Company plans to burn waste coal

Offshore wind power accelerates low-carbon electrification, leveraging floating turbines, high capacity factors, HVDC transmission, and hydrogen production to decarbonize grids, cut CO2, and deliver competitive, reliable renewable energy near demand centers.

Key Points

Offshore wind power uses offshore turbines to deliver low-carbon electricity with high capacity factors and falling costs.

✅ Sea-based wind farms with 40-50% capacity factors

✅ Floating turbines unlock deep-water, far-shore resources

✅ Enables hydrogen production and strengthens grid reliability

The need for affordable low-carbon technologies is greater than ever

Global energy-related CO2 emissions reached a historic high in 2018, driven by an increase in coal use in the power sector. Despite impressive gains for renewables, fossil fuels still account for nearly two-thirds of electricity generation, the same share as 20 years ago. There are signs of a shift, with increasing pledges to decarbonise economies and tackle air pollution, and with World Bank support helping developing countries scale wind, but action needs to accelerate to meet sustainable energy goals. As electrification of the global energy system continues, the need for clean and affordable low-carbon technologies to produce this electricity is more pressing than ever. This World Energy Outlook special report offers a deep dive on a technology that today has a total capacity of 23 GW (80% of it in Europe) and accounts for only 0.3% of global electricity generation, but has the potential to become a mainstay of the world's power supply. The report provides the most comprehensive analysis to date of the global outlook for offshore wind, its contributions to electricity systems and its role in clean energy transitions.

The offshore wind market has been gaining momentum

The global offshore wind market grew nearly 30% per year between 2010 and 2018, benefitting from rapid technology improvements. Over the next five years, about 150 new offshore wind projects are scheduled to be completed around the world, pointing to an increasing role for offshore wind in power supplies. Europe has fostered the technology's development, led by the UK offshore wind sector alongside Germany and Denmark. The United Kingdom and Germany currently have the largest offshore wind capacity in operation, while Denmark produced 15% of its electricity from offshore wind in 2018. China added more capacity than any other country in 2018.

The untapped potential of offshore wind is vast

The best offshore wind sites could supply more than the total amount of electricity consumed worldwide today. And that would involve tapping only the sites close to shores. The IEA initiated a new geospatial analysis for this report to assess offshore wind technical potential country by country. The analysis was based on the latest global weather data on wind speed and quality while factoring in the newest turbine designs. Offshore wind's technical potential is 36 000 TWh per year for installations in water less than 60 metres deep and within 60 km from shore. Global electricity demand is currently 23 000 TWh. Moving further from shore and into deeper waters, floating turbines could unlock enough potential to meet the world's total electricity demand 11 times over in 2040. Our new geospatial analysis indicates that offshore wind alone could meet several times electricity demand in a number of countries, including in Europe, the United States and Japan. The industry is adapting various floating foundation technologies that have already been proven in the oil and gas sector. The first projects are under development and look to prove the feasibility and cost-effectiveness of floating offshore wind technologies.

Offshore wind's attributes are very promising for power systems

New offshore wind projects have capacity factors of 40-50%, as larger turbines and other technology improvements are helping to make the most of available wind resources. At these levels, offshore wind matches the capacity factors of gas- and coal-fired power plants in some regions – though offshore wind is not available at all times. Its capacity factors exceed those of onshore wind and are about double those of solar PV. Offshore wind output varies according to the strength of the wind, but its hourly variability is lower than that of solar PV. Offshore wind typically fluctuates within a narrower band, up to 20% from hour to hour, than solar PV, which varies up to 40%.

Offshore wind's high capacity factors and lower variability make its system value comparable to baseload technologies, placing it in a category of its own – a variable baseload technology. Offshore wind can generate electricity during all hours of the day and tends to produce more electricity in winter months in Europe, the United States and China, as well as during the monsoon season in India. These characteristics mean that offshore wind's system value is generally higher than that of its onshore counterpart and more stable over time than that of solar PV. Offshore wind also contributes to electricity security, with its high availability and seasonality patterns it is able to make a stronger contribution to system needs than other variable renewables. In doing so, offshore wind contributes to reducing CO2 and air pollutant emissions while also lowering the need for investment in dispatchable power plants. Offshore wind also has the advantage of avoiding many land use and social acceptance issues that other variable renewables are facing.

Offshore wind is on track to be a competitive source of electricity

Offshore wind is set to be competitive with fossil fuels within the next decade, as well as with other renewables including solar PV. The cost of offshore wind is declining and is set to fall further. Financing costs account for 35% to 50% of overall generation cost, and supportive policy frameworks are now enabling projects to secure low cost financing in Europe, with zero-subsidy tenders being awarded. Technology costs are also falling. The levelised cost of electricity produced by offshore wind is projected to decline by nearly 60% by 2040. Combined with its relatively high value to the system, this will make offshore wind one of the most competitive sources of electricity. In Europe, recent auctions indicate that offshore wind will soon beat new natural gas-fired capacity on cost and be on a par with solar PV and onshore wind. In China, offshore wind is set to become competitive with new coal-fired capacity around 2030 and be on par with solar PV and onshore wind. In the United States, recent project proposals indicate that offshore wind will soon be an affordable option, even as the 1 GW timeline continues to evolve, with potential to serve demand centres along the country's east coast.

Innovation is delivering deep cost reductions in offshore wind, and transmission costs will become increasingly important. The average upfront cost to build a 1 gigawatt offshore wind project, including transmission, was over $4 billion in 2018, but the cost is set to drop by more than 40% over the next decade. This overall decline is driven by a 60% reduction in the costs of turbines, foundations and their installation. Transmission accounts for around one-quarter of total offshore wind costs today, but its share in total costs is set to increase to about one-half as new projects move further from shore. Innovation in transmission, for example through work to expand the limits of direct current technologies, will be essential to support new projects without raising their overall costs.

Offshore wind is set to become a $1 trillion business

Offshore wind power capacity is set to increase by at least 15-fold worldwide by 2040, becoming a $1 trillion business. Under current investment plans and policies, the global offshore wind market is set to expand by 13% per year, reflecting its growth despite Covid-19 in recent years, passing 20 GW of additions per year by 2030. This will require capital spending of $840 billion over the next two decades, almost matching that for natural gas-fired or coal-fired capacity. Achieving global climate and sustainability goals would require faster growth: capacity additions would need to approach 40 GW per year in the 2030s, pushing cumulative investment to over $1.2 trillion. 

The promising outlook for offshore wind is underpinned by policy support in an increasing number of regions. Several European North Seas countries – including the United Kingdom, Germany, the Netherlands and Denmark – have policy targets supporting offshore wind. Although a relative newcomer to the technology, China is quickly building up its offshore wind industry, aiming to develop a project pipeline of 10 GW by 2020. In the United States, state-level targets and federal incentives are set to kick-start the U.S. offshore wind surge in the coming years. Additionally, policy targets are in place and projects under development in Korea, Japan, Chinese Taipei and Viet Nam.

 The synergies between offshore wind and offshore oil and gas activities provide new market opportunities. Since offshore energy operations share technologies and elements of their supply chains, oil and gas companies started investing in offshore wind projects many years ago. We estimate that about 40% of the full lifetime costs of an offshore wind project, including construction and maintenance, have significant synergies with the offshore oil and gas sector. That translates into a market opportunity of $400 billion or more in Europe and China over the next two decades. The construction of foundations and subsea structures offers potential crossover business, as do practices related to the maintenance and inspection of platforms. In addition to these opportunities, offshore oil and gas platforms require electricity that is often supplied by gas turbines or diesel engines, but that could be provided by nearby wind farms, thereby reducing CO2 emissions, air pollutants and costs.

Offshore wind can accelerate clean energy transitions

Offshore wind can help drive energy transitions by decarbonising electricity and by producing low-carbon fuels. Over the next two decades, its expansion could avoid between 5 billion and 7 billion tonnes of CO2 emissions from the power sector globally, while also reducing air pollution and enhancing energy security by reducing reliance on imported fuels. The European Union is poised to continue leading the wind energy at sea in Europe industry in support of its climate goals: its offshore wind capacity is set to increase by at least fourfold by 2030. This growth puts offshore wind on track to become the European Union's largest source of electricity in the 2040s. Beyond electricity, offshore wind's high capacity factors and falling costs makes it a good match to produce low-carbon hydrogen, a versatile product that could help decarbonise the buildings sector and some of the hardest to abate activities in industry and transport. For example, a 1 gigawatt offshore wind project could produce enough low-carbon hydrogen to heat about 250 000 homes. Rising demand for low-carbon hydrogen could also dramatically increase the market potential for offshore wind. Europe is looking to develop offshore "hubs" for producing electricity and clean hydrogen from offshore wind.

It's not all smooth sailing

Offshore wind faces several challenges that could slow its growth in established and emerging markets, but policy makers and regulators can clear the path ahead. Developing efficient supply chains is crucial for the offshore wind industry to deliver low-cost projects. Doing so is likely to call for multibillion-dollar investments in ever-larger support vessels and construction equipment. Such investment is especially difficult in the face of uncertainty. Governments can facilitate investment of this kind by establishing a long-term vision for offshore wind and by drawing on U.K. policy lessons to define the measures to be taken to help make that vision a reality. Long-term clarity would also enable effective system integration of offshore wind, including system planning to ensure reliability during periods of low wind availability.

The success of offshore wind depends on developing onshore grid infrastructure. Whether the responsibility for developing offshore transmission lies with project developers or transmission system operators, regulations should encourage efficient planning and design practices that support the long-term vision for offshore wind. Those regulations should recognise that the development of onshore grid infrastructure is essential to the efficient integration of power production from offshore wind. Without appropriate grid reinforcements and expansion, there is a risk of large amounts of offshore wind power going unused, and opportunities for further expansion could be stifled. Development could also be slowed by marine planning practices, regulations for awarding development rights and public acceptance issues.

The future of offshore wind looks bright but hinges on the right policies

The outlook for offshore wind is very positive as efforts to decarbonise and reduce local pollution accelerate. While offshore wind provides just 0.3% of global electricity supply today, it has vast potential around the world and an important role to play in the broader energy system. Offshore wind can drive down CO2 emissions and air pollutants from electricity generation. It can also do so in other sectors through the production of clean hydrogen and related fuels. The high system value of offshore wind offers advantages that make a strong case for its role alongside other renewables and low-carbon technologies. Government policies will continue to play a critical role in the future of offshore wind and  the overall pace of clean energy transitions around the world.

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Crosbie Hydro Energy Action Plan outlines rate mitigation for Muskrat Falls, leveraging Nalcor oil revenues, export sales, Holyrood savings, and potential Hydro-Quebec taxation to keep Newfoundland and Labrador electricity rates near 14.67 cents/kWh.

Key Points

PC plan to cap post-Muskrat rates by using Nalcor revenues, exports, and savings, with optional Accord funds.

✅ $575.4M yearly to hold rates near 14.67 cents/kWh

✅ Sources: Nalcor oil $231M, Holyrood $150M, rates/dividends $123.4M

✅ Options: export sales, restructuring, Atlantic Accord, HQ tax

Newfoundland and Labrador PC Leader Ches Crosbie says Muskrat Falls won't drive up electricity rates, a goal consistent with an agreement to shield ratepayers from cost overruns, if he's elected premier.

According to Crosbie, who presented the party's Crosbie Hydro Energy Action Plan — acronym CHEAP — at a press conference Monday, $575.4 million is needed per year in order to keep rates from ballooning past 14.67 cents per kilowatt hour.

Here's where he thinks the money could come from:

• Hydro rates and dividends — $123.4 million
• Export sales — $40.1 million
• Nalcor restructuring — $30 million
• Holyrood savings — $150  million
• Nalcor oil revenue — $231 million

The oil money, Crosbie said, isn't going into government coffers but being invested into the offshore which, he said, is a good place for it.

"But the plan from the beginning around Muskrat Falls was that if there was need for it — for mitigation for rates — that those revenues and operating cash flows from Nalcor oil and gas would be available to be recycled into rate mitigation, as reflected in a recent financial update on the pandemic's impact. and that's what we're going to have to do," he said.

According to Crosbie, his numbers come from the preliminary stage of the Public Utilities Board process, even as rate mitigation talks have lacked public details.

This is a recent aerial view of the Muskrat Falls project in central Labrador. The project is more than 90 per cent complete, with first power forecast for late 2019, alongside Ottawa's $5.2B support for the project. (Nalcor)

"I'm telling you this is the best information available to anyone outside of government," he said. "We're working on what we can."

The PUB estimated Nalcor restructuring could save between $10 million and $15 million, according to Crosbie, but he figures there's "enough duplication and overpayment involved in the way things are now set up that we can find $30 million there."

Currently, provincial ratepayers pay about 12 cents per kilowatt hour as electricity users have started paying for Muskrat Falls costs.

Crosbie's $575.4-million figure would put rates at 14.67 cents per kilowatt-hour in 2021, where his plan pledges to keep them.

A recent Public Utilities Board Report says there's a potential $10 million to $15 million in savings from Nalcor, but Crosbie says he can find $30 million. (CBC)

"The promise is that Muskrat Falls, when it comes online — comes in service — will not increase your rates. Between now and when that happens there are rate increases already in the pipeline up to that level of [14.67 cents per kilowatt-hour] … so that is the baseline target rate at which rates will be kept.

"In other words, Muskrat will not drive up prices for electricity to consumers beyond that point."

In addition to those savings, Crosbie's plan outlined two further steps.

"We think it could be done out of the resources that I've just identified now, but if there's a problem with that, and as a temporary measure, we can use a modest amount of the Atlantic Accord review, fiscal review, revenues," he said.

Plan 'nothing new'

Premier Dwight Ball slammed the plan at the House of Assembly on Monday, saying it lacked insight.

"It was a copy and paste exercise," he told reporters. "There's nothing new in that plan. Not at all."

"We're not leaving any stone unturned of where the opportunity would be to actually generate revenue," he said.  "We are genuinely concerned about rate mitigation and we've got to get a plan in place."

Potential to tax Hydro-Québec

Crosbie also said there's potential to tax Hydro-Québec.

According to Crosbie, tax exemptions that expired in 2016 allow the province to tax exports from the Upper Churchill, which, he said, could result in "hundreds of millions or billions" in revenue.

"It's not my philosophy to immediately go and do that because that would generate litigation — who needs more of that? — but we do need to let Quebec know that we're very aware of that, and aware of that opportunity, and invite them to come talk about a whole host of issues," Crosbie said.

Crosbie said the tax would also have to be applied to domestic consumption.

"But so massive is the potential revenue from the Upper Churchill export that there would be ways to mitigate that and negate the effect of that on consumers in the province."

Crosbie said with the Atlantic Accord revenue, he could still present a balanced budget by 2022.

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ERCOT Texas Power Grid Crisis disrupts millions amid a winter storm, with rolling blackouts, power outages, and energy demand; Elon Musk criticizes ERCOT as Tesla owners use Camp Mode while wind turbines face icing

Key Points

A Texas blackout during a winter storm, exposing ERCOT failures, rolling blackouts, and urgent grid resilience measures.

✅ Millions without power amid record cold and energy demand

✅ Elon Musk criticizes ERCOT over grid reliability failures

✅ Tesla Camp Mode aids warmth during extended outages

Tesla CEO Elon Musk on Wednesday slammed the Texas agency responsible for a statewide blackout amid a U.S. grid with frequent outages that has left millions of people to fend for themselves in a freezing cold winter storm.

Musk tweeted that Texas’ power grid manager, the Electricity Reliability Council of Texas (ERCOT), is not earning the “R” in the acronym, highlighting broader grid vulnerabilities that critics have noted.

Musk moved to Texas from California in December and is building a new Tesla factory in Austin. His critique of the state’s electrical grid operator came after multiple Tesla owners in the state said they had slept in their vehicles to keep warm amid the lingering power outage.

In 2019, Tesla released a vehicle with a “Camp Mode,” which enables owners to use the vehicle’s features – like lights and climate control – without significantly depleting the battery.

“We had the power go out for 6 hours last night. Our house does not have gas, and we ran out of firewood... what are we going to do,” one Reddit user wrote on “r/TeslaMotors.”

“So my wife my dog and my newborn daughter slept in the garage in our Model3 all nice and cozy. If I didn't have this car, it would have been a very rough night.”

More than two dozen people have died in the extreme weather this week, some while struggling to find warmth inside their homes. In the Houston area, one family succumbed to carbon monoxide from car exhaust in their garage. Another perished as they used a fireplace to keep warm.

Utilities from Minnesota to Texas and Mississippi have implemented rolling blackouts to ease the burden on power grids straining to meet extreme demand for heat and electricity, as longer, more frequent outages hit systems nationwide.

More than 3 million customers remained without power in Texas, Louisiana and Mississippi, more than 200,000 more in four Appalachian states, and nearly that many in the Pacific Northwest, according to poweroutage.us, which tracks utility outage reports, and advocates warn that millions could face summer shut-offs without protections.

ERCOT said early Wednesday that electricity had been restored to 600,000 homes and businesses by Tuesday night, though nearly 3 million homes and businesses remained without power, as California turns to batteries to help balance demand. Officials did not know when power would be restored.

ERCOT President Bill Magness said he hoped many customers would see at least partial service restored soon but could not say definitively when that would be.

Magness has defended ERCOT’s decision, saying it prevented an “even more catastrophic than the terrible events we've seen this week."

Utility crews raced Wednesday to restore power to nearly 3.4 million customers around the U.S. who were still without electricity in the aftermath of a deadly winter storm, even as officials urge residents to prepare for summer blackouts that could tax systems further, and another blast of ice and snow threatened to sow more chaos.

The latest storm front was expected to bring more hardship to states that are unaccustomed to such frigid weather — parts of Texas, Arkansas and the Lower Mississippi Valley — before moving into the Northeast on Thursday.

"There's really no letup to some of the misery people are feeling across that area," said Bob Oravec, lead forecaster with the National Weather Service, referring to Texas.

Sweden, known for its brutally cold climate, has offered some advice to Texans unaccustomed to such freezing temperatures, as Canadian grids are increasingly exposed to harsh weather that strains reliability. Stefan Skarp of the Swedish power company told Bloomberg on Tuesday: “The problem with sub-zero temperatures and humid air is that ice will form on the wind turbines.”

“When ice freezes on to the wings, the aerodynamic changes for the worse so that wings catch less and less wind until they don't catch any wind at all,” he said.

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COVID-19 Impact on Electricity Demand, per IEA data, shows 15% global load drop from lockdowns, with residential use up, industrial and service sectors down; fossil fuel generation fell as renewables and photovoltaics gained share.

Key Points

An overview of how lockdowns cut global power demand, boosted residential use, and increased the renewable share.

✅ IEA review shows at least 15% dip in daily global electricity load

✅ Lockdowns cut commercial and industrial demand; homes used more

✅ Fossil fuels fell as renewables and PV generation gained share

The daily demand for electricity dipped at least 15 per cent across the globe, according to Global Energy Review 2020: The impacts of the COVID-19 crisis on global energy demand and CO2 emissions, a report published by the International Energy Agency (IEA) in April 2020, even as global power demand surged above pre-pandemic levels.

The report collated data from 30 countries, including India and China, that showed partial and full lockdown measures adopted by them were responsible for this decrease.

Full lockdowns in countries — including France, Italy, India, Spain, the United Kingdom where daily demand fell about 10% and the midwest region of the United States (US) — reduced this demand for electricity.

Reduction in electricity demand after lockdown measures (weather corrected)

Source: Global Energy Review 2020: The impacts of the COVID-19 crisis on global energy demand and CO2 emissions, IEA

Drivers of the fall

There was, however, a spike in residential demand for electricity as a result of people staying and working from home. This increase in residential demand, though, was not enough to compensate for reduced demand from industrial and commercial operations.

The extent of reduction depended not only on the duration and stringency of the lockdown, but also on the nature of the economy of the countries — predominantly service- or industry-based — the IEA report said.

A higher decline in electricity demand was noted in countries where the service sector — including retail, hospitality, education, tourism — was dominant, compared to countries that had industrial economies.

The US, for example — where industry forms only 20 per cent of the economy — saw larger reductions in electricity demand, compared to China, where power demand dropped as the industry accounts for more than 60 per cent of the economy.

Italy — the worst-affected country from COVID-19 — saw a decline greater than 25 per cent when compared to figures from last year, even as power demand held firm in parts of Europe during later lockdowns.

The report said the shutting down of the hospitality and tourism sectors in the country — major components of the Italian economy — were said to have had a higher impact, than any other factor, for this fall.

Reduced fossil fuel dependency

Almost all of the reduction in demand was reportedly because of the shutting down of fossil fuel-based power generation, according to the report. Instead, the share of electricity supply from renewables in the entire portfolio of energy sources, increased during the pandemic, reflecting low-carbon electricity lessons observed during COVID-19.

This was due to a natural increase in wind and photovoltaic power generation compared to 2019 along with a drop in overall electricity demand that forced electricity producers from non-renewable sources to decrease their supplies, before surging electricity demand began to strain power systems worldwide.

The Power System Operation Corporation of India also reported that electricity production from coal — India’s primary source of electricity — fell by 32.2 per cent to 1.91 billion units (kilowatt-hours) per day, in line with India's electricity demand decline reported during the pandemic, compared to the 2019 levels.

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Rooftop solar grids transform urban infrastructure with distributed generation, photovoltaic panels, smart grid integration and energy storage, cutting greenhouse gas emissions, lowering utility costs, enabling net metering and community solar for low-carbon energy systems.

Key Points

Rooftop solar grids are PV systems on buildings that generate power, cut emissions, and enable smart grid integration.

✅ Lowers utility bills via net metering and demand offset

✅ Reduces greenhouse gases and urban air pollution

✅ Enables resiliency with storage, smart inverters, and microgrids

As urban areas expand and the climate crisis intensifies, cities are seeking innovative ways to integrate renewable energy sources into their infrastructure. One such solution gaining traction is the installation of rooftop solar grids. A recent CBC News article highlights the significant impact of these solar systems on urban environments, showcasing their benefits and the challenges they present.

Harnessing Unused Space for Sustainable Energy

Rooftop solar panels are revolutionizing how cities approach energy consumption and environmental sustainability. By utilizing the often-overlooked space on rooftops, these systems provide a practical solution for generating renewable energy in densely populated areas. The CBC article emphasizes that this approach not only makes efficient use of available space but also contributes to reducing a city's reliance on non-renewable energy sources.

The ability to generate clean energy directly from buildings helps decrease greenhouse gas emissions and, as scientists work to improve solar and wind power, promotes a shift towards a more sustainable energy model. Solar panels absorb sunlight and convert it into electricity, reducing the need for fossil fuels and lowering overall carbon footprints. This transition is crucial as cities grapple with rising temperatures and air pollution.

Economic and Environmental Advantages

The economic benefits of rooftop solar grids are considerable. For homeowners and businesses, installing solar panels can lead to substantial savings on electricity bills. The initial investment in solar technology is often balanced by long-term energy savings and financial incentives, such as tax credits or rebates, and evidence that solar is cheaper than grid electricity in Chinese cities further illustrates the trend toward affordability. According to the CBC report, these financial benefits make solar energy a compelling option for many urban residents and enterprises.

Environmentally, the advantages are equally compelling. Solar energy is a renewable and clean resource, and increasing the number of rooftop solar installations can play a pivotal role in meeting local and national renewable energy targets, as illustrated when New York met its solar goals early in a recent milestone. The reduction in greenhouse gas emissions from fossil fuel energy sources directly contributes to mitigating climate change and improving air quality.

Challenges in Widespread Adoption

Despite the clear benefits, the adoption of rooftop solar grids is not without its challenges. One of the primary hurdles is the upfront cost of installation. While prices for solar panels have decreased over time, the initial financial outlay remains a barrier for some property owners, and regions like Alberta have faced solar expansion challenges that highlight these constraints. Additionally, the effectiveness of solar panels can vary based on factors such as geographic location, roof orientation, and local weather patterns.

The CBC article also highlights the importance of supportive infrastructure and policies for the success of rooftop solar grids. Cities need to invest in modernizing their energy grids to accommodate the influx of solar-generated electricity, and, in the U.S., record clean energy purchases by Southeast cities have signaled growing institutional demand. Furthermore, policies and regulations must support solar adoption, including issues related to net metering, which allows solar panel owners to sell excess energy back to the grid.

Innovative Solutions and Future Prospects

The future of rooftop solar grids looks promising, thanks to ongoing technological advancements. Innovations in photovoltaic cells and energy storage solutions are expected to enhance the efficiency and affordability of solar systems. The development of smart grid technology and advanced energy management systems, including peer-to-peer energy sharing, will also play a critical role in integrating solar power into urban infrastructures.

The CBC report also mentions the rise of community solar projects as a significant development. These projects allow multiple households or businesses to share a single solar installation, making solar energy more accessible to those who may not have suitable rooftops for solar panels. This model expands the reach of solar technology and fosters greater community engagement in renewable energy initiatives.

Conclusion

Rooftop solar grids are emerging as a key element in the transition to sustainable urban energy systems. By leveraging unused rooftop space, cities can harness clean, renewable energy, reduce greenhouse gas emissions, and, as developers learn that more energy sources make better projects, achieve long-term economic savings. While there are challenges to overcome, such as initial costs and regulatory hurdles, the benefits of rooftop solar grids make them a crucial component of the future energy landscape. As technology advances and policies evolve, rooftop solar grids will play an increasingly vital role in shaping greener, more resilient urban environments.

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Ontario Electricity Billing Changes include OEB-backed shifts to time-of-use or tiered pricing, landlord blanket elections, LDC implementation guidance, a customer choice webpage with a bill calculator, and ENDM rate mitigation messaging.

Key Points

They are OEB measures enabling TOU-to-tiered switching, landlord elections, LDC guidance, and ENDM bill messages.

✅ Option to switch from TOU to tiered pricing

✅ Landlord blanket elections on tenant turnover

✅ ENDM-led bill info and rate mitigation messaging

By David Stevens, Aird & Berlis LLP

Electricity consumers in Ontario may see a couple of electricity rate changes in their bills in the coming months.

First, as we have already discussed, as of November 1, 2020, regulated price plan customers will have the option to switch to "tiered pricing" instead of time-of-use (TOU) pricing structures. Those who switch to "tiered pricing" will see changes in their electricity bills.

The Ontario Energy Board (OEB) has now issued final amendments to the Standard Supply Service Code to support the customer election process necessary to switch from TOU pricing to tiered pricing. The main change from what was already published in previous OEB notices is that landlords will be permitted to make a "blanket election" between TOU pricing and tiered pricing that will apply each time a tenant's account reverts back to the landlord on turnover of the rental unit. In its most recent notice, the OEB acknowledges that implementing the new customer billing option as of Nov. 1 (less than two months from now) will be challenging and directs Local Distribution Companies (LDCs) who cannot meet this date to be immediately in touch with the OEB. Finally, the OEB indicates that there will be a dedicated "customer choice webpage for consumers, including a bill calculator" in place by early October.

Second, as of January 1, 2021 low-volume consumers will see additional messaging on their bills to inform them of available rate mitigation programs.

A recent proposal posted on Ontario's Regulatory Registry indicates that the Ministry of Energy, Northern Development and Mines (ENDM) proposes that LDCs and Utility Sub-Meter Providers will be required to include a new on-bill message for low-volume consumers that "will direct customers to ENDM's new web page for further information about how the province provides financial support to electricity consumers." This new requirement is planned to be in place as of January 1, 2021. In conjunction with this requirement, the ENDM plans to launch a new web page that will provide "up-to-date information about electricity bills," including information about rate mitigation programs available to consumers. Parties are invited to submit comments on the ENDM proposal by October 5, 2020.

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