Hydro One invests $845 million to improve reliability in Toronto

Wildfire Resilient Power Grid Act proposes DOE grants for utility companies to fund wildfire mitigation, grid resilience upgrades, undergrounding power lines, fast-tripping protection, weather monitoring, and vegetation management, prioritizing rural electric cooperatives.

Key Points

A federal bill funding utility wildfire mitigation and grid hardening via DOE grants, prioritizing rural utilities.

✅ $1B DOE matching grants for grid upgrades and wildfire mitigation.

✅ Prioritizes rural utilities; supports undergrounding and hardening.

✅ Funds fast-tripping protection, weather stations, vegetation management.

U.S. Sens. Ron Wyden and Jeff Merkley today introduced new legislation, amid transmission barriers that persist, to incentivize utility companies to do more to reduce wildfire risks as aging power infrastructure ignite wildfires in Oregon and across the West.

Wyden and Merkley's Wildfire Resilient Power Grid Act of 2020 would ensure power companies do their part to reduce the risk of wildfires through power system upgrades, even as California utility spending crackdown seeks accountability, such as the undergrounding of power lines, fire safety equipment installation and proper vegetation management.

"First and foremost, this is a public safety issue. Fire after fire ignited this summer because the aging power grid could not withstand a major windstorm during the season's hottest and driest days," Wyden said. "Many utility companies are already working to improve the resiliency of their power grid, but the sheer costs of these investments must not come at the expense of equitable regulation for rural utility customers. Congress must do all that it can to stop the catastrophic wildfires decimating the West, and that means improving rural infrastructure. By partnering with utilities around the country, we can increase wildfire mitigation efforts at a modest cost -- a fire prevention investment that will pay dividends by saving lives, homes and businesses."

"When this year's unprecedented wildfire event hit, I drove hundreds of miles across our state to see the damage firsthand and to hear directly from impacted communities, so that I could go back to D.C. and work for the solutions they need," said Merkley. "What I saw was apocalyptic--and we have to do everything we can to reduce the risk of this happening again. That means we have to work with our power companies to get critical upgrades and safety investments into place as quickly as possible."

The Wildfire Resilient Power Grid Act of 2020:

* Establishes a $1 billion-per-year matching grant program for power companies through the Department of Energy, even as ACORE opposed DOE subsidy proposals, to reduce the risk of power lines and grid infrastructure causing wildfires.

* Gives special priority to smaller, rural electric companies to ensure mitigation efforts are targeted to forested rural areas.

* Promotes proven methods for reducing wildfire risks, including undergrounding of lines, installing fast-tripping protection systems, and constructing weather monitoring stations to respond to electrical system fire risks.

* Provides for hardening of overhead power lines and installation of fault location equipment where undergrounding of power lines is not a favorable option.

* Ensures fuels management activities of power companies are carried out in accordance with Federal, State, and local laws and regulations.

* Requires power companies to have "skin in the game" by making the program a 1-to-1 matching grant, with an exception for smaller utilities where the matching requirement is one third of the grant.

* Delivers accountability on the part of utilities and the Department of Energy by generating a report every two years on efforts conducted under the grant program.

Portland General Electric President and CEO Maria Pope: "We appreciate Senator Wyden's and Senator Merkley's leadership in proposing legislation to provide federal funding that will help protect Oregon from devastating wildfires. When passed, this will help make Oregon's electric system safer, faster, without increasing customer prices. That is especially important given the economy and hotter, drier summers and longer wildfire seasons that Oregon will continue to face."

Lane County Commission Chair Heather Butch: " In a matter of hours, the entire Lane County community of Blue River was reduced to ashes by the Holiday Farm Fire. Since the moment I first toured that devastation I've been committed to building it back better. I applaud Senators Wyden and Merkley for drafting the Wildfire Resilient Power Grid Act, as it could well provide the path towards meeting this important goal. Moreover, the resultant programs will better protect rural communities from the increasing dangers of wildfires through a number of preventative measures that would otherwise be difficult to implement."

Linn County Commissioner Roger Nyquist: "This legislation is a smart strategic investment for the future safety of our residents as well as the economic vitality of our community."

Marion County Commissioner Kevin Cameron: "After experiencing a traumatic evacuation during the Beachie Creek and Lion's Head wild fires, I understand the need to strengthen the utility Infrastructure. The improvements resulting from Senator Wyden and Merkley's bill will reduce disasters in the future, but improve everyday reliability for our citizens who live, work and protect the environment in potential wildfire areas."

Edison Electric Institute President Tom Kuhn: "EEI thanks Senator Wyden and Senator Merkley for their leadership in introducing the Wildfire Resilient Power Grid Act. This bill will help support and accelerate projects already planned and underway to enhance energy grid resiliency and mitigate the risk of wildfire damage to power lines. Electric companies across the country are committed to working with our government partners and other stakeholders on preparation and mitigation efforts that combat the wildfire threat and on the rapid deployment of technology solutions, including aggregated DERs at FERC, that address wildfire risks, while still maintaining the safe, reliable, and affordable energy we all need."

Oregon Rural Electric Cooperative Association Executive Director Ted Case: "Oregon's electric cooperatives support the Wildfire Resilient Power Grid Act and appreciate Senator Wyden's and Senator Merkley's leadership and innovative approach to wildfire mitigation, particularly for small, rural utilities. This legislation includes targeted assistance that will help us to continue to provide affordable, reliable and safe electricity to over 500,000 Oregonians."

Sustainable Northwest Director of Government Affairs & Program Strategy Dylan Kruse: "In recent years, the West has seen too many wildfires originate due to poorly maintained or damaged electric utility transmission and distribution infrastructure. This legislation plays an important role to ensure that power lines do not contribute to wildfire starts, while providing safe and reliable power to communities during wildfire events. Utilities must, even as Wyoming clean energy bill proposals emerge, live up to their legal requirements to maintain their infrastructure, but this bill provides welcome resources to expedite and prioritize risk reduction, while preventing cost increases for ratepayers."

Oregon Wild Wilderness Program Manager Erik Fernandez: "2020 taught Oregon the lesson that California learned in the Paradise Fire, and SCE wildfire lawsuits that followed underscore the stakes. Addressing the risk of unnaturally caused powerline fires is an increasingly important critical task. I appreciate Senator Ron Wyden's efforts to protect our homes and communities from powerline fires."

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Alberta Coal Transition Support offers EI top-ups, 75% wage replacement, retraining, tuition vouchers, and on-site advice for workers leaving thermal coal mines and coal-fired power plants during the provincial phase-out.

Key Points

Alberta Coal Transition Support is a $40M program providing EI top-ups, retraining, and tuition vouchers to coal workers.

✅ 75% EI top-up; province requests federal alignment

✅ Tuition vouchers and retraining for displaced workers

✅ On-site transition services; about 2,000 workers affected

Alberta is putting aside $40 million to help workers losing their jobs as the province transitions away from thermal coal mines and coal-fired power plants, a shift connected to the future of work in the electricity sector over the next decade.

Labour Minister Christina Gray says the money will top up benefits to 75 per cent of a worker’s previous earnings during the time they collect employment insurance, amid regional shifts such as how COVID-19 reshaped Saskatchewan in recent months.

Alberta is asking the federal government to not claw back existing benefits as the province tops up those EI benefits, as utilities face pressures like Manitoba Hydro cost-cutting during the pandemic, while also extending EI benefits for retiring coal workers.

Gray says even if the federal government does not step up, the province will provide the funds to match that 75 per cent threshold, a contrast to problems such as Kentucky miners' cold checks seen elsewhere.

There will also be help for workers in the form of tuition vouchers, retraining programs like the Nova Scotia energy training program that connects youth to the sector, and on-site transitioning advice.

The province estimates there are 2,000 workers affected.

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Ontario Global Adjustment and ICI balance hydro rates, renewable cost shift, and peak demand. Class A and Class B customers face demand response decisions amid pandemic occupancy uncertainty and volatile GA charges through 2022.

Key Points

A pricing model where GA costs and ICI peak allocation shape Class A/B bills, driven by renewables cost shifts.

✅ Renewable cost shift trims GA; larger Class A savings expected.

✅ Class A peak strategy returns; occupancy uncertainty persists.

✅ Class B faces volatile GA; limited levers beyond efficiency.

Ontario’s large commercial electricity customers can approach the looming annual decision about their billing structure for the 12 months beginning July 1 with the assurance of long-term relief on a portion of their costs, amid changes coming for electricity consumers that could affect planning. That’s to be weighed against uncertainties around energy demand and whether a locked-in cost allocation formula that looked favourable in pre-pandemic times will remain so until June 30, 2022.

“The biggest unknown is we just don’t know when the people are coming back,” Jon Douglas, director of sustainability with Menkes Property Management Services, reflected during a webinar sponsored by the Building Owners and Managers Association (BOMA) of Greater Toronto last week. “The occupancy in our office buildings this fall, and going into the new year, could really impact the outcome of the decision.”

After a year of operational upheaval and more modifications to provincial electricity pricing policies, BOMA Toronto’s regularly scheduled workshop ahead of the June 15 deadline for eligible customers to opt into the Industrial Conservation Initiative (ICI) program had a lot of ground to cover. Notably, beginning in January, all commercial customers have seen a reduction in the global adjustment (GA) component of their monthly hydro bills after the Ontario government shifted costs associated with contracted non-hydroelectric renewable supply to reduce the burden on industrial ratepayers from electricity rates to the general provincial account — a move that trims approximately $258 million per month from the total GA charged to industrial and commercial customers. However, they won’t garner the full benefit of that until 2022 since they’re currently repaying about $333 million in GA costs that were deferred in April, May and June of 2020.

Renewable cost shift pares the global adjustment
For now, Ontario government officials estimate the renewable cost shift equates to a 12 per cent discount relative to 2020 prices, even as typical bills may rise about 2% as fixed pricing ends in some cases. Once last year’s GA deferral is repaid at the end of 2021, they project the average Class A customer participating in the ICI program should realize a 16 per cent saving on the total hydro bill, while Class B customers paying the GA on a volumetric per kilowatt-hour (kWh) basis will see a slightly more moderate 15 per cent decrease.

“This is the biggest change to electricity pricing that’s happened since the introduction of ICI,” Tim Christie, director of electricity policy, economics and system planning for Ontario’s Ministry of Energy, Northern Development and Mines, told online workshop attendees. “The government is funding the out-of-market costs of renewables. It does tail off into the 2030s as those contracts (for wind, solar and biomass generation) expire, but over the next eight-ish years, it’s pretty steady at around just over $3 billion per year.”

Extrapolating from 2020 costs, he pegged average electricity costs at roughly 9.1 cents/kWh for Class A commercial customers and 13.2 cents/kWh for Class B, a point of concern for Ontario manufacturers facing high rates as well. However, energy management specialists suggest actual 2021 numbers haven’t proved that out.

“In commercial buildings, we’re averaging 10 to 12 cents for Class A in 2021, and we’re seeing more than that for about 14, 15 cents for Class B,” reported Scott Rouse, managing partner with the consulting firm, Energy@Work.

GA costs for Class B customers dropped nearly 30 per cent in the first four months of 2021 compared to the last four months of 2020, when they averaged 11.8 cents/kWh. Thus far, though, there have been significant month-to-month fluctuations, with a low of 5.04 cents/kWh in February and a high of 10.9 cents/kWh in April contributing to the four-month average of 8.3 cents/kWh.

“In 2020, system-wide GA very often averaged more than $1 billion per month,” Rouse said. “This February it dropped to $500 million, which was really quite surprising. So it is a very volatile cost.”

Although welcome, the renewable cost shift does alter the payback on energy-saving investments, particularly for demand response mechanisms like energy storage. When combined with pandemic-related uncertainty and a series of policy and program reversals alongside calls to clean up Ontario’s hydro policy in recent years, the industry’s appetite for some more capital-intensive technologies appears to be flagging.

“Volatility puts a pause on some of the innovation,” said Terry Flynn, general manager with BentallGreenOak and chair of BOMA Toronto’s energy committee. “It could be a leading edge, but it might be a bleeding edge that won’t bear any fruit because the way the commodity costs are structured will change.”

“There’s kind of a wait-and-see approach on some of these bigger investments,” Douglas concurred.

Industrial Conservation Initiative underpins commercial class divide
Turning to the ICI, Class A customers — defined as those with average monthly energy demand of at least 1 megawatt (MW) — encountered some unexpected changes to the program rules during 2020. Meanwhile, Class B customers — encompassing the vast share of commercial properties smaller than about 350,000 square feet — confront the persistent reality of electricity cost allocation that offloads the burden from larger players onto them.

Through the ICI, participating Class A customers pay a share of the global adjustment that’s prorated to their energy use during the five hours of the period from May 1 to April 30 when the highest overall system demand is recorded. This gives Class A customers the opportunity to lock in a favourable factor for calculating their share of monthly system-wide global adjustment costs if they can successful project and curtail energy loads during those five hours of peak demand. On the flipside, Class B customers pay the remainder of those system-wide costs, on a straightforward per-kWh basis, once Class A payments have been reconciled.

“Class B has sometimes been regarded as the forgotten middle child of the customer classes in Ontario where all the shifted costs in the system kind of pile up,” acknowledged Mark Olsheski, vice president, energy and environment, with Sussex Strategy Group. “Likewise, there can be big unpredictable and uncontrollable swings in the global adjustment rate from month to month and, outside of pure energy efficiency, there really is precious little opportunity or empowerment for a Class B customer to take actions to lower their bills.”

Nevertheless, COVID-19 presents a few extra hiccups for Class A customers this year. Conventionally, late May is when they receive notification of the cost allocation factor that would be used to determine their GA for the upcoming July 1 to June 30 period. This year, though, all current ICI participants will retain the factor they secured by responding to the five hours of peak demand during the 12 months from May 1, 2019 to April 30, 2020 after the Ontario government placed a temporary halt on the peak demand response aspect of the program last summer. Regardless, eligible ICI participants must formally opt into the program by June 15 or they will be billed as Class B customers.

Peak chasing resumes for summer 2021
Since peak demand hours conventionally occur from June to September, Class A customers will once again be studying forecasts intently and preparing to respond via Peak Perks as the heat wave season sets in. That should help alleviate some of the system stresses that arose last summer — prompting policy-makers to reject lobbying for a continued pause on peak demand response.

“The policy rationale was to allow consumers to focus on their operations when recovering from COVID as opposed to reducing peaks. The other issue was that we did not expect the peaks to be high last summer given COVID shutdowns,” Christie recounted. “But due to some hot weather, more people at home and also the lack of ICI response, we saw peaks we haven’t seen in many, many years come up last summer. So the peak hiatus has ended and this summer we’ll be back to responding to ICI as per normal.”

Among Class A customers, owners/managers of office and retail facilities generally have the most to lose from a billing formula tied to the energy demand of more densely occupied buildings in the summer of 2019. However, they could be much more competitively positioned for 2022-23 if their buildings remain below full occupancy and energy demand stays lower than usual this summer.

“Where we can improve is the IESO (Independent Electricity System Operator) and the LDCs (local distribution companies) need to help customers get their real-time data, especially in light of the phantom demand issue, interpret their bills and their Class A versus B scenarios much more easily and comprehensively,” urged Lee Hodgkinson, vice president, technical services, sustainability and ESG, with Dream Unlimited. “ I look for APIs (application programming interface) and direct data flow from the LDCs to the building owners so that we can access that data really easily.”

Given Class A’s historic advantages, few eligible ICI participants are expected to migrate out to Class B. From a sustainability perspective, there’s perhaps more cause to question how the ICI’s 1-MW threshold encourages strategies to move in the other direction.

“You could jack up demand in some buildings and get them into Class A basically by firing up the chillers on the weekend and then pouring cooling outside to get rid of it,” Douglas noted. “That has nothing to do with climate change strategy or sustainability, but it’s a cost- saving strategy, and, sometimes, when you look at the math, it’s hundreds of thousands of dollars you can save.”

Brian Hewson, vice president, consumer protection and industry performance with the Ontario Energy Board (OEB), confirmed the OEB is currently scrutinizing the discrepancy that leaves Class B as the only consumer group with no flexibility to curtail energy load during higher-priced periods, and will be providing advice to the Ministry of Energy. In the interim, that status does, at least, simplify tactics.

“Just reduce your kWh and it doesn’t matter what time of day because you’re paying that fixed rate for 24 hours a day. So if you can curb your demand at night, you get a big bang for your dollar,” Rouse advised.

“We do talk about rates a lot, but if you’re not using it, you’re not paying for it,” Flynn agreed. “A lot of our focus is still on really to try to reduce the number of kilowatts that we use. That seems to be the best thing to do.”

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New England oil-fired generation surges as ISO New England manages a cold snap, dual-fuel switching, and a natural gas price spike, highlighting winter reliability challenges, LNG and pipeline limits, and rising CO2 emissions.

Key Points

Reliance on oil-burning power plants during winter demand spikes when natural gas is costly or constrained.

✅ Driven by dual-fuel switching amid high natural gas prices

✅ ISO-NE winter reliability rules encourage oil stockpiles

✅ Raises CO2 emissions despite coal retirements and renewables growth

New England is relying on oil-fired generators for the most electricity since 2018 as a frigid blast boosts demand for power and natural gas prices soar across markets. 

Oil generators were producing more than 4,200 megawatts early Thursday, accounting for about a quarter of the grid’s power supply, according to ISO New England. That was the most since Jan. 6, 2018, when oil plants produced as much as 6.4 gigawatts, or 32% of the grid’s output, said Wood Mackenzie analyst Margaret Cashman.  

Oil is typically used only when demand spikes, because of higher costs and emissions concerns. Consumption has been consistently high over the past three weeks as some generators switch from gas, which has surged in price in recent months. New England generators are producing power from oil at an average rate of almost 1.8 gigawatts so far this month, the highest for January in at least five years. 

Oil’s share declined to 16% Friday morning ahead of an expected snowstorm, which was “a surprise,” Cashman said. 

“It makes me wonder if some of those generators are aiming to reserve their fuel for this weekend,” she said.

During the recent cold snap, more than a tenth of the electricity generated in New England has been produced by power plants that haven’t happened for at least 15 years.

Burning oil for electricity was standard practice throughout the region for decades. It was once our most common fuel for power and as recently as 2000, fully 19% of the six-state region’s electricity came from burning oil, according to ISO-New England, more than any other source except nuclear power at the time.

Since then, however, natural gas has gotten so cheap that most oil-fired plants have been shut or converted to burn gas, to the point that just 1% of New England’s electricity came from oil in 2018, whereas about half our power came from natural gas generation regionally during that period. This is good because natural gas produces less pollution, both particulates and greenhouse gasses, although exactly how much less is a matter of debate.

But as you probably know, there’s a problem: Natural gas is also used for heating, which gets first dibs. Prolonged cold snaps require so much gas to keep us warm, a challenge echoed in Ontario’s electricity system as supply tightens, that there might not be enough for power plants – at least, not at prices they’re willing to pay.

After we came close to rolling brownouts during the polar vortex in the 2017-18 winter because gas-fired power plants cut back so much, ISO-NE, which has oversight of the power grid, established “winter reliability” rules. The most important change was to pay power plants to become dual-fuel, meaning they can switch quickly between natural gas and oil, and to stockpile oil for winter cold snaps.

We’re seeing that practice in action right now, as many dual-fuel plants have switched away from gas to oil, just as was intended.

That switch is part of the reason EPA says the region’s carbon emissions have gone up in the pandemic, from 22 million tons of CO2 in 2019 to 24 million tons in 2021. That reverses a long trend caused partly by closing of coal plants and partly by growing solar and offshore wind capacity: New England power generation produced 36 million tons of CO2 a decade ago.

So if we admit that a return to oil burning is bad, and it is, what can we do in future winters? There are many possibilities, including tapping more clean imports such as Canadian hydropower to diversify supply.

The most obvious solution is to import more natural gas, especially from fracked fields in New York state and Pennsylvania. But efforts to build pipelines to do that have been shot down a couple of times and seem unlikely to go forward and importing more gas via ocean tanker in the form of liquefied natural gas (LNG) is also an option, but hits limits in terms of port facilities.

Aside from NIMBY concerns, the problem with building pipelines or ports to import more gas is that pipelines and ports are very expensive. Once they’re built they create a financial incentive to keep using natural gas for decades to justify the expense, similar to moves such as Ontario’s new gas plants that lock in generation. That makes it much harder for New England to decarbonize and potentially leaves ratepayers on the hook for a boatload of stranded costs.

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National Grid power supply warning highlights electricity shortage risks amid low wind output, generator outages, and cold weather, reducing capacity margins and grid stability; considering demand response and reserve power to avoid blackout risk.

Key Points

An alert that reduced capacity from low wind and outages requires actions to maintain UK grid stability.

✅ Low wind output and generator outages reduce capacity margins

✅ ESO exploring demand response and reserve generation options

✅ Aim: maintain grid stability and avoid blackout risk

National Grid has warned that Britain’s electricity will be in short supply over the next few days after a string of unplanned power plant outages and unusually low wind speeds this week, as cheap wind power wanes across the system.

The electricity system operator said it will take action to “make sure there is enough generation” during the cold weather spell, including virtual power plants and other demand-side measures, to prevent a second major blackout in as many years.

“Unusually low wind output coinciding with a number of generator outages means the cushion of spare capacity we operate the system with has been reduced,” the company told its Twitter followers.

“We’re exploring measures and actions to make sure there is enough generation available to increase our buffer of capacity.”

A spokeswoman for National Grid said the latest electricity supply squeeze was not expected to be as severe as recorded last month, following reports that the government’s emergency energy plan was not going ahead, and added that the company did not expect to issue an official warning in the next 24 hours.

“We’re monitoring how the situation develops,” she said.

The warning is the second from the electricity system operator in recent weeks. In mid-September the company issued an official warning to the electricity market as peak power prices climbed, that its ‘buffer’ of power reserves had fallen below 500MW and it may need to call on more power plants to help prevent a blackout. The notice was later withdrawn.

Concerns over National Grid’s electricity supplies have been relatively rare in recent years. It was forced in November 2015 to ask businesses to cut their demand as a “last resort” measure to keep the lights on after a string of coal plant breakdowns.

But since then, National Grid’s greater challenge has been an oversupply of electricity, partly due to record wind generation, which has threatened to overwhelm the grid during times of low electricity demand.

National Grid has already spent almost £1bn on extra measures to prevent blackouts over the first half of the year by paying generators to produce less electricity during the coronavirus lockdown, as daily demand fell.

The company paid wind farms to turn off, and EDF Energy to halve the nuclear generation from its Sizewell B nuclear plant, to avoid overwhelming the grid when demand for electricity fell by almost a quarter from last year.

The electricity supply squeeze comes a little over a year after National Grid left large parts of England and Wales without electricity after the biggest blackout in a decade left a million homes in the dark. National Grid blamed a lightning strike for the widespread power failure.

Similar supply strains have recently caused power cuts in China, underscoring how weather and generation mix can trigger blackouts.

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Arc One Electric Speedboat delivers zero-emission performance, quiet operation, and reduced maintenance, leveraging battery propulsion, aerospace engineering, and venture-backed innovation to cut noise pollution, fuel costs, and water contamination in high-performance marine recreation.

Key Points

Arc One Electric Speedboat is a battery-powered, zero-emission craft offering quiet, high-performance marine cruising.

✅ 475 hp, 24 ft hull, about 40 mph top speed

✅ Cuts noise, fumes, and water contamination vs gas boats

✅ Backed by Andreessen Horowitz; ex-SpaceX engineers

A team of former SpaceX rocket engineers have joined the race to build the first commercial electric speedboat.

The Arc Boat company announced it had raised $4.25m (£3m) in seed funding to start work on a 24ft 475-horsepower craft that will cost about $300,000.

The LA-based company, which is backed by venture capital firm Andreessen Horowitz (an early backer of Facebook and Airbnb), said the first model of the Arc One boat would be available for sale by the end of the year.

Mitch Lee, Arc’s chief executive, said he wanted to build electric boats because of the impact conventional petrol- or diesel-powered boats have on the environment.

“They not only get just two miles to the gallon, they also pump a lot of those fumes into the water,” Lee said. “In addition, there is the huge noise pollution factor [of conventional boats] and that is awful for the marine life. With gas-powered boats it’s not just carbon emissions into the air, it’s also polluting the water and causing noise pollution. Electric boats, like electric ships clearing the air on the B.C. coast, eliminate all that.”

Lee said electric vessels would also reduce the hassle of boat ownership. “I love being out on the water, being on a boat is so much fun, but owning a boat is so awful,” he said. “I have always believed that electric boats make sense. They will be quicker, quieter and way cheaper and easier to operate and maintain, with access options like an electric boat club in Seattle lowering barriers for newcomers.”

While the first models will be very expensive, Lee said the cost was mostly in developing the technology and cheaper versions would be available in the future, mirroring advances in electric aviation seen across the industry. “It is very much the Tesla approach – we are starting up market and using that income to finance research and development and work our way down market,” he said.

Lee said the technology could be applied to larger craft, and even ferries could run on electricity in the future, as projects for battery-electric high-speed ferries begin to scale.

“We started in February with no team, no money and no warehouse,” he said. “By December we are going to be selling the Arc One, and we are hiring aggressively because we want to accelerate the adoption of electric boats across a whole range of craft, including an electric-ready ferry on Kootenay Lake.”

Lee founded the company with fellow mechanical engineer Ryan Cook. Cook, the company’s chief technology officer, was previously the lead mechanical engineer at Elon Musk’s space exploration company SpaceX where he worked on the Falcon 9 rocket, the world’s first orbital class reusable rocket. In parallel, Harbour Air's electric aircraft highlights cross-sector electrification. Apart from Lee, all of Arc’s employees have some experience working at SpaceX.

The Arc boat, which would have a top speed of 40 mph, joins a number of startups rushing to make the first large-scale production of electric-powered speedboats, while a Vancouver seaplane airline demonstrates complementary progress with a prototype electric aircraft. The Monaco Yacht Club this month held a competition for electric boat prototypes to “instigate a new vision and promote all positive approaches to bring yachting into line” with global carbon dioxide emission reduction targets. Sweden’s Candela C-7 hydrofoil boat was crowned the fastest electric vessel.

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