ATCO partnership wins $1.43 billion competitive transmission project

Global Renewable Electricity Milestone signals solar, wind, hydro, and geothermal surpass 30% of power generation, driven by falling costs, battery storage, smart grids, and ambitious policy targets that strengthen energy security and decarbonization.

Key Points

It marks renewables exceeding 30% of global power, enabled by cheaper tech, storage, and strong policy.

✅ Costs of solar and wind fall, boosting competitiveness

✅ Storage and smart grids improve reliability and flexibility

✅ Policies target decarbonization while ensuring just transition

A recent report by the energy think tank Ember marks a significant milestone in the global energy transition. For the first time ever, according to their analysis, renewable energy sources like solar, wind, hydro, and geothermal now account for more than 30% of the world's electricity generation, a milestone echoed by wind and solar growth globally. This achievement signifies a pivotal shift towards a cleaner and more sustainable energy future.

The report attributes this growth to several key factors. Firstly, the cost of renewable energy technologies like solar panels and wind turbines has plummeted in recent years, making them increasingly competitive with traditional fossil fuels. Secondly, advancements in battery storage technology are facilitating the integration of variable renewable sources like solar and wind into the grid, addressing concerns about reliability. Thirdly, a growing number of countries are implementing ambitious renewable energy targets and policies, driven by environmental concerns and the desire for energy security.

The rise of renewables is not uniform across the globe. Europe leads the pack, with the European Union generating a staggering 44% of its electricity from renewable sources in 2023. Countries like Denmark, Germany, and Spain are at the forefront of this clean energy revolution. Developing nations are also starting to embrace renewables, driven by factors like falling technology costs and the need for affordable electricity access.

However, challenges remain. Fossil fuels still dominate the global energy mix, accounting for roughly two-thirds of electricity generation. Integrating a higher proportion of variable renewables into the grid necessitates robust storage solutions and smart grid technologies. Additionally, the transition away from fossil fuels needs to be managed carefully to ensure a just and equitable outcome for workers in the coal, oil, and gas sectors.

Despite these challenges, the report by Ember paints an optimistic picture. The rapid growth of renewables demonstrates their increasing viability and underscores the global commitment to a cleaner energy future, and in the United States, for example, renewables are projected to reach one-fourth of U.S. electricity generation, reinforcing this trajectory. The report also highlights the economic benefits of renewables, with new jobs created in the clean energy sector and reduced reliance on volatile fossil fuel prices.

Looking ahead, continued technological advancements, supportive government policies, and increased investment in renewable energy infrastructure are all crucial for further growth, with scenarios such as BNEF's 2050 outlook suggesting wind and solar could provide half of electricity, underscoring the importance of sustained effort. Furthermore, international cooperation is essential to ensure a smooth and equitable global energy transition. Developed nations can play a vital role by sharing technology and expertise with developing countries.

The 30% milestone is a significant step forward, but it's just the beginning. As the world strives to combat climate change and ensure energy security for future generations, renewables are poised to play a central role in powering a sustainable future, with wind and solar surpassing coal in the U.S. offering a clear signal of the shift. The report by Ember serves as a powerful reminder that a clean energy future is not just a dream, but a rapidly unfolding reality.

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Heavy-Duty Truck Electrification is disrupting the aftermarket as diesel declines: fewer parts, regenerative braking, emissions rules, e-drives, gearboxes, and software engineering needs reshape service demand, while ICE fleets persist for years.

Key Points

Transition of heavy trucks to EV systems, reducing parts and emissions while reshaping aftermarket service and skills.

✅ 33% fewer parts; regenerative braking slashes brake wear

✅ Diesel share declines; EVs and natural gas slowly gain

✅ Aftermarket shifts to e-drives, gearboxes, software and service

Those who sell parts and repair trucks might feel uneasy when reports emerge about a coming generation of electric trucks.

There are reportedly about 33% fewer parts to consider when internal combustion engines and transmissions are replaced by electric motors. Features such as regenerative braking are expected to dramatically reduce brake wear. As for many of the fluids needed to keep components moving? They can remain in their tanks and drums.

Think of them as disruptors. But presenters during the annual Heavy Duty Aftermarket Dialogue are stressing that the changes are not coming overnight. Chris Patterson, a consultant and former Daimler Trucks North America CEO, noted that the Daimler electrification plan underscores the shift as he counts just 50 electrified heavy trucks in North America.

About 88% of today’s trucks run on diesel, with the remaining 12% mostly powered by gasoline, said John Blodgett, MacKay and Company’s vice-president of sales and marketing. Five years out, even amid talk of an EV inflection point, he expects 1% to be electric, 2% to be natural gas, 12% to be gasoline, and 84% on diesel.

But a decade from now, forecasts suggest a split of 76% diesel, 11% gasoline, 7% electric, and 5% natural gas, with a fraction of a percent relying on hydrogen-electric power. Existing internal combustion engines will still be in service, and need to be serviced, but aftermarket suppliers are now preparing for their roles in the mix, especially as Canada’s EV opportunity comes into focus for North American players.

“This is real, for sure,” said Delphi Technologies CEO Rick Dauch.

Aftermarket support is needed
“As programs are launched five to six years from now, what are the parts coming back?” he asked the crowd. “Braking and steering. The fuel injection business will go down, but not for 20-25 years.” The electric vehicles will also require a gear box and motor.

“You still have a business model,” he assured the crowd of aftermarket professionals.

Shifting emissions standards are largely responsible for the transformation that is occurring. In Europe, Volkswagen’s diesel emissions scandal and future emissions rules of Euro 7 will essentially sideline diesel-powered cars, even as electric buses have yet to take over transit systems. Delphi’s light-duty diesel business has dropped 70% in just five years, leading to plant closures in Spain, France and England.

“We’ve got a billion-dollar business in electrification, last year down $200 million because of the downturn in light-duty diesel controllers,” Dauch said. “We think we’re going to double our electrification business in five years.”

That has meant opening five new plants in Eastern European markets like Turkey, Romania and Poland alone.

Deciding when the market will emerge is no small task, however. One new plant in China offered manufacturing capacity in July 2019, but it has yet to make any electric vehicle parts, highlighting mainstream EV challenges tied to policy shifts, because the Chinese government changed the incentive plans for electric vehicles.

‘All in’ on electric vehicles
Dana has also gone “all in” on electrification, said chairman and CEO Jim Kamsickas, referring to Dana’s work on e-drives with Kenworth and Peterbilt. Its gasket business is focusing on the needs of battery cooling systems and enclosures.

But he also puts the demand for new electric vehicle systems in perspective. “The mechanical piece is still going to be there.”

The demand for the new components and systems, however, has both companies challenged to find enough capable software engineers. Delphi has 1,600 of them now, and it needs more.

“Just being a motor supplier, just being an inverter supplier, just being a gearbox supplier itself, yes you’ll get value out of that. But in the longhaul you’re going to need to have engineers,” Kamsickas said of the work to develop systems.

Dauch noted that Delphi will leave the capital-intensive work of producing batteries to other companies in markets like China and Korea. “We’re going to make the systems that are in between – inverters, chargers, battery management systems,” he said.

Difficult change
But people working for European companies that have been built around diesel components are facing difficult days. Dauch refers to one German village with a population of 1,200, about 800 of whom build diesel engine parts. That business is working furiously to shift to producing gasoline parts.

Electrification will face hurdles of its own, of course. Major cities around the world are looking to ban diesel-powered vehicles by 2050, but they still lack the infrastructure needed to charge all the cars and truck fleet charging at scale, he added.

Kamsickas welcomes the disruptive forces.

“This is great,” he said. “It’s making us all think a little differently. It’s just that business models have had to pivot – for you, for us, for everybody.”

They need to be balanced against other business demands, including evolving cross-border EV collaboration dynamics, too.

Said Kamsickas: “Working through the disruption of electrification, it’s how do you financially manage that? Oh, by the way, the last time I checked there are [company] shareholders and stakeholders you need to take care of.”

“It’s going to be tough,” Dauch agreed, referring to the changes for suppliers. “The next three to four years are really going to be game changes. “There’ll be some survivors and some losers, that’s for sure.”

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Ontario Hydrogen Strategy accelerates green hydrogen via electrolysis, reduced electricity rates, and IESO pilots, leveraging ICI, interruptible rates, and surplus power to grow clean tech, low-carbon energy, and export markets across Ontario.

Key Points

A provincial plan to scale green hydrogen with electricity costs, IESO pilots, and surplus power to boost tech.

✅ Amends ICI to admit hydrogen producers from 50 kW demand

✅ Enables co-located electrolysers to use surplus curtailed power

✅ Offers interruptible rates via IESO pilot for flexible loads

The Ontario Ministry of Energy is seeking input on accelerating Ontario’s hydrogen economy. The province has been promoting growth in the clean tech sector, including low-carbon energy production and the Hydrogen Innovation Fund, as an avenue for post-COVID-19 economic recovery. Hydrogen produced through electrolysis (or “green hydrogen”) has been central to these efforts, complimenting both federal and provincial initiatives to create vibrant domestic and export markets for the energy as a principal alternative to conventional fossil fuels.

On April 14, 2022, the Ministry filed a proposal (the Proposal) on the Environmental Registry of Ontario (ERO) to gather input from stakeholders, aligning with the province’s industrial electricity pricing consultation underway. As part of Ontario’s Hydrogen Strategy, the Ministry is considering several options that would provide reduced electricity rates for green hydrogen producers to make production more economically competitive with other energies. To date, the relatively high production cost of green hydrogen has been a challenge facing its adoption, both domestically and internationally.

The Proposal features three options:

• Amending the rules for the Industrial Conservation Initiative (ICI) applicable to hydrogen producers;
• Enabling onsite hydrogen production using electricity that would otherwise be curtailed; and
• Providing an interruptible electricity rate for hydrogen producers.

Option 1: Amending the ICI rules

Option 1 would amend the ICI rules to allow all hydrogen producers with an average monthly peak demand of 50kW to participate. Hydrogen producers’ facilities could qualify for ICI in the first year of operation with a peak demand factor determined based on a deemed consumption profile, using a method yet to be determined by the Ministry. At the end of the first year, their global adjustment (GA) charges would be reconciled based on their actual consumption pattern. As set out in our prior article, GA was introduced by the province in January 2005 to ensure reliable, sustainable and a diverse supply of power at stable and competitive prices, aligning with plans to rely on battery storage to meet rising energy demand. The Ministry’s current proposal would require hydrogen producers to place a security deposit for their facilities’ first year of operation with the Independent Electricity System Operator (IESO) or their Local Distribution Company (LDC) to ensure other consumer would not be adversely affected.

Option 2: Enable onsite hydrogen production using surplus electricity

Option 2 would allow businesses to co-locate hydrogen electrolysers at electricity generation facilities, drawing on recent electrolyzer investment trends, to make use of what would become curtailed generation. Under this option in the Proposal, the developer for the hydrogen production facility would be required to be a separate legal entity from the one that owns or operates the electricity generation facility. Based on this required level of independence, the hydrogen developer would be required to pay the electricity generator for the electricity supply.

At this stage, it is not clear whether, or how the generator would be required to share the revenue with other consumers. The next steps of the Proposal may require regulatory amendments, and/or amendments to electricity generator’s contracts, consistent with efforts enabling storage in Ontario's electricity system to integrate flexible resources.

Option 3: Interruptible electricity rates for hydrogen producers

In 2021, the Ministry posted a proposal on the ERO including an Interruptible Rate Pilot that was to be developed in conjunction with the IESO in order to address stakeholder feedback received during the 2019 Industrial Consultation specific to the challenges of identifying and responding to peak demand events while participating in the ICI. The pilot was targeted towards large electricity consumers, where participants were charged GA at a reduced rate in exchange for agreeing to reduce consumption during system or local reliability events, as identified by IESO.

Option 3 would allow for the introduction for a dedicated stream for hydrogen producers into the interruptible rate pilot, which is currently under development with the IESO. This would take into account the unique circumstances of hydrogen producers, as well as the importance of the hydrogen sector in Ontario’s Low-Carbon Hydrogen Strategy. Under the pilot, participants would be given advance notice by the IESO to reduce demand over a fixed number of hours, several times each year, and emerging vehicle-to-grid models where EV owners can sell electricity back to the grid highlight additional flexibility options. Ultimately, the pilot would support low-carbon hydrogen production by offering large electricity consumers, such as hydrogen producers, reduced electricity rates in exchange for reduces consumption during system or local reliability events.

Following this initial development work, the Ministry intends to consult with stakeholders later this year to determine design details, as well as the timing for the potential roll out of the proposed pilot.

Key takeaways

The design options are not meant to be mutually exclusive, and might be pursued by the Ministry in combination. Ultimately, Ontario is focusing on ways to reduce electricity rates in an attempt to make the province a leader in the adoption of green hydrogen, as made clear in the Ontario Hydrogen Strategy, even as an electricity supply crunch looms, underscoring the urgency. Stakeholders will want to participate in this process given its long-term implications for both the hydrogen and power sectors.

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Egypt-ENI Hydrogen MoU outlines joint feasibility studies for green and blue hydrogen using renewable energy, carbon capture, and CO2 storage, targeting domestic demand, exports, and net-zero goals within Egypt's energy transition.

Key Points

A pact to study green and blue hydrogen in Egypt, leveraging renewables, CO2 storage, and export/demand pathways.

✅ Feasibility study for green and blue hydrogen projects

✅ Uses renewables, SMR, carbon capture, and CO2 storage

✅ Targets local demand, exports, and net-zero alignment

The Egyptian Electricity Holding Company (EEHC) and the Egyptian Natural Gas Holding Company (EGAS) signed a memorandum of understanding (MoU) with the Italian energy giant Eni to assess the technical and commercial feasibility of green and blue hydrogen production projects in Egypt, which many see as central to power companies' future strategies worldwide today.

Under the MoU, a study will be conducted to assess joint projects for the production of green hydrogen using electricity generated from renewable energy and supported by regional electricity interconnections where relevant, and blue hydrogen using the storage of CO2 in depleted natural gas fields, according to a statement by the Ministry of Petroleum on Thursday.

The study will also estimate the potential local market consumption of hydrogen and export opportunities, taking cues from Ontario's hydrogen economy proposal to align electricity rates for growth.

This agreement is part of Eni's objective to achieve zero net emissions by 2050 and Egypt's strategy towards diversifying the energy mix and developing hydrogen projects in collaboration with major international companies, taking note of Italy's green hydrogen initiatives in Sicily as a comparable effort.

It signed the deal with Egyptian Natural Gas Holding (EGAS) and Egyptian Electricity Holding Co. (EEHC).

The companies will carry out a joint study on producing renewable energy powered green hydrogen, informed by electrolyzer investments in similar projects, where applicable. They will also work on blue hydrogen. This involves reforming natural gas and capturing the resulting CO2, in this instance in depleted natural gas fields.

The study will also consider domestic hydrogen use and export options, including funding models like the Hydrogen Innovation Fund now in Ontario.

Eni said the MoU was in line with its plans to eliminate net emissions and emissions cancel emission intensity by 2050. The company noted the agreement was in line with Egypt’s plan for the energy transition, in which it pursues hydrogen plans with major international companies, alongside broader clean-tech collaboration such as Tesla cooperation discussions in Dubai, to accelerate progress.

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Shift from Fossil Fuels to Renewables signals an energy transition and decarbonization, as investors favor wind and solar over coal, oil, and gas due to falling ROI, policy shifts, and accelerating clean-tech innovation.

Key Points

An economic and policy-driven move redirecting capital from coal, oil, and gas to scalable wind and solar power.

✅ Driven by ROI, risk, and protests curbing fossil fuel projects

✅ Coal declines as wind and solar capacity surges globally

✅ Policy, technology, and markets speed the energy transition

This article is an excerpt from "Changing Tides: An Ecologist's Journey to Make Peace with the Anthropocene" by Alejandro Frid. Reproduced with permission from New Society Publishers. The book releases Oct. 15.

The climate and biodiversity crises reflect the stories that we have allowed to infiltrate the collective psyche of industrial civilization. It is high time to let go of these stories. Unclutter ourselves. Regain clarity. Make room for other stories that can help us reshape our ways of being in the world.

For starters, I’d love to let go of what has been our most venerated and ingrained story since the mid-1700s: that burning more fossil fuels is synonymous with prosperity. Letting go of that story shouldn’t be too hard these days. Financial investment over the past decade has been shifting very quickly away from fossil fuels and towards renewable energies, as Europe's oil majors increasingly pivot to electrification. Even Bob Dudley, group chief executive of BP — one of the largest fossil fuel corporations in the world — acknowledged the trend, writing in the "BP Statistical Review of World Energy 2017": "The relentless drive to improve energy efficiency is causing global energy consumption overall to decelerate. And, of course, the energy mix is shifting towards cleaner, lower carbon fuels, driven by environmental needs and technological advances." Dudley went on:

Coal consumption fell sharply for the second consecutive year, with its share within primary energy falling to its lowest level since 2004. Indeed, coal production and consumption in the U.K. completed an entire cycle, falling back to levels last seen almost 200 years ago around the time of the Industrial Revolution, with the U.K. power sector recording its first-ever coal-free day in April of this year. In contrast, renewable energy globally led by wind and solar power grew strongly, helped by continuing technological advances.

According to Dudley’s team, global production of oil and natural gas also slowed down in 2016. Meanwhile, that same year, the combined power provided by wind and solar energy increased by 14.6 percent: the biggest jump on record. All in all, since 2005, the installed capacity for renewable energy has grown exponentially, doubling every 5.5 years, as investment incentives expand to accelerate clean power.

The shift away from fossil fuels and towards renewables has been happening not because investors suddenly became science-literate, ethical beings, but because most investors follow the money, and Trump-era oil policies even reshaped Wall Street’s energy strategies.

It is important to celebrate that King Coal — that grand initiator of the Industrial Revolution and nastiest of fossil fuels — has just begun to lose its power over people and the atmosphere. But it is even more important to understand the underlying causes for these changes. The shift away from fossil fuels and towards renewables has been happening not because the bulk of investors suddenly became science-literate, ethical beings, but because most investors follow the money.

The easy fossil fuels — the kind you used to be able to extract with a large profit margin and relatively low risk of disaster — are essentially gone. Almost all that is left are the dregs: unconventional fossil fuels such as bitumen, or untapped offshore oil reserves in very deep water or otherwise challenging environments, like the Arctic. Sure, the dregs are massive enough to keep tempting investors. There is so much unconventional oil and shale gas left underground that, if we burned it, we would warm the world by 6 degrees or more. But unconventional fossil fuels are very expensive and energy-intensive to extract, refine and market. Additionally, new fossil fuel projects, at least in my part of the world, have become hair triggers for social unrest. For instance, Burnaby Mountain, near my home in British Columbia, where renewable electricity in B.C. is expanding, is the site of a proposed bitumen pipeline expansion where hundreds of people have been arrested since 2015 during multiple acts of civil disobedience against new fossil fuel infrastructure. By triggering legal action and delaying the project, these protests have dented corporate profits. So return on investment for fossil fuels has been dropping.

It is no coincidence that in 2017, Petronas, a huge transnational energy corporation, withdrew their massive proposal to build liquefied natural gas infrastructure on the north coast of British Columbia, as Canada's race to net-zero gathers pace across industry. Petronas backed out not because of climate change or to protect essential rearing habitat for salmon, but to backpedal from a deal that would fail to make them richer.

Shifting investment away from fossil fuels and towards renewable energy, even as fossil-fuel workers signal readiness to support the transition, does not mean we have entirely ditched that tired old story about fossil fuel prosperity.

Neoliberal shifts to favor renewable energies can be completely devoid of concern for climate change. While in office, former Texas Gov. Rick Perry questioned climate science and cheered for the oil industry, yet that did not stop him from directing his state towards an expansion of wind and solar energy, even as President Obama argued that decarbonization is irreversible and anchored in long-term economics. Perry saw money to be made by batting for both teams, and merely did what most neoliberal entrepreneurs would have done.

The right change for the wrong reasons brings no guarantees. Shifting investment away from fossil fuels and towards renewable energy does not mean we have entirely ditched that tired old story about fossil fuel prosperity. Once again, let’s look at Perry. As U.S. secretary of energy under Trump’s presidency, in 2017 he called the global shift from fossil fuels "immoral" and said the United States was "blessed" to provide fossil fuels for the world.

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Hertel-New York Interconnection delivers Hydro-Quebec renewable energy via a cross-border transmission line to New York City by 2025, supplying 1,250 MW through underground and underwater routes under a 25-year contract.

Key Points

A cross-border line delivering 1,250 MW of Hydro-Quebec hydropower to New York City via underground routes.

✅ 1,250 MW clean power to NYC by 2025

✅ 56.1 km underground, 1.6 km underwater in Quebec

✅ 25-year contract; Mohawk partnership revenue

Hydro-Quebec announced Thursday it has chosen the route for the Hertel-New York interconnection line, which will begin construction in the spring of 2023 in Quebec.

The project will deliver 1,250 megawatts of Quebec hydroelectricity to New York City starting in 2025, even as a recent electricity shortage report warns about rising demand at home.

It's a 25-year contract for Hydro-Quebec, the largest export contract for the province-owned company, and comes as hydrogen production investments gain traction in Eastern Canada.

The Crown corporation has not disclosed potential revenues from the project, but Premier François Legault mentioned on social media last September that a deal in principle worth more than $20 billion over 25 years was in the works.

The route includes a 56.1-kilometre underground and a 1.6-kilometre underwater section, similar to the Lake Erie Connector project planned under Lake Erie.

Eight municipalities in the Montérégie region will be affected: La Prairie, Saint-Philippe, Saint-Jacques-le-Mineur, Saint-Édouard, Saint-Patrice-de-Sherrington, Saint-Cyprien-de-Napierville, Saint-Bernard-de-Lacolle and Lacolle.

Across the country, new renewables such as wind projects in Yukon are receiving federal support, reflecting broader grid decarbonization.

The last part of the route will run along Fairbanks Creek to the Richelieu River, where it will connect with the American network.

Further south, there will be a 545-kilometre link between the Canada-U.S. border and New York City, while a separate Maine transmission approval advances a New England pathway for Quebec power.

Hydro-Quebec is holding two consultations on the project, on Dec. 8 in Lacolle and Dec. 9 in Saint-Jacques-le-Mineur.

Elsewhere in Atlantic Canada, EV-to-grid integration pilots are underway to test how vehicles can support the power system.

Once the route is in service, the Quebec line will be subject to a partnership between Hydro-Quebec and the Mohawk Council of Kahnawake, which will benefit from economic remunerations for 40 years.

To enhance reliability, grid-scale battery storage projects are also expanding in Ontario.

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