Electricity and water do mix: How electric ships are clearing the air on the B.C. coast

France Electricity Pricing Mechanism aligns with EU rules, leveraging nuclear energy and EDF profits, avoiding Contracts for Difference, redistributing windfalls to industry and households, targeting €70/MWh amid electricity market reform and Brussels oversight.

Key Points

A framework to keep power near €70/MWh by reclaiming EDF windfalls and redistributing them under EU market rules.

✅ Targets average price near €70/MWh from 2026

✅ Skims EDF profits above €78-80 and €110/MWh thresholds

✅ Aligns with EU rules; avoids nuclear CfDs and state aid clashes

France has unveiled a new electricity pricing mechanism, hoping to defuse months of tension over energy subsidies with Brussels and its neighbors.

The strain has included a Franco-German fight over EU electricity reform with Germany accusing France of wanting to subsidize its industry via artificially low energy prices, while Paris maintained it should have the right to make the most of its relatively cheap nuclear energy. That fight has now been settled.

On Tuesday, the French government presented a new mechanism — complex, and still-to-be-detailed — to bring the average price of electricity closer to €70 per megawatt hour (MWh) as of 2026, amid Europe's electricity market revamp efforts.

"The agreement has been defined to comply with European rules and avoid difficulties with the European Commission," said France's Economy and Finance Minister Bruno Le Maire, noting that France had ruled out other "simpler" options that would have caused tension with Brussels.

For example, France has not yet envisaged the use of state-backed investment schemes called Contracts for Difference (CfD), which were the main source of discord in talks with Germany on the electricity market reform and the EU push for more fixed-price contracts in generation. The compromise agreed by EU ministers last month gives the Commission the power to monitor CfDs in the nuclear sector.

"France wanted to limit as much as possible the European Commission's nuisance power," said Phuc-Vinh Nguyen, an energy expert at the Jacques Delors Institute think tank in Paris.

The announcement came weeks after French President Emmanuel Macron promised that France would "take back control" of its electricity prices to allow its industry to make the most of the country's relatively cheap nuclear energy.

Germany, by contrast, has moved to support energy-intensive industries with an industrial electricity subsidy, underscoring the policy divergence.

“The price of electricity has always been a major competitive advantage for the French nation, and it must remain so,” Le Maire said.

Under the new mechanism, part of a broader deal on electricity prices between the state and EDF, the government will seize EDF profits above certain thresholds and redistribute them directly to industry and households to bring prices closer to the desired level. Specifically, the government will redistribute 50 percent of EDF’s additional profits if prices rise above €78-€80 per MWh, and 90 percent of extra profits if prices rise above €110 per MWh.

The move also marks a new step in the government's power grab at EDF, after the company was fully nationalized earlier this year.

For years, France has been discussing an EDF reform with the Commission in order to address concerns by Brussels regarding disguised state aid to the company. In particular, the Commission wanted assurances that any state aid given to nuclear would be kept separate from those parts of the business subject to competition, such as renewable energy development.

An economy ministry official close to Le Maire argued that the new pricing mechanism would settle matters with Brussels on that front. A Commission spokesperson said Brussels was in contact with France on the file, but declined further comment.

The mechanism will replace the existing EU-mandated energy pricing mechanism, dubbed ARENH, which was set to expire at the end of 2025, and which has forced EDF to sell some of its electricity to competitors at a fixed low price since 2010, and comes amid contested electricity market reforms at EU level.

The new system could benefit EDF because it won't be bound to sell energy at a lower price, but instead will be allowed to auction off its energy to competitors. On the other hand, the redistribution system would deprive the company of some profits when electricity prices are higher. No wonder, then, that negotiations between the government and EDF have been "difficult," as Le Maire put it.

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Canada EV Tariffs weigh protectionism, import duties, and trade policy against affordable electric vehicles, climate goals, and consumer costs, balancing domestic manufacturing, critical minerals, battery supply chains, and China relations amid US-EU actions.

Key Points

Canada EV Tariffs are proposed duties on Chinese EV imports to protect jobs vs. prices, climate goals, and trade risks.

✅ Shield domestic automakers; counter subsidies

✅ Raise EV prices; slow adoption, climate targets

✅ Spark China retaliation; hit exports, supply chains

Canada, a rising star in critical EV battery minerals, finds itself at a crossroads. The question: should they follow the US and EU and impose tariffs on Chinese electric vehicles (EVs), after the U.S. 100% tariff on Chinese EVs set a precedent?

The Allure of Protectionism

Proponents see tariffs as a shield for Canada's auto industry, supported by recent EV assembly deals that put Canada in the race, a vital job creator. They argue that cheaper Chinese EVs, potentially boosted by government subsidies, threaten Canadian manufacturers. Tariffs, they believe, would level the playing field.

Consumer Concerns and Environmental Impact

Opponents fear tariffs will translate to higher prices, deterring Canadians from buying EVs, especially amid EV shortages and wait times already affecting the market. This could slow down Canada's transition to cleaner transportation, crucial for meeting climate goals. A slower EV adoption could also impact Canada's potential as an EV leader.

The Looming Trade War Shadow

Tariffs risk escalating tensions with China, Canada's second-largest trading partner. China might retaliate with tariffs on Canadian exports, jeopardizing sectors like oil and lumber. This could harm the Canadian economy and disrupt critical mineral and battery development, areas where Canada is strategically positioned, even as opportunities to capitalize on the U.S. EV pivot continue to emerge across North America.

Navigating a Charged Path

The Canadian government faces a complex decision. Protecting domestic jobs is important, but so is keeping EVs affordable for a greener future and advancing EV sales regulations that shape the market. Canada must carefully consider the potential benefits of tariffs against the risks of higher consumer costs and a potential trade war.

This path forward could involve exploring alternative solutions. Canada could invest in its domestic EV industry, providing incentives for both consumers and manufacturers. Additionally, collaborating with other countries, including Canada-U.S. collaboration as companies turn to EVs, to address China's alleged unfair trade practices might be a more strategic approach.

Canada's decision on EV tariffs will have far-reaching consequences. Striking a balance between protecting its domestic industry and fostering a robust, environmentally friendly transportation sector, and meeting ambitious EV goals set by policymakers, is crucial. Only time will tell which path Canada chooses, but the stakes are high, impacting not just jobs, but also the environment and Canada's position in the global EV race.

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US Electricity Demand 2018-2050 projects slower growth as energy consumption, power generation, air conditioning, and electric heating shift with efficiency standards, commercial floor space, industrial load, and household growth across the forecast horizon.

Key Points

A forecast of US power use across homes, commercial space, industrial load, and efficiency trends from 2018 to 2050.

✅ 2018 generation hit record; residential sales up 6%.

✅ Efficiency curbs demand; growth lags population and floor space.

✅ Commercial sales up 2%; industrial demand fell 3% in 2018.

Last year's Houston cold winter and hot summer drove power use to record levels, especially among households that rely on electricity for air conditioning during extreme weather conditions.

Electricity generation increased 4 per cent nationwide in 2018 and produced 4,178 million megawatt hours, driven in part by record natural gas generation across the U.S., surpassing the previous peak of 4,157 megawatt hours set in 2007, the Energy Department reported.

U.S. households bought 6 percent more electricity in 2018 than they did the previous year, despite longer-term declines in national consumption, reflecting the fact 87 percent of households cool their homes with air conditioning and 35 percent use electricity for heating.

Electricity sales to the commercial sector increased 2 percent in 2018 compared to the previous year while the industrial sector bought 3 percent less last year.

Going forward, the Energy Department forecasts that electricity consumption will grow at a slower pace than in recent decades, aligning with falling sales projections as technology improves and energy efficiency standards moderate consumption.

The economy and population growth are primary drivers of demand and the government predicts the number of households will grow at 0.7 percent per year from now until 2050 but electricity demand will grow only by 0.4 percent annually.

Likewise, commercial floor space is expected to increase 1 percent per year from now until 2050 but electricity sales will increase only by half that amount.

Globally, surging electricity demand is putting power systems under strain, providing context for these domestic trends.

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Illinois Zero Emission Credits support nuclear plants via tradable credits tied to wholesale electricity prices, carbon costs, created by the Future Energy Jobs Bill to avert Exelon closures and sustain low-carbon power.

Key Points

State credits that value nuclear power's zero-carbon output, priced by market and carbon metrics to keep plants running.

✅ Pegged to wholesale prices, carbon costs, and state averages.

✅ Created by Future Energy Jobs Bill to prevent plant retirements.

✅ Supports Exelon Quad Cities and Clinton nuclear facilities.

Nuclear plants have produced over half of Illinois electricity generation since 2010, but the states two largest plants would have been retired amid the debate over saving nuclear plants if the state had not created a zero emission credit (ZEC) mechanism to support the facilities.

The two plants, Quad Cities and Clinton, collectively delivered more than 12 percent of the states electricity generation over the past several years. In May 2016, however, Exelon, the owner of the plants, announced that they had together lost over $800 million dollars over the previous six years and revealed plans to retire them in 2017 and 2018, similar to the Three Mile Island closure later announced for 2019 by its owner.

In December 2016, Illinois passed the Future Energy Jobs Bill, which established a zero emission credit (ZEC) mechanism

to support the plants financially. Exelon then cancelled its plans to retire the two facilities.

The ZEC is a tradable credit that represents the environmental attributes of one megawatt-hour of energy produced from the states nuclear plants. Its price is based on a number of factors that include wholesale electricity market prices, nuclear generation costs, state average market prices, and estimated costs of the long-term effects of carbon dioxide emissions.

The bill is set to take effect in June, but faces multiple court challenges as some utilities have expressed concerns that the ZEC violates the commerce clause and affects federal authority to regulate wholesale energy prices, amid gas-fired competition in nearby markets that shapes the revenue outlook.

Illinois ranks first in the United States for both generating capacity and net electricity generation from nuclear power, a resource many see as essential for net-zero emissions goals, and accounts for approximately one-eighth of the nuclear power generation in the nation.

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Senate Renewable Energy Tax Credits face Finance Committee scrutiny, with Democrats urging action on tax extenders, clean energy incentives, and climate policy, while Republicans cite prior wins in wind, biodiesel, and EV credits.

Key Points

Legislative incentives debated in the Senate Finance Committee to extend and align clean energy tax benefits.

✅ Democrats press hearings and action on energy tax policy

✅ Focus on clean energy, EVs, wind, biodiesel, and resilience

✅ Grassley cites prior extenders; disputes push for bigger subsidies

A group of 27 Democratic senators is calling for action in the Senate Finance Committee on extending energy-related tax credits and examining new tax proposals, especially those that incentivize renewable energy projects and align with FERC action on aggregated DERs across the grid.

Sen. Ron Wyden, D-Ore., the ranking Democrat on the Senate Finance Committee, who recently introduced a wildfire-resilient grid bill with Sen. Merkley, led the group of Democrats in writing a letter Tuesday to Sen. Charles Grassley, R-Iowa, who chairs the committee.

“Despite numerous opportunities, including in the recent tax extenders package, the Finance Committee has failed to take action on the dozens of energy tax proposals pending before it,” they wrote. “It is critical that the Committee move to address these issues in a timely manner, along with much needed policy changes that heed warnings on regulatory rollbacks to combat the damage and growing dangers caused by global climate change.”

The number of Americans ages 65 and over is projected to nearly double by 2060. And most would prefer to age in place and hiresenior caregivers if needed.

They pointed out that the Senate Finance Committee hasn’t held a single hearing on energy tax policy during the previous congressional term, and has yet to hold one in the current one.

“The sole energy tax-related recommendation of the Committee’s temporary policy task forces was ignored in the tax extender legislation passed in December 2019, along with nearly all proposals put forward in members’ legislation this Congress,” they wrote. “This Committee must fulfill its role in examining members’ energy tax proposals and in bolstering our nation’s efforts to combat climate change, including a clean electricity standard approach that sets firm targets.”

They noted that In 2019, the global average temperature was the second highest ever recorded and the past decade was the hottest ever. The lawmakers pointed to raging wildfires and increased flooding in the western part of the U.S., as well as challenges in California’s power system during the transition, causing unprecedented destruction over the past several years. They called for tax incentives for renewable energy to help combat climate change.

“Gaps in the tax code have disadvantaged complementary technologies that could improve climate resiliency and provide additional emissions reductions,” they wrote. “While power sector emissions continue to decrease, emissions from transportation, heavy industry and agriculture have stayed level or increased over the past 10 years, even amid $5 gas not spurring a green shift in consumer behavior. The United States is not on pace to meet its international climate commitments, to say nothing of the reductions necessary to stave off the worst potential outcomes of global warming.”

Grassley reacted to the letter, noting that he had worked to get tax extenders legislation passed, even as some states consider bans on clean energy use by utilities. "I begged Democrats for a year to help me get an extenders package passed, about half of which were green energy policies, so this rings hollow," he said in a statement Tuesday. "We wouldn’t have a wind energy credit or a biodiesel credit but for me, let alone an extension of either. Democrats were holding up these green energy provisions in an attempt to get a big expansion of taxpayer subsidies for rich Tesla owners."

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Canada Clean Electricity Regulations align climate policy with grid reliability, scaling renewables, energy storage, and low-carbon power to reach net-zero by 2050 while maintaining affordability through federal incentives, provincial flexibility, and investment.

Key Points

Nationwide rules to decarbonize power by 2050, capping emissions and protecting grid reliability and affordability.

✅ Net-zero electricity by 2050 with strict emissions limits

✅ Provincial flexibility and federal investments to cut costs

✅ Scales renewables, storage, and clean firm power for reliability

Canada's final Clean Electricity Regulations, unveiled in December 2024, alongside complementary provincial frameworks such as Ontario's clean electricity regulations that guide provincial implementation, represent a critical step toward ensuring a sustainable and reliable energy future. With electricity demand set to rise as the country’s population and economy grow, the Canadian government has put forward a robust plan that balances climate goals with the need for reliable, affordable power.

The regulations are designed to reduce greenhouse gas emissions from the electricity sector, which is already one of Canada's cleanest, with 85% of its electricity sourced from renewable energies like hydro, wind, and solar, and growing attention to clean grids and batteries nationwide. The target is to achieve net-zero emissions in electricity generation by 2050, a goal that will support the country’s broader climate ambitions.

One of the central goals of the Clean Electricity Regulations is to make sure that Canada’s power grid can accommodate future demand in light of a critical electrical supply crunch identified by analysts, while ensuring that emissions are cut effectively. The regulations set strict pollution limits but allow flexibility for provinces and territories to meet these goals in ways that suit their local circumstances. This approach recognizes the diverse energy resources across Canada, from the large-scale hydroelectric capacity in Quebec to the growing wind and solar projects in the West.

A key benefit of these regulations is the assurance that they will not result in higher electricity rates for most Canadians. In fact, according to government analyses, and resources like the online CER bill tool that explain how fees and usage affect charges, the regulations are expected to have a neutral or even slightly positive impact on electricity costs. This is due in part to significant federal investments in the electricity sector, totaling over $60 billion. These investments are intended to support the transition to clean electricity while minimizing costs for consumers.

The shift to clean electricity is also expected to generate significant savings for Canadian households. As energy prices continue to fluctuate, clean electricity, especially from renewable sources, is becoming more cost-competitive compared to fossil fuels. Over the next decade, this transition is expected to result in $15 billion in total savings for Canadians, with 84% of households projected to benefit from lower energy bills. The savings are a result of federal incentives aimed at encouraging the adoption of efficient electric appliances, vehicles, and heating systems.

Moreover, reducing emissions from the electricity sector will play a major role in cutting Canada’s overall greenhouse gas pollution. By 2050, it’s estimated that these regulations will reduce nearly 181 megatonnes of emissions, which is equivalent to removing over 55 million cars from the road. This is a crucial step in meeting Canada’s climate targets and mitigating the impacts of climate change, such as extreme weather events, which have already led to significant economic losses.

The economic benefits extend beyond savings on energy bills. The regulations and the broader clean electricity strategy will create substantial job opportunities. The clean energy sector, which includes jobs in wind, solar, and nuclear power, is poised for massive growth, and provinces like Alberta have outlined a path to clean electricity to support that momentum. It’s estimated that by 2030, the transition to clean electricity could create 400,000 new jobs, with further job growth projected for the years to come. These jobs are expected to include roles in both the construction and operation of new energy infrastructure, many of which will be unionized positions offering good wages and benefits.

To help meet the rising demand for clean energy, the government’s strategy emphasizes technological innovation and the integration of new energy sources, including market design updates such as proposed market changes that can enable investment. Renewable energy technologies such as wind and solar power have become increasingly cost-competitive, and their continued development is expected to reduce the overall cost of electricity generation. The regulations also encourage the adoption of energy storage solutions, which are essential for managing the intermittent nature of renewable energy sources.

In addition to the environmental and economic benefits, the Clean Electricity Regulations will help improve public health. Air pollution from fossil fuel power generation is a major contributor to respiratory illnesses and other health issues. By transitioning to clean energy sources, Canada can reduce harmful air pollutants, leading to better health outcomes and a lower burden on the healthcare system.

As Canada moves toward a net-zero electricity grid, including the federal 2035 target that some have criticized as changing goalposts in Saskatchewan, the Clean Electricity Regulations represent a comprehensive and flexible approach to managing the energy transition. With significant investments in clean energy technologies and the adoption of policies that ensure affordable electricity for all Canadians, the government is setting the stage for a cleaner, more sustainable future. These efforts will not only help Canada meet its climate goals but also create a thriving clean energy economy that benefits workers, businesses, and families across the country.

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