Requests for Proposal launched for purchase of clean electricity in Alberta


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Canada Clean Electricity Procurement advances federal operations with renewable energy in Alberta, leveraging RECs, competitive sourcing, Indigenous participation, and grid decarbonization to cut greenhouse gas emissions and stimulate new clean power infrastructure.

 

Key Points

A plan to procure clean power and RECs, cutting emissions in Alberta and attributing use where renewables are absent.

✅ RFPs to source new clean electricity in Alberta

✅ RECs from net new Canadian renewable generation

✅ Mandatory Indigenous participation via equity or set-asides

 

Public Services and Procurement Canada (PSPC) is taking concrete steps to meet the Government of Canada's commitment in the Greening Government Strategy to reduce greenhouse gas emissions from federal government buildings, vehicle fleets and other operations, aligning with broader vehicle electrification trends across Canada.

The Honourable Anita Anand, Minister of Public Services and Procurement, announced the Government of Canada has launched Requests for Proposal to buy new clean electricity in the province of Alberta, which is moving ahead with the retirement of coal power to clean its grid, to power federal operations there.

As well, Canada will purchase Renewable Energy Certificates (REC) from new clean energy generation in Canada. This will enable Canada to attribute its energy consumption as clean in regions where new clean renewable sources are not yet available. The Government of Canada is excited about this opportunity to stimulate net new Canadian clean electricity generation through the procurement of RECs and complementary power purchase agreements that secure long-term supply for federal demand.

Together, these contracts will help to ensure Canada is reducing its greenhouse gas footprint by approximately 133 kilotonnes or 56% of total real property emissions in Alberta. Additionally, the contracts will displace approximately 41 kilotonnes of greenhouse gas emissions from electricity use in the rest of Canada, supporting progress toward 2035 clean electricity goals even as challenges remain.

Through these open, fair and transparent competitive procurement processes, PSPC will be a key purchaser of clean electricity and will support the growth of new clean electricity and renewable power infrastructure, such as recent turbine investments in Manitoba that expand capacity.

The Government of Canada's Clean Electricity Initiative plans to use 100% clean electricity by 2022, where available, in alignment with evolving net-zero electricity regulations that shape supply choices, to reduce greenhouse gas emissions and stimulate growth in clean renewable power infrastructure. PSPC has applied the goals of the Government of Canada's Clean Electricity Initiative to its specific requirement for net new clean electricity generation to power federal operations in Alberta.  

These procurements will support economic opportunities for Indigenous businesses by encouraging participation in the move towards clean energy, seen in provincial shifts toward clean power in Ontario that broaden markets. Each Request for Proposal incorporates mandatory requirements for Indigenous participation through equity holdings or set-asides under the Procurement Strategy for Aboriginal Business.

 

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N.W.T. will encourage more residents to drive electric vehicles

Northwest Territories EV Charging Corridor aims to link the Alberta boundary to Yellowknife with Level 3 fast chargers and Level 2 stations, boosting electric vehicle adoption in cold climates, cutting GHG emissions, supporting zero-emission targets.

 

Key Points

A planned corridor of Level 3 and Level 2 chargers linking Alberta and Yellowknife to boost EV uptake and cut GHGs.

✅ Level 3 fast charger funded for Behchoko by spring 2024.

✅ Up to 72 Level 2 chargers funded across N.W.T. communities.

✅ Supports Canada ZEV targets and reduces fuel use and CO2e.

 

Electric vehicles are a rare sight in Canada's North, with challenges such as frigid winter temperatures and limited infrastructure across remote regions.

The Northwest Territories is hoping to change that.

The territorial government plans to develop a vehicle-charging corridor between the Alberta boundary and Yellowknife to encourage more residents to buy electric vehicles to reduce their carbon footprint.

"There will soon be a time in which not having electric charging stations along the highway will be equivalent to not having gas stations," said Robert Sexton, director of energy with the territory’s Department of Infrastructure.

"Even though it does seem right now that there’s limited uptake of electric vehicles and some of the barriers seem sort of insurmountable, we have to plan to start doing this, because in five years' time, it’ll be too late."

The federal government has committed to a mandatory 100 per cent zero-emission vehicle sales target by 2035 for all new light-duty vehicles, though in Manitoba reaching EV targets is not smooth so progress may vary. It has set interim targets for at least 20 per cent of sales by 2026 and 60 per cent by 2030.

A study commissioned by the N.W.T. government forecasts electric vehicles could account for 2.9 to 11.3 per cent of all annual car and small truck sales in the territory in 2030.

The study estimates the planned charging corridor, alongside electric vehicle purchasing incentives, could reduce greenhouse gas emissions by between 260 and 1,016 tonnes of carbon dioxide equivalent in that year.

Sexton said it will likely take a few years before the charging corridor is complete. As a start, the territory recently awarded up to $480,000 to the Northwest Territories Power Corporation to install a Level 3 electric vehicle charger in Behchoko.

The N.W.T. government projects the charging station will reduce gasoline use by 61,000 litres and decrease carbon dioxide equivalent by up to 140 tonnes per year. It is scheduled to be complete by the spring of 2024.

The federal government earlier this month announced $414,000, along with $56,000 in territorial funding, to install up to 72 primarily Level 2 electric vehicle charges in public places, streets, multi-unit residential buildings, workplaces, and facilities with light-duty vehicle fleets in the N.W.T. by March 2024, while in New Brunswick new fast-charging stations are planned on the Trans-Canada.

In Yukon, the territory has pledged to develop electric vehicle infrastructure in all road-accessible communities by 2027. It has already installed 12 electric vehicle chargers with seven more planned, and in N.L. a fast-charging network signals early progress as well.

Just a few people in the N.W.T. currently own electric vehicles, and in Atlantic Canada EV adoption lags as well.

Patricia and Ken Wray in Hay River have owned a Tesla Model 3 for three years. Comparing added electricity costs with savings on gasoline, Patricia estimates they spend 60 per cent less to keep the Tesla running compared to a gas-powered vehicle.

“I don’t mind driving past the gas station,” she said.

Despite some initial hesitation about how the car would perform in the winter, Wray said she hasn’t had any issues with her Tesla when it’s -40 C, although it does take longer to charge. She added it “really hugs the road” in snowy and icy conditions.

“People in the North need to understand these cars are marvellous in the winter,” she said.

Wray said while she and her husband drive their Tesla regularly, it’s not feasible to drive long distances across the territory. As the number of electric vehicle charge stations increases across the N.W.T., however, that could change.

“I’m just very, very happy to hear that charging infrastructure is now starting to be put in place," she said.

Andrew Robinson with the YK Care Share Co-op is more skeptical about the potential success of a long-distance charging corridor. He said while government support for electric vehicles is positive, he believes there's a more immediate need to focus on uptake within N.W.T. communities. He pointed to local taxi services as an example.

"It’s a long stretch," he said of the drive from Alberta, where EVs are a hot topic, to Yellowknife. "It’s 17 hours of hardcore driving and when you throw in having to recharge, anything that makes that longer, people are not going to be really into that.”

The car sharing service, which has a 2016 Chevy Spark dubbed “Sparky,” states on its website that a Level 2 charger can usually recharge a vehicle within six to eight hours while a Level 3 charger takes approximately half an hour, as faster charging options roll out in B.C. and beyond.

 

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Europe's Green Surge: Renewables Soar, Emissions Plummet, but Challenges Remain

EU Renewable Energy Transition accelerates wind and solar growth, slashes fossil fuels and carbon emissions via the ETS, strengthens energy security with LNG diversification, and advances grid resilience toward 2030 climate targets.

 

Key Points

EU shift to wind, solar, and efficiency that cuts fossil fuels while boosting energy security and grid stability

✅ Fossil fuels at 29% of EU power in 2023, coal and gas down sharply

✅ Renewables hit 44% share; wind 18%, solar 9% and rising

✅ ETS, LNG diversification, and efficiency cut demand and emissions

 

Europe's energy landscape is undergoing a dramatic transformation, fueled by a surge in renewable energy and a corresponding decline in fossil fuel dependence. This shift, documented in both a report from the energy think tank Ember and the European Commission's State of the Energy Union report, paints a picture of progress, but also highlights the challenges that lie ahead on the path to a sustainable future.

 

Fossil Fuels Facing an Unprecedented Decline:

Fossil fuels dipped to their lowest point in recorded history, making up only 29% of EU electricity generation in 2023. This represents a significant 19% decrease in both fossil fuel generation and carbon emissions compared to 2022, exceeding even the reductions witnessed during the pandemic. Coal, the dirtiest fossil fuel, saw the steepest decline, dropping by 26%, while gas generation fell by 15%. This decline is attributed to a combination of factors, including:

Increased deployment of renewables: As renewable energy sources like wind and solar become more affordable and efficient, they are increasingly displacing fossil fuels in the energy mix.

Carbon pricing: The EU's Emissions Trading System (ETS) puts a price on carbon emissions, incentivizing generators to switch to cleaner sources of energy.

Geopolitical tensions: The war in Ukraine and subsequent sanctions on Russia have accelerated Europe's efforts to diversify its energy sources away from Russian fossil fuels across the bloc.


Renewables Ascending to New Heights:

Renewable energy is now the dominant force in the EU, as renewables surpassed fossil fuels in the power mix, contributing a record-breaking 44% of the electricity mix. Wind energy leads the charge, generating 18% of electricity – the equivalent of France's entire demand – and surpassing gas for the first time. Solar power also continues to grow, reaching a 9% share, as solar reshapes electricity prices in Northern Europe and hydropower recovered from its 2022 dry spell. This remarkable growth is driven by factors such as:

Favorable policy frameworks: The EU has set ambitious renewable energy targets and implemented supportive policies, including feed-in tariffs and auctions.

Technological advancements: Advancements in wind turbine and solar panel technologies have made them more efficient and cost-effective.
Public support: There is growing public support for renewable energy, driven by concerns about climate change and energy security.

Beyond generation, energy efficiency is playing a critical role in reducing overall energy demand. Electricity demand in the EU fell by 3.4% in 2023, thanks to factors such as improved building insulation and more efficient appliances.

 

EU on Track to Quit Russian Fossil Fuels:

The report underscores Europe's progress in reducing dependence on Russian fossil fuels. Imports of Russian gas have plummeted to 40-45 billion cubic metres, compared to a staggering 155 bcm in 2021. This represents a remarkable 70% reduction in just one year. This shift has been achieved through a combination of increased LNG imports, diversification of gas suppliers, and accelerated deployment of renewable energy sources.

Overall greenhouse gas emissions decreased by 3% in 2022, putting the EU on track to achieve its ambitious 55% reduction target by 2030. These achievements demonstrate the EU's commitment to climate action and its ability to respond decisively to geopolitical challenges.

 

Success, But Not Complacency:

Despite the positive developments, the Commission warns against complacency. Energy markets remain volatile, fossil fuel subsidies are rising in some countries, and critical infrastructure vulnerabilities persist, while some advocates call for a fossil fuel lockdown to accelerate the transition. The bloc needs to accelerate renewable energy expansion to reach the legally binding 42.5% target by 2030. Additionally, ensuring affordability and security of energy supply will be crucial to maintaining public support for the transition.

 

Challenges and Opportunities:

While some countries like Denmark, Finland, and the Netherlands fall short of EU climate and energy goals, others like Spain, Portugal, and Belgium showcase success with renewables. The Commission is taking action with a plan to support the wind industry, where investments in European wind continue, even as it faces challenges from high inflation and increasing competition from China. Additionally, ensuring timely updates to national energy and climate plans is crucial for achieving the EU's overall objectives.

 

NGOs Urge Faster Action:

NGOs like the Climate Action Network (CAN) express concern about the adequacy of national plans, highlighting the gap between ambition and concrete action. They urge member states to accelerate efforts to meet the 2030 targets and avoid a "lost decade" in climate action. CAN emphasizes the need for more ambitious national energy and climate plans, increased investment in renewables, and accelerated energy efficiency measures.

Europe's energy transition is progressing rapidly, with renewables taking center stage and emissions declining. However, significant challenges remain, necessitating continued commitment, national-level action, and a focus on affordability, security, and sustainability. As 2030 approaches, Europe's green surge must translate into concrete results to secure a climate-neutral future.

 

Looking ahead, several key areas will define the success of Europe's energy transition:

  • Accelerating renewable energy deployment: The EU needs to maintain its momentum in building wind, solar, and other renewable energy sources. This requires sustained clean energy investment, streamlined permitting processes, and addressing grid integration challenges.
  • Ensuring affordability and security of supply: The energy transition must be just and inclusive, ensuring that energy remains affordable for all citizens and businesses. Additionally, diversifying energy sources and enhancing grid resilience are crucial to guarantee energy security.
  • Enhancing energy efficiency: Reducing energy demand remains crucial to achieving climate goals and reducing reliance on fossil fuels. This requires continued investments in building energy efficiency, promoting energy-efficient appliances and technologies, and encouraging behavioral changes.
  • International cooperation: Climate change and energy security are global challenges. The EU must continue to lead by example as renewables exceed 30% globally and collaborate with other countries on technological advancements, policy innovations, and financial support for developing nations undergoing their own energy transitions.

Europe's green surge is a testament to its ambition and collective action. By addressing the remaining challenges and seizing the opportunities ahead, the EU can pave the way for a sustainable and secure energy future for itself and the world.

 

 

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Canada unveils plan for regulating offshore wind

Canada Offshore Wind Amendments streamline offshore energy regulators in Nova Scotia and Newfoundland and Labrador, enabling green hydrogen, submerged land licences, regional assessments, MPAs standards, while raising fisheries compensation, navigation, and Indigenous consultation considerations.

 

Key Points

Reforms assign offshore wind to joint regulators, enable seabed licensing, and address fisheries and Indigenous issues.

✅ Assigns wind oversight to Canada-NS and Canada-NL offshore regulators

✅ Introduces single submerged land licence and regional assessments

✅ Addresses fisheries, navigation, MPAs, and Indigenous consultation

 

Canada's offshore accords with Nova Scotia and Newfoundland and Labrador are being updated to promote development of offshore wind farms, but it's not clear yet whether any compensation will be paid to fishermen displaced by wind farms.

Amendments introduced Tuesday in Ottawa by the federal government assign regulatory authority for wind power to jointly managed offshore boards — now renamed the Canada-Nova Scotia Offshore Energy Regulator and Canada-Newfoundland and Labrador Offshore Energy Regulator.

Previously the boards regulated only offshore oil and gas projects.

The industry association promoting offshore wind development, Marine Renewables Canada, called the changes a crucial step.

"The tabling of the accord act amendments marks the beginning of, really, a new industry, one that can play a significant role in our clean energy future," said  Lisen Bassett, a spokesperson for Marine Renewables Canada. 

Nova Scotia's lone member of the federal cabinet, Immigration Minister Sean Fraser, also talked up prospects at a news conference in Ottawa.


'We have lots of water'

"The potential that we have, particularly when it comes to offshore wind and hydrogen is extraordinary," said Fraser.

"There are real projects, like Vineyard Wind, with real investors talking about real jobs."

Sharing the stage with assembled Liberal MPs from Nova Scotia and Newfoundland and Labrador was Nova Scotia Environment Minister Tim Halman, representing a Progressive Conservative government in Halifax.

"If you've ever visited us or Newfoundland, you know we have lots of water, you know we have lots of wind, and we're gearing up to take advantage of those natural resources in a clean, sustainable way. We're paving the way for projects such as offshore wind, tidal energy in Nova Scotia, and green hydrogen production," said Halman.

Before a call for bids is issued, authorities will identify areas suitable for development, conservation or fishing.

The legislation does not outline compensation to fishermen excluded from offshore areas because of wind farm approvals.


Regional assessments

Federal officials said potential conflicts can be addressed in regional assessments underway in both provinces.

Minister of Natural Resources of Canada Jonathan Wilkinson said fisheries and navigation issues will have to be dealt with.

"Those are things that will have to be addressed in the context of each potential project. But the idea is obviously to ensure that those impacts are not significant," Wilkinson said.

Speaking after the event, Christine Bonnell-Eisnor, chair of what is still called the Canada Nova Scotia Offshore Petroleum Board, said what compensation — if any — will be paid to fishermen has yet to be determined.

"It is a question that we're asking as well. Governments are setting the policy and what terms and conditions would be associated with a sea bed licence. That is a question governments are working on and what compensation would look like for fishers."

Scott Tessier, who chairs  the Newfoundland Board, added "the experience has been the same next door in Nova Scotia, the petroleum sector and the fishing sector have an excellent history of cooperation and communication and I don't expect it look any different for offshore renewable energy projects."


Nova Scotia in a hurry to get going

The legislation says the offshore regulator would promote compensation schemes developed by industry and fishing groups linked to fishing gear.

Nova Scotia is in a hurry to get going.

The Houston government has set a target of issuing five gigawatts of licences for offshore wind by 2030, with leasing starting in 2025, reflecting momentum in the U.S. offshore wind market as well. It is intended largely for green hydrogen production. That's almost twice the province's peak electricity demand in winter, which is 2.2 gigawatts.

The amendments will streamline seabed approvals by creating a single "submerged land" licence, echoing B.C.'s streamlined process for clean energy projects, instead of the exploration, significant discovery and production licences used for petroleum development.

Federal and provincial ministers will issue calls for bids and approve licences, akin to BOEM lease requests seen in the U.S. market.

The amendments will ensure Marine Protected Area's  (MPAs) standards apply in all offshore areas governed by the regulations.


Marine protected areas

Wilkinson suggested, but declined, three times to explicitly state that offshore wind farms would be excluded from within Marine Protected Areas.

After this story was initially published on Tuesday, Natural Resources Canada sent CBC a statement indicating offshore wind farms may be permitted inside MPAs.

Spokesperson Barre Campbell noted that all MPAs established in Canada after April 25, 2019, will be subject to the Department of Fisheries and Oceans new standards that prohibit key industrial activities, including oil and gas exploration, development and production.

"Offshore renewable energy activities and infrastructure are not key industrial activities," Campbell said in a statement.

"Other activities may be prohibited, however, if they are not consistent with the conservation objectives that are established by the relevant department that has or that will establish a marine protected area."


Federal impact assessment process

The new federal impact assessment process will apply in offshore energy development, and recent legal rulings such as the Cornwall wind farm decision highlight how courts can influence project timelines.

For petroleum projects, future significant discovery licences will be limited to 25 years replacing the current indefinite term.

Existing significant discovery licences have been an ongoing exception and are not subject to the 25-year limit. Both offshore energy regulators will be given the authority to fulfil the Crown's duty to consult with Indigenous peoples

 

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California looks to electric vehicles for grid stability

California EV V2G explores bi-directional charging, smart charging, and demand response to enhance grid reliability. CPUC, PG&E, and automakers test incentives aligning charging with solar and wind, helping prevent blackouts and curtailment.

 

Key Points

California EV V2G uses two-way charging and smart incentives to support grid reliability during peak demand.

✅ CPUC studies feasibility, timelines, and cost barriers to V2G

✅ Incentives shift charging to align with solar, wind, off-peak hours

✅ High-cost bidirectional chargers and warranties remain hurdles

 

California energy regulators are eyeing the power stored in electric vehicles as they hunt for ways to avoid blackouts caused by extreme weather.

While few EV and their charging ports are equipped to deliver electricity back into the grid during emergencies, the California Public Utilities Commission wants more data on it as the agency rules on steps utilities must take to ensure they have enough power for this summer and next year. A draft CPUC decision due to be discussed this week asks about the feasibility of reversing the charge when needed (Energywire, March 8).

“Very few [EVs], maybe a couple of thousand at the most, can give power to the grid, and even fewer are connected into a charger that can do it,” said Gil Tal, director of the Plug-in Hybrid & Electric Vehicle Research Center at the University of California, Davis. EVs that feature the ability “have it at a more experimental level.”

The issue arises as California, where about half of all U.S. EVs are purchased, examines what role the vehicles can play in keeping lights on and refrigerators running and how a much bigger grid will support them in the long term. Even if grid operators can’t pull from EV batteries en masse, experts say cash and other incentives can prompt drivers to shift charging times, boosting grid stability.

“What we can do is not charge the electric cars at times of high demand” such as during heat waves, Tal said.

The EV focus comes after California’s grid manager last summer imposed rolling blackouts when power supplies ran short during a record-shattering heat wave. State energy regulators across the U.S., as EVs challenge state grids, are also looking at their disaster preparedness as Texas recovers from a winter storm last month that cut off electricity for more than 4 million homes and businesses there.

California’s EV efforts can help other states as they add more renewable power to their grids, said Adam Langton, energy services manager at BMW of North America.

That automaker ran a pilot program with San Francisco-based utility Pacific Gas & Electric Co. (PG&E) looking at whether money and other incentives could prompt EV drivers to charge their cars at different times. The payments successfully shifted charging to the middle of the night, when wind power often is plentiful. It also moved some repowering to mornings and early afternoons, when there’s abundant solar energy.

“That can be a tool that the utilities can use to deal with supply issues,” Langton said. “What our research has shown is that vehicles can contribute to [conservation] needs and emergency supply by shifting their charging time.”

Such measures can also help states avoid having to curtail solar production on days when there’s more generation than needed. On many bright days, California has more solar power than it can use.

“As more states add more renewable energy, we think that they’re going to find that EVs complement that really well with smart charging, because grid coordination can get that charging to align with the renewable energy,” Langton said. “It allows to add more and more renewable energy.”

High-cost equipment a hurdle
The CPUC at a future workshop plans to collect information on leveraging EVs to head off power shortages at key times.

But Tal said it will probably take a decade to get enough EVs capable of exporting electricity back to utilities “in high numbers that can make an impact on the grid.”

Barriers to reaching such “vehicle to grid” integration are technical and economic, he said. EVs export direct current and need a device on the other side that can convert it to alternating current, similar to a solar power inverter for rooftop panels.

However, the equipment known as a V2G capable charger is costly. It ranges from $4,500 to $5,500, according to a 2017 National Renewable Energy Laboratory report.

PG&E and Los Angeles-based Southern California Edison already have “expressed doubt that short-term measures could be developed in time to expand EV participation by summer 2021” in V2G programs, the draft CPUC proposal said. The utilities suggested instead that the agency encourage EV owners to participate in initiatives where they’d get paid for reducing power consumption or sell electricity back to the grid when needed, known as demand response programs.

Still, almost all major EV automakers are looking at two-directional charging, Tal said.

“The incentive is you can get more value for the car,” he said. “The disincentive is you add more miles in a way on the car,” because an owner would be discharging to the grid and re-charging, and “the battery has limited life.”

And right now, discharging a vehicle to the grid would violate many warranties, he said. Car manufacturers would need to agree to change that and could call for compensation in return.

Meanwhile, San Diego Gas & Electric Co., a Sempra Energy subsidy, plans to launch a pilot looking at delivering power to the grid from electric school buses. The six buses in the pilot transport students in El Cajon, Calif., east of San Diego.

“The buses are perfect because of their big batteries and predictable schedule,” Jessica Packard, SDG&E spokesperson, said in an email. “Ultimately, we hope to scale up and deploy these kinds of innovations throughout our grid in the future.”

She declined to say how much power the buses could deliver because the project isn’t yet operating. It’s set to start later this year.

Mobility needs
While BMW and PG&E did not review vehicle-to-grid power transfers in their own 2017 research ending last year, one study in Delaware did. But it was in a university setting about eight years ago and didn’t look at actual drivers, said Langton with BMW.

In their own findings from the San Francisco Bay Area pilot program, BMW and PG&E found that incentives could quickly change driver behavior in terms of charging.

Technology helps: Most new EVs have timers that allow the driver to control when to charge and when to stop charging. Langton said the pilot program got drivers to have their cars charge from roughly 2 to 6 a.m., when electricity rates typically are lowest.

There can be a lot of solar energy during the day, but in summer, optimum charging times get more complicated in California, he said. People want to run their air conditioners during peak heat hours, so it’s important to be able to get EV drivers to shift to less congested times, he said.

With the right incentives or messaging, Langton said, the pilot persuaded drivers to move charging from 10 a.m. to 2 p.m. or noon to 4 p.m. BMW technology allowed for detailed information on battery charge level, ideal charging times and other EV data to be transmitted electronically after plugging in.

The findings are a good first step toward future vehicle-to-grid integration, Langton added.

“One of the things we really pay attention to when we do smart charging is, ‘How does the driver’s mobility needs figure into shifting their charging?'” he said. “We want to make sure that our customers can always do the driving that they need to do.”

The pilot included safeguards such as an opt-out button if the driver wanted to charge immediately. It also made sure the vehicle had a certain level of minimum charge — 15% to 20% — before the delayed smart charging kicked in.

Vehicle-to-grid technology would need to wrestle with the same concepts in a different way. If a car is getting discharged, the driver would want assurances its battery wouldn’t dip below a level that meets their mobility needs, Langton said.

“If that happened even once to a customer, they would probably not want to participate in these programs in the future,” he said.

One group adding charging stations across the country said it isn’t tweaking pricing based on when drivers charge. That’s to help grow EV purchases, said Robert Barrosa, senior director of sales and marketing at Volkswagen AG subsidiary Electrify America, which operates about 450 charging stations in 45 states.

The company has installed battery storage at more than 100 sites to make sure they can provide power at consistent prices even if California or another state calls for energy conservation.

“It’s very important for vehicle adoption that the customer have that,” Barrosa said.

The company could sell that battery storage back to the grid if there are shortfalls, but some market changes are needed first, particularly in California, he said. That’s because the company buys electricity on the retail side but would be sending it back into the wholesale market.

With that cost differential, Barrosa said, “it doesn’t make sense.”

 

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Solar is now ‘cheapest electricity in history’, confirms IEA

IEA World Energy Outlook 2020 highlights solar power as the cheapest electricity, projects faster renewables growth, models net-zero pathways, assesses COVID-19 impacts, oil and gas demand, and policy scenarios including STEPS, SDS, and NZE2050.

 

Key Points

A flagship IEA report analyzing energy trends, COVID-19 impacts, renewables growth, and pathways to net-zero in 2050.

✅ Solar now the cheapest electricity in most major markets

✅ Scenarios: STEPS, SDS, NZE2050, plus delayed recovery case

✅ Oil and gas demand uncertain; CO2 peak needs stronger policy

 

The world’s best solar power schemes now offer the “cheapest…electricity in history” with the technology cheaper than coal and gas in most major countries.

That is according to the International Energy Agency’s World Energy Outlook 2020. The 464-page outlook, published today by the IEA, also outlines the “extraordinarily turbulent” impact of coronavirus and the “highly uncertain” future of global energy use and progress in the global energy transition over the next two decades.

Reflecting this uncertainty, this year’s version of the highly influential annual outlook offers four “pathways” to 2040, all of which see a major rise in renewables across markets. The IEA’s main scenario has 43% more solar output by 2040 than it expected in 2018, partly due to detailed new analysis showing that solar power is 20-50% cheaper than thought.

Despite a more rapid rise for renewables and a “structural” decline for coal, the IEA says it is too soon to declare a peak in global oil use, unless there is stronger climate action. Similarly, it says demand for gas could rise 30% by 2040, unless the policy response to global warming steps up.

This means that, while global CO2 emissions have effectively peaked flatlining in 2019 according to the IEA, they are “far from the immediate peak and decline” needed to stabilise the climate. The IEA says achieving net-zero emissions will require “unprecedented” efforts from every part of the global economy, not just the power sector.

For the first time, the IEA includes detailed modeling of a 1.5C pathway that reaches global net-zero CO2 emissions by 2050. It says individual behaviour change, such as working from home “three days a week”, would play an “essential” role in reaching this new “net-zero emissions by 2050 case” (NZE2050).

Future scenarios
The IEA’s annual World Energy Outlook (WEO) arrives every autumn and contains some of the most detailed and heavily scrutinised analysis of the global energy system. Over hundreds of densely packed pages, it draws on thousands of datapoints and the IEA’s World Energy Model.

The outlook includes several different scenarios, to reflect uncertainty over the many decisions that will affect the future path of the global economy, as well as the route taken out of the coronavirus crisis during the “critical” next decade. The WEO also aims to inform policymakers by showing how their plans would need to change if they want to shift onto a more sustainable path, including creating the right clean electricity investment incentives to accelerate progress.

This year it omits the “current policies scenario” (CPS), which usually “provides a baseline…by outlining a future in which no new policies are added to those already in place”. This is because “[i]t is difficult to imagine this ‘business as-usual’ approach prevailing in today’s circumstances”.

Those circumstances are the unprecedented fallout from the coronavirus pandemic, which remains highly uncertain as to its depth and duration. The crisis is expected to cause a dramatic decline in global energy demand in 2020, with oil demand also dropping sharply as fossil fuels took the biggest hit.

The main WEO pathway is again the “stated policies scenario” (STEPS, formerly NPS). This shows the impact of government pledges to go beyond the current policy baseline. Crucially, however, the IEA makes its own assessment of whether governments are credibly following through on their targets.

The report explains:

“The STEPS is designed to take a detailed and dispassionate look at the policies that are either in place or announced in different parts of the energy sector. It takes into account long-term energy and climate targets only to the extent that they are backed up by specific policies and measures. In doing so, it holds up a mirror to the plans of today’s policy makers and illustrates their consequences, without second-guessing how these plans might change in future.”

The outlook then shows how plans would need to change to plot a more sustainable path, highlighting efforts to replace fossil fuels with electricity in time to meet climate goals. It says its “sustainable development scenario” (SDS) is “fully aligned” with the Paris target of holding warming “well-below 2C…and pursuing efforts to limit [it] to 1.5C”. (This interpretation is disputed.)

The SDS sees CO2 emissions reach net-zero by 2070 and gives a 50% chance of holding warming to 1.65C, with the potential to stay below 1.5C if negative emissions are used at scale.

The IEA has not previously set out a detailed pathway to staying below 1.5C with 50% probability, with last year’s outlook only offering background analysis and some broad paragraphs of narrative.

For the first time this year, the WEO has “detailed modelling” of a “net-zero emissions by 2050 case” (NZE2050). This shows what would need to happen for CO2 emissions to fall to 45% below 2010 levels by 2030 on the way to net-zero by 2050, with a 50% chance of meeting the 1.5C limit, with countries such as Canada's net-zero electricity needs in focus to get there.

The final pathway in this year’s outlook is a “delayed recovery scenario” (DRS), which shows what might happen if the coronavirus pandemic lingers and the global economy takes longer to recover, with knock-on reductions in the growth of GDP and energy demand.

 

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Shanghai Electric Signs Agreement to Launch PEM Hydrogen Production Technology R&D Center, Empowering Green Hydrogen Development in China

Shanghai Electric PEM Hydrogen R&D Center advances green hydrogen via PEM electrolysis, modular megawatt electrolyzers, zero carbon production, and full-chain industrial applications, accelerating decarbonization, clean energy integration, and hydrogen economy scale-up across China.

 

Key Points

A joint R&D hub advancing PEM electrolysis, modular megawatt systems, and green hydrogen industrialization.

✅ Megawatt modular PEM electrolyzer design and system integration

✅ Zero-carbon hydrogen targeting mobility, chemicals, and power

✅ Full-chain collaboration from R&D to EPC and demonstration projects

 

Shanghai Electric has reached an agreement with the Dalian Institute of Chemical Physics of the Chinese Academy of Sciences (the "Dalian Institute") to inaugurate the Proton Exchange Membrane (PEM) Hydrogen Production Technology R&D Center on March 4. The two parties signed a project cooperation agreement on Megawatt Modular and High-Efficiency PEM Hydrogen Production Equipment and System Development, marking an important step forward for Shanghai Electric in the field of hydrogen energy.

As one of China's largest energy equipment manufacturers, Shanghai Electric is at the forefront in the development of green hydrogen as part of China's clean energy drive. During this year's Two Sessions, the 14th Five-Year Plan was actively discussed, in which green hydrogen features prominently, and Shell's 2060 electricity forecast underscores the scale of electrification. With strong government support and widespread industry interest, 2021 is emerging as Year Zero for the hydrogen energy industry.

Currently, Shanghai Electric and the Dalian Institute have reached a preliminary agreement on the industrial development path for new energy power generation and electrolyzed water hydrogen production. As part of the cooperation, both will also continue to enhance the transformational potential of PEM electrolyzed water hydrogen production, accelerate the development of competitive PEM electrolyzed hydrogen products, and promote industrial applications and scenarios, drawing on projects like Japan's large H2 energy system to inform deployment. Moreover, they will continue to carry out in-depth cooperation across the entire hydrogen energy industry chain to accelerate overall industrialization.

Hydrogen energy boasts the biggest potential of all the current forms of clean energy, and the key to its development lies in its production. At present, hydrogen production primarily stems from fossil fuels, industrial by-product hydrogen recovery and purification, and production by water electrolysis. These processes result in significant carbon emissions. The rapid development of PEM water electrolysis equipment worldwide in recent years has enabled current technologies to achieve zero carbon emissions, effectively realizing green, clean hydrogen. This breakthrough will be instrumental in helping China achieve its carbon peak and carbon-neutrality goals.

The market potential for hydrogen production from electrolyzed water is therefore massive. Forecasts indicate that, by 2050, hydrogen energy will account for approximately 10% of China's energy market, with demand reaching 60 million tons and annual output value exceeding RMB 10 trillion. The Hydrogen: Tracking Energy Integration report released by the International Energy Agency in June 2020 notes that the number of global electrolysis hydrogen production projects and installed capacity have both increased significantly, with output skyrocketing from 1 MW in 2010 to more than 25 MW in 2019. Much of the excitement comes from hydrogen's potential to join the ranks of natural gas as an energy resource that plays a pivotal role in international trade, as seen in Germany's call for hydrogen-ready power plants shaping future power systems, with the possibility of even replacing it one day. In PwC's 2020 The Dawn of Green Hydrogen report, the advisory predicts that experimental hydrogen will reach 530 million tons by mid-century.

Shanghai Electric set its focus on hydrogen energy years ago, given its major potential for growth as one of the new energy technologies of the future and, in particular, its ability to power new energy vehicles. In 2016, the Central Research Institute of Shanghai Electric began to invest in R&D for key fuel cell systems and stack technologies. In 2020, Shanghai Electric's independently-developed fuel cell engine, which boasts a power capacity of 66 kW and can start in cold temperature environments of as low as -30°C, passed the inspection test of the National Motor Vehicle Product Quality Inspection Center. It adopts Shanghai Electric's proprietary hydrogen circulation system, which delivers strong power and impressive endurance, with the potential to replace gasoline and diesel engines in commercial vehicles.

As the technology matures, hydrogen has entered a stage of accelerated industrialization, with international moves such as Egypt's hydrogen MoU with Eni signaling broader momentum. Shanghai Electric is leveraging the opportunities to propel its development and the green energy transformation. As part of these efforts, Shanghai Electric established a Hydrogen Energy Division in 2020 to further accelerate the development and bring about a new era of green, clean energy.

As one of the largest energy equipment manufacturing companies in China, Shanghai Electric, with its capability for project development, marketing, investment and financing and engineering, procurement and construction (EPC), continues to accelerate the development and innovation of new energy. The Company has a synergistic foundation and resource advantages across the industrial chain from upstream power generation, including China's nuclear energy development efforts, to downstream chemical metallurgy. The combined elements will accelerate the pace of Shanghai Electric's entry into the field of hydrogen production.

Currently, Shanghai Electric has deployed a number of leading green hydrogen integrated energy industry demonstration projects in Ningdong Base, one of China's four modern coal chemical industry demonstration zones. Among them, the Ningdong Energy Base "source-grid-load-storage-hydrogen" project integrates renewable energy generation, energy storage, hydrogen production from electrolysis, and the entire industrial chain of green chemical/metallurgy, where applications like green steel production in Germany illustrate heavy-industry decarbonization.

In December 2020, Shanghai Electric inked a cooperation agreement to develop a "source-grid-load-storage-hydrogen" energy project in Otog Front Banner, Inner Mongolia. Equipped with large-scale electrochemical energy storage and technologies such as compressed air energy storage options, the project will build a massive new energy power generation base and help the region to achieve efficient cold, heat, electricity, steam and hydrogen energy supply.

 

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