Canada, Germany to work together on clean energy


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Clean Energy Transition spans hydrogen strategies, offshore wind and undersea cables, decarbonization pledges, and net-zero targets, including green vs blue hydrogen, carbon capture, sustainable aviation fuel, forest conservation, and wetland protection in Canadian policy.

 

Key Points

A shift to low-carbon systems via hydrogen, renewables, net-zero policies, carbon capture, and conservation.

✅ Hydrogen pathways: green vs blue with carbon capture

✅ Grid expansion: offshore wind and undersea cables in Japan

✅ Policy and corporate moves: net-zero, SAF, forests, wetlands

 

The Canadian federal government is set to sign a new agreement with Germany to strategize on a “clean-energy transition,” with clean hydrogen in Canada expected to be a key player the Globe and Mail reports.

“Germany is probably the world’s most interesting market for hydrogen right now, and Canada is potentially a very big power in its production,” Sabine Sparwasser, Germany’s ambassador to Canada, said in an interview.

However, some friction is expected as Natural Resources Minister Seamus O’Regan has been endorsing “blue” hydrogen, while Germany has been more interested in “green” hydrogen. The former hydrogen is produced from natural gas or other fossil fuels, while simultaneously “using carbon-capture technology to minimize emissions from the process.” In contrast, “green” hydrogen, is manufactured from non-fossil fuel sources, and cleaning up Canada's electricity is critical to meeting climate pledges.

“How the focus on blue hydrogen will be aligned with Canada’s goal of reaching climate neutrality by 2050 is not spelled out in detail,” says an executive summary of the report by the Berlin-based think tank and consultancy Adelphi. “As a result, the strategy seems to be more of a vision for the future of those provinces with large fossil fuel resources.”

According to an IEA report Canada will need more electricity to hit net-zero, underscoring the strategy questions.

 

Internationally

Japan is in talks to develop undersea cables that would bring offshore wind energy to Tokyo and the Kansai region, as the country hopes to more than quadrable its wind capacity from 10 gigawatts in 2030 to 45 gigawatts in 2040. The construction of the cables would cost about US$9.2 billion.

In Western Canada, bridging the electricity gap between Alberta and B.C. makes similar climate sense, proponents argue.

Approximately 80 per cent of that offshore power is expected to be built in Hokkaido, Tohoku, and Kyushu regions. The project is part of the country’s pledge to achieve decarbonization by 2050, according to BNN Bloomberg.

Meanwhile, Russia is falling behind in the world’s transition to clean energy.

“What’s the alternative? Russia can’t be an exporter of clean energy, that path isn’t open for us,” says Konstantin Simonov, director of the National Energy Security Fund, a Moscow consultancy whose clients include major oil and gas companies. “We can’t just swap fossil fuel production for clean energy production, because we don’t have any technology of our own.” Ultimately, natural gas will always be cheaper than renewable energy in Russia, Simonov added. This story also from BNN Bloomberg.

Finally, New Zealand’s Tilt Renewables Ltd., an electricity company, has announced it would be acquired by Powering Australian Renewables (PowAR) for NZ$2.94 billion (US$2.10 billion). PowAR is Australia’s largest owner of wind and solar energy, and the deal will give the energy giant access to Tilt’s 20 wind farms. Reuters has the story.

 

In Canada  

Air Canada has unveiled plans to fight climate change. Specifically, the airlines giant has committed to reducing greenhouse gases (GHG) by 20 per cent from flights by 2030, investing $50 million in sustainable aviation fuel (SAF), and ensuring net-zero emissions by 2050.

In other news, B.C. is facing mounting pressure to abstain from logging “old growth forests” while the government transitions to more sustainable forestry policies. A report titled A New Future for Old Forests called on the provincial government to act within six months to protect such forests in April 2020.

The province's Site C mega dam is billions over budget but will go ahead, the premier said, highlighting the energy sector's complexity.

Last September, the province announced, “it would temporarily defer old growth harvesting in close to 353,000 hectares in nine different areas.” The B.C. government will hold consultations with First Nations and other forestry stakeholders “to determine the next areas where harvesting may be deferred,” according to Forests Minister Katrine Conroy. The Canadian Press has more.

Separately, LNG powered with electricity could be a boon for B.C.'s independent power producers, analysts say.

Finally, Pickering Developments Inc. has come forward saying it will not “alter or remove the wetland” that was meant to house an Amazon facility, according to CBC News.

The announcement comes after CBC News’s previously reported that the Toronto and Region Conservation Authority (TRCA) was pressured to issue a construction permit to Pickering Developments Inc. by Doug Ford’s provincial government. However, on March 12, an official with Amazon Canada told CBC News that the company no longer wished to build a warehouse on the site.

“In light of a recent announcement that a new fulfilment centre will no longer be located on this property, this voluntary undertaking ensures that no work, legally authorized by that permit, will occur,” Pickering Development Inc. said in a statement provided to CBC Toronto.

 

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Battery energy storage system eyed near Woodstock

Oxford Battery Energy Storage Project will store surplus renewable power near South-West Oxford and Woodstock, improving grid stability, peak shaving, and reliability, pending IESO approval and Hydro One transmission interconnection in Ontario.

 

Key Points

A Boralex battery project in South-West Oxford storing surplus power for Woodstock at peak demand pending IESO approval.

✅ 2028 commercial operation target

✅ Connects to Hydro One transmission line

✅ Peak shaving to stabilize grid costs

 

A Quebec-based renewable energy company is proposing to build a battery energy storage system in Oxford County near Woodstock.

The Oxford battery energy storage project put forward by Boralex Inc., if granted approval, would be ready for commercial operation in 2028. The facility would be in the Township of South-West Oxford, but also would serve Woodstock businesses and residences, supported by provincial disconnect moratoriums for customers, due to the city’s proximity to the site.

Battery storage systems charge when energy sources produce more energy than customers need, and, complementing Ontario’s energy-efficiency programs across the province, discharge during peak demand to provide a reliable, steady supply of energy.

Darren Suarez, Boralex’s vice-president of public affairs and communications in North America, said, “The system we’re talking about is a very large battery that will help at times when the electric grid has too much energy on the system. We’ll be able to charge our batteries, and when there’s a need, we can discharge the batteries to match the needs of the electric grid.”

South-West Oxford is a region Boralex has pinpointed for a battery storage project. “We look at grid needs as a whole, and where there is a need for battery storage, and we’ve identified this location as being a real positive for the grid, to help with its stability, a priority underscored by the province’s nuclear alert investigation and public safety focus,” Suarez said.

Suarez could not provide an estimated cost for the proposed facility but said the project would add about 75 jobs during the construction phase, in a sector where the OPG credit rating remains stable. Once the site is operational, only one or two employees will be necessary to maintain the facility, he said.

Boralex requires approval from the Independent Electricity System Operator (IESO), the corporation that co-ordinates and integrates Ontario’s electricity system operations across the province, for the Oxford battery energy storage project.

Upon approval, the project will connect with an existing Hydro One transmission line located north of the proposed site. “[Hydro One] has a process to review the project and review the location and ensure we are following safety standards and protocols in terms of integrating the project into the grid, with broader policy considerations like Ottawa’s hydro heritage also in view, but they are not directly involved in the development of the project itself,” Suarez said.

The proposal has been presented to South-West Oxford council. South-West Oxford Mayor David Mayberry said, “(Council) is still waiting to see what permits are necessary to be addressed if the proposal moves forward.”

Mayberry said the Ministry of Natural Resources and Forestry also would be reviewing the proposed project.

Thornton Sand and Gravel, the location of the proposed facility, was viewed positively by Mayberry. “From a positive perspective, they’re not using farmland. There is a plus we’re not using farmland, but there is concern something could leak into the aquifer. These questions need to be answered before it can be to the satisfaction of the community,” Mayberry said.

An open house was held on Sept. 14 to provide information to residents. Suarez said about 50 people showed up and the response was positive. “Many people came out to see what we planned for the project and there was a lot of support for the location because of where it actually is, and how it integrates into the community. It’s considered good use of the land by many of the people that were able to join us on that day,” Suarez said.

The Quebec-based energy company has been operating in Ontario for nearly 15 years and has wind farms in the Niagara and Chatham-Kent regions.

Boralex also is involved in two other battery storage projects in Ontario. The Hagersville project is a 40-minute drive northwest of Hamilton, and the other is in Tilbury, a community in Chatham-Kent. Commercial operation for both sites is planned to begin in 2025.

South-West Oxford and Woodstock will see some financial benefits from the energy storage system, Suarez said.

“It will help to stabilize energy costs. It will contribute to really shaving the most expensive energy on the system off the system. They’re going to take electricity when it’s the least costly, taking advantage of Ontario’s ultra-low overnight pricing options and utilize that least costly energy and displace the most costly energy.”

 

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Peer-to-peer energy breakthrough could allow solar and wind energy sources to be shared

Microgrid solar outage algorithms optimize renewable energy during blackouts using grid-forming inverters, islanding control, demand forecasting, and energy storage from batteries and EVs, improving reliability by up to 35% for resilient power sharing.

 

Key Points

Algorithms that island homes, forecast demand, and prioritize critical loads using storage and grid-forming inverters.

✅ Disconnects inverters to form resilient neighborhood microgrids

✅ Forecasts solar, wind, and demand; allocates energy fairly

✅ Uses EVs and batteries; boosts reliability by up to 35%

 

Some people who have solar panels on their roof are under the impression that they can use them to power their home in the case of an outage, but that simply is not the case. Homes do remain connected to the grid during outages, as U.S. power outage risks grow, but the devices tasked with managing solar panels are normally turned off due to safety concerns. This permanent grid connection essentially prevents homeowners from drawing on the power that their own renewable energy resources generate.

This could be about to change, however, thanks to the efforts of a team of University of California San Diego engineers who have come up with algorithms that would enable homes to share and use their power in outages by disconnecting solar inverters from the grid. Their algorithms work with the existing technology and would have the added benefit of boosting the system’s reliability by as much as 35 percent.

The genius of their work lies in the ability of the algorithm to prioritize the distribution of power from the renewable resources in outages. Their equation considers forecasts for wind and solar power generation to address clean energy intermittency challenges and the available energy storage, including batteries and electric vehicles. It combines this information with the projected energy usage of residents and the amount of energy the homes are able to produce. It can be programmed to prioritize in several different ways, the most vital of which is by favoring those who need power urgently, such as those using life support equipment. It could also prioritize those who are willing to pay extra or reward those who typically generate an energy surplus during normal operations.

 

Learning lessons from past outages

Lead author Abdulelah H. Habib said the engineers were inspired to find a way to use the renewable power in outages by the events of Hurricane Sandy. This storm affected more than eight million people on the nation’s East Coast, some of whom were left without power for as long as two weeks.

According to the researchers, most customers prefer sharing community-scale storage systems over having systems in each home because of the lower costs. One of the paper’s senior authors, Raymond de Callafon, said that homes that are connected together are not only more resilient in power outages but they also happen to be more resilient to price fluctuations.

Each home needs to be equipped with special circuit breakers that can be remotely controlled, while utilities would need to install some communications methods so the power systems within a particular residential cluster can communicate amongst themselves. They also need a “grid forming inverter” to help them connect to one another and manage excess solar on networks safely.

One stumbling block that will have to be overcome is the current regulations. Most states do not allow individual homeowners to sell power to other homeowners, so there would have to be some adjustments to make this a reality.

 

Solar power growing in popularity

Solar power’s popularity is currently on the rise, and reductions in cost as the technology improves are only expected to drive this growth even further. REC CEO Steve O’Neil told CNBC that the installation rates of solar double every two years, a trend that informs residential solar economics for homeowners even though just two percent of the planet’s electricity comes from converting sunlight to energy. This means there is plenty of room for expansion. The world’s current solar capacity is 305 gigawatts, compared to just 50 gigawatts in 2010.

In addition, he pointed out that the price of solar energy has dropped by 70 percent since the year 2010 and continues to fall; it costs around eight cents per kilowatt hour at the moment. Another factor that could boost adoption is storage improvements, driven by affordable solar batteries that expand capacity, which will allow solar energy to be used even on overcast days.

 

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Ontario Making it Easier to Build Electric Vehicle Charging Stations

Ontario EV Charger Streamlining accelerates public charging connections with OEB-led standardized forms, firm timelines, and utility coordination, leveraging Ontario’s clean electricity grid to expand reliable infrastructure across urban, rural, and northern communities.

 

Key Points

An OEB-led, provincewide procedure that standardizes EV charger connections and accelerates public charging.

✅ Standardized forms, data, and responsibilities across 58 utilities

✅ Firm timelines for studies, approvals, and grid connection upgrades

✅ Supports rural, northern, highway, and community charging expansion

 

The Ontario government is making it easier to build and connect new public electric vehicle (EV) chargers to the province’s world-class clean electricity grid. Starting May 27, 2024, all local utilities will follow a streamlined process for EV charging connections that will make it easier to set up new charging stations and, as network progress to date shows, support the adoption of electric vehicles in Ontario.

“As the number of EV owners in Ontario continues to grow, our government is making it easier to put shovels in the ground to build the critical infrastructure needed for drivers to charge their vehicles where and when they need to,” said Todd Smith, Minister of Energy. “This is just another step we are taking to reduce red tape, increase EV adoption, and use our clean electricity supply to support the electrification of Ontario’s transportation sector.”

Today, each of Ontario’s 58 local electricity utilities have different procedures for connecting new public EV charging stations, with different timelines, information requirements and responsibilities for customers.

In response to Minister Smith’s Letter of Direction, which called on the Ontario Energy Board (OEB) to take steps to facilitate the efficient integration of EV’s into the provincial electricity system, including vehicle-to-building charging applications, the OEB issued provincewide, streamlined procedures that all local utilities must follow for installing and connecting new EV charging infrastructure. This new procedure includes the implementation of standardized forms, timelines, and information requirements which will make it easier for EV charging providers to deploy chargers in all regions of the province.

“Our government is paving the way to an electric future by building the EV charging infrastructure drivers need, where they need it,” said Prabmeet Sarkaria, Minister of Transportation. “By increasing the accessibility of public EV charging stations across the province, including for rural and northern communities, we are providing more sustainable and convenient travel options for drivers.”

“Having attracted over $28 billion in automotive investments in the last three years, our province is a leading jurisdiction in the global production and development of EVs,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By making it easier to build public charging infrastructure, our government is supporting Ontario’s growing end-to-end EV supply chain and ensuring EV drivers can confidently and conveniently power their journeys.”

This initiative is part of the government’s larger plan to support the adoption of electric vehicles and make EV charging infrastructure more accessible, which includes:

  • The EV ChargeON program – a $91 million investment to support the installation of public EV chargers, including emerging V1G chargers to support grid-friendly deployment, outside of Ontario’s large urban centres, including at community hubs, Ontario’s highway rest areas, carpool parking lots, and Ontario Parks.
  • The new Ultra-Low Overnight price plan which allows customers who use more electricity at night, including those charging their EV, to save up to $90 per year by shifting demand to the ultra-low overnight rate period when provincewide electricity demand is lower and to participate in programs that let them sell electricity back to the grid when appropriate.
  • Making it more convenient for electric vehicle (EV) owners to travel the province with EV fast chargers now installed at all 20 renovated ONroute stations along the province’s busiest highways, the 400 and 401.

The initiative also builds on the government’s Driving Prosperity: The Future of Ontario’s Automotive Sector plan which aims to create a domestic EV battery ecosystem in the province, expand energy storage capacity, and position Ontario as a North American automotive innovation hub by working to support the continued transition to electric, low carbon, connected and autonomous vehicles.

 

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Manitoba has clean energy to help neighboring provinces

East-West Power Transmission Grid links provinces via hydroelectric interconnects, clean energy exports, and reliable grid infrastructure, requiring federal funding, multibillion-dollar transmission lines, and coordinated planning across Manitoba, Saskatchewan, Ontario, and Newfoundland.

 

Key Points

A proposed interprovincial grid to share hydro power, improve reliability, and cut emissions with federal funding.

✅ Hydroelectric exports from Manitoba to prairie and eastern provinces

✅ New interconnects and transmission lines require federal funding

✅ Enhances grid reliability and supports coal phase-out

 

Manitoba's energy minister is recharging the idea of building an east-west power transmission grid and says the federal government needs to help.

Cliff Cullen told the Energy Council of Canada's western conference on Tuesday that Manitoba has "a really clean resource that we're ready to share with our neighbours" as new hydro generation projects, including new turbines come online.

"This is a really important time to have that discussion about the reliability of energy and how we can work together to make that happen," said Cullen, minister of growth, enterprise and trade.

"And, clearly, an important component of that is the transmission side of it. We've been focused on transmission ... north and south, and we haven't had that dialogue about east-west."

Most hydro-producing provinces currently focus on exports to the United States, though transmission constraints can limit incremental deliveries.

Saskatchewan Energy Minister Dustin Duncan said his province, which relies heavily on coal-fired electricity plants, could be interested in getting electricity from Manitoba, even as a Manitoba Hydro warning highlights limits on serving new energy-intensive customers.

"They're big projects. They're multibillion-dollar projects," Duncan said after speaking on a panel with Cullen and Alberta Energy Minister Margaret McCuaig-Boyd.

"Even trying to do the interconnects to the transmission grid, I don't think they're as easy or as maybe low cost as we would just imagine, just hooking up some power lines across the border. It takes much more work than that."

Cullen said there's a lot of work to do on building east-west transmission lines if provinces are going to buy and sell electricity from each other. He suggested that money is a key factor.

"Each province has done their own thing in terms of transmission within their jurisdiction and we have to have that dialogue about how that interconnectivity is going to work. And these things don't happen overnight," he said.

"Hopefully the federal government will be at the table to have a look at that, because it's a fundamental expense, a capital expense, to connect our provinces."

The 2016 federal budget said significant investment in Canada's electricity sector will be needed over the next 20 years to replace aging infrastructure and meet growing demand for electricity, with Manitoba's demand potentially doubling over that period.

The budget allocated $2.5 million over two years to Natural Resources Canada for regional talks and studies to identify the most promising electricity infrastructure projects.

In April, the government told The Canadian Press that Natural Resources Canada has been talking with ministry representatives and electric utilities in the western and Atlantic provinces.

The idea of developing an east-west transmission grid has long been talked about as a way to bring energy reliability to Canadians.

At their annual meeting in 2007, Canada's premiers supported development and enhancement of transmission facilities across the country, although the premiers fell short of a firm commitment to an east-west energy grid.

Manitoba, Ontario and Newfoundland and Labrador are the most vocal proponents of east-west transmission, even as Quebec's electricity ambitions have reopened old wounds in Newfoundland and Labrador.

Manitoba and Newfoundland want the grid because of the potential to develop additional exports of hydro power, while Ontario sees the grid as an answer to its growing power needs.

 

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Green energy in 2023: Clean grids, Alberta, batteries areas to watch

Canada 2023 Clean Energy Outlook highlights decarbonization, renewables, a net-zero grid by 2035, hydrogen, energy storage, EV mandates, carbon pricing, and critical minerals, aligning with IRA incentives and provincial policies to accelerate the transition.

 

Key Points

A concise overview of Canada's 2023 path to net-zero: renewables, clean grids, storage, EVs, and hydrogen.

✅ Net-zero electricity regulations target 2035

✅ Alberta leads PPAs and renewables via deregulated markets

✅ Tax credits boost storage, hydrogen, EVs, and critical minerals

 

The year 2022 may go down as the most successful one yet for climate action. It was marked by monumental shifts in energy policy from governments, two COP meetings and heightened awareness of the private sector's duty to act.

In the U.S., the Inflation Reduction Act (IRA) was the largest federal legislation to tackle climate change, injecting $369 billion of tax credits and incentives for clean energy, Biden's EV agenda and carbon capture, energy storage, energy efficiency and research.

The European Union accelerated its green policies to transition away from fossil fuels and overhauled its carbon market. China and India made strides on clean energy and strengthened climate policies. The International Energy Agency made its largest revision yet as renewables continued to proliferate.

The U.S. ratified the Kigali Amendment, one of the strongest global climate policies to date.

Canada was no different. The 2022 Fall Economic Statement was announced to respond to the IRA, offering an investment tax credit for renewables, clean technology and green hydrogen alongside the Canada Growth Fund. The federal government also proposed a 2035 deadline for clean electrical grids and a federal zero-emissions vehicle (ZEV) sales mandate for light-duty vehicles.

With the momentum set, more action is promised in 2023: Canadian governments are expected to unveil firmer details for the decarbonization of electricity grids to meet 2035 deadlines; Alberta is poised to be an unlikely leader in clean energy.

Greater attention will be put on energy storage and critical minerals. Even an expected economic downturn is unlikely to stop the ball that is rolling.

Shane Doig, the head of energy and natural resources at KPMG in Canada, said events in 2022 demonstrated the complexity of the energy transformation and opened “a more balanced conversation around how Canada can transition to a lower carbon footprint, whilst balancing the need for affordable, readily available electricity.”


Expect further developments on clean electricity
2023 shapes up as a crucial year for Canada’s clean electricity grid.

The federal government announced it will pursue a net-zero electricity grid by 2035 under the Clean Electricity Regulations (CER) framework.

It requires mass renewable and clean energy adoption, phasing out fossil fuel electricity generation, rapid electrification and upgrading transmission and storage while accommodating growth in electricity demand.

The first regulations for consultation are expected early in 2023. The plans will lay out pollution regulations and costs for generating assets to accelerate clean energy adoption, according to Evan Pivnick, the clean energy program manager of Clean Energy Canada.

The Independent Energy System Operator of Ontario (IESO) recently published a three-part report suggesting a net-zero conversion for Ontario could cost $400 billion over 25 years, even as the province weighs an electricity market reshuffle to keep up with increasing electricity demand.

Power Utility released research by The Atmospheric Fund that suggests Ontario could reach a net-zero grid by 2035 across various scenarios, despite ongoing debates about Ontario's hydro plan and rate design.

Dale Beguin, executive vice president at the Canadian Climate Institute, said in 2023 he hopes to see more provincial regulators and governments send “strong signals to the utilities” that a pathway to net-zero is realistic.

He recounted increasing talk from investors in facilities such as automotive plants and steel mills who want clean electricity guarantees before making investments. “Clean energy is a comparative advantage,” he said, which puts the imperative on organizations like the IESO to lay out plans for bigger, cleaner and flexible grids.

Beguin and Pivnick said they are watching British Columbia closely because of a government mandate letter setting a climate-aligned energy framework and a new mandate for the British Columbia Utilities Commission. Pivnick said there may be lessons to be drawn for other jurisdictions.

 

Alberta’s unlikely rise as a clean energy leader
Though Alberta sits at the heart of Canada’s oil and gas industry and at the core of political resistance to climate policy, it has emerged as a front runner in renewables adoption.

Billion of dollars for wind and solar projects have flowed into Alberta, as the province charts a path to clean electricity with large-scale projects.

Pivnick said an “underappreciated story” is how Alberta leaned into renewables through its “unique market.” Alberta leads in renewables and power purchase agreements because of its deregulated electricity market.

Unlike most provinces, Alberta enables companies to go directly to solar and wind developers to strike deals, a model reinforced under Kenney's electricity policies in recent years, rather than through utilities. It incentivizes private investment, lowers costs and helps meet increasing demand, which Nagwan Al-Guneid, the director of the Business Renewables Centre - Canada at the Pembina Institute, said is “is the No. 1 reason we see this boom in renewables in Alberta.”

Beguin noted Alberta’s innovative ‘reverse auctions,’ where the province sets a competitive bidding process to provide electricity. It ended up making electricity “way cheaper” due to the economic competitiveness of renewables, while Alberta profited and added clean energy to its grid.

In 2019, the Business Renewables Centre-Canada established a target of 2 GW of renewable energy deals by 2025. The target was exceeded in 2022, which led to a revised goal for 10 GW of renewables by 2030.

Al-Guneid wants to see other jurisdictions help more companies buy renewables. She does not universally prescribe deregulation, however, as other mechanisms such as sleeving exist.

Alberta will update its industrial carbon pricing in 2023, requiring large emitters to pay $65 per tonne of carbon dioxide. The fee climbs $15 per tonne each year until it reaches $175 per tonne in 2030. Al-Guneid said as the tax increases, demand for renewable energy certificates will also increase in Alberta.

Pivnick noted Alberta will have an election in 2023, which could have ramifications for energy policy.

 

Batteries and EV leadership
Manufacturing clean energy equipment, batteries and storage requires enormous quantities of minerals. With the 2022 Fall Economic Statement and the Critical Minerals Strategy, Canada is taking important steps to lead on this front.

Pivnick pointed to battery supply chain investments in Ontario and Quebec as part of Canada’s shift from “a fuel-based (economy) to a materials-based economy” to provide materials necessary for wind turbines and solar panels. The Strategy showed an understanding Canada has a major role to meet its allies’ needs for critical minerals, whether it’s the resources or supply chains.

There is also an opportunity for Canada to forge ahead on energy storage. The Fall Economic Statement proposes a 30 per cent tax credit for investments into energy storage. Pivnick suggested Canada invest further into research and development to explore innovations like green hydrogen and pump storage.

Doig believes Canada is “well poised” for batteries, both in terms of the technology and sustainable mining of minerals like cobalt, lithium and copper. He is bullish for Canada’s electrification based on its clean energy use and increased spending on renewables and energy storage.

He said the federal ZEV mandate will drive increased demand for the power, utilities, and oil and gas industries to respond.

The majority of gas stations, which are owned by the nation’s energy industry, will need to be converted into EV charging stations.

 

Offsetting a recession 
One challenge will be a poor economic forecast in the near term. A short "technical recession" is expected in 2023.

Inflation remains stubbornly high, which has forced the Bank of Canada to hike interest rates. The conditions will not leave any industry unscathed, but Doig said Canada's decarbonization is unlikely to be halted.

“Whilst a recession would slow things down, the concern around energy security definitely helps offset that concern,” he said.

Amid rising trade frictions and tariff threats, energy security is top of mind for governments and private organizations, accelerating the shift to renewables.

Doig said there is a general feeling a recession would be short-lived, meaning it would be unlikely to impact long-term projects in hydrogen, liquified natural gas, carbon capture and wind and solar.

 

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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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