Budget, schedule trouble kills reactor project

BC Hydro Grid Modernization accelerates clean energy and electrification, upgrading transmission lines, substations, and hydro dams to deliver renewable power for EVs and heat pumps, strengthen grid reliability, and enable industrial decarbonization in British Columbia.

Key Points

A $36B, 10-year plan to expand and upgrade B.C.'s clean grid for electrification, reliability, and industrial growth.

✅ $36B for lines, substations, and hydro dam upgrades

✅ Enables EV charging, heat pumps, and smart demand response

✅ Prioritizes industrial electrification and Indigenous partnerships

In a significant move towards a clean energy transition, British Columbia has announced a substantial $36-billion investment to enlarge and upgrade its electricity grid over the next ten years. The announcement last Tuesday from BC Hydro indicates a substantial 50 percent increase from its prior capital plan. A major portion of this investment is directed towards new consumer connections and improving current infrastructure, including substations, transmission lines, and hydro dams for more efficient power generation.

The catalyst behind this major investment is the escalating demand for clean energy across residential, commercial, and industrial sectors in British Columbia. Projections show a 15 percent rise in electricity demand by 2030. According to the Canadian Climate Institute's models, achieving Canada’s climate goals will require extensive electrification across various sectors, raising questions about a net-zero grid by 2050 nationwide.

BC Hydro is planning substantial upgrades to the electrical grid to meet the needs of a growing population, decreasing industry carbon emissions, and the shift towards clean technology. This is vital, especially as the province works towards improving housing affordability and as households face escalating costs from the impacts of climate change and increasing exposure to harsh weather events. Affordable, reliable power and access to clean technologies such as electric vehicles and heat pumps are becoming increasingly important for households.

British Columbia is witnessing a significant shift from fossil fuels to clean electricity in powering homes, vehicles, and workplaces. Electric vehicle usage in B.C. has increased twentyfold in the past six years. Last year, one in every five new light-duty passenger vehicles sold in B.C. was electric – the highest rate in Canada. Additionally, over 200,000 B.C. homes are now equipped with heat pumps, indicating a growing preference for the province’s 98 percent renewable electricity.

The investment also targets reducing industrial emissions and attracting industrial investment. For instance, the demand for transmission along the North Coastline, from Prince George to Terrace, is expected to double this decade, especially from sectors like mining. Mining companies are increasingly looking for locations with access to clean power to reduce their carbon footprint.

This grid enhancement plan in B.C. is reflective of similar initiatives in provinces like Quebec and the legacy of Manitoba hydro history in building provincial systems. Hydro-Québec announced a substantial $155 to $185 billion investment in its 2035 Action Plan last year, aimed at supporting decarbonization and economic growth. By 2050, Hydro-Québec predicts a doubling of electricity demand in the province.

Both utilities’ strategies focus on constructing new facilities and enhancing existing assets, like upgrading dams and transmission lines. Hydro-Québec, for instance, includes energy efficiency goals in its plan to double customer savings and potentially save over 3,500 megawatts of power.

However, with this level of investment, provinces need to engage in dialogue about priorities and the optimal use of clean electricity resources, with concepts like macrogrids offering potential benefits. Quebec, for instance, has shifted from a first-come, first-served basis to a strategic review process for significant new industrial power requests.

B.C. is also moving towards strategic prioritization in its energy strategy, evident in its recent moratorium on new connections for virtual currency mining due to their high energy consumption.

Indigenous partnership and leadership are also key in this massive grid expansion. B.C.’s forthcoming Call for Power and Quebec’s financial partnerships with Indigenous communities indicate a commitment to collaborative approaches. British Columbia has also allocated $140 million to support Indigenous-led power projects.

Regarding the rest of Canada, electricity planning varies in provinces with deregulated markets like Ontario and Alberta. However, these provinces are adapting too, and the federal government has funded an Atlantic grid study to improve regional planning efforts. Ontario, for example, has provided clear guidance to its system operator, mirroring the ambition in B.C. and Quebec.

Utilities are rapidly working to not only expand and modernize energy grids but also to make them more resilient, affordable, and smarter, as demonstrated by recent California grid upgrades funding announcements across the sector. Hydro-Québec focuses on grid reliability and affordability, while B.C. experiments with smart-grid technologies.

Both Ontario and B.C. have programs encouraging consumers to reduce consumption in real-time, demonstrating the potential of demand-side management. A recent instance in Alberta showed how customer participation could prevent rolling blackouts by reducing demand by 150 megawatts.

This is a crucial time for all Canadian provinces to develop larger, smarter energy grids, including a coordinated western Canadian electricity grid approach for a sustainable future. Utilities are making significant strides towards this goal.
 

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Canadian Electricity Innovation drives a customer-centric, data-driven grid, integrating renewable energy, EVs, storage, and responsive loads to boost reliability, resilience, affordability, and sustainability while aligning regulators, utilities, and policy for decarbonization.

Key Points

A plan to modernize the grid, aligning utilities, regulators, and tech to deliver clean, reliable, affordable power.

✅ Smart grid supports EVs, storage, solar, and responsive loads.

✅ Innovation funding and regulatory alignment cut long-term costs.

✅ Resilience rises against extreme weather and outage risks.

For more than 100 years, Canadian electricity companies had a very simple mandate: provide reliable, safe power to all. Keep the lights on, as some would say. And they did just that.

Today, however, they are expected to also provide a broad range of energy services through a data-driven, customer-centric system operations platform that can manage, among other things, responsive loads, electric vehicles, storage devices and solar generation. All the while meeting environmental and social sustainability — and delivering on affordability.

Not an easy task, especially amid a looming electrical supply crunch that complicates planning.

That’s why this new mandate requires an ironclad commitment to innovation excellence. Not simply replacing “like with like,” or to make incremental progress, but to fundamentally reimagine our electricity system and how Canadians relate to it.

Our innovators in the electricity sector are stepping up to the plate and coming up with ingenious ideas, thanks to an annual investment of some $20 billion.

#google#

But they are presented with a dilemma.

Although Canada enjoys among the cleanest, most reliable electricity in the world, we have seen a sharp spike in its politicization. Electricity rates have become the rage and a top-of-mind issue for many Canadians, as highlighted by the Ontario hydro debate over rate plans. Ontario’s election reflects that passion.

This heightened attention places greater pressure on provincial governments, who regulate prices, and in jurisdictions like the Alberta electricity market questions about competition further influence those decisions. In turn, they delegate down to the actual regulators where, at their public hearings, the overwhelming and almost exclusive objective becomes: Keeping costs down.

Consequently, innovation pilot applications by Canadian electricity companies are routinely rejected by regulators, all in the name of cost constraints.

Clearly, electricity companies must be frugal and keep rates as low as possible.

No one likes paying more for their electricity. Homeowners don’t like it and neither do businesses.

Ironically, our rates are actually among the lowest in the world. But the mission of our political leaders should not be a race to the basement suite of prices. Nor should cheap gimmicks masquerade as serious policy solutions. Not if we are to be responsible to future generations.

We must therefore avoid, at all costs, building on the cheap.

Without constant innovation, reliability will suffer, especially as we battle more extreme weather events. In addition, we will not meet the future climate and clean energy targets such as the Clean Electricity Regulations for 2050 that all governments have set and continuously talk about. It is therefore incumbent upon our governments to spur a dynamic culture of innovation. And they must sync this with their regulators.

This year’s federal budget failed to build on the 2017 investments. One-time public-sector funding mechanisms are not enough. Investments must be sustained for the long haul.

To help promote and celebrate what happens when innovation is empowered by utilities, the Canadian Electricity Association has launched Canada’s first Centre of Excellence on electricity. The centre showcases cutting-edge development in how electricity is produced, delivered and consumed. Moreover, it highlights the economic, social and environmental benefits for Canadians.

One of the innovations celebrated by the centre was developed by Nova Scotia’s own NS Power. The company has been recognized for its groundbreaking Intelligent Feeder Project that generates power through a combination of a wind farm, a substation, and nearly a dozen Tesla batteries, reflecting broader clean grid and battery trends across Canada.

Political leaders must, of course, respond to the emotions and needs of their electors. But they must also lead.

That’s why ongoing long-term investments must be embedded in the policies of federal, provincial and territorial governments, and their respective regulatory systems. And Canada’s private sector cannot just point the finger to governments. They, too, must deliver, by incorporating meaningful innovation strategies into their corporate cultures and vision.

That’s the straightforward innovation challenge, as it is for the debate over rates.

But it also represents a generational opportunity, because if we get innovation right we will build that better, greener future that Canadians aspire to.

Sergio Marchi is president and CEO of the Canadian Electricity Association. He is a former Member of Parliament, cabinet minister, and Canadian Ambassador to the World Trade Organization and United Nations in Geneva.

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Energy Pricing Factors span electricity generation, transmission, and distribution costs, plus natural gas supply-demand, renewables, seasonal peaks, and wholesale pricing effects across residential, commercial, and industrial customers, usage patterns, weather, and grid constraints.

Key Points

They are the costs and market forces driving electricity and natural gas prices, from generation to delivery and demand.

✅ Generation, transmission, distribution shape electricity rates

✅ Gas prices hinge on supply, storage, imports/exports

✅ Demand shifts: weather, economy, and fuel alternatives

There are a lot of factors that affect energy prices globally. What’s included in the price to heat homes and supply them with electricity may be a lot more than some people may think.

Electricity
Generating electricity is the largest component of its price, according to the U.S. Energy Information Administration (EIA). Generation accounts for 56% of the price of electricity, while distribution and transmission account for 31% and 13% respectively.

Homeowners and businesses pay more for electricity than industrial companies, and U.S. electricity prices have recently surged, highlighting broader inflationary pressures. This is because industrial companies can take electricity at higher voltages, reducing transmission costs for energy companies.

“Industrial consumers use more electricity and can receive it at higher voltages, so supplying electricity to these customers is more efficient and less expensive. The price of electricity to industrial customers is generally close to the wholesale price of electricity,” EIA explains.

NYSEG said based on the average use of 600 kilowatt-hours per month, its customers spent the most money on delivery and transition charges in 2020, 57% or about $42, and residential electricity bills increased 5% in 2022 after inflation, according to national data. They also spent on average 35% (~$26) on supply charges and 8% (~$6) on surcharges.

Electricity prices are usually higher in the summer. Why? Because energy companies use sources of electricity that cost more money. It used to be that renewable sources, like solar and wind, were the most expensive sources of energy but increased technological advances have changed this, according to the International Energy Agency’s 2021 World Energy Outlook.

“In most markets, solar PV or wind now represents the cheapest available source of new electricity generation. Clean energy technology is becoming a major new area for investment and employment – and a dynamic arena for international collaboration and competition,” the report said.

Natural gas
The price of natural gas is driven by supply and demand. If there is more supply, prices are generally lower. If there is not as much supply, prices are generally higher the EIA explains. On the other side of the equation, more demand can also increase the price and less demand can decrease the price.

High natural gas prices mean people turn their home thermostats down a few degrees to save money, so the EIA said reduced demand can encourage companies to produce more natural gas, which would in turn help lower the cost. Lower prices will sometimes cause companies to reduce their production, therefore causing the price to rise.

The three major supply factors that affect prices: the amount of natural gas produced, how much is stored, and the volume of gas imported and exported. The three major demand factors that affect price are: changes in winter/summer weather, economic growth, and the broader energy crisis dynamics, as well as how much other fuels are available and their price, said EIA.

To think the price of natural gas is higher when the economy is thriving may sound counterintuitive but that’s exactly what happens. The EIA said this is because of increases in demand.

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California Gas Plant Extensions keep Ormond Beach, AES Alamitos, and Huntington Beach on standby for grid reliability during heat waves, as regulators balance renewables, battery storage, and power, pending State Water Resources Control Board approval.

Key Points

State plan extending three coastal gas plants to 2026, adding capacity as California expands renewables and storage.

✅ Extends Ormond Beach, AES Alamitos, AES Huntington Beach

✅ Mitigates blackout risk during extreme heat and peak demand

✅ Pending State Water Resources Control Board approval

Temperatures in many California cities are cooling down this week, but a debate is simmering on how to generate enough electricity to power the state through extreme weather events while transitioning away from a reliance on fossil fuels as clean energy progress indicates statewide.

The California Energy Commission voted Wednesday to extend the life of three gas power plants along the state’s southern coast through 2026, even as natural-gas electricity records persist nationwide, postponing a shutoff deadline previously set for the end of this year. The vote would keep the decades-old facilities _ Ormond Beach Generating Station, AES Alamitos and AES Huntington Beach — open so they can run during emergencies.

The state is at a greater risk of blackouts during major events when many Californians simultaneously crank up their air conditioning, such as a blistering heat wave, illustrated by widespread utility shutoffs in recent years.

“We need to move faster in incorporating renewable energy. We need to move faster at incorporating battery storage. We need to build out chargers faster,” commissioner Patricia Monahan said amid an ongoing debate over the classification of nuclear power in California. “We’re working with all the energy institutions to do that, but we are not there yet.”

The plan, put together by the state’s Department of Water Resources, still needs final approval from the State Water Resources Control Board, which may vote on the issue next week. Democratic Gov. Gavin Newsom signed legislation last year creating an energy reserve the state could use as a last resort if there is likely to be an energy shortage, a challenge mirrored by Ontario electricity shortfall concerns elsewhere. The law allowed the Department of Water Resources to fund or secure power sources in those instances, after PG&E shutdown reasons drew attention to grid vulnerabilities.

The commission acknowledged it was a difficult decision. Environmentalists say the state needs to transition to more short- and long-term solutions that will help it move away from fossil fuels and to rely more on renewable energy sources like solar and wind, similar to Ontario's clean power push in recent years. They’re also concerned about the health impacts associated with pollution from gas plants.

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BC Affordability & BC Hydro Bill Credits provide inflation relief and cost of living support, lowering electricity bills for families and small businesses through automatic utility credits and income-tested tax rebates across British Columbia.

Key Points

BC relief lowering electricity bills and offering rebates to help families and businesses facing inflation.

✅ $100 credit for residential BC Hydro users; applied automatically.

✅ Avg $500 bill credit for small and medium commercial customers.

✅ Income-based BC Affordability Credit via CRA in January.

The new B.C. premier announced on Friday morning families and small businesses in B.C. will get a one-time cost of living credit on their BC Hydro bill this fall, and a new B.C. Affordability Credit in January.

Eby focused on the issue of affordability in his speech following being sworn in as B.C.’s 37th premier, including electricity costs addressed by BC Hydro review recommendations that aim to keep power affordable.

A BC Hydro bill credit of $100 will be provided to all eligible residential and commercial electricity customers, including those who receive their electricity service indirectly from BC Hydro through FortisBC or a municipal utility.

“People and small businesses across B.C. are feeling the squeeze of global inflation,” Eby said.

“It’s a time when people need their government to continue to be there for them. That’s why we’re focused on helping people most impacted by the rising costs we’re seeing around the world – giving people a bit of extra credit, especially at a time of year when expenses can be quick to add up.”

Eby takes over as premier of the province with a growing number of concerns piling up on his plate, even as the province advances grid development and job creation projects to support long-term growth.

Economists in the province have warned of turbulent economic times ahead due to global economic pressures and power supply challenges tied to green energy ambitions.

The one-time $100 cost of living credit works out to approximately one month of electricity for a family living in a detached home or more than two months of electricity for a family living in an apartment.

Commercial ratepayers, including small and medium businesses like restaurants and tourism operators, will receive a one-time bill credit averaging $500 as B.C. expands EV charging infrastructure to accelerate electrification.

The amount will be based on their prior year’s electricity consumption.

British Columbians will have the credit automatically applied to their electricity accounts.

BC Hydro customers will have the credit applied in early December. Customers of FortisBC and municipal utilities will likely begin to see their bill credits applied early in the new year.

‘I proudly and unreservedly turn to the tallest guy in the room’: John Horgan on David Eby

The B.C. Affordability Credit is separate and will be based on income.

Eligible people and families will automatically receive the new credit through the Canada Revenue Agency, the same way the enhanced Climate Action Tax Credit was received in October.

An eligible person making an income of up to $36,901 will receive the maximum BC Affordability Credit with the credit fully phasing out at $79,376.

An eligible family of four with a household income of $43,051 will get the maximum amount, with the credit fully phasing out by $150,051.

This additional support means a family of four can receive up to an additional $410 in early January 2023 to help offset some of the added costs people are facing, while EV owners can access more rebates for home and workplace charging to reduce transportation expenses.

“Look for B.C.’s new Affordability Credit in your bank account in January 2023,” Eby said.

“We know it won’t cover all the bills, but we hope the little bit extra helps folks out this winter.”

Eby’s swearing-in marks a change at the premier’s office but not a shift in focus.

The premier expects to continue on with former premier John Horgan’s mandate with a focus on affordability issues and clean growth supported by green energy investments from both levels of government.

In a ceremony held in the Musqueam Community Centre, Eby made a commitment to make meaningful improvements in the lives of British Columbians and continue work with First Nations communities, with clean-tech growth underscored by the B.C. battery plant announcement made with the prime minister.

The ceremony was the first-ever swearing-in hosted by a First Nation in British Columbia.

“British Columbia is a wonderful place to call home,” Eby said.

“At the same time, people are feeling uncertain about the future and worried about their families. I’m proud of the work done by John Horgan and our government to put people first. And there’s so much more to do. I’m ready to get to work with my team to deliver results that people will be able to see and feel in their lives and in their communities.”

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OSW CareerMatch Offshore Wind Job Fair convenes industry leaders, supply chain employers, and skilled candidates at IPF 2020 in Providence, Rhode Island, spotlighting workforce development, training programs, and near-term hiring for U.S. offshore wind projects.

Key Points

An IPF 2020 job fair connecting offshore wind employers, advancing workforce development in Providence, RI.

✅ National job fair at IPF 2020, Providence, RI

✅ Connects supply chain employers with skilled candidates

✅ Includes a workforce development and education summit

The Business Network for Offshore Wind, the leading non-profit advocate for U.S. offshore wind at the state, federal and global levels, amid a U.S. grid warning about coronavirus impacts, will host its seventh annual International Partnership Forum (IPF) on April 21-24, 2020 in Providence, Rhode Island. 

New this year: the first-ever national offshore wind industry job fair plus a half-day workforce development summit, in partnership with Skills for Rhode Island’s Future. The OSW CareerMatch, will showcase jobs at top-tier companies seeking to grow the workforce of the future, informed by young people's interest in electricity careers, and recruit qualified candidates. The Offshore Wind Workforce Development and Education Summit, an invitation-only event, will bring together educators, stakeholders, and industry leaders to address current energy training programs, identify industry employment needs, required skillsets, and how organizations can fulfill these near-term needs. CareerMatch will take place 8:30 a.m. to 1:00 p.m. on Tuesday, April 21, and the Workforce Summit from 12:30 p.m. to 4:00 p.m., both at the Rhode Island Convention Center. 

“The U.S. offshore wind industry has reached the stage that, in order to successfully develop and meet new project demands, will require an available and qualified workforce,” said Liz Burdock, CEO and president of the Business Network for Offshore Wind, noting worker safety concerns in other energy sectors. “This first-ever national Job Fair will allow top-tier supply chain companies to connect with skilled individuals to discuss projects that are going on as they speak.” 

“Hosting the first-of-its-kind offshore wind energy job fair in The Ocean State is apropos,” said Nina Pande, executive director of Skills for Rhode Island’s Future, as future of work investments accelerate across the electricity sector. “Our organization is thrilled to have the unique opportunity to help convene talent at OSW CareerMatch to engage with the employers across the offshore wind supply chain.”

The annual IPF conference is the premier event for the offshore wind supply chain, which is now projected to be a $70 billion revenue opportunity through 2030. Fully developing this supply chain will foster local economic growth, provide thousands of jobs, adapt to shifts like working from home electricity demand, and help offshore wind energy meet its potential. If fully built out worldwide, offshore wind could power 18 times the world’s current electricity needs.    

The exhibit and conference sells out every year and is again on track to draw over 2,500 industry professionals representing over 575 companies, all focused on sharing valuable insights on how to move the emerging U.S. wind industry forward, including operational resilience such as on-site staffing plans during the outbreak. The full conference schedule may be seen online here. More details, including special guest speakers, will be announced soon.
 

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