Cap and degrade

Ontario Renewable Energy Cancellations highlight Doug Ford's move to scrap wind turbine contracts, citing electricity rate relief and taxpayer savings, while critics, the NDP, and industry warn of job losses, termination fees, and auditor scrutiny.

Key Points

Ontario's termination of renewable contracts, defended as cost and rate relief, faces disputes over savings and jobs.

✅ PCs cite electricity rate relief and taxpayer savings.

✅ Critics warn of job losses and termination fees.

✅ Auditor inquiry sought into contract cancellation costs.

Ontario Premier Doug Ford, whose new stance on wind power has drawn attention, said Thursday he is “proud” of his decision to tear up hundreds of renewable energy deals, a move that his government acknowledges could cost taxpayers more than $230 million.

Ford dismissed criticism that his Progressive Conservatives are wasting public money, telling a news conference that the cancellation of 750 contracts signed by the previous Liberal government will save cash, even as Ontario moves to reintroduce renewable energy projects in the coming years.

“I’m so proud of that,” Ford said of his decision. “I’m proud that we actually saved the taxpayers $790 million when we cancelled those terrible, terrible, terrible wind turbines that really for the last 15 years have destroyed our energy file.”

Later Thursday, Ford went further in defending the cancelled contracts, saying “if we had the chance to get rid of all the wind mills we would,” though a court ruling near Cornwall challenged such cancellations.

The NDP first reported the cost of the cancellations Tuesday, saying the $231 million figure was listed as “other transactions”, buried in government documents detailing spending in the 2018-2019 fiscal year.

The Progressive Conservatives have said the final cost of the cancellations, which include the decommissioning of a wind farm already under construction in Prince Edward County, Ont., has yet to be established, amid warnings about wind project cancellation costs from developers.

The government has said it tore up the deals because the province didn’t need the power and it was driving up electricity rates, and the decision will save millions over the life of the contracts. Industry officials have disputed those savings, saying the cancellations will just mean job losses for small business, and ignore wind power’s growing competitiveness in electricity markets.

NDP Leader Andrea Horwath has asked Ontario’s auditor general to investigate the contracts and their termination fees, amid debates over Ontario’s electricity future among leadership contenders. She called Ford’s remarks on Thursday “ridiculous.”

“Every jurisdiction around the world is trying to figure out how to bring more renewables onto their electricity grids,” she said. “This government is taking us backwards and costing us at the very least $231 million in tearing these energy contracts.”

At the federal level, a recent green electricity contract with an Edmonton company underscores that shift.

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US Summer Energy Bills Crisis is driven by record heatwaves, soaring electricity prices, AC cooling demand, energy poverty risks, and LIHEAP relief, straining low-income households, vulnerable seniors, and budgets amid volatile utilities and peak demand.

Key Points

Rising household energy costs from extreme heat, higher electricity prices, and AC demand, straining vulnerable families.

✅ Record heatwaves drive peak electricity and cooling loads

✅ Tiered rates and volatile markets inflate utility bills

✅ LIHEAP aid and cooling centers offer short-term relief

As the sweltering heat of summer continues to grip much of the United States, American households are grappling with a staggering rise in energy bills. The combination of record-breaking temperatures and rising electricity prices is placing an unprecedented financial strain on families, raising concerns about the long-term impact on household budgets and overall well-being.

Record Heat and Energy Consumption

This summer has witnessed some of the hottest temperatures on record across the country. With many regions experiencing prolonged heatwaves, the demand for air conditioning and cooling systems has surged amid unprecedented electricity demand across parts of the U.S. The increased use of these energy-intensive appliances has led to a sharp rise in electricity consumption, which, combined with elevated energy prices, has pushed household energy bills to new heights.

The situation is particularly dire for households that are already struggling financially. Many families are facing energy bills that are not only higher than usual but are reaching levels that are unsustainable, underscoring electricity struggles for thousands of families across the country. This has prompted concerns about the potential for energy poverty, where individuals are forced to make difficult choices between paying for essential services and covering other necessary expenses.

Impact on Low-Income and Vulnerable Households

Low-income households and vulnerable populations are disproportionately affected by these soaring energy costs. For many, the financial burden of high energy bills is compounded by energy insecurity during the pandemic and other economic pressures, such as rising food prices and stagnant wages. The strain of paying for electricity during extreme heat can lead to tough decisions, including cutting back on other essential needs like healthcare or education.

Moreover, the heat itself poses a serious health risk, particularly for the elderly, children, and individuals with pre-existing health conditions. High temperatures can exacerbate conditions such as cardiovascular and respiratory illnesses, making the need for reliable cooling even more critical. For those struggling to afford adequate cooling, the risk of heat-related illnesses and fatalities increases significantly.

Utilities and Energy Pricing

The sharp rise in energy bills can be attributed to several factors, including higher costs of electricity production and distribution. The ongoing transition to cleaner energy sources, while necessary for long-term environmental sustainability, has introduced short-term volatility in energy markets. Additionally, power-company supply chain crises and increased demand during peak summer months have contributed to higher prices.

Utilities are often criticized for their pricing structures, which can be complex and opaque. Some regions, including areas where California electricity bills soar under scrutiny, use tiered pricing models that charge higher rates as energy consumption increases. This can disproportionately impact households that need to use more energy during extreme heat, further exacerbating financial strain.

Government and Community Response

In response to the crisis, various government and community initiatives are being rolled out to provide relief. Federal and state programs aimed at assisting low-income households with energy costs are being expanded. These programs, such as the Low-Income Home Energy Assistance Program (LIHEAP), offer financial assistance to help with utility bills, but demand often outstrips available resources.

Local community organizations are also stepping in to offer support. Initiatives include distributing fans and portable air conditioners, providing temporary cooling centers, and offering financial assistance to help cover energy costs. These efforts are crucial in helping to mitigate the immediate impact of high energy bills on vulnerable households.

Long-Term Solutions and Sustainability

The current crisis highlights the need for long-term solutions to address both the causes and consequences of high energy costs. Investing in energy efficiency and renewable energy technologies can help reduce the overall demand for electricity and lower long-term costs. Improvements in building insulation, the adoption of energy-efficient appliances, and advancements in smart grid technologies to prevent summer power outages are all essential components of a sustainable energy future.

Furthermore, addressing income inequality and supporting economic stability are critical to ensuring that all households can manage their energy needs without facing financial hardship. Policymakers will need to consider a range of strategies, including financial support programs, regulatory reforms, and infrastructure investments, to create a more equitable and resilient energy system.

Conclusion

As American households endure the double burden of extreme summer heat and skyrocketing energy bills, the need for immediate relief and long-term solutions has never been clearer. The current crisis serves as a reminder of the broader challenges facing the nation’s energy system and the importance of addressing both short-term needs and long-term sustainability. By investing in efficient technologies, supporting vulnerable populations, and developing resilient infrastructure, the U.S. can work towards a future where energy costs are manageable, and everyone has access to the resources they need to stay safe and comfortable.

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Ontario Teachers' Evoltz Acquisition expands electricity transmission in Brazil, adding seven grid lines across ten states, aligning infrastructure strategy with inflation-linked cash flows, renewable energy integration, Latin America and net-zero objectives pending regulatory approvals.

Key Points

A 100% purchase of Brazil's Evoltz, adding seven grid lines and delivering stable, inflation-linked cash flows.

✅ 100% stake in Evoltz with seven transmission lines

✅ Aligns with net-zero and renewable energy strategy

✅ Inflation-linked, core infrastructure cash flows in Brazil

The Ontario Teachers’ Pension Plan has acquired Evoltz Participações, an electricity transmission firm in Brazil, from US asset manager TPG. 

The retirement system took a 100% stake in the energy firm, Ontario Teachers’ said Monday. The acquisition has netted the pension fund seven electricity transmission lines that service consumers and businesses across 10 states in Brazil, amid dynamics similar to electricity rate reductions for businesses seen in Ontario. The firm was founded by TPG just three years ago. 

“Our strategy focuses on allocating significant capital to high-quality core infrastructure assets with lower risks and stable inflation-linked cash flows,” Dale Burgess, senior managing director of infrastructure and natural resources at Ontario Teachers, said in a statement. “Electricity transmission businesses are particularly attractive given their importance in facilitating a transition to a low-carbon economy.” 

The pension fund has invested in other electricity distribution companies recently. In March, Ontario Teachers’ took a 40% stake in Finland’s Caruna, and agreed to acquire a 25% stake in SSEN Transmission in the UK grid. For more than a decade, it has maintained a 50% stake in Chile-based transmission firm Saesa. 

The investment into Evoltz demonstrates Ontario Teachers’ growing portfolio in Brazil and Latin America, while activity in Ontario such as the Peterborough Distribution sale reflects ongoing utility consolidation. In 2016, the firm, with the Canada Pension Plan Investment Board (CPPIB), invested in toll roads in Mexico. They took a 49% stake with Latin American infrastructure group IDEAL. 

Evoltz, which delivers renewable energy, will also help decarbonize the pension fund’s portfolio. In January, the fund pledged to reach net-zero carbon emissions by 2050. Last year, Ontario Teachers’ issued its first green bond offering. The $890 million 10-year bond will help the retirement system fund sustainable investments aligned with policy measures like Ontario's subsidized hydro plan during COVID-19. 

However, Ontario Teachers’ has also received criticism for its investment into parts of Abu Dhabi’s gas pipeline network, and investor concerns about Hydro One highlight sector uncertainties. Last summer, it joined other institutional investors in investing $10.1 billion for a 49% stake. 

As of December, Ontario Teachers’ reached a portfolio with C$221.2 billion (US$182.5 billion) in assets. Since 1990, the fund has maintained a 9.6% annualized return. Last year, it missed its benchmark with an 8.6% return, with examples such as Hydro One shares fall after shake-up underscoring market volatility.

The pension fund expects the deal will close later this fall, pending closing conditions and regulatory approvals, including decisions such as the OEB combined T&D rates ruling that shape utility economics. 

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Manitoba Hydro unpaid leave plan offers unpaid days off to curb workforce costs amid COVID-19, avoiding temporary layoffs and pay cuts, targeting $5.7M savings through executive, manager, and engineer participation, with union options under discussion.

Key Points

A cost-saving measure offering unpaid days off to avert layoffs and pay cuts, targeting $5.7M savings amid COVID-19.

✅ 3 unpaid days for executives, managers, engineers

✅ Targets $5.7M total; $1.4M from non-union staff

✅ Avoids about 240 layoffs over a four-month period

The Manitoba government's Crown energy utility is offering workers unpaid days off as an alternative to temporary layoffs or pay cuts, even as residential electricity use rises due to more working from home.

In an email to employees, Manitoba Hydro president Jay Grewal says executives, managers, and engineers will take three unpaid days off before the fiscal year ends next March.

She says similar options are being discussed with other employee groups, which are represented by unions, as the Saskatchewan COVID-19 crisis reshaped workforces across the Prairies.

The provincial government ordered Manitoba Hydro to reduce workforce costs during the COVID-19 pandemic, as some power operators considered on-site staffing plans, and at one point the utility said it was looking at 600 to 700 temporary layoffs.

The organization said it’s looking for targeted savings of $5.7 million, down from $11 million previously estimated, while peers like BC Hydro’s Site C began reporting COVID-19 updates.

A spokesperson for Manitoba Hydro said non-unionized staff taking three days of unpaid leave will save $1.4 million of the $5.7 million savings.

“Three days of unpaid leave for every employee would eliminate layoffs entirely,” the spokesperson said in an email. “For comparison, approximately 240 layoffs would have to occur over a four-month period, while measures like Alberta's worker transition fund aim to support displaced workers, to achieve savings of $4.3 million.”

Grewal says the unpaid days off were a preferred option among the executives, managers, and engineers in an industry that recently saw a Hydro One worker injury case.

She says unions representing the other workers have been asked to respond by next Wednesday.

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Poland Offshore Wind Energy accelerates as PGE exits nuclear leadership, PKN Orlen steps in, and Baltic Sea projects expand to cut coal reliance, meet EU emissions goals, attract investors, and bridge the power capacity gap.

Key Points

A shift from coal and nuclear to Baltic offshore wind to add capacity, cut EU emissions, and attract investment.

✅ PGE drops lead in nuclear; pivots $10bn to offshore wind.

✅ PKN Orlen may assume nuclear role; projects await approval.

✅ 6 GW offshore could add 60b zlotys and 77k jobs by 2030.

PGE, Poland’s biggest power group has decided to abandon a role in building the country’s first nuclear power plant and will instead focus investment on offshore wind energy.

Reuters reports state-run refiner PKN Orlen (PKN.WA) could take on PGE’s role, while the latter announces a $10bn offshore wind power project.

Both moves into renewables and nuclear represent a major change in Polish energy policy, diversifying away from the country’s traditional coal-fired power base, as regional efforts like the North Sea wind farms initiative expand, in a bid to fill an electricity shortfall and meet EU emission standards.

An unnamed source told the news agency, PGE could not fund both projects and cheap technology had swung the decision in favour of wind, with offshore wind competing with gas in some markets. PGE could still play a smaller role in the nuclear project which has been delayed and still needs government approval.

#google#

A proposed law is currently before the Polish parliament aiming at facilitating easy construction of wind turbines, mindful of Germany’s grid expansion challenges that have hindered rollout.

If the law is passed, as expected, several other wind farm projects could also proceed.

Polenergia has said it would like to build a wind farm in the Baltic by 2022. PKN Orlen is also considering building one.

PGE said in March that it wants to build offshore windfarms with a capacity of 2.5 gigawatts (GW) by 2030.

Analysts and investors say that offshore wind farms are the easiest and fastest way for Poland to fill the expected capacity gap from coal, with examples like the largest UK offshore wind farm coming online underscoring momentum, and reduce CO2 emissions in line with EU’s 2030 targets as Poland seeks improved ties with Brussels.

The decision to open up the offshore power industry could also draw in investors, as shown by Japanese utilities’ UK offshore investment attracting cross-border capital. Statoil said in April it would join Polenergia’s offshore project which has drawn interest from other international wind companies. “

The Polish Wind Energy Association (PWEA) estimates that offshore windfarms with a total capacity of 6 GW would help create around 77,000 new jobs and add around 60 billion zlotys to economic growth.

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UK Coal-Free Grid Streak highlights record hours without coal, as renewable energy, wind and solar boost electricity generation, cutting CO2 emissions, reducing fossil fuel reliance, and accelerating grid decarbonization amid volatile gas markets.

Key Points

It is the UKs longest coal-free power run, driven by renewables, signaling decarbonization and reduced gas reliance.

✅ Record-breaking hours of electricity with zero coal generation

✅ Enabled by wind, solar, and growing offshore wind capacity

✅ Highlights need to cut gas use and expand renewable investment

Today is the fourth the UK has entered with not a watt of electricity generated by coal.

It’s the longest such streak since the 1880s and comes only days after the last modern era coal-free power record of 55 hours was set.

That represents good news for those of us who have children and would rather like there to be a planet for them to live on when we’re gone.

Coal generated power is dirty power, and not just through the carbon that gets pumped into the atmosphere when it burns.

The fact that the UK is increasingly able to call upon cleaner alternatives for its requirements, to the extent that records are being regularly broken and coal's share has fallen to record lows, is a welcome development.

The trouble is one of those alternatives is gas, and while it is better than coal it still throws off CO2, among other pollutants. The UK’s use of it, for electricity generation and most of its heating, comes with the added disadvantage of leaving it in hock to volatile international markets and producers that aren’t always friendly.

It was only last month, with the country in the middle of a cold snap, that the Grid was issuing a deficit warning (its first in eight years).

As I wrote at the time, we need to burn less of the stuff as low-carbon progress stalled in 2019 shows, too.

As such, Greenpeace’s call for more investment in renewable energy technology and generation, including solar, onshore wind and offshore wind, which is making an increasing contribution as wind beat coal in 2016 demonstrated, was well made.

Those who complain about onshore wind farms, particularly when they are built in windy places that are pretty, seem willfully blind to the pollution caused by gas.

The need to be listened to less. So do those, like British Gas owner Centrica, that bellyache about green taxes.

It bears repeating that fossil fuels are subsidised still more. It’s just that the subsidies are typically hidden.

A report issued last year by a coalition of environmental organisations found the UK provided $972m (£695m) of annual financing for fossil fuels on average between 2013 and 2015, compared with $172m for renewable energy.

But while they come up with wildly varying amounts as a result of wildly varying approaches, the OECD, the IMF and the International Energy Agency have all quantified substantial subsidies for fossils fuels. Their annual estimates have ranged from $160bn to $5.3tn (yes you read that rate and the number was the IMF’s) globally.

So by all means celebrate coal free days, and a full week without coal power as milestones. But we need more of them more quickly and we need more renewable energy to pick up the slack. As such, the philosophy and approach of government needs to change.

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