German coalition backs electricity subsidy for industries


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Germany Industrial Electricity Price Subsidy weighs subsidies for energy-intensive industries to bolster competitiveness as Germany shifts to renewables, expands grid capacity, and debates free-market tax cuts versus targeted relief and long-term policies.

 

Key Points

Policy to subsidize power for energy-intensive industry, preserving competitiveness during the energy transition.

✅ SPD backs 5-7 cents per kWh for 10-15 years

✅ FDP prefers tax cuts and free-market pricing

✅ Scholz urges cheap renewables and grid expansion first

 

Germany’s three-party coalition is debating whether electricity prices for energy-intensive industries should be subsidised in a market where rolling back European electricity prices can be tougher than it appears, to prevent companies from moving production abroad.

Calls to reduce the electricity bill for big industrial producers are being made by leading politicians, who, like others in Germany, fear the country could lose its position as an industrial powerhouse as it gradually shifts away from fossil fuel-based production, amid historic low energy demand and economic stagnation concerns.

“It is in the interest of all of us that this strong industry, which we undoubtedly have in Germany, is preserved,” Lars Klingbeil, head of Germany’s leading government party SPD (S&D), told Bayrischer Rundfunk on Wednesday.

To achieve this, Klingbeil is advocating a reduced electricity price for the industry of about 5 to 7 cents per Kilowatt hour, which the federal government would subsidise. This should be introduced within the next year and last for about 10 to 15 years, he said.

Under the current support scheme, which was financed as part of the €200 billion “rescue shield” against the energy crisis, energy-intensive industries already pay 13 cents per Kilowatt hour (KWh) for 70% of their previous electricity needs, which is substantially lower than the 30 to 40 cents per KWh that private consumers pay.

“We see that the Americans, for example, are spending $450 billion on the Inflation Reduction Act, and we see what China is doing in terms of economic policy,” Klingbeil said.

“If we find out in 10 years that we have let all the large industrial companies slip away because the investments are not being made here in Germany or Europe, and jobs and prosperity and growth are being lost here, then we will lose as a country,” he added.

However, not everyone in the German coalition favours subsidising electricity prices.

Finance Minister Christian Lindner of the liberal FDP (Renew), for example, has argued against such a step, instead promoting free-market principles and, amid rising household energy costs, reducing taxes on electricity for all.

“Privileging industrial companies would only be feasible at the expense of other electricity consumers and taxpayers, for example, private households or the small trade sector,” Lindner wrote in an op-ed for Handelsblatt on Tuesday.

“Increasing competitiveness for some would mean a loss of competitiveness for others,” he added.

Chancellor Olaf Scholz, himself a member of SPD, was more careful with his words, amid ongoing EU electricity reform debates in Brussels.

Asked about a subsidised electricity price for the industry at a town hall event on Monday, Scholz said he does not “want to make any promises now”.

“First of all, we have to make sure that we have cheap electricity in Germany in the first place,” Scholz said, promoting the expansion of renewable energy such as wind and solar, as local utilities cry for help, as well as more electricity grid infrastructure.

“What we will not be able to do as an economy, even as France’s new electricity pricing scheme advances, is to subsidise everything that takes place in normal economic activity,” Scholz said. “We should not get into the habit of doing that,” he added.

 

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Improve US national security, step away from fossil fuels

American Green Energy Independence accelerates electrification and renewable energy, leveraging solar, wind, and EVs to boost energy security, cut emissions, create jobs, and reduce reliance on volatile oil and natural gas markets influenced by geopolitics.

 

Key Points

American Green Energy Independence is a strategy to electrify, expand renewables, and enhance energy security.

✅ Electrifies vehicles, appliances, and infrastructure

✅ Expands solar, wind, and storage to stabilize grids

✅ Cuts oil dependence, strengthens energy security and jobs

 

As Putin's heavy hand uses Russia's power over oil and natural gas as a weapon against Europe, which is facing an energy nightmare across its markets, and the people of Ukraine, it's impossible not to wonder how we can mitigate the damages he's causing. Simultaneously, it's a devastating reminder of the freedom we so often take for granted and a warning to increase our energy independence as a nation. There are many ways we can, but one of the best is to follow the lead of the European Union and quicken our transition to green and renewable energies.

We've known it for a long time: our reliance on fossil fuels is a national security risk. Volatile prices coupled with our extreme demand mean that concerns over fossil fuel access have driven foreign policy decisions. We've seen it happen countless times — most notably during the wars in Iraq and Afghanistan — and it's played out again in Ukraine, which has leaned on imports to keep the lights on during the crisis. Concerned by Russia's power over the oil and natural gas market, the US and Europe were quite reluctant to impose the harshest, most recent sanctions because doing so will hurt their citizens' pocketbooks.

As homeowners, we know how much decisions like these can hurt, especially with gas prices being historically high even as an energy crisis isn't spurring a green shift for many consumers. However, the solution to this problem isn't to drill more, as some well-funded oil and gas interest groups have claimed. Doing so likely won't even provide a short-term solution to the problem as it takes six months to a year at minimum to build a new well with all its associated infrastructure.

The best long-term solution is to declare our independence from the global oil market amid a global energy war that is driving price hikes and invest in American-made clean energy. We need to electrify our vehicles, appliances, and infrastructure, and make America fully energy independent. This will save families thousands of dollars a year, make our country more self-sufficient, and provide hundreds of thousands of quality jobs here in the Midwest.

Already, over 600,000 Midwesterners are employed in clean-energy professions, and they make 25 percent more than the national median wage. Nationally, clean energy is the biggest job creator in our country's energy sector, employing almost three times as many workers as the fossil fuel industry.

As we employ our own citizens, we will defund Putin's Russia, which has long been funded by his powerful oil and gas industry. Instead of diversifying his economy during the oil boom of the 2010s, Putin doubled down on petroleum. We should exploit his weakness by leading a global movement to abandon the very resource that funds his warmongering. Doing so will further destabilize his economy and protect the citizens of Ukraine, especially as they prepare for winter amid energy challenges today.

We can start doing this as everyday consumers by seeking electric options like stoves, cars, or other appliances. Congress should help Americans afford these changes by providing tax credits for everyday Americans and innovators in electric vehicle and green energy industries. Doing so will spur innovation in the industry, further reducing the cost to consumers. We should also ensure that our semiconductors, solar panels, wind turbines, and other technology needed for a green future are manufactured and assembled in America. This will ensure that our energy industry is safe from price or supply shocks and reduce brownout risks linked to disruptions caused by an international crisis like the invasion of Ukraine.

In many ways, our next steps as a country can define world history for generations to come. Will we continue our reliance on oil and its tacit support of Putin's economy? Or will we intensify our shift to green energies and make our country more self-sufficient and secure? The global spotlight is on us once again to lead. We hope our country will honor the lives of its veterans and the soldiers fighting in Ukraine by strengthening energy security support and transitioning towards green energy.

 

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Renewable power surpasses fossil fuels for first time in Europe

EU Renewable Power Overtakes Fossil Fuels, reflecting a greener energy mix as wind, solar, and hydro expand, cutting CO2 emissions and curbing coal while negative prices rise amid pandemic-driven demand drops.

 

Key Points

A milestone as renewables surpass fossil power in the EU, driven by wind, solar, hydro growth and pandemic demand.

✅ 40% renewables vs 34% fossil in H1 across 27 EU states

✅ Wind, solar, hydro rose; coal generation fell 32% year-on-year

✅ Lower demand, carbon prices, grid priority boosted clean output

 

Renewable power for the first time contributed a bigger share in the European generation mix than fossil fuels, as described in Europe's green surge as the fallout from the pandemic cut energy demand.

About 40 percent of the electricity in the first half in the 27 EU countries came from renewable sources, exceeding the global renewables share reported elsewhere, compared with 34 percent from plants burning fossil fuels, according to environmental group Ember in London. As a result, carbon dioxide emissions from the power sector fell 23 percent.

The rise is significant and encouraging for law makers as Europe prepares to spend billions of euros to recover from the virus, with wind power investments underscoring the momentum, and set the bloc on track to neutralize its carbon footprint by the middle of the century.

“This marks a symbolic moment ​in the transition of Europe’s electricity sector,” said Dave Jones, an electricity analyst at Ember. “For countries like Poland and Czech Republic grappling with how to get off coal, there is now a clear way out.”

While power demand slumped, output from wind and solar farms increased, reflecting global wind and solar gains, because more plants came online in breezy and sunny weather. At the same time, wet conditions boosted hydro power in Iberia and the Nordic markets.

Those conditions helped renewables become a rare bright spot throughout the economic tumult this year. In many areas, renewable sources of electricity have priority to the grid, meaning they could keep growing even as demand shrank and other power plants were turned off.

Electricity demand in the EU fell 7 percent overall. Fossil-fuel power generation plunged 18 percent in the first half compared with a year earlier. Renewable generation grew by 11 percent, according to Ember.

Coal was by far the biggest loser in 2020. It’s one of the most-polluting sources of power and its share is slumping in Europe as the price of carbon increases, with renewables surpassing coal in the US illustrating the broader shift, and governments move to cut emissions. Power from coal fell 32 percent across the EU.

Despite the economics, the decision to shut off coal for good will come down to political agreements between producers and governments, while reducing reliance on Russian energy reshapes policy debates.

One consequence of the jump in renewables is that negative prices have increased, as solar is reshaping prices in Northern Europe in similar ways. On particularly windy or sunny days when there isn’t much demand, the grid can be flooded with power. That’s leading wind farms to be shut off and customers to be paid to consume electricity.

 

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California Regulators Face Calls for Action as Electricity Bills Soar

California Electricity Rate Hikes strain households as CPUC weighs fixed charges, utility profit caps, and stricter oversight. Wildfire mitigation, transmission upgrades, and aging grid costs push bills higher amid renewable integration and consumer protection debates.

 

Key Points

California power rates are rising from wildfire mitigation, transmission costs, and grid upgrades under CPUC review.

✅ CPUC mulls fixed charges to stabilize bills and rate design.

✅ Advocates push profit caps; utilities cite investment needs.

✅ Stronger oversight sought to curb waste and boost transparency.

 

California residents and consumer groups are demanding relief as their electricity bills continue to climb, putting increasing pressure on state regulators to intervene.  A recent op-ed in the San Francisco Chronicle highlights the growing frustration, emphasizing that California already has some of the highest electricity rates in the country, as coverage on why prices are soaring underscores, and these costs are only getting more burdensome.


Factors Driving High Bills

The rising electricity bills are attributed to several factors:

  • Wildfire Mitigation and Liability: Utility companies are investing heavily in wildfire prevention measures, such as vegetation management and infrastructure hardening. The costs of these initiatives, along with the increasing financial liabilities associated with wildfire risk, are being passed on to consumers.
  • Transmission Costs: California's vast geography and move towards renewable energy sources necessitate significant investments in transmission lines to deliver electricity from remote locations. These infrastructure costs also contribute to higher bills.
  • Aging Infrastructure: California's electricity grid is aging and requires upgrades and maintenance, and the expenses associated with these efforts are reflected in consumer rates.


Proposed Solutions and Debates

Consumer advocates and some lawmakers are calling for various actions to address the issue, including a potential revamp of electricity rates to clean the grid:

  • Fixed Charge Proposal: The California Public Utilities Commission (CPUC) is considering a proposal to introduce an income-based fixed charge on electricity bills. This change aims to make rates more predictable and encourage investment in renewable energy sources. However, opponents argue that it could disproportionately impact low-income households and discourage conservation.
  • Utility Profit Caps: Some advocate for capping utility companies' profits. They believe excessive profits should be returned to customers in the form of lower rates. However, utility companies counter that they need a certain level of profit to invest in infrastructure and maintain a reliable grid.
  • Increased Oversight: Consumer groups are calling for stricter oversight of utility company spending, and legislators are preparing to crack down on utility spending through upcoming votes as well. They demand transparency and want to ensure that funds collected from customers are being used for necessary investments and not for lobbying or excessive executive compensation.

 

Comparisons and National Implications

Similar concerns about rising utility bills are emerging in other parts of the country as more states transition to renewable energy and invest in infrastructure upgrades.

A report by the Energy Information Administration (EIA) shows that average residential electricity rates across the country have been on the rise for the past decade. While California currently ranks amongst the highest, major changes to electric bills are being debated, and other states are following suit, demonstrating the nationwide challenge of balancing affordability with necessary investments.

 

Uncertain Future

The California Public Utilities Commission is reviewing the fixed charge proposal and is expected to make a decision later this year, with income-based flat-fee utility bills moving closer in the process. The outcome of this decision and potential additional regulatory changes will have significant ramifications for California residents, and some lawmakers plan to overturn income-based charges if adopted, which could set a precedent for how other states handle the rising costs associated with the energy transition.

 

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TotalEnergies to Acquire German Renewables Developer VSB for US$1.65 Billion

TotalEnergies VSB Acquisition accelerates renewable energy growth, expanding wind and solar portfolios across Germany and Europe, advancing decarbonization, net-zero targets, and the energy transition through a US$1.65 billion strategic clean power investment.

 

Key Points

A US$1.65B deal: TotalEnergies acquires VSB to scale wind and solar in Europe and advance net-zero goals.

✅ US$1.65B purchase expands wind and solar pipeline

✅ Strengthens presence in Germany and wider Europe

✅ Advances net-zero, energy transition objectives

 

In a major move to expand its renewable energy portfolio, French energy giant TotalEnergies has announced its decision to acquire German renewable energy developer VSB for US$1.65 billion. This acquisition represents a significant step in TotalEnergies' strategy to accelerate its transition from fossil fuels to greener energy sources, aligning with the global push towards sustainability and carbon reduction, as reflected in Europe's green surge across key markets.

Strengthening TotalEnergies’ Renewable Energy Portfolio

TotalEnergies has long been one of the largest players in the global energy market, historically known for its oil and gas operations. However, in recent years, the company has made a concerted effort to diversify its portfolio and shift its focus toward renewable energy. The purchase of VSB, a leading developer of wind and solar energy projects, occurs amid rising European wind investment trends and is a clear reflection of TotalEnergies' commitment to this green energy transition.

VSB, based in Dresden, Germany, specializes in the development, construction, and operation of renewable energy projects, particularly wind and solar power. The company has a significant presence in Europe, with a growing portfolio of projects in countries like Germany, where clean energy accounts for 50% of electricity today, Poland, and the Czech Republic. The acquisition will allow TotalEnergies to bolster its renewable energy capacity, particularly in the wind and solar sectors, which are key components of its long-term sustainability goals.

By acquiring VSB, TotalEnergies is not only increasing its renewable energy output but also gaining access to a highly experienced team with a proven track record in energy project development. This move is expected to expedite TotalEnergies’ renewable energy ambitions, enabling the company to build on VSB’s strong market presence and established partnerships across Europe.

VSB’s Strategic Role in the Energy Transition

VSB’s expertise in the renewable energy sector makes it a valuable addition to TotalEnergies' green energy strategy. The company has been at the forefront of the energy transition in Europe, particularly in wind energy development, as offshore wind is set to become a $1 trillion business over the coming decades. Over the years, VSB has completed numerous large-scale wind projects, including both onshore and offshore installations.

The acquisition also positions TotalEnergies to better compete in the rapidly growing European renewable energy market, including the UK, where offshore wind is powering up alongside strong demand due to increased governmental focus on achieving net-zero emissions by 2050. Germany, in particular, has set ambitious renewable energy targets as part of its Energiewende initiative, which aims to reduce the country’s carbon emissions and increase the share of renewables in its energy mix. By acquiring VSB, TotalEnergies is not only enhancing its capabilities in Germany but also gaining a foothold in other European markets where VSB has operations.

With Europe increasingly shifting toward wind and solar power as part of its decarbonization efforts, including emerging solutions like offshore green hydrogen that complement wind buildouts, VSB’s track record of developing large-scale, sustainable energy projects provides TotalEnergies with a strong competitive edge. The acquisition will further TotalEnergies' position as a leader in the renewable energy space, especially in wind and solar power generation.

Financial and Market Implications

The US$1.65 billion deal marks TotalEnergies' largest renewable energy acquisition in recent years and underscores the growing importance of green energy investments within the company’s broader business strategy. TotalEnergies plans to use this acquisition to scale up its renewable energy assets and move closer to its target of achieving net-zero emissions by 2050. The deal also positions TotalEnergies to capitalize on the expected growth of renewable energy across Europe, particularly in countries with aggressive renewable energy targets and incentives.

The transaction is also expected to boost TotalEnergies’ presence in the global renewable energy market. As the world increasingly turns to wind, solar, and other sustainable energy sources, TotalEnergies is positioning itself to be a major player in the global energy transition. The acquisition of VSB complements TotalEnergies' previous investments in renewable energy and further aligns its portfolio with international sustainability trends.

From a financial standpoint, TotalEnergies’ purchase of VSB reflects the growing trend of large energy companies investing heavily in renewable energy. With wind and solar power becoming more economically competitive with fossil fuels, this investment is seen as a prudent long-term strategy, one that is likely to yield strong returns as demand for clean energy continues to rise.

Looking Ahead: TotalEnergies' Green Transition

TotalEnergies' acquisition of VSB is part of the company’s broader strategy to diversify its energy offerings and shift away from its traditional reliance on oil and gas. The company has already made significant strides in renewable energy, with investments in solar, wind, and battery storage projects across the globe, as developments like France's largest battery storage platform underline this momentum. The VSB acquisition will only accelerate these efforts, positioning TotalEnergies as one of the foremost leaders in the clean energy revolution.

By 2030, TotalEnergies plans to allocate more than 25% of its total capital expenditure to renewable energies and electricity. The company has already set ambitious goals to reduce its carbon footprint and shift its business model to align with the global drive toward sustainability. The integration of VSB into TotalEnergies’ portfolio signals a firm commitment to these goals, ensuring the company remains at the forefront of the energy transition.

In conclusion, TotalEnergies’ purchase of VSB for US$1.65 billion marks a significant milestone in the company’s renewable energy journey. By acquiring a company with deep expertise in wind and solar power development, TotalEnergies is taking decisive steps to strengthen its position in the renewable energy market and further its ambitions of achieving net-zero emissions by 2050. This acquisition will not only enhance the company’s growth prospects but also contribute to the ongoing global shift toward clean, sustainable energy sources.

 

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Invest in Hydropower to Tackle Coronavirus and Climate Crisis Impacts

Hydropower Covid-19 Resilience highlights clean, reliable energy and flexible grid services, with pumped storage, automation, and affordability supporting climate action, decarbonization, and recovery through sustainable infrastructure, policy incentives, and capacity upgrades.

 

Key Points

Hydropower Covid-19 Resilience is the sector's ability to ensure clean, reliable, flexible power during crises.

✅ Record 4,306 TWh in 2019, avoiding 80-100 Mt CO2e emissions.

✅ 1,308 GW installed; 15.6 GW added; flexibility and storage in demand.

✅ Policy, tax incentives, and fast-track approvals to spur projects.

 

The Covid-19 pandemic has underlined hydropower's resilience and critical role in delivering clean, reliable and affordable energy, especially in times of crisis, as highlighted by IAEA lessons for low-carbon electricity. This is the conclusion of two new reports published by the International Hydropower Association (IHA).

The 2020 Hydropower Status Report presents latest worldwide installed capacity and generation data, showcasing the sector's contribution to global carbon reduction efforts, with low-emissions sources projected to cover almost all demand increases in the next three years. It is published alongside a Covid-19 policy paper featuring recommendations for governments, financial institutions and industry to respond to the current health and economic crisis.

"Preventing an emergency is far better than responding to one," says Roger Gill, President of IHA, highlighting the need to incentivise investments in renewable infrastructure, a view echoed by Fatih Birol during the crisis. "The events of the past few months must be a catalyst for stronger climate action, including greater development of sustainable hydropower."

Now in its seventh edition, the Hydropower Status Report shows electricity generation hit a record 4,306 terawatt hours (TWh) in 2019, the single greatest contribution from a renewable energy source in history, aligning with the outlook that renewables to surpass coal by 2025.

The annual rise of 2.5 per cent (106 TWh) in hydroelectric generation - equivalent to the entire electricity consumption of Pakistan - helped to avoid an estimated additional 80-100 million metric tonnes of greenhouse gases being emitted last year.

The report also highlights:

* Global hydropower installed capacity reached 1,308 gigawatts (GW) in 2019, as 50 countries completed greenfield and upgrade projects, including pumped storage and repowering old dams in some regions.

* A total of 15.6 GW in installed capacity was added in 2019, down on the 21.8 GW recorded in 2018. This represents a rise of 1.2 per cent, which is below the estimated 2.0 per cent growth rate required for the world to meet Paris Agreement carbon reduction targets.

* India has overtaken Japan as the fifth largest world hydropower producer with its total installed capacity now standing at over 50 GW. The countries with the highest increases in were Brazil (4.92 GW), China (4.17 GW) and Laos (1.89 GW).

* Hydropower's flexibility services have been in high demand during the Covid-19 crisis, even as global demand dipped 15% globally, while plant operations have been less affected due to the degree of automation in modern facilities.

* Hydropower developments have not been immune to economic impacts however, with the industry facing widespread uncertainty and liquidity shortages which have put financing and refinancing of some projects at risk.

In a companion policy paper, IHA sets out the immediate impacts of the crisis on the sector, noting how European responses to Covid-19 have accelerated the electricity system transition, as well as recommendations to assist governments and financial institutions and enhance hydropower's contribution to the recovery.

The recommendations include:

  • Increasing the ambition of renewable energy and climate change targets which incorporate the role of sustainable hydropower development.
  • Supporting sustainable hydropower through introducing appropriate financial measures such as tax incentives to ensure viable and shovel-ready projects can commence.
  • Fast-tracking planning approvals to ensure the development and modernisation of hydropower projects can commence as soon as possible, in line with internationally recognised sustainability guidelines.
  • Safeguarding investment by extending deadlines for concession agreements and other awarded projects.
  • Given the increasing need for long-duration energy storage such as pumped storage, working with regulators and system operators to develop appropriate compensation mechanisms for hydropower's flexibility services.

 

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Growing pot sucks up electricity and pumps out an astounding amount of carbon dioxide — it doesn't have to

Sustainable Cannabis Cultivation leverages greenhouse design, renewable energy, automation, and water recapture to cut electricity use, emissions, and pesticides, delivering premium yields with natural light, smart sensors, and efficient HVAC and irrigation control.

 

Key Points

A data-driven, low-impact method that cuts energy, water, and chemicals while preserving premium yields.

✅ 70-90% less electricity vs. conventional indoor grows

✅ Natural light, solar, and rainwater recapture reduce footprint

✅ Automation, sensors, and HVAC stabilize microclimates

 

In the seven months since the Trudeau government legalized recreational marijuana use, licensed producers across the country have been locked in a frenetic race to grow mass quantities of cannabis for the new market.

But amid the rush for scale, questions of sustainability have often taken a back seat, and in Canada, solar adoption has lagged in key sectors.

According to EQ Research LLC, a U.S.-based clean-energy consulting firm, cannabis facilities can need up to 150 kilowatt-hours of electricity per year per square foot. Such input is on par with data centres, which are themselves 50 to 200 times more energy-intensive than a typical office building, and achieving zero-emission electricity by 2035 would help mitigate the associated footprint.

At the Lawrence Berkley National Laboratory in California, a senior scientist estimated that one per cent of U.S. electricity use came from grow ops. The same research — published in 2012 — also found that the procedures for refining a kilogram of weed emit around 4,600 kilograms of carbon dioxide to the atmosphere, equivalent to operating three million cars for a year, though a shift to zero-emissions electricity by 2035 could substantially cut those emissions.

“All factors considered, a very large expenditure of energy and consequent ‘environmental imprint’ is associated with the indoor cultivation of marijuana,” wrote Ernie Small, a principal research scientist for Agriculture and Agri-Food Canada, in the 2018 edition of the Biodiversity Journal.

Those issues have left some turning to technology to try to reduce the industry’s footprint — and the economic costs that come with it — even as more energy sources make better projects for forward-looking developers.

“The core drawback of most greenhouse environments is that you’re just getting large rooms, which are harder to control,” says Dan Sutton, the chief executive officer of Tantalus Labs., a B.C.-based cannabis producer. “What we did was build a system specifically for cannabis.”

Sutton is referring to SunLab, the culmination of four years of construction, and at present the main site where his company nurtures rows of the flowering plant. The 120,000-square foot structure was engineered for one purpose: to prove the merits of a sustainable approach.

“We’re actually taking time-series data on 30 different environmental parameters — really simple ones like temperature and humidity — all the way down to pH of the soil and water flow,” says Sutton. “So if the temperature gets a little too cold, the system recognizes that and kicks on heaters, and if the system senses that the environment is too hot in the summertime, then it automatically vents.”

A lot is achieved without requiring much human intervention, he adds. Unlike conventional indoor operations, SunLab demands up to 90 per cent less electricity, avoids using pesticides, and draws from natural light and recaptured rainwater to feed its crops.

The liquid passes through a triple-filtration process before it is pumped into drip irrigation tubing. “That allows us to deliver a purity of water input that is cleaner than bottled water,” says Sutton.

As transpiration occurs, a state-of-the-art, high-capacity airflow suspended below the ceiling cycles air at seven-minute intervals, repeatedly cooling the air and preventing outbreaks of mould, while genetically modified “guardian” insects swoop in to eliminate predatory pests.

“When we first started, people never believed we would cultivate premium quality cannabis or cannabis that belongs on the top shelf, shoulder to shoulder with the best in the world and the best of indoor,” says Sutton.

Challenges still exist, but they pale in comparison to the obstacles that American companies with an interest in adopting greener solutions persistently face, and in provinces like Alberta, an Alberta renewable energy surge is reshaping the opportunity set.

Although cannabis is legal in a number of states, it remains illegal federally, which means access to capital and regulatory clarity south of the border can be difficult to come by.

“Right now getting a new project built is expensive to do because you can’t get traditional bank loans,” says Canndescent CEO Adrian Sedlin, speaking by phone from California.

In retrofitting the company’s farm to accommodate a sizeable solar field, he struggled to secure investors, even as a solar-powered cannabis facility in Edmonton showcased similar potential.

“We spent over a year and a half trying to get it financed,” says Sedlin. “Finding someone was the hard part.”

Decriminalizing the drug would ultimately increase the supply of capital and lower the costs for innovative designs, something Sedlin says would help incentivize producers to switch to more effective and ecologically sound techniques.

Some analysts argue that selling renewable energy in Alberta could become a major growth avenue that benefits energy-intensive industries like cannabis cultivation.

Canndescent, however, is already there.

“We’re now harnessing the sun to reduce our reliance on fossil fuels and going to sustainable, or replenishable, energy sources, while leveraging the best and most efficient water practices,” says Sedlin. “It’s the right thing to do.”

 

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