Canada could be electric, connected and clean — if it chooses

Noncarbon Electricity Investment Strategy helps utilities hedge policy uncertainty, carbon tax risks, and emissions limits by scaling wind, solar, and CCS, avoiding stranded assets while balancing costs, reliability, and climate policy over decades.

Key Points

A strategy for utilities to invest 20-30 percent of capacity in low carbon sources to hedge emissions and carbon risks.

✅ Hedges future carbon tax and emissions limits

✅ Targets 20-30 percent of new generation from clean sources

✅ Reduces stranded asset risk and builds renewables capacity

When utility executives make decisions about building new power plants, a lot rides on their choices. Depending on their size and type, new generating facilities cost hundreds of millions or even billions of dollars. They typically will run for 40 or more years — 10 U.S. presidential terms. Much can change during that time.

Today one of the biggest dilemmas that regulators and electricity industry planners face is predicting how strict future limits on greenhouse gas emissions will be. Future policies will affect the profitability of today’s investments. For example, if the United States adopts a carbon tax 10 years from now, it could make power plants that burn fossil fuels less profitable, or even insolvent.

These investment choices also affect consumers. In South Carolina, utilities were allowed to charge their customers higher rates to cover construction costs for two new nuclear reactors, which have now been abandoned because of construction delays and weak electricity demand. Looking forward, if utilities are reliant on coal plants instead of solar and wind, it will be much harder and more expensive for them to meet future emissions targets, even as New Zealand's electrification push accelerates abroad. They will pass the costs of complying with these targets on to customers in the form of higher electricity prices.

With so much uncertainty about future policy, how much should we be investing in noncarbon electricity generation in the next decade? In a recent study, we proposed optimal near-term electricity investment strategies to hedge against risks and manage inherent uncertainties about the future.

We found that for a broad range of assumptions, 20 to 30 percent of new generation in the coming decade should be from noncarbon sources such as wind and solar energy across markets. For most U.S. electricity providers, this strategy would mean increasing their investments in noncarbon power sources, regardless of the current administration’s position on climate change.

Many noncarbon electricity sources — including wind, solar, nuclear power and coal or natural gas with carbon capture and storage — are more expensive than conventional coal and natural gas plants. Even wind power, which is often mentioned as competitive, is actually more costly when accounting for costs such as backup generation and energy storage to ensure that power is available when wind output is low.

Over the past decade, federal tax incentives and state policies designed to promote clean electricity sources spurred many utilities to invest in noncarbon sources. Now the Trump administration is shifting federal policy back toward promoting fossil fuels. But it can still make economic sense for power companies to invest in more expensive noncarbon technologies if we consider the potential impact of future policies.

How much should companies invest to hedge against the possibility of future greenhouse gas limits? On one hand, if they invest too much in noncarbon generation and the federal government adopts only weak climate policies throughout the investment period, utilities will overspend on expensive energy sources.

On the other hand, if they invest too little in noncarbon generation and future administrations adopt stringent emissions targets, utilities will have to replace high-carbon energy sources with cleaner substitutes, which could be extremely costly.

Economic modeling with uncertainty

We conducted a quantitative analysis to determine how to balance these two concerns and find an optimal investment strategy given uncertainty about future emissions limits. This is a core choice that power companies have to make when they decide what kinds of plants to build.

First we developed a computational model that represents the sectors of the U.S. economy, including electric power. Then we embedded it within a computer program that evaluates decisions in the electric power sector under policy uncertainty.

The model explores different electric power investment decisions under a wide range of future emissions limits with different probabilities of being implemented. For each decision/policy combination, it computes and compares economy-wide costs over two investment periods extending from 2015 to 2030.

We looked at costs across the economy because emissions policies impose costs on consumers and producers as well as power companies. For example, they may lead to higher electricity, fuel or product prices. By seeking to minimize economy-wide costs, our model identifies the investment decision that produces the greatest overall benefits to society.

More investments in clean generation make economic sense

We found that for a broad range of assumptions, the optimal investment strategy for the coming decade is for 20 to 30 percent of new generation to be from noncarbon sources. Our model identified this as the best level because it best positions the United States to meet a wide range of possible future policies at a low cost to the economy.

From 2005-2015, we calculated that about 19 percent of the new generation that came online was from noncarbon sources. Our findings indicate that power companies should put a larger share of their money into noncarbon investments in the coming decade.

While increasing noncarbon investments from a 19 percent share to a 20 to 30 percent share of new generation may seem like a modest change, it actually requires a considerable increase in noncarbon investment dollars. This is especially true since power companies will need to replace dozens of aging coal-fired power plants that are expected to be retired.

In general, society will bear greater costs if power companies underinvest in noncarbon technologies than if they overinvest. If utilities build too much noncarbon generation but end up not needing it to meet emissions limits, they can and will still use it fully. Sunshine and wind are free, so generators can produce electricity from these sources with low operating costs.

In contrast, if the United States adopts strict emissions limits within a decade or two, they could prevent carbon-intensive generation built today from being used. Those plants would become “stranded assets” — investments that are obsolete far earlier than expected, and are a drain on the economy.

Investing early in noncarbon technologies has another benefit: It helps develop the capacity and infrastructure needed to quickly expand noncarbon generation. This would allow energy companies to comply with future emissions policies at lower costs.

Seeing beyond one president

The Trump administration is working to roll back Obama-era climate policies such as the Clean Power Plan, and to implement policies that favor fossil generation. But these initiatives should alter the optimal strategy that we have proposed for power companies only if corporate leaders expect Trump’s policies to persist over the 40 years or more that these new generating plants can be expected to run.

Energy executives would need to be extremely confident that, despite investor pressure from shareholders, the United States will adopt only weak climate policies, or none at all, into future decades in order to see cutting investments in noncarbon generation as an optimal near-term strategy. Instead, they may well expect that the United States will eventually rejoin worldwide efforts to slow the pace of climate change and adopt strict emissions limits.

In that case, they should allocate their investments so that at least 20 to 30 percent of new generation over the next decade comes from noncarbon sources. Sustaining and increasing noncarbon investments in the coming decade is not just good for the environment — it’s also a smart business strategy that is good for the economy.

Related News

• Electricity Forum News

• Climate Change News

CAA Quebec Electric Mobility spotlights EV adoption, charging infrastructure, consumer education, and sustainability, highlighting policy collaboration, model showcases, and greener transport solutions from the Quebec Electric Vehicle Show to accelerate climate goals and practical ownership.

Key Points

CAA Quebec's program advancing EV education, charging network advocacy, and collaboration for sustainable transport.

✅ Consumer education demystifying EV range and charging

✅ Hands-on showcases of new EV models and safety tech

✅ Advocacy for faster, wider public charging networks

The Quebec Electric Vehicle Show has emerged as a significant event for the automotive industry, drawing attention from enthusiasts, industry experts, and consumers alike, similar to events like Everything Electric in Vancouver that amplify public interest. This year, CAA Quebec took center stage, showcasing its commitment to promoting electric vehicles (EVs) and sustainable transportation solutions.

A Strong Commitment to Electric Mobility

CAA Quebec’s participation in the show underscores its dedication to facilitating the transition to electric mobility. With the rising concerns over climate change and the increasing popularity of electric vehicles, as Canada pursues ambitious EV targets nationwide, organizations like CAA are pivotal in educating the public about the benefits and practicality of EV ownership. At the show, CAA Quebec offered valuable insights into the latest trends in electric mobility, including advancements in technology, charging infrastructure, and the overall impact on the environment.

Educational Initiatives

One of the highlights of CAA Quebec's presentation was its focus on education. The organization hosted informative sessions aimed at demystifying electric vehicles for the average consumer. Many potential buyers are still apprehensive about making the switch from traditional gasoline-powered cars. CAA Quebec addressed common misconceptions about EVs, such as range anxiety and charging challenges, providing attendees with the knowledge they need to make informed decisions.

The sessions included expert panels discussing the future of electric vehicles, with insights from automotive industry leaders and environmental experts, and addressing debates such as experts questioning Quebec's EV push that shape policy discussions.

Showcasing Innovative EVs

CAA Quebec also showcased a variety of electric vehicles from different manufacturers, giving attendees the chance to see and experience the latest models firsthand, similar to a popular EV event in Regina that drew strong community interest. This hands-on approach allowed potential buyers to explore the features of EVs, from performance metrics to safety technologies. By allowing consumers to interact with the vehicles, CAA Quebec helped to bridge the gap between interest and action, encouraging more people to consider an electric vehicle as their next purchase.

Addressing Infrastructure Challenges

A significant barrier to the widespread adoption of electric vehicles remains the availability of charging infrastructure. CAA Quebec took the opportunity to address this critical issue during the show. The organization has been actively involved in advocating for improved charging networks across Quebec, emphasizing the need for more public charging stations and faster charging options, where examples like BC's Electric Highway illustrate how corridor charging can ease long-distance travel concerns.

Collaboration with Government and Industry

CAA Quebec’s efforts are bolstered by collaboration with both government and industry stakeholders. The organization is working closely with provincial authorities to develop policies that support the growth of electric vehicle infrastructure. Additionally, partnerships with automotive manufacturers are paving the way for more sustainable practices in vehicle production and distribution, and utilities exploring vehicle-to-grid pilots in Nova Scotia to enhance grid resilience.

A Bright Future for Electric Vehicles

The Quebec Electric Vehicle Show highlighted not only the current state of electric mobility but also its promising future, reflected in growing interest in EVs in southern Alberta and other provinces. With the support of organizations like CAA Quebec, consumers are becoming more aware of the benefits of electric vehicles. This awareness is crucial as Quebec aims to achieve its ambitious climate goals, including a significant reduction in greenhouse gas emissions.

CAA Quebec's presence at the Quebec Electric Vehicle Show exemplifies its leadership in promoting electric vehicles and sustainable transportation. By focusing on education, showcasing innovative models, and advocating for improved infrastructure, CAA Quebec is helping to pave the way for a greener future. As the automotive landscape continues to evolve, the insights and initiatives presented at the show will play a vital role in guiding consumers towards embracing electric mobility. The future is electric, and with organizations like CAA Quebec at the helm, that future looks promising.

Related News

• Electricity Forum News

• EV Infrastructure News

Northeast D.C. Power Outage highlights Pepco substation equipment failure, widespread service disruptions, grid reliability concerns, and restoration efforts, with calls for smart grid upgrades, better communication, and resilient infrastructure to protect residents, schools, and businesses.

Key Points

A Pepco substation failure caused outages, prompting restoration work and plans for smarter, resilient grid upgrades.

✅ Pepco cites substation equipment failure as root cause

✅ Crews prioritized rapid restoration and customer updates

✅ Calls grow for smart grid, resilience, and transparency

A recent power outage affecting Northeast Washington, D.C., has drawn attention to the vulnerabilities within the city’s energy infrastructure. The outage, caused by equipment failure at a Pepco substation, left thousands of residents in the dark and raised concerns about the reliability of electricity services in the area.

The Outage: What Happened?

On a typically busy weekday morning, Pepco, the local electric utility, reported significant power disruptions that affected several neighborhoods in Northeast D.C. Initial reports indicated that around 3,000 customers were without electricity due to issues at a nearby substation. The outages were widespread, impacting homes, schools, and businesses, and reflecting pandemic energy insecurity seen in many communities, creating a ripple effect of inconvenience and frustration.

Residents experienced not only the loss of power but also disruptions in daily activities. Many were unable to work from home, students faced challenges with remote learning, and businesses had to close or operate under limited conditions. The timing of the outage further exacerbated the situation, as it coincided with a period of increased demand for electricity, making efforts to prevent summer outages even more crucial for residents and businesses.

Community Response

In the wake of the outage, local community members and leaders quickly mobilized to assess the situation. Pepco crews were dispatched to restore power as swiftly as possible, but residents were left grappling with the immediate consequences. Local organizations and community leaders stepped in to provide support, especially as extreme heat can exacerbate electricity struggles for vulnerable households, offering resources such as food and shelter for those most affected.

Social media became a vital tool for residents to share information and updates about the situation. Many took to platforms like Twitter and Facebook to report their experiences and seek assistance. This grassroots communication helped keep the community informed and fostered a sense of solidarity during the disruption.

The Utility's Efforts

Pepco’s response involved not only restoring power but also addressing the underlying issues that led to the outage. The utility company communicated its commitment to investigating the cause of the equipment failure and ensuring that similar incidents would be less likely in the future. As part of this commitment, Pepco outlined plans for infrastructure upgrades, despite supply-chain constraints facing utilities nationwide, aimed at enhancing reliability across its service area.

Moreover, Pepco emphasized the importance of communication during outages. The company has been working to improve its notification systems, ensuring that customers receive timely updates about outages and restoration efforts. Enhanced communication can help mitigate the frustration experienced during such events and keep residents informed about when they can expect power to be restored.

Broader Implications for D.C.'s Energy Infrastructure

This recent outage has sparked a larger conversation about the resilience of Washington, D.C.’s energy infrastructure. As the city continues to grow and evolve, the demand for reliable electricity is more critical than ever. Frequent outages can undermine public confidence in utility providers and highlight the need for ongoing investment in infrastructure amid an aging U.S. grid that complicates renewable deployment and EV adoption across the country.

Experts suggest that to ensure a more reliable energy supply, utilities must embrace modernization efforts, including the integration of smart grid technology and renewable energy sources. These innovations can enhance the ability to manage electricity supply and demand, especially during unprecedented demand in the Eastern U.S. when heatwaves strain systems, reduce outages, and improve response times during emergencies.

The Path Forward

In response to the outage, community advocates are calling for greater transparency from Pepco and other utility companies. They emphasize the importance of holding utilities accountable for maintaining reliable service and communicating effectively with customers, while also promoting customer bill-reduction initiatives that help households manage costs. Public forums and discussions about energy policy can empower residents to voice their concerns and contribute to solutions.

As D.C. looks to the future, it is essential to prioritize investments in energy infrastructure that can withstand the demands of a growing population. Collaborations between local government, utility companies, and community organizations can drive initiatives aimed at enhancing resilience and ensuring that all residents have access to reliable electricity.

The recent power outage in Northeast D.C. serves as a reminder of the challenges facing urban energy infrastructure. While Pepco's efforts to restore power and improve communication are commendable, the incident highlights the need for long-term solutions to enhance reliability. By investing in modern technology and fostering community engagement, D.C. can work towards a more resilient energy future, ensuring that residents can count on their electricity service even in times of crisis.

Related News

• Electricity Forum News

• Energy Policy News

Germany Energy Demand Decline reflects economic stagnation, IEA forecasts, and the Energiewende, as industrial output slips and efficiency gains, renewables growth, and cost-cutting reduce fossil fuel use while reshaping sustainability and energy security.

Key Points

A projected 7% drop in German energy use driven by industrial slowdown, efficiency gains, and renewables expansion.

✅ IEA projects up to 7% demand drop in the next year

✅ Industrial slowdown and efficiency programs cut consumption

✅ Energiewende shifts mix to wind, solar, and less fossil fuel

Germany is on the verge of experiencing a significant decline in energy demand, with forecasts suggesting that usage could hit a record low as the country grapples with economic stagnation. This shift highlights not only the immediate impacts of sluggish economic growth but also broader trends in energy consumption, Europe's electricity markets, sustainability, and the transition to renewable resources.

Recent data indicate that Germany's economy is facing substantial challenges, including high inflation and reduced industrial output. As companies struggle to maintain profitability amid nearly doubled power prices and rising costs, many have begun to cut back on energy consumption. This retrenchment is particularly pronounced in energy-intensive sectors such as manufacturing and chemical production, which are crucial to Germany's export-driven economy.

The International Energy Agency (IEA) has projected that German energy demand could decline by as much as 7% in the coming year, a stark contrast to the trends seen in previous decades. This decline is primarily driven by a combination of factors, including reduced industrial activity, increased energy efficiency measures, and a shift toward alternative energy sources, as well as mounting pressures on local utilities to stay solvent. The current economic landscape has led businesses to prioritize cost-cutting measures, including energy efficiency initiatives aimed at reducing consumption.

In the context of these developments, Germany’s energy transition—known as the "Energiewende"—is becoming increasingly significant. The country has made substantial investments in renewable energy sources such as wind, solar, and biomass in recent years. As energy efficiency improves and the share of renewables in the energy mix rises, traditional fossil fuel consumption has begun to wane. This transition is seen as both a response to climate change and a strategy for energy independence, particularly in light of geopolitical tensions and Europe's wake-up call to ditch fossil fuels across the continent.

However, the current stagnation presents a paradox for the German energy sector. While lower energy demand may ease some pressures on supply and prices, it also raises concerns about the long-term viability of investments in renewable energy infrastructure, even as debates continue over electricity subsidies for industry to support competitiveness. The economic slowdown has the potential to derail progress made in reducing carbon emissions and achieving energy targets, particularly if it leads to decreased investment in green technologies.

Another layer to this issue is the potential impact on employment within the energy sector. As energy demand decreases, there may be a ripple effect on jobs tied to traditional energy production and even in renewable energy sectors if investment slows. Policymakers are now tasked with balancing the immediate need for economic recovery, illustrated by the 200 billion-euro energy price shield, with the longer-term goal of achieving sustainability and energy security.

The effects of the stagnation are also being felt in the residential sector. As households face increased living costs and rising heating and electricity costs, many are becoming more conscious of their energy consumption. Initiatives to improve home energy efficiency, such as better insulation and energy-efficient appliances, are gaining traction among consumers looking to reduce their utility bills. This shift toward energy conservation aligns with broader national goals of reducing overall energy consumption and carbon emissions.

Despite the challenges, there is a silver lining. The current situation offers an opportunity for Germany to reassess its energy strategies and invest in technologies that promote sustainability while also addressing economic concerns. This could include increasing support for research and development in green technologies, enhancing energy efficiency programs, and incentivizing businesses to adopt cleaner energy practices.

Furthermore, Germany’s experience may serve as a case study for other nations grappling with similar issues. As economies around the world face the dual pressures of recovery and sustainability, the lessons learned from Germany’s current energy landscape could inform strategies for balancing these often conflicting priorities.

In conclusion, Germany is poised to witness a historic decline in energy demand as economic stagnation takes hold. While this trend poses challenges for the energy sector and economic growth, it also highlights the importance of sustainability and energy efficiency in shaping the future. As the nation navigates this complex landscape, the focus will need to be on fostering innovation and investment that aligns with both immediate economic needs and long-term environmental goals. The path forward will require a careful balancing act, but with the right strategies, Germany can emerge as a leader in sustainable energy practices even in challenging times.

Related News

• Electricity Forum News

• Energy Policy News

Sault Ste. Marie Smart Grid Investment upgrades PUC Distribution infrastructure with federal funding, clean energy tech, outage reduction, customer insights, and reliability gains, creating 140 jobs and attracting industry to a resilient, efficient grid.

Key Points

A federally funded PUC Distribution project to modernize the citywide grid, cut outages, boost efficiency, and create jobs.

✅ $11.8M federal funding to PUC Distribution

✅ Citywide smart grid cuts outages and energy loss

✅ 140 jobs; attracts clean tech and industry

PUC Distribution Inc. in Sault Ste. Marie is receiving $11.8 million from the federal government to invest in infrastructure, as utilities nationwide have faced pandemic-related losses that underscore the need for resilient systems.

The MP for the riding, Terry Sheehan, made the announcement on Monday.

The money will go to the utility's smart grid project, where technologies like a centralized SCADA system can enhance situational awareness and control.

"This smart grid project offers a glimpse into our clean energy future and represents a new wave of economic activity for the region," Sheehan said.

"Along with job creation, new industries will be attracted to a modern grid, supported by stable electricity pricing that helps competitiveness, all while helping the environment."

His office says the investment will allow the utility to reduce outages, provide more information to customers to help make smarter electricity use choices, aligned with Ontario's energy-efficiency programs that encourage conservation, and offer more services.

"This is an innovative project that makes Sault Ste. Marie a leader," mayor Christian Provenzano said.

"We will be the first city in our country to implement a community-wide smart grid. Once it is complete, the smart grid will make our energy infrastructure more reliable, reduce energy loss and lead to a more innovative economy for our community."

The project will also create 140 new jobs.

"As a community-focused utility, we are always looking for innovative ways to help our customers save money amid concerns about hydro disconnections during winter, and reduce their carbon footprint," Rob Brewster, president and CEO of PUC Distribution said.

"The investment the government has made in our community will not only help modernize our city's electrical distribution system [as] once the project is complete, Sault Ste. Marie will have access to an electricity grid that can handle the growing demands of a city in the 21st century."

Related News

• Electricity Forum News

• Grid Technologies News

Dewa-China Renewable Energy Partnership advances solar, clean energy, smart grid, 5G, cloud, and Big Data, linking Dewa with Hanergy and Huawei for R&D, smart meters, demand management, and resilient network infrastructure.

Key Points

A Dewa collaboration with Hanergy and Huawei to co-develop solar, smart grid, 5G, cloud, and resilient utility networks.

✅ MoU expands solar PV and distributed generation in Dubai and China

✅ Smart grid R&D: smart meters, demand response, self-healing networks

✅ 5G, cloud, and Big Data enable secure, scalable smart city services

A high-level delegation from Dubai Electricity and Water Authority (Dewa) recently visited China in bid to build closer ties with Chinese renewable and clean energy and smart services and smart grid companies, amid broader power grid modernization in Asia trends.

The team led by the managing director and CEO Saeed Mohammed Al Tayer visited the headquarters of Hanergy Holding Group, one of the largest international companies in alternative and renewable energy, in Beijing.

The visit complements the co-operation between Dewa and Hanergy after the signing MoU between the two sides last May, said a statement from Dewa.

The two parties focused on renewable and clean energy and its development, including efforts to integrate solar into the grid through advanced programs, and enhancing opportunities for joint investment.

Al Tayer also visited the Exhibition Hall and Exhibition Centre of the Hanergy Clean Energy Exhibition spread over a 7,000-sq-m area at the Beijing Olympic Park.

He discussed solar power technologies and applications, which included integrated photovoltaic panels and their distribution on the roofs of industrial and residential buildings, residential and mobile power systems, micro-grid installations in remote regions, solar-powered vehicles, and various elements of the exhibition.

Al Tayer and the accompanying delegation later visited the Beijing R&D Centre, which is one of Huaweis largest research institutes, known for Huawei smart grid initiatives across global markets, that employs over 12,000 people. The centre covers the latest pre-5G solutions, Cloud, Big Data, as well as vertical solutions for a smart and safe city.

"The visit is part of a joint venture with Huawei, which includes R&D projects to develop smart network infrastructures and various mechanisms and technologies, aligned with recent U.S. grid improvement funding initiatives, such as smart meters for electricity and water services, energy demand management, and self-recovery mechanisms from errors and disasters," he added.

Related News

• Electricity Forum News

• Renewable Energy News