EU Solar Impact on Electricity Prices highlights how rising solar PV penetration drives negative pricing, shifts peak hours, pressures wholesale markets, and challenges grid balancing, interconnection, and flexibility amid changing demand and renewables growth.
Key Points
Explains how rising solar PV cuts wholesale prices, shifts negative-price hours, and strains grid flexibility.
✅ Negative pricing events surge with higher solar penetration.
✅ Grid balancing, interconnectors, and flexibility become critical.
The latest EU electricity market report has confirmed the affect deeper penetration of solar is having on wholesale electricity prices more broadly.
The Quarterly Report on European Electricity Markets for the final three months of last year noted the number of periods of negative electricity pricing doubled from 2019, to almost 1,600 such events, as global renewables set new records in deployment across markets.
Having experienced just three negative price events in 2019, the Netherlands recorded almost 100 last year “amid a dramatic increase in solar PV capacity,” in the nation, according to the report.
Whilst stressing the exceptional nature of the Covid-19 pandemic on power consumption patterns, the quarterly update also noted a shift in the hours during which negative electric pricing occurred in renewables poster child Germany. Previously such events were most common at night, during periods of high wind speed and low demand, but 2020 saw a switch to afternoon negative pricing. “Thus,” stated the report, “solar PV became the main driver behind prices falling into negative territory in the German market in 2020, as Germany's solar boost accelerated, and also put afternoon prices under pressure generally.”
The report also highlighted two instances of scarce electricity–in mid September and on December 9–as evidence of the problems associated with accommodating a rising proportion of intermittent clean energy capacity into the grid, and called for more joined-up cross-border power networks, amid pushback from Russian oil and gas across the continent.
Rising solar generation–along with higher gas output, year on year–also helped the Netherlands generate a net surplus of electricity last year, after being a net importer “for many years.” The EU report also noted a beneficial effect of rising solar generation capacity on Hungary‘s national electricity account, and cited a solar “boom” in that country and Poland, mirroring rapid solar PV growth in China in recent years.
With Covid-19 falls in demand helping renewables generate more of Europe's electricity (39%) than fossil fuels (36%) for the first time, as renewables surpassed fossil fuels across Europe, the market report observed the 5% of the bloc's power produced from solar closed in on the 6% accounted for by hard coal. In the final three months of the year, European solar output rose 12%, year on year, to 18 TWh and “the increase was almost single-handedly driven by Spain,” the study added.
With coal and lignite-fired power plunging 22% last year across the bloc, it is estimated the European power sector reduced its carbon footprint 14% as part of Europe's green surge although the quarterly report warned cold weather, lower wind speeds and rising gas prices in the opening months of this year are likely to see carbon emissions rebound.
There was good news on the transport front, though, with the report stating the scale of the European “electrically-charged vehicle” fleet doubled in 2020, to 2 million, with almost half a million of the new registrations arriving in the final months of the year. That meant cars with plug sockets accounted for a remarkable 17% of new purchases in Q4, twice the proportion seen in China and a slice of the pie six times bigger than such products claimed in the U.S.
CO2 Tax for UK Offshore Energy Efficiency can accelerate adoption of aero-derivative gas turbines, flare gas recovery, and combined cycle power, reducing emissions on platforms like Equinor's Mariner and supporting net zero goals.
Key Points
A carbon price pushing operators to adopt efficient turbines, flare recovery, and combined cycle to cut emissions.
✅ Aero-derivative turbines beat industrial units on efficiency
✅ Flare gas recovery cuts routine flaring and fuel waste
✅ Combined cycle raises efficiency and lowers emissions
By Tom Baxter
The recent Energy Voice article from the Equinor chairman concerning the Mariner project heralding a ‘significant point of reference’ for growth highlighted the energy efficiency achievements associated with the platform.
I view energy efficiency as a key enabler to net zero, and alongside this the UK must start large-scale storage to meet system needs; it is a topic I have been involved with for many years.
As part of my energy efficiency work, I investigated Norwegian practices and compared them with the UK.
There were many differences, here are three;
1. Power for offshore installations is usually supplied from gas turbines burning fuel from the oil and gas processing plant, and even as the UK's offshore wind supply accelerates, installations convert that to electricity or couple the gas turbine to a machine such as a gas compressor.
There are two main generic types of gas turbine – aero-derivative and industrial. As the name implies aero-derivatives are aviation engines used in a static environment. Aero-derivative turbines are designed to be energy efficient as that is very import for the aviation industry.
Not so with industrial type gas turbines; they are typically 5-10% less efficient than a comparable aero-derivative.
Industrial machines do have some advantages – they can be cheaper, require less frequent maintenance, they have a wide fuel composition tolerance and they can be procured within a shorter time frame.
My comparison showed that aero-derivative machines prevailed in Norway because of the energy efficiency advantages – not the case in the UK where there are many more offshore industrial gas turbines.
Tom Baxter is visiting professor of chemical engineering at Strathclyde University and a retired technical director at Genesis Oil and Gas Consultants
2. Offshore gas flaring is probably the most obvious source of inefficient use of energy with consequent greenhouse gas emissions.
On UK installations gas is always flared due to the design of the oil and gas processing plant.
Though not a large quantity of gas, a continuous flow of gas is routinely sent to flare from some of the process plant.
In addition the flare requires pilot flames to be maintained burning at all times and, while Europe explores electricity storage in gas pipes, a purge of hydrocarbon gas is introduced into the pipes to prevent unsafe air ingress that could lead to an explosive mixture.
On many Norwegian installations the flare system is designed differently. Flare gas recovery systems are deployed which results in no flaring during continuous operations.
Flare gas recovery systems improve energy efficiency but they are costly and add additional operational complexity.
3. Returning to gas turbines, all UK offshore gas turbines are open cycle – gas is burned to produce energy and the very hot exhaust gases are vented to the atmosphere. Around 60 -70% of the energy is lost in the exhaust gases.
Some UK fields use this hot gas as a heat source for some of the oil and gas treatment operations hence improving energy efficiency.
There is another option for gas turbines that will significantly improve energy efficiency – combined cycle, and in parallel plans for nuclear power under the green industrial revolution aim to decarbonise supply.
Here the exhaust gases from an open cycle machine are taken to a separate turbine. This additional turbine utilises exhaust heat to produce steam with the steam used to drive a second turbine to generate supplementary electricity. It is the system used in most UK power stations, even as UK low-carbon generation stalled in 2019 across the grid.
Open cycle gas turbines are around 30 – 40% efficient whereas combined cycle turbines are typically 50 – 60%. Clearly deploying a combined cycle will result in a huge greenhouse gas saving.
I have worked on the development of many UK oil and gas fields and combined cycle has rarely been considered.
The reason being is that, despite the clear energy saving, they are too costly and complex to justify deploying offshore.
However that is not the case in Norway where combined cycle is used on Oseberg, Snorre and Eldfisk.
What makes the improved Norwegian energy efficiency practices different from the UK – the answer is clear; the Norwegian CO2 tax.
A tax that makes CO2 a significant part of offshore operating costs.
The consequence being that deploying energy efficient technology is much easier to justify in Norway when compared to the UK.
Do we need a CO2 tax in the UK to meet net zero – I am convinced we do. I am in good company. BP, Shell, ExxonMobil and Total are supporting a carbon tax.
Not without justification there has been much criticism of Labour’s recent oil tax plans, alongside proposals for state-owned electricity generation that aim to reshape the power market.
To my mind Labour’s laudable aims to tackle the Climate Emergency would be much better served by supporting a CO2 tax that complements the UK's coal-free energy record by strengthening renewable investment.
Boeing 787 More-Electric Architecture replaces pneumatics with bleedless pressurization, VFSG starter-generators, electric brakes, and heated wing anti-ice, leveraging APU, RAT, batteries, and airport ground power for efficient, redundant electrical power distribution.
Key Points
An integrated, bleedless electrical system powering start, pressurization, brakes, and anti-ice via VFSGs, APU and RAT.
✅ VFSGs start engines, then generate 235Vac variable-frequency power
✅ Bleedless pressurization, electric anti-ice improve fuel efficiency
✅ Electric brakes cut hydraulic weight and simplify maintenance
The 787 Dreamliner is different to most commercial aircraft flying the skies today. On the surface it may seem pretty similar to the likes of the 777 and A350, but get under the skin and it’s a whole different aircraft.
When Boeing designed the 787, in order to make it as fuel efficient as possible, it had to completely shake up the way some of the normal aircraft systems operated. Traditionally, systems such as the pressurization, engine start and wing anti-ice were powered by pneumatics. The wheel brakes were powered by the hydraulics. These essential systems required a lot of physical architecture and with that comes weight and maintenance. This got engineers thinking.
What if the brakes didn’t need the hydraulics? What if the engines could be started without the pneumatic system? What if the pressurisation system didn’t need bleed air from the engines? Imagine if all these systems could be powered electrically… so that’s what they did.
Power sources
The 787 uses a lot of electricity. Therefore, to keep up with the demand, it has a number of sources of power, much as grid operators track supply on the GB energy dashboard to balance loads. Depending on whether the aircraft is on the ground with its engines off or in the air with both engines running, different combinations of the power sources are used.
Engine starter/generators
The main source of power comes from four 235Vac variable frequency engine starter/generators (VFSGs). There are two of these in each engine. These function as electrically powered starter motors for the engine start, and once the engine is running, then act as engine driven generators.
The generators in the left engine are designated as L1 and L2, the two in the right engine are R1 and R2. They are connected to their respective engine gearbox to generate electrical power directly proportional to the engine speed. With the engines running, the generators provide electrical power to all the aircraft systems.
APU starter/generators
In the tail of most commercial aircraft sits a small engine, the Auxiliary Power Unit (APU). While this does not provide any power for aircraft propulsion, it does provide electrics for when the engines are not running.
The APU of the 787 has the same generators as each of the engines — two 235Vac VFSGs, designated L and R. They act as starter motors to get the APU going and once running, then act as generators. The power generated is once again directly proportional to the APU speed.
The APU not only provides power to the aircraft on the ground when the engines are switched off, but it can also provide power in flight should there be a problem with one of the engine generators.
Battery power
The aircraft has one main battery and one APU battery. The latter is quite basic, providing power to start the APU and for some of the external aircraft lighting.
The main battery is there to power the aircraft up when everything has been switched off and also in cases of extreme electrical failure in flight, and in the grid context, alternatives such as gravity power storage are being explored for long-duration resilience. It provides power to start the APU, acts as a back-up for the brakes and also feeds the captain’s flight instruments until the Ram Air Turbine deploys.
Ram air turbine (RAT) generator
When you need this, you’re really not having a great day. The RAT is a small propeller which automatically drops out of the underside of the aircraft in the event of a double engine failure (or when all three hydraulics system pressures are low). It can also be deployed manually by pressing a switch in the flight deck.
Once deployed into the airflow, the RAT spins up and turns the RAT generator. This provides enough electrical power to operate the captain’s flight instruments and other essentials items for communication, navigation and flight controls.
External power
Using the APU on the ground for electrics is fine, but they do tend to be quite noisy. Not great for airports wishing to keep their noise footprint down. To enable aircraft to be powered without the APU, most big airports will have a ground power system drawing from national grids, including output from facilities such as Barakah Unit 1 as part of the mix. Large cables from the airport power supply connect 115Vac to the aircraft and allow pilots to shut down the APU. This not only keeps the noise down but also saves on the fuel which the APU would use.
The 787 has three external power inputs — two at the front and one at the rear. The forward system is used to power systems required for ground operations such as lighting, cargo door operation and some cabin systems. If only one forward power source is connected, only very limited functions will be available.
The aft external power is only used when the ground power is required for engine start.
Circuit breakers
Most flight decks you visit will have the back wall covered in circuit breakers — CBs. If there is a problem with a system, the circuit breaker may “pop” to preserve the aircraft electrical system. If a particular system is not working, part of the engineers procedure may require them to pull and “collar” a CB — placing a small ring around the CB to stop it from being pushed back in. However, on the 787 there are no physical circuit breakers. You’ve guessed it, they’re electric.
Within the Multi Function Display screen is the Circuit Breaker Indication and Control (CBIC). From here, engineers and pilots are able to access all the “CBs” which would normally be on the back wall of the flight deck. If an operational procedure requires it, engineers are able to electrically pull and collar a CB giving the same result as a conventional CB.
Not only does this mean that the there are no physical CBs which may need replacing, it also creates space behind the flight deck which can be utilised for the galley area and cabin.
A normal flight
While it’s useful to have all these systems, they are never all used at the same time, and, as the power sector’s COVID-19 mitigation strategies showed, resilience planning matters across operations. Depending on the stage of the flight, different power sources will be used, sometimes in conjunction with others, to supply the required power.
On the ground
When we arrive at the aircraft, more often than not the aircraft is plugged into the external power with the APU off. Electricity is the blood of the 787 and it doesn’t like to be without a good supply constantly pumping through its system, and, as seen in NYC electric rhythms during COVID-19, demand patterns can shift quickly. Ground staff will connect two forward external power sources, as this enables us to operate the maximum number of systems as we prepare the aircraft for departure.
Whilst connected to the external source, there is not enough power to run the air conditioning system. As a result, whilst the APU is off, air conditioning is provided by Preconditioned Air (PCA) units on the ground. These connect to the aircraft by a pipe and pump cool air into the cabin to keep the temperature at a comfortable level.
APU start
As we near departure time, we need to start making some changes to the configuration of the electrical system. Before we can push back , the external power needs to be disconnected — the airports don’t take too kindly to us taking their cables with us — and since that supply ultimately comes from the grid, projects like the Bruce Power upgrade increase available capacity during peaks, but we need to generate our own power before we start the engines so to do this, we use the APU.
The APU, like any engine, takes a little time to start up, around 90 seconds or so. If you remember from before, the external power only supplies 115Vac whereas the two VFSGs in the APU each provide 235Vac. As a result, as soon as the APU is running, it automatically takes over the running of the electrical systems. The ground staff are then clear to disconnect the ground power.
If you read my article on how the 787 is pressurised, you’ll know that it’s powered by the electrical system. As soon as the APU is supplying the electricity, there is enough power to run the aircraft air conditioning. The PCA can then be removed.
Engine start
Once all doors and hatches are closed, external cables and pipes have been removed and the APU is running, we’re ready to push back from the gate and start our engines. Both engines are normally started at the same time, unless the outside air temperature is below 5°C.
On other aircraft types, the engines require high pressure air from the APU to turn the starter in the engine. This requires a lot of power from the APU and is also quite noisy. On the 787, the engine start is entirely electrical.
Power is drawn from the APU and feeds the VFSGs in the engines. If you remember from earlier, these fist act as starter motors. The starter motor starts the turn the turbines in the middle of the engine. These in turn start to turn the forward stages of the engine. Once there is enough airflow through the engine, and the fuel is igniting, there is enough energy to continue running itself.
After start
Once the engine is running, the VFSGs stop acting as starter motors and revert to acting as generators. As these generators are the preferred power source, they automatically take over the running of the electrical systems from the APU, which can then be switched off. The aircraft is now in the desired configuration for flight, with the 4 VFSGs in both engines providing all the power the aircraft needs.
As the aircraft moves away towards the runway, another electrically powered system is used — the brakes. On other aircraft types, the brakes are powered by the hydraulics system. This requires extra pipe work and the associated weight that goes with that. Hydraulically powered brake units can also be time consuming to replace.
By having electric brakes, the 787 is able to reduce the weight of the hydraulics system and it also makes it easier to change brake units. “Plug in and play” brakes are far quicker to change, keeping maintenance costs down and reducing flight delays.
In-flight
Another system which is powered electrically on the 787 is the anti-ice system. As aircraft fly though clouds in cold temperatures, ice can build up along the leading edge of the wing. As this reduces the efficiency of the the wing, we need to get rid of this.
Other aircraft types use hot air from the engines to melt it. On the 787, we have electrically powered pads along the leading edge which heat up to melt the ice.
Not only does this keep more power in the engines, but it also reduces the drag created as the hot air leaves the structure of the wing. A double win for fuel savings.
Once on the ground at the destination, it’s time to start thinking about the electrical configuration again. As we make our way to the gate, we start the APU in preparation for the engine shut down. However, because the engine generators have a high priority than the APU generators, the APU does not automatically take over. Instead, an indication on the EICAS shows APU RUNNING, to inform us that the APU is ready to take the electrical load.
Shutdown
With the park brake set, it’s time to shut the engines down. A final check that the APU is indeed running is made before moving the engine control switches to shut off. Plunging the cabin into darkness isn’t a smooth move. As the engines are shut down, the APU automatically takes over the power supply for the aircraft. Once the ground staff have connected the external power, we then have the option to also shut down the APU.
However, before doing this, we consider the cabin environment. If there is no PCA available and it’s hot outside, without the APU the cabin temperature will rise pretty quickly. In situations like this we’ll wait until all the passengers are off the aircraft until we shut down the APU.
Once on external power, the full flight cycle is complete. The aircraft can now be cleaned and catered, ready for the next crew to take over.
Bottom line
Electricity is a fundamental part of operating the 787. Even when there are no passengers on board, some power is required to keep the systems running, ready for the arrival of the next crew. As we prepare the aircraft for departure and start the engines, various methods of powering the aircraft are used.
The aircraft has six electrical generators, of which only four are used in normal flights. Should one fail, there are back-ups available. Should these back-ups fail, there are back-ups for the back-ups in the form of the battery. Should this back-up fail, there is yet another layer of contingency in the form of the RAT. A highly unlikely event.
The 787 was built around improving efficiency and lowering carbon emissions whilst ensuring unrivalled levels safety, and, in the wider energy landscape, perspectives like nuclear beyond electricity highlight complementary paths to decarbonization — a mission it’s able to achieve on hundreds of flights every single day.
Middle Tennessee Power Outages disrupt 100,000+ customers as severe thunderstorms, straight-line winds, downed trees, and debris challenge Nashville crews, slow restoration amid COVID-19, and threaten more hail, flash flooding, and damaging gusts.
Key Points
Blackouts across Nashville after severe storms and winds, leaving customers without power and facing restoration delays.
✅ Straight-line winds 60-80 mph toppled trees and power lines
✅ 130,000+ customers impacted; some outages may last 1-2 weeks
✅ Restoration slowed by debris, COVID-19 protocols, and new storms
Some middle Tennessee residents could be without electricity for up to two weeks after strong thunderstorms swept through the area Sunday, knocking out power for more than 100,000 customers, a scale comparable to Los Angeles outages after a station fire.
"Straight line winds as high as 60-80 miles per hour knocked down trees, power lines and power polls, interrupting power to 130,000 of our 400,000+ customers," Nashville Electric said in a statement Monday. The utility said the outage was one of the largest on record, though Carolina power outages recently left a quarter-million without power as well.
"Restoration times will depend on individual circumstances. In some cases, power could be out for a week or two" as challenges related to coronavirus and the need for utilities adapt to climate change complicated crews' responses and more storms were expected, the statement said. "This is unfortunate timing on the heels of a tornado and as we deal with battling COVID-19."
Metropolitan Nashville and Davidson County Mayor John Cooper also noted that the power outages were especially inconvenient, a challenge similar to Hong Kong families without power during Typhoon Mangkhut, as people were largely staying home to slow the spread of coronavirus. He also pointed out that the storms came on the two month anniversary of the Nashville tornado that left at least two dozen people dead.
"Crews are working diligently to restore power and clear any debris in neighborhoods," Cooper said.
He said that no fatalities were reported in the county but sent condolences to Spring Hill, whose police department reported that firefighter Mitchell Earwood died during the storm due to "a tragic weather-related incident" while at his home and off duty. He had served with the fire department for 10 years.
The Metro Nashville Department of Public Works said it received reports of more than 80 downed trees in Davidson County.
Officials also warn that copper theft can be deadly when electrical infrastructure is damaged after storms.
The National Weather Service Nashville said a 72 mph wind gust was measured at Nashville International Airport — the fifth fastest on record.
The weather service warned that strong storms with winds of up to 75 mph, large hail, record-long lightning bolt potential seen in the U.S., and isolated flash flooding could hit middle Tennessee again Monday afternoon and night.
"Treat Severe Thunderstorm Warnings the same way you would Tornado Warnings and review storm safety tips before you JUST TAKE SHELTER," the NWS instructs. "70 mph is 70 mph whether it's spinning around in a circle or blowing in a straight line."
California Governor Gavin Newsom vetoed a bill aimed at expanding load flexibility in state grid planning, citing conflicts with California’s resource adequacy framework and concerns over grid reliability and energy planning uncertainty.
Why has Newsom vetoed the Bill to Codify Load Flexibility?
Governor Gavin Newsom’s veto blocks legislation that would have required the California Energy Commission to incorporate load flexibility into the state’s energy planning and policy framework, a move that has stirred debate across the clean energy sector.
✅ Argues the bill conflicts with California’s existing Resource Adequacy system
✅ Draws backlash from clean energy and grid modernization advocates
✅ Exposes ongoing tension over how to manage renewable integration and demand response
California Governor Gavin Newsom has vetoed Assembly Bill 44, which would have required the California Energy Commission to evaluate and incorporate load management mechanisms into the state’s energy planning process. The move drew criticism from clean energy advocates who say it undermines efforts to strengthen grid reliability and reduce costs.
The bill directed the commission to adopt “upfront technical requirements and load modification protocols” that would allow load-serving entities to adjust their electrical demand forecasts. Proponents viewed this as a way to modernize California’s grid management, and to explore a revamp of electricity rates to help clean the grid, making it more responsive to demand fluctuations and renewable energy variability.
In his veto statement, Newsom said the bill was incompatible with existing energy planning frameworks, even as a looming electricity shortage remains a concern. “While I support expanding electric load flexibility, this bill does not align with the California Public Utility Commission’s Resource Adequacy framework,” he said. “As a result, the requirements of this bill would not improve electric grid reliability planning and could create uncertainty around energy resource planning and procurement processes.”
Newsom’s decision comes shortly after he signed a broad package of energy legislation that set the stage for a regional Western electricity market and extended the state’s cap-and-trade program. However, that legislative package did not include continued funding for several key grid reliability programs — including what advocates have called the world’s largest virtual power plant, a distributed network of connected devices that can balance electricity demand in real time.
Clean energy supporters saw AB 44 as a crucial step toward integrating these distributed energy resources into long-term grid planning. “With Assembly Bill 44 being vetoed, the state has missed a huge opportunity to advance common-sense policy that would have lowered costs, strengthened the grid, and unlocked the full potential of advanced energy,” said Edson Perez, California lead at Advanced Energy United.
Perez added that the setback increases pressure on lawmakers to take stronger action in the next legislative session. “The pressure is on next session to ensure that California is using all tools in its policy toolbox to build critically needed infrastructure, strengthen the grid, and bring costs down,” he said.
California’s growing use of demand response programs and virtual power plants has been central to its strategy for managing grid stress during heat waves and wildfire seasons. These systems allow utilities and customers to temporarily reduce or shift energy use, helping to prevent blackouts and reduce the need for fossil-fuel peaker plants during peak demand.
A recent report by the Brattle Group found that California’s taxpayer-funded virtual power plant could save ratepayers $206 million between 2025 and 2028 while reducing reliance on gas generation. The study, commissioned by Sunrun and Tesla Energy, highlighted the potential for flexible load management to improve both grid reliability and reduce costs, even as regulators weigh whether the state needs more power plants to ensure reliability.
Despite these findings, Newsom’s veto signals continued tension between state policymakers and clean energy advocates over how best to modernize California’s power grid. While the governor has prioritized large-scale renewable development and regional market integration, critics argue that California’s climate policy choices risk exacerbating reliability challenges and that failing to codify load flexibility could slow progress toward a more adaptive, resilient, and affordable clean energy future.
Ontario Comprehensive Electricity Plan delivers Global Adjustment reductions for industrial and commercial non-RPP customers, lowering electricity rates, shifting renewable energy costs, and enhancing competitiveness across Ontario businesses in 2022, with additional 4 percent savings.
Key Points
Ontario's plan lowers Global Adjustment by shifting renewable costs, cutting industrial and commercial bills 15-17%.
✅ Shifts above-market non-hydro renewable costs to the Province
✅ Reduces GA for industrial and commercial non-RPP customers
✅ Additional 4% savings on 2022 bills after GA deferral
As of January 1, 2022, industrial and commercial electricity customers will benefit from the full savings introduced through the Ontario government’s Comprehensive Electricity Plan, which supports stable electricity pricing for industrial and commercial companies, announced in Budget 2020, and first implemented in January 2021. This year customers could see an additional four percent savings compared to their bills last year, bringing the full savings from the Comprehensive Electricity Plan to between 15 and 17 per cent, making Ontario a more competitive place to do business.
“Our Comprehensive Electricity Plan has helped reverse the trend of skyrocketing electricity prices that drove jobs out of Ontario,” said Todd Smith, Minister of Energy. “Over 50,000 customers are benefiting from our government’s plan which has reduced electricity rates on clean and reliable power, allowing them to focus on reinvesting in their operations and creating jobs here at home.”
Starting on January 1, 2021, the Comprehensive Electricity Plan reduced overall Global Adjustment (GA) costs for industrial and commercial customers who do not participate in the Regulated Price Plan (RPP) by shifting the forecast above-market costs of non-hydro renewable energy, such as wind, solar and bioenergy, from the rate base to the Province, alongside energy-efficiency programs that complement demand reduction efforts.
“Since taking office, our government has listened to job creators and worked to lower the costs of doing business in the province. Through these significant reductions in electricity prices through the Comprehensive Electricity Plan, customers all across Ontario will benefit from significant savings in their business operations in 2022,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By continuing to reduce electricity costs, lowering taxes, and cutting red tape our government has reduced the cost of doing business in Ontario by nearly $7 billion annually to ensure that we remain competitive, innovative and poised for economic recovery.”
As part of its COVID response, including electricity relief for families and small businesses, Ontario had deferred a portion of GA between April and June 2020 for industrial and non-RPP commercial customers, with more than 50,000 customers benefiting. Those same businesses paid back these deferred GA costs over 12 months, between January 2021 and December 2021, while the province prepared to extend disconnect moratoriums for residential customers.
During the pandemic, residential electricity use rose even as overall consumption dropped, underscoring shifts in load patterns.
Now that the GA deferral repayment period is over, industrial and non-RPP commercial customers will benefit from the full cost reductions provided to them by the Comprehensive Electricity Plan, alongside temporary off-peak rate relief that supported families and small businesses. This means that, beginning January 1, 2022, these businesses could see an additional four per cent savings on their bills compared to 2021, as new ultra-low overnight pricing options emerge depending on their location and consumption.
Alberta Hydropower Potential highlights renewable energy, dams, reservoirs, grid flexibility, contrasting wind and solar growth with limited investment, regulatory hurdles, river basin resources, and decarbonization pathways across Athabasca, Peace, and Slave River systems.
Key Points
It is the technical capacity for new hydro in Alberta's river basins to support a more reliable, lower carbon grid.
✅ 42,000 GWh per year developable hydro identified in studies.
✅ Major potential in Athabasca, Peace, and Slave River basins.
✅ Barriers include high capital costs, market design, water rights.
When you think about renewable energy sources on the Prairies, your mind may go to the wind farms in southern Alberta, or even the Travers Solar Project, southeast of Calgary.
Most of the conversation around renewable energy in the province is dominated by advancements in solar and wind power, amid Alberta's renewable energy surge that continues to attract attention.
But what about Canada's main source of electricity — hydro power?
More than half of Canada's electricity is generated from hydro sources, with 632.2 terawatt-hours produced as of 2019. That makes it the fourth largest installed capacity of hydropower in the world.
But in Alberta, it's a different story.
Currently, hydro power contributes between three and five per cent of Alberta's energy mix, while fossil fuels make up about 89 per cent.
According to Canada's Energy Future report from the Canada Energy Regulator, by 2050 it will make up two per cent of the province's electricity generation shares.
So why is it that a province so rich in mountains and rivers has so little hydro power?
Hydro's history in Alberta
Hydro power didn't always make up such a small sliver of Alberta's electricity generation. Hydro installations began in the early 20th century as the province's population exploded.
Grant Berg looks after engineering for hydro for TransAlta, Alberta's largest producer of hydro power with 17 facilities across the province.
"Our first plant was Horseshoe, which started in 1911 that we formed as Calgary Power," he said.
"It was really in response to the City of Calgary growing and having some power needs."
Berg said in 1913, TransAlta's second installation, the Kananaskis Plant, started as Calgary continued to grow.
A historical photo of a hydro-electric dam in Kananaskis Alta. taken in 1914.
Hydro power plant in Kananaskis as seen in 1914. (Glenbow Archives)
Some bigger installations were built in the 1920s, including Ghost reservoir, but by mid-century population growth increased.
"Quite a large build out really, I think in response to the growth in Alberta following the war. So through the 1950s really quite a large build out of hydro from there."
By the 1950s, around half of the province's installed capacity was hydro power.
"Definitely Calgary power was all hydro until the 1950s," said Berg.
Hydro potential in the province
Despite the current low numbers in hydroelectricity, Alberta does have potential.
According to a 2010 study, there is approximately 42,000 gigawatt-hours per year of remaining developable hydroelectric energy potential at identified sites.
An average home in Alberta uses around 7,200 kilowatt-hours of electricity per year, meaning that the hydro potential could power 5.8 million homes each year.
"This volume of energy could be sufficient to serve a significant amount of Alberta's load and therefore play a meaningful role in the decarbonization of the province's electric system," the Alberta Electric System Operator said in its 2022 Pathways to Net-Zero Emissions report.
Much of that potential lies in northern Alberta, in the Athabasca, Peace and Slave River basins.
The AESO report says that despite the large resource potential, Alberta's energy-only market framework has attracted limited investment in hydroelectric generation.
Hydro power was once a big deal in Alberta, but investment in the industry has been in decline since the 1950s. Climate change reporter Christy Climenhaga explains why.
So why does Alberta leave out such a large resource potential on the path to net zero?
The government of Alberta responded to that question in a statement.
"Hydro facilities, particularly large scale ones involving dams, are associated with high costs and logistical demands," said the Ministry of Affordability and Utilities.
"Downstream water rights for other uses, such as irrigation, further complicate the development of hydro projects."
The ministry went on to say that wind and solar projects have increased far more rapidly because they can be developed at relatively lower cost and shorter timelines, and with fewer logistical demands.
"Sources from wind power and solar are increasingly more competitive," said Jean-Denis Charlebois, chief economist with the Canadian Energy Regulator.
Hydro on the path to net zero
Hydro power is incredibly important to Canada's grid, and will remain so, despite growth in wind and solar power across the province.
Charlebois said that across Canada, the energy make-up will depend on the province.
"Canadian provinces will generate electricity in very different ways from coast to coast. The major drivers are essentially geography," he said.
Charlebois says that in British Columbia, Manitoba, Quebec and Newfoundland and Labrador, hydropower generation will continue to make up the majority of the grid.
"In Alberta and Saskatchewan, we see a fair bit of potential for wind and solar expansion in the region, which is not necessarily the case on Canada's coastlines," he said.
And although hydro is renewable, it does bring its adverse effects to the environment — land use changes, changes in flow patterns, fish populations and ecosystems, which will have to be continually monitored.
"You want to be able to manage downstream effects; make sure that you're doing all the proper things for the environment," said Ryan Braden, director of mining and hydro at TransAlta.
Braden said hydro power still has a part to play in Alberta, even with its smaller contributions to the future grid.
"It's one of those things that, you know, the wind doesn't blow or the sun doesn't shine, this is here. The way we manage it, we can really support that supply and demand," he said.
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