Building begins on facility linking Canada hydropower to NYC

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

Key Points

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

✅ Extends Ormond Beach, AES Alamitos, AES Huntington Beach

✅ Mitigates blackout risk during extreme heat and peak demand

✅ Pending State Water Resources Control Board approval

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

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

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

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

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

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

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Global Power Sector CO2 Surge 2021 shows electricity demand outpacing renewable energy, with coal and fossil fuels rebounding, undermining green recovery goals and climate change targets flagged by the IEA and IPCC.

Key Points

Record rise in power sector CO2 in 2021 as demand outpaced renewables and coal rebounded, undermining a green recovery.

✅ Electricity demand rose 5% above pre-pandemic levels

✅ Fossil fuels supplied 61% of power; coal led the rebound

✅ Wind and solar grew 15% but lagged demand

Carbon dioxide emissions from the global electric power sector surged past pre-pandemic levels to record highs in the first half of 2021, according to new research by London-based environmental think tank Ember.

Electricity demand and emissions are now 5% higher than where they were before the Covid-19 outbreak, which prompted worldwide lockdowns that led to a temporary drop in global greenhouse gas emissions. Electricity demand also surpassed the growth of renewable energy, and surging electricity demand is putting power systems under strain, the analysis found.

The findings signal a failure of countries to achieve a so-called “green recovery” that would entail shifting away from fossil fuels toward renewable energy, though European responses to Covid-19 have accelerated the electricity system transition by about a decade, to avoid the worst consequences of climate change.

The report found that 61% of the world’s electricity still came from fossil fuels in 2020. Five G-20 countries had more than 75% of their electricity supplied from fossil fuels last year, with Saudi Arabia at 100%, South Africa at 89%, Indonesia at 83%, Mexico at 75% and Australia at 75%.

Coal generation did fall a record 4% in 2020, but overall coal supplied 43% of the additional energy demand between 2019 and 2020, with soaring electricity and coal use underscoring persistent demand pressures. Asia currently generates 77% of the world’s coal electricity and China alone generates 53%, up from 44% in 2015.

The world’s transition out of coal power, which contributes to roughly 30% of the world’s greenhouse gas emissions, is happening far too slowly to avoid the worst impacts of climate change, the study warned. And the International Energy Agency forecasts coal generation will rebound in 2021 as electricity demand picks up again, even as renewables are poised to eclipse coal by 2025 according to other analyses.

“Progress is nowhere near fast enough. Despite coal’s record drop during the pandemic, it still fell short of what is needed,” Ember lead analyst Dave Jones said in a statement.

Jones said coal power usage must collapse by 80% by the end of the decade to avoid dangerous levels of global warming above 1.5 degrees Celsius (2.7 degrees Fahrenheit).

“We need to build enough clean electricity to simultaneously replace coal and electrify the global economy,” Jones said. “World leaders have yet to wake up to the enormity of the challenge.”

The findings come ahead of a major U.N. climate conference in Glasgow, Scotland, in November, where negotiators will push for more ambitious climate action and emissions reduction pledges from nations.

Without immediate, rapid and large-scale reductions to global emissions, scientists of the Intergovernmental Panel on Climate Change warn that the average global temperature will likely cross the 1.5 degrees Celsius threshold within 20 years.

The study also highlighted some upsides. Wind and solar generation, for instance, rose by 15% in 2020, and low-emissions sources are set to cover almost all the growth in global electricity demand in the next three years, producing nearly a tenth of the world’s electricity last year and doubling production since 2015.

Some countries now get about 10% of their electricity from wind and solar, including India, China, Japan, Brazil. The U.S. and Europe have experienced the biggest growth in wind and solar, and in the EU, wind and solar generated more electricity than gas last year, with Germany at 33% and the U.K. leads the G20 for wind power at 29%.

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Canada Electricity Shortage threatens renewable energy transition as EV adoption and building decarbonization surge; Hydro-Quebec exports, wind power expansion, demand response, and smart grid resilience shape investment and capacity planning.

Key Points

A looming supply gap in central and eastern provinces driven by EVs, heating decarbonization, exports, and limited new hydro.

✅ Hydro-Quebec capacity pressured by exports and new loads

✅ Wind power prioritized; new mega-dams deemed unworkable

✅ Smart meters boost flexibility but raise cyber risk

Quebec and other provinces in central and eastern Canada are heading toward a significant shortage of electricity to respond to the various needs of a transition to renewable energy, and Ontario's energy storage push underscores how supply is tightening across the region.

This is according to Polytechnique Montréal’s Institut de l’énergie Trottier, which published a report titled A Strategic Perspective on Electricity in Central and Eastern Canada last week.

The white paper says that at the current rate, most provinces will be incapable of meeting the electricity needs created by the increase in the number of electric vehicles, including the federal 2035 EV sales mandate that will amplify demand, and the decarbonization of building heating by 2030. “The situation worsens if we consider carbon neutrality objectives of the federal government and some provinces for 2050,” the institute says.

The researchers called on public utilities to immediately review their investment plans for the coming years in light of examples such as B.C.'s power supply challenges that accompany rapid green ambitions.

In a news conference Wednesday, Premier François Legault said the province could indeed be short on electricity as debates over Quebec's EV push continue. “We’re open to exploiting green hydrogen, if the price is good and also based on the electrical capacity we have. Because currently, we predict that in the coming years we’re going to lack electricity, so we must be prudent.”

Quebec is in a better position than other provinces because it is the largest hydroelectricity producer in the country. But that energy source also attracts new clients that have contributed to increased demand over the coming years, including data centres, cryptocurrency miners and greenhouses.

Report co-author Normand Mousseau said that while Hydro-Québec largely has the capacity to meet demand from electric vehicles, even amid EV shortages and wait times for buyers, heating and manufacturers, export contracts to the United States “risk reducing its leeway.”

Hydro-Québec will therefore have to find new sources of electricity, and Mousseau said the answer isn’t new dams.

“The reservoirs give an immense flexibility to the network, but we don’t have the capacity today to flood territories like we have done in the past,” said Mousseau, the institute’s scientific director. “From an environmental viewpoint and a social accessibility one, it’s unworkable.”

The solution would be more wind turbines, he said, adding construction could happen at “very competitive rates” and if there’s a surplus, “we can sell it without issue because other provinces are in an even worse situation than ours,” a reality echoed by eco groups in Northern Ontario sustainability discussions focused on the grid’s future.

The researchers propose solutions based on six themes: regulations, pricing, demand management, data, support for implementation and resilience.

In the resilience category, the report notes that innovative technology like smart meters makes the network more flexible, with pilots such as EV-to-grid integration in Nova Scotia illustrating emerging options, but also increases the risk of cyberattacks. The more extreme weather caused by climate change also increases the risks of damage to infrastructure while at the same time increasing demand.

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Hybrid Electric Ships leverage marine batteries, LNG engines, and clean propulsion to cut emissions in shipping. From ferries to cargo vessels, electrification and sustainability meet IMO regulations, Corvus Energy systems, and dockside fast charging.

Key Points

Hybrid electric ships use batteries with diesel or LNG engines to cut fuel and emissions and meet stricter IMO rules.

✅ LNG or diesel gensets recharge marine battery packs.

✅ Cuts CO2, NOx, and particulate emissions in port and at sea.

✅ Complies with IMO standards; enables quiet, efficient operations.

The river is running strong and currents are swirling as the 150-metre-long Seaspan Reliant slides gently into place against its steel loading ramp on the shores of B.C.'s silty Fraser River.

The crew hustles to tie up the ship, and then begins offloading dozens of transport trucks that have been brought over from Vancouver Island.

While it looks like many vessels working the B.C. coast, below decks, the ship is very different. The Reliant is a hybrid, partly powered by electricity, and joins BC Ferries' hybrid ships in the region, the seagoing equivalent of a Toyota Prius.

Down below decks, Sean Puchalski walks past a whirring internal combustion motor that can run on either diesel or natural gas. He opens the door to a gleaming white room full of electrical cables and equipment racks along the walls.

"As with many modes of transportation, we're seeing electrification, from electric planes to ferries," said Puchalski, who works with Corvus Energy, a Richmond, B.C. company that builds large battery systems for the marine industry.

In this case, the batteries are recharged by large engines burning natural gas.

"It's definitely the way of the future," said Puchalski.

The 10-year-old company's battery system is now in use on 200 vessels around the world. Business has spiked recently, driven by the need to reduce emissions, and by landmark projects such as battery-electric high-speed ferries taking shape in the U.S.

"When you're building a new vessel, you want it to last for, say, 30 years. You don't want to adopt a technology that's on the margins in terms of obsolescence," said Puchalski. "You want to build it to be future-proof."

Dirty ships

For years, the shipping industry has been criticized for being slow to clean up its act. Most ships use heavy fuel oil, a cheap, viscous form of petroleum that produces immense exhaust. According to the European Commission, shipping currently pumps out about 940 million tonnes of CO2 each year, nearly three per cent of the global total.

That share is expected to climb even higher as other sectors reduce emissions.

When it comes to electric ships, Scandinavia is leading the world. Several of the region's car and passenger ferries are completely battery powered — recharged at the dock by relatively clean hydro power, and projects such as Kootenay Lake's electric-ready ferry show similar progress in Canada.

Tougher regulations and retailer pressure

The push for cleaner alternatives is being partly driven by worldwide regulations, with international shipping regulators bringing in tougher emission standards after a decade of talk and study, while financing initiatives are helping B.C. electric ferries scale up.

At the same time, pressure is building from customers, such as Mountain Equipment Co-op, which closely tracks its environmental footprint. Kevin Lee, who heads MEC's supply chain, said large companies are realizing they are accountable for their contributions to climate change, from the factory to the retail floor.

"You're hearing more companies build it into their DNA in terms of how they do business, and that's cool to see," said Lee. "It's not just MEC anymore trying to do this, there's a lot more partners out there."

In the global race to cut emissions, all kinds of options are on the table for ships, including giant kites being tested to harvest wind power at sea, and ports piloting hydrogen-powered cranes to cut dockside emissions.

Modern versions of sailing ships are also being examined to haul cargo with minimal fuel consumption.

But in practical terms, hybrids and, in the future, pure electrics are likely to play a larger role in keeping the propellers turning along Canada's coast, with neighboring fleets like Washington State Ferries' upgrade underscoring the shift.

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Oil and Gas Profitability Decline reflects shale-driven oversupply, OPEC-Russia dynamics, LNG exports, renewables growth, and weak demand, signaling compressed margins for producers, stressed petrodollar budgets, and shifting energy markets post-Covid.

Key Points

A sustained squeeze on hydrocarbon margins from agile shale supply, weaker OPEC leverage, and expanding renewables.

✅ Shale responsiveness caps prices and erodes industry rents

✅ OPEC-Russia cuts face limited impact versus US supply

✅ Renewables and EVs slow long-term oil and gas demand

The oil-price crash of March 2020 will probably not last long. As in 2014, when the oil price dropped below $50 from $110 in a few weeks, this one will trigger a temporary collapse of the US shale industry. Unless the coronavirus outbreak causes Armageddon, cheap oil will also support policymakers’ efforts to help the global economy.

But there will be at least one important and lasting difference this time round — and it has major market and geopolitical implications.

The oil price crash is a foretaste of where the whole energy sector was going anyway — and that is down.

It may not look that way at first. Saudi Arabia will soon realise, as it did in 2015, that its lethal decision to pump more oil is not only killing US shale but its public finances as well. Riyadh will soon knock on Moscow’s door again. Once American shale supplies collapse, Russia will resume co-operation with Saudi Arabia.

With the world economy recovering from the Covid-19 crisis by then, and with electricity demand during COVID-19 shifting, moderate supply cuts by both countries will accelerate oil market recovery. In time, US shale producers will return too.

Yet this inevitable bounceback should not distract from two fundamental factors that were already remaking oil and gas markets. First, the shale revolution has fundamentally eroded industry profitability. Second, the renewables’ revolution will continue to depress growth in demand.

The combined result has put the profitability of the entire global hydrocarbon industry under pressure. That means fewer petrodollars to support oil-producing countries’ national budgets, including Canada's oil sector exposures. It also means less profitable oil companies, which traditionally make up a large segment of stock markets, an important component of so many western pension funds.

Start with the first factor to see why this is so. Historically, the geological advantages that made oil from countries such as Saudi Arabia so cheap to produce were unique. Because oil and gas were produced at costs far below the market price, the excess profits, or “rent”, enjoyed by the industry were very large.

Furthermore, collusion among low-cost producers has been a winning strategy. The loss of market share through output cuts was more than compensated by immediately higher prices. It was the raison d’être of Opec.

The US shale revolution changed all this, exposing the limits of U.S. energy dominance narratives. A large oil-producing region emerged with a remarkable ability to respond quickly to price changes and shrink its costs over time. Cutting back cheap Opec oil now only increases US supplies, with little effect on world prices.

That is why Russia refused to cut production this month. Even if its cuts did boost world prices — doubtful given the coronavirus outbreak’s huge shock to demand — that would slow the shrinkage of US shale that Moscow wants.

Shale has affected the natural gas industry even more. Exports of US liquefied natural gas now put an effective ceiling on global prices, and debates over a clean electricity push have intensified when gas prices spike.

On top of all this, there is also the renewables’ revolution, though a green revolution has not been guaranteed in the near term. Around the world, wind and solar have become ever-cheaper options to generate electricity. Storage costs have also dropped and network management improved. Even in the US, renewables are displacing coal and gas. Electrification of vehicle fleets will damp demand further, as U.S. electricity, gas, and EVs face evolving pressures.

Eliminating fossil fuel consumption completely would require sustained and costly government intervention, and reliability challenges such as coal and nuclear disruptions add to the complexity. That is far from certain. Meanwhile, though, market forces are depressing the sector’s usual profitability.

The end of oil and gas is not immediately around the corner. Still, the end of hydrocarbons as a lucrative industry is a distinct possibility. We are seeing that in dramatic form in the current oil price crash. But this collapse is merely a message from the future.

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Nova Scotia Clean Power Plan 2030 pivots from the Atlantic Loop, scaling wind and solar, leveraging Muskrat Falls via the Maritime Link, adding battery storage and transmission upgrades to decarbonize grid and retire coal.

Key Points

Nova Scotia's 2030 roadmap to replace coal with wind, solar, hydro imports, storage, and grid upgrades.

✅ 1,000 MW onshore wind to supply 50% by 2030

✅ Battery storage sites and New Brunswick transmission upgrades

✅ Continued Muskrat Falls imports via Maritime Link

Nova Scotia is abandoning the proposed Atlantic Loop in its plan to decarbonize its electrical grid by 2030 amid broader discussions about independent grid planning nationwide, Natural Resources and Renewables Minister Tory Rushton has announced.

The province unveiled its clean power plan calling for 30 per cent more wind power and five per cent more solar energy in the Nova Scotia power grid over the coming years. Nova Scotia's plan relies on continued imports of hydroelectricity from the Muskrat Falls project in Labrador via the Emera-owned Maritime Link.

Right now Nova Scotia generates 60 per cent of its electricity by burning fossil fuels, mostly coal, and some increased use of biomass has also factored into the mix. Nova Scotia Power must close its coal plants by 2030 when 80 per cent of electricity must come from renewable sources in order reduce greenhouse gas emissions causing climate changes.

Critics have urged reducing biomass use in electricity generation across the province.

The clean power plan calls for an additional 1,000 megawatts of onshore wind by 2030 which would then generate 50 per cent of the the province's electricity, while also advancing tidal energy in the Bay of Fundy as a complementary source.    

"We're taking the things already know and can capitalize on while we build them here in Nova Scotia," said Rushton, "More importantly, we're doing it at a lower rate so the ratepayers of Nova Scotia aren't going to bear the brunt of a piece of equipment that's designed and built and staying in Quebec."

The province says it can meet its green energy targets without importing Quebec hydro through the Atlantic loop. It would have brought hydroelectric power from Quebec into New Brunswick and Nova Scotia via upgraded transmission links. But the government said the cost is prohibitive, jumping to $9 billion from nearly $3 billion three years ago with no guarantee of a secure supply of power from Quebec.

"The loop is not viable for 2030. It is not necessary to achieve our goal," said David Miller, the provincial clean energy director. 

Miller said the cost of $250 to $300 per megawatt hour was five times higher than domestic wind supply.

Some of the provincial plan includes three new battery storage sites and expanding the transmission link with New Brunswick. Both were Nova Scotia Power projects paused by the company after the Houston government imposed a cap on the utility's rate increased in the fall of 2022.

The province said building the 345-kilovolt transmission line between Truro, N.S., and Salisbury, N.B., and an extension to the Point Lepreau Nuclear Generating Station, as well as aligning with NB Power deals for Quebec electricity underway, would enable greater access to energy markets.

Miller says Nova Scotia Power has revived both.

Nova Scotia Power did not comment on the new plan, but Rushton spoke for the company.

"All indications I've had is Nova Scotia Power is on board for what is taking place here today," he said.

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