approve the implementation of a more streamlined and predictable licensing pathway for advanced non-light water reactors, aligning with nuclear innovation priorities identified by industry advocates, the Nuclear Energy Institute (NEI) announced, and amid regional reliability measures such as New England emergency fuel stock plans that have drawn cost scrutiny.

This approach is consistent with the Nuclear Energy Innovation and Modernisation Act (NEIMA), a nuclear innovation act passed in 2019 by the US Congress calling for the development of a risk-informed, performance-based and technology inclusive licensing process for advanced reactor developers.

NEI Chief Nuclear Officer Doug True said: “A modernised regulatory framework is a key enabler of next-generation nuclear technologies that, amid ACORE’s challenge to DOE subsidy proposals in energy market proceedings, can help us meet our energy needs while protecting the climate. The Commission’s unanimous approval of a risk-informed and performance-based licensing framework paves the way for regulatory reviews to be aligned with the inherent safety characteristics, smaller reactor cores and simplified designs of advanced reactors.”

Over the last several years the industry’s Licensing Modernisation Project, sponsored by US Department of Energy, led by Southern Nuclear, and supported by NEI’s Advanced Reactor Regulatory Task Force, and influenced by a presidential order to bolster uranium and nuclear energy, developed the guidance for this new framework. Amid shifts in the fuel supply chain, including the U.S. ban on Russian uranium, this approach will inform the development of a new rule for licensing advanced reactors, which NEIMA requires.

“A well-defined licensing path will benefit the next generation of nuclear plants, especially as regions consider New England market overhaul efforts, which could meet a wide range of applications beyond generating electricity such as producing heat for industry, desalinating water, and making hydrogen – all without carbon emissions,” True noted.

 

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Key Points

Allocations of 956 MW via Hydro-Québec to projects in batteries, bioenergy, and green hydrogen across Quebec.

✅ 11 projects approved, totaling 956 MW across Quebec

✅ Focus: batteries, bioenergy, green hydrogen, data centers

✅ Selection weighed grid impact, economics, environmental criteria

 

The Quebec government has unveiled the list of 11 companies whose projects were given the go-ahead for large-scale power connections of 5 megawatts or more, for a total of 956 MW, even as planned exports to New York continue to factor into supply.

Five of the selected projects relate to the battery sector, reflecting EV battery investments by Canada and Quebec, and two to the bioenergy sector.

TES Canada's plan to build a green hydrogen production plant in Shawinigan, announced on Friday, is on the list.

Hydro-Québec will also supply 5 MW or more to the future Northvolt battery plant at its facilities in Saint-Basile-le-Grand and McMasterville.

Other industrial projects selected are those of Air Liquide Canada, Ford-Ecopro CAM Canada S.E.C, Nouveau monde Graphite and Volta Energy Solutions Canada.

Bioenergy projects include Greenfield Global Québec, in Varennes, and WM Québec, in Sainte-Sophie.

There's also Duravit Canada's manufacturing project in Matane, Quebec Iron Ore's green steel project in Fermont, Côte-Nord, and Vantage Data Centers CanadaQC4's data center project in Pointe-Claire.

All projects were selected las August "according to defined analysis criteria, such as technical connection capacities and impact on the Quebec power grid operations, economic and regional development spinoffs, environmental and social impact, as well as consistency with government orientations," states the press release from the office of Pierre Fitzgibbon, Quebec's Economy, Innovation and Energy Minister.

"With energy balances tightening and the electrification of our economy on the rise, we need to choose the most promising projects and allocate available electricity wisely," said Fitzgibbon.

Cross-border capacity expansions, including the Maine transmission corridor now approved, are also shaping regional power flows.

"These 11 projects will accelerate the energy transition, while creating significant economic spinoffs throughout Quebec."

The government is continuing its analysis of other energy-intensive industrial projects to help make the transition to a greener economy, even as experts question Quebec's EV strategy in policy circles, until March 31.

 

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Key Points

An LADWP substation fire in Northridge/Reseda caused a major outage; 94,000 customers affected as crews restore power.

✅ Fire started around 6:52 p.m.; fully extinguished by 9 p.m.

✅ High-voltage gear and mineral oil burned; no injuries reported.

✅ Outages hit Porter Ranch, Reseda, West Hills, Granada Hills.

 

About 94,000 customers were without electricity Saturday night after the Los Angeles Department of Water and Power shut down a power station in the northeast San Fernando Valley that caught fire, the agency said.

The fire at the station in the Northridge/Reseda area of Los Angeles started about 6:52 p.m. and involved equipment that carries high-voltage electricity and distributes it at lower voltages to customers in the surrounding area, the department said, even as other utilities sometimes deploy wildfire safety shut-offs to reduce risk during dangerous conditions.

The department shut off power to the station as a precautionary move, and it is restoring power now that the fire has been put out, similar to restoration after intentional shut-offs in other parts of California. Initially, 140,000 customers were without power. That number had been cut to 94,000 by 11 p.m.

The power outage comes as much of California baked in heat that broke records, and rolling blackout warnings were issued as the grid strained. A record that stood 131 years in Los Angeles was snapped when the temperature spiked at 98 degrees downtown.

People reported losing power in Porter Ranch, Winnetka, West Hills, Canoga Park, Woodland Hills, Granada Hills, North Hills, Reseda and Chatsworth, KABC TV reported, highlighting electricity inequality across communities.

Shortly after the blaze broke out, firefighters found a huge container of mineral oil that is used to cool electrical equipment on fire, Los Angeles Fire Department spokesman Brian Humphrey told the Los Angeles Times. The incident underscores infrastructure risks that in some regions have required a complete grid rebuild after severe storms.

Firefighters had the blaze under control by 8:30 p.m. and were able to put it out by 9 p.m., Humphrey said. "These were fierce flames, with smoke towering more than 300 feet into the sky," he told the newspaper.

No one was injured.

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Key Points

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✅ South Australia now exports power post-Hazelwood closure

✅ Rooftop solar is the fastest-growing NEM generation source

✅ Gas peaking and storage investments balance variable renewables

 

The politics may not change much, but Australia’s electricity grid is changing before our very eyes – slowly and inevitably becoming more renewable, more decentralised, and in step with Australia's energy transition that is challenging the pre-conceptions of many in the industry.

The latest national emissions audit from The Australia Institute, which includes an update on key electricity trends in the national electricity market, notes some interesting developments over the last three months.

The most surprising of those developments may be the South Australia achievement, which shows that since the closure of the Hazelwood brown coal generator in Victoria in March 2017, and as renewables outpacing brown coal in other markets, South Australia has become a net exporter of electricity, in net annualised terms.

Hugh Saddler, lead author of the study, notes that this is a big change for South Australia, which in 1999 and 2000, when it had only gas and local coal, used to import 30% of its electricity demand.

#google#

The fact that wholesale prices in South Australia were higher in other states – then, as they are now – has nothing to with wind and solar, but the fact that it has no low-cost conventional source and a peaky demand profile (then and now).

“The difference today is that the state is now taking advantage of its abundant resources of wind and solar radiation, and the new technologies which have made them the lowest cost sources of new generation, to supply much of its electricity requirements,” Saddler writes.

Other things to note about the flows between states is that Victoria was about equal on imports and exports with its three neighbouring states, despite the closure of Hazelwood. NSW continues to import around 10% of its needs from cheaper providers in Queensland.

Gas-fired generation had increased in the last year or two in South Australia as a result of the Northern closure, but is still below the levels of a decade ago.

But because it is expensive, this is likely to spur more investment in storage.

As for rooftop solar, Saddler notes that the share of residential solar in the grid is still relatively small but, despite excess solar risks flagged by distributors, it is the most steadily growing generation source in the NEM.

That line is expected to grow steadily. By 2040, or perhaps 2050, the share of distributed generation, which includes rooftop solar, battery storage and demand management, is expected to reach nearly half of all Australia’s grid demand.

Saddler, says, however, that the increase in large-scale solar over the last few months is a significant milestone in Australia’s transition towards clean electricity generation, mirroring trends in India's on-grid solar development seen in recent years. (See very top graph).

“Firstly, they are a concrete demonstration that the construction cost advantage, which wind enjoyed over solar until a year or two ago, is gone.

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Key Points

Expected 2030 shortfalls from Pickering closure and electrification, requiring new low-emission nuclear to meet net-zero.

✅ IESO projects a 3.6-9.5 GW capacity gap by 2030

✅ Pickering shutdown removes baseload, stressing reliability

✅ New low-emission nuclear needed to meet net-zero targets

 

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The planned closure of the Pickering nuclear power plant in 2025 and the increase in demand from electrification of the economy are the drivers behind a capacity gap in 2030 of at least 3.6 GW which could widen to as much as 9.5 GW, Electrification Pathways for Ontario to Reduce Emissions, finds. Ontario's Independent Electricity System Operator (IESO) has since 2013 been forecasting a significant gap in the province's electricity supply due the closure of Pickering, but has been underestimating the impact of electrification, the report says.

In addition, the electrification of buildings, transport and industry sectors that will be needed to achieve goals of net-zero emissions by 2050 that being set by the federal government and civil society will see the province's electricity demand increase by at least 130% over current planning forecasts, and potentially by over 190%. Leveraging electricity, natural gas and hydrogen synergies can reduce supply needs, but 55 GW of new electricity capacity, including new large-scale nuclear plants, will still be needed by 2050 - four times Ontario's current nuclear and hydro assets - the report finds.

These findings underscore the urgent need for a paradigm shift in Ontario's electricity planning and procurement process, the authors say, adding that immediate action is needed both to mitigate the system reliability risks and enable the significant societal benefits needed to pursue net-zero objectives. Planning for procurement to replace Pickering's capacity, or to pursue life extension options, must begin as soon as possible.

"Policymakers around the world realise climate change can't be tackled without nuclear. Ontario's nuclear fleet has delivered emissions reductions for over 50 years," PWU President Jeff Parnell said. "In fact, without building new nuclear units, Ontario will miss its emission reduction targets and carbon emissions from electricity generation will rise dramatically, as explored in why Ontario's power could get dirtier today."

"This report clearly shows that Ontario cannot sustain the low-carbon status of its hydro and nuclear-based electricity system, decarbonise its economy and meet its carbon reduction targets without new nuclear or continued operation at Pickering in the near term. Most disturbing is the fact that we are already well behind and needed to start planning for this capacity yesterday," he said.

The six operating Candu reactors at Ontario Power Generation's Pickering plant have been kept in operation to provide baseload electricity during the refurbishment of units at the Darlington and Bruce plants. Currently, the company plans to shut down Pickering units 1 and 4 in 2024 and units 5 to 8 in 2025, even as Ontario moves to refurbish Pickering B to extend life.

 

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Key Points

The UAE Nuclear Power Plant, Barakah, is a civilian facility expected to supply 25% of electricity under IAEA oversight.

✅ Barakah reactors target 25% of national electricity.

✅ Operates under IAEA oversight, no enrichment per US 123 deal.

✅ Raises regional security, proliferation, and environmental concerns.

 

The United Arab Emirates became the first Arab country to open a nuclear power plant on Saturday, following a crucial step in Abu Dhabi earlier in the project, raising concerns about the long-term consequences of introducing more nuclear programs to the Middle East.

Two other countries in the region — Israel and Iran — already have nuclear capabilities. Israel has an unacknowledged nuclear weapons arsenal and Iran has a controversial uranium enrichment program that it insists is solely for peaceful purposes.

The U.A.E., a tiny nation that has become a regional heavyweight and international business center, said it built the plant to decrease its reliance on the oil that has powered and enriched the country and its Gulf neighbors for decades. It said that once its four units were all running, the South Korean-designed plant would provide a quarter of the country’s electricity, with Unit 1 reaching 100% power as a milestone toward commercial operations.

Seeking to quiet fears that it was trying to build muscle to use against its regional rivals, it has insisted that it intends to use its nuclear program only for energy purposes.

But with Iran in a standoff with Western powers over its nuclear program, Israel in the neighborhood and tensions high among Gulf countries, some analysts view the new plant — and any that may follow — as a security and environmental headache. Other Arab countries, including Saudi Arabia and Iraq, are also starting or planning nuclear energy programs.

The Middle East is already riven with enmities that pit Saudi Arabia and the U.A.E. against Iran, Qatar and Iran’s regional proxies. One of those proxies, the Yemen-based Houthi rebel group, claimed an attack on the Barakah plant when it was under construction in 2017.

And Iran is widely believed to be behind a series of attacks on Saudi oil facilities and oil tankers passing through the Gulf over the last year.

“The UAE’s investment in these four nuclear reactors risks further destabilizing the volatile Gulf region, damaging the environment and raising the possibility of nuclear proliferation,” Paul Dorfman, a researcher at University College London’s Energy Institute, wrote in an op-ed in March.

Noting that the U.A.E. had other energy options, including “some of the best solar energy resources in the world,” he added that “the nature of Emirate interest in nuclear may lie hidden in plain sight — nuclear weapon proliferation.”
But the U.A.E. has said it considered natural gas and renewable energy sources before dismissing them in favor of nuclear energy because they would not produce enough for its needs.

Offering evidence that its intentions are peaceful, it points to its collaborations with the International Atomic Energy Agency, which has reviewed the Barakah project, and the United States, with which it signed a nuclear energy cooperation agreement in 2009 that allows it to receive nuclear materials and technical assistance from the United States while barring it from uranium enrichment and other possible bomb-development activities.

That has not persuaded Qatar, which last year lodged a complaint with the international nuclear watchdog group over the Barakah plant, calling it “a serious threat to the stability of the region and its environment.”

The U.A.E.’s oil exports account for about a quarter of its total gross domestic product. Despite its gusher of oil, it has imported increasing amounts of natural gas in recent years in part to power its energy-intensive desalination plants.

“We proudly witness the start of Barakah nuclear power plant operations, in alignment with the highest international safety standards,” Mohammed bin Zayed, the U.A.E.’s de facto ruler, tweeted on Saturday.

The new nuclear facility, which is in the Gharbiya region on the coast, close to Qatar and Saudi Arabia, is the first of several prospective Middle East nuclear plants, even as Europe reduces nuclear capacity elsewhere. Egypt plans to build a power plant with four nuclear reactors.

Saudi Arabia is also building a civilian nuclear reactor while pursuing a nuclear cooperation deal with the United States, and globally, China's nuclear program remains on a steady development track, though the Trump administration has said it would sign such an agreement only if it includes safeguards against weapons development.

 

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