New rules jeopardize wind, solar projects

By Toronto Star


Electrical Testing & Commissioning of Power Systems

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$599
Coupon Price:
$499
Reserve Your Seat Today
Ontario's standard offer program, designed to encourage the development of small-scale renewable energy projects, was launched less than two years ago and has already surpassed the expectations of its 10-year mandate.

The program pays a premium for renewable energy coming from wind, solar, biogas or small hydro projects 10 megawatts or less in size. So far the Ontario Power Authority, which administers the program, has approved contracts for 1,300 megawatts of projects – 30 per cent higher than the original target.

The provincial government calls the response incredible. The power authority calls it a success story. Some project developers, however, are calling their lawyers. Things, it appears, could get nasty.

Recently, the power authority announced some new rules in advance of a planned review of the popular program. Some of the changes make sense, such as streamlining administration of the program to make it simpler. Interim deadlines are also being set to ensure projects move forward in a more timely fashion.

But citing the need to make the program "open to more participants" – that is, small community co-operatives – the power authority has decided to set up a few roadblocks for larger developers that have been lured to the premium prices the government pays for wind and solar power.

These developers can no longer deploy more than 50 megawatts of projects at any given time. They are also limited to a single 10-megawatt project per transformer station, amounting to a major restriction on where proposed projects can be located.

It's easy to see the rationale for this. There have been complaints that the big guys are squeezing out the smaller community co-operatives when it comes to gaining access to limited-capacity distribution and transmission lines. But the blame could be just as much targeted at the government and utilities, which have fallen behind on investment in grid infrastructure.

"The power authority clearly underestimated the market readiness of wind and solar power and so they were surprised when they got more power offered to them in the first year of the program than they thought they'd get in 10 years," says Keith Stewart, an energy analyst from WWF-Canada.

"Not surprisingly, there are some growing pains and they've slammed on the brakes... my fear is that they are looking at how they can limit the program so they don't exceed their self-imposed cap on green power."

By "self-imposed cap," Stewart is referring to a belief in some circles that the power authority sees the government's target for renewables as a ceiling, rather than a floor.

What's important in all this is that 1,300 megawatts of projects have been contracted, not built. By slowing down the program, putting up barriers, and generally making life more difficult for big developers – many of whom make up a vast majority of projects currently approved – the power authority could end up seeing some of those same projects abandoned.

Developers like certainty, and they rely on it to attract investment. When Ontario launched its standard offer program, a first in North America, developers and investors were lured to the certainty of price and the stability of policy. They could go after several, potentially dozens, of small projects but feel secure enough to place bulk orders for equipment – whether wind turbines or solar panels – to assure supply in industries with two- and three-year waiting lists.

Perhaps the program wasn't designed as intended, but once it was launched it set many wheels in motion.

By changing the rules, much of that certainty is gone. You can't blame some investors for feeling duped. Sources say SkyPower, one of the leading developers of wind and solar projects under the standard offer program, cancelled a $500 million wind-turbine order from General Electric because of the new restrictions it faces.

Kerry Adler, chief executive of SkyPower, wouldn't confirm if the order had been cancelled, but he did acknowledge that the new rules change the game for his company. "SkyPower is very disappointed," said Adler, pointing out that his company was never consulted about the changes. "The confusion and challenges as a result of these rules have put hundreds of jobs at risk and has forced us to rethink our strategy for the province of Ontario."

SkyPower has 17 wind and solar contracts already approved – and grandfathered – but more than 50 sit in the queue with Hydro One. Adler says under the new rules most of those will have to be abandoned.

The power authority says developers such as SkyPower can still take part in more formal requests for proposals, which are designed for larger projects, but these bidding events tend to require millions of dollars just to participate with no guarantees of success.

Besides, SkyPower says its 10-megawatt projects were spread out in different areas across the province and can't be lumped together as larger, 100-megawatt-plus projects. Only the standard offer program allows many of Skypower's projects to be economical, says Adler.

So here we are – Ontario has one of the best renewable-energy programs on the continent, it prematurely claimed success, and now it's threatening the good progress it has made by shying away from that, well... success.

The program as it was had problems that needed fixing, but the power authority could now be making it worse. In the words of one industry insider: "It appears they are using an axe when a scalpel was required."

Just recently, the power authority also issued a request for a proposal to the legal community. The agency is seeking external legal counsel for its standard offer programs. Surely it's just a coincidence.

Related News

Ontario to Provide New and Expanded Energy-Efficiency Programs

Ontario CDM Programs expand energy efficiency, demand response, and DER incentives via IESO's Save on Energy, cutting peak demand, lowering bills, and supporting electrification, retrofits, and LED lighting to meet Ontario's growing electricity needs.

 

Key Points

Ontario CDM Programs are IESO incentives that cut peak demand and energy use via demand response, retrofits and DERs.

✅ Delivered by IESO's Save on Energy to reduce peak demand

✅ Incentives for demand response, retrofits, LEDs, and DER solutions

✅ Help homes, businesses, and greenhouses lower bills and emissions

 

Ontario will be making available four new and expanded energy-efficiency programs, also known as Conservation and Demand Management (CDM) programs, to ensure a reliable, affordable, and clean electricity system, including ultra-low overnight pricing options to power the province, drive electrification and support strong economic growth. As there will be a need for additional electricity capacity in Ontario beginning in 2025, and continuing through the decade, CDM programs are among the fastest and most cost-effective ways of meeting electricity system needs.

 

Conservation and Demand Management

The Ontario government launched the 2021-2024 CDM Framework on January 1, 2021. The framework focuses on cost-effectively meeting the needs of Ontario’s electricity system, including by focusing on the achievement of provincial peak demand reductions and initiatives such as extended off-peak electricity rates, as well as on targeted approaches to address regional and/or local electricity system needs.

CDM programs are delivered by the Independent Electricity System Operator (IESO), which implemented staff lockdown measures during COVID-19, through the Save on Energy brand. These programs address electricity system needs and help consumers reduce their electricity consumption to lower their bills. CDM programs and incentives are available for homeowners, small businesses, large businesses, and contractors, and First Nations communities.

 

New and Expanded Programs

The four new and expanded CDM programs will include:

A new Residential Demand Response Program for homes with existing central air conditioning and smart thermostats to help deliver peak demand reductions. Households who meet the criteria could voluntarily enroll in this program and, alongside protections like disconnection moratoriums for residential customers, be paid an incentive in return for the IESO being able to reduce their cooling load on a select number of summer afternoons to reduce peak demand. There are an estimated 600,000 smart thermostats installed in Ontario.
Targeted support for greenhouses in Southwest Ontario, including incentives to install LED lighting, non-lighting measures or behind-the-meter distributed energy resources (DER), such as combined solar generation and battery storage.
Enhancements to the Save On Energy Retrofit Program for business, municipalities, institutional and industrial consumers to include custom energy-efficiency projects. Examples of potential projects could include chiller and other HVAC upgrades for a local arena, building automation and air handling systems for a hospital, or building envelope upgrades for a local business.
Enhancements to the Local Initiatives Program to reduce barriers to participation and to add flexibility for incentives for DER solutions.
It is the government’s intention that the new and expanded CDM programs will be available to eligible electricity customers beginning in Spring 2023.

The IESO estimates that the new program offers will deliver total provincial peak electricity demand savings of 285 megawatts (MW) and annual energy savings of 1.1 terawatt hours (TWh) by 2025, reflecting pandemic-era electricity usage shifts across Ontario. Savings will persist beyond 2025 with a total reduction in system costs by approximately $650 million over the lifetime of the measures, and will support economic recovery, as seen with electricity relief during COVID-19 measures, decarbonization and energy cost management for homes and businesses.

These enhancements will have a particular impact in Southwest Ontario, with regional peak demand savings of 225 MW, helping to alleviate electricity system constraints in the region and foster economic development, supported by stable electricity pricing for industrial and commercial companies in Ontario.

The overall savings from this CDM programming will result in an estimated three million tonnes of greenhouse gas emissions reductions over the lifetime of the energy-efficiency measures to help achieve Ontario’s climate targets and protect the environment for the future.

The IESO will be updating the CDM Framework Program Plan, which provides a detailed breakdown of program budgets and energy savings and peak demand targets expected to be achieved.

 

Related News

View more

Court quashes government cancellation of wind farm near Cornwall

Nation Rise Wind Farm Ruling overturns Ontario cancellation, as Superior Court finds the minister's decision unreasonable; EDP Renewables restarts 100-megawatt project near Cornwall, citing jobs, clean energy, and procedural fairness over bat habitat concerns.

 

Key Points

Ontario court quashes cancellation, letting EDP Renewables finish 100 MW Nation Rise project and resume clean energy.

✅ Judges call minister's decision unreasonable, unfair

✅ EDP Renewables to restart construction near Cornwall

✅ 100 MW, 29 turbines; costs awarded, appeal considered

 

Construction of a wind farm in eastern Ontario, as wind power makes gains nationwide, will move ahead after a court quashed a provincial government decision to cancel the project.

In a ruling released Wednesday, a panel of Ontario Superior Court judges said the province's decision to scrap the Nation Rise Wind Farm in December 2019 did not meet the proper requirements.

At the time, Environment Minister Jeff Yurek revoked the approvals of the project near Cornwall, Ont., citing the risk to three bat species.

That decision came despite a ruling from the province's Environmental Review Tribunal that determined the risk the project posed to the bat population was negligible.

The judges said the minister's decision was "unreasonable" and "procedurally unfair."

"The decision does not meet requirements of transparency, justification, and intelligibility, as the Minister has failed to adequately explain his decision," the judges wrote in their decision.

The company behind the project, EDP Renewables, said the 29-turbine wind farm was almost complete when its approval was revoked in December, even as Alberta saw TransAlta scrap a wind farm in a separate development.

The company said Thursday it plans to restart construction on the 100-megawatt wind farm.

"EDPR is eager to recommence construction of the Nation Rise Wind Farm, which will bring much-needed jobs and investment to the community," the company said in a statement. "This delay has resulted in unnecessary expenditures to-date, at a time when governments and businesses should be focused on reducing costs and restarting the economy."

A spokesman for Yurek said the government is disappointed with the outcome of the case but did not comment on a possible appeal.

"At this time, we are reviewing the decision and are carefully considering our next steps," Andrew Buttigieg said in a statement.

NDP climate change critic Peter Tabuns said the court decision is an embarrassment for the minister and the government. He urged the government not to pursue an appeal.

Yurek "was found to have ignored the evidence and the facts," he said. "They didn't just lose, their case collapsed. They had nothing to stand on. Taking this to appeal would be a complete and total waste of money."

Green party Leader Mike Schreiner said the ruling proves the government was acting based on ideology over evidence when it revoked the project's approval.

"As we shift towards a post-COVID recovery, we need the Ford government to give up the irrational crusade against affordable and reliable clean energy," Schreiner said in a statement.

Last year, the NDP revealed the province had spent $231 million to cancel more than 750 renewable energy contracts, a move Ford said he was proud of, shortly after winning the 2018 election.

The Progressive Conservatives have blamed the previous Liberal government, as leadership candidates debate how to fix power, for signing the bad energy deals while the province had an oversupply of electricity.

The Ford government, amid a new stance on wind power, has also said that by cancelling the contracts it would ultimately save ratepayers $790 million -- a figure industry officials have disputed.

At the time of the wind farm cancellation, the government also said it would introduce legislation that would protect consumers from any costs incurred, though a developer warned cancellations could exceed $100M at the time.

It has since acknowledged it will have to pay some companies to cancel the deals and set aside $231 million to reach agreements with those firms, and more recently has moved to reintroduce renewable projects in some cases.

On Wednesday, the judges awarded Nation Rise $126,500 in costs, which the government will have to pay.

 

Related News

View more

More people are climbing dangerous hydro dams and towers in search of 'social media glory,' utility says

BC Hydro Trespassing Surge highlights risky social media stunts at dams and power stations, with restricted areas breached for selfies, electrocution hazards ignored, and safety signage violated across Buntzen Lake, Jones Lake, and Jordan River.

 

Key Points

A spike in illegal entries at BC Hydro sites for social media, increasing electrocution and drowning risks.

✅ 200% rise in trespassing over five years

✅ Risks: electrocution, drowning, deadly falls

✅ Obey signage; avoid restricted dam and substation areas

 

More and more daredevils are climbing onto dangerous dams and power stations to gain likes and social media followers, according to a new report from BC Hydro.

The power provider says it's seen a 200 per cent uptick in trespassing into restricted areas over the past five years, with many of the incidents posted onto sites like YouTube, Facebook and Instagram.

"It's concerning for us because our infrastructure has risk with it," said David Conway, a community relations manager for BC Hydro.

"There's a risk of electrocution in regards to our transmission towers and our substations ... and people can be severely injured, as seen in serious injuries cases, or killed," he said.

The company released a report Tuesday, noting specific incidents of users trespassing onto sites at Buntzen Lake in Anmore, Jones Lake in the Fraser Valley and Jordan River near Victoria; it has also been issuing Site C updates during the pandemic. The incidents ranged from climbing transmission towers to swimming in restricted areas at dam sites.

In a separate matter, an external investigation at Manitoba Hydro has examined alleged assaults by workers.

Conway says annual incidents climbed from a handful to about one dozen, but BC Hydro expects the figures to be even higher. He says many more events likely go unreported.

The report ties the increase in incidents to the pursuit of "social media glory." Between 2011 and 2017, at least 259 people were killed worldwide in selfie-related incidents, according to the Journal of Family Medicine and Primary Care, and a knowledge gap in electrical safety remains a factor. Many of the incidents involved water, electrical equipment or dangerous heights.

In 2018, three social media personalities died after falling off a cliff at Shannon Falls near Squamish, B.C.

North Shore Rescue attributes about 30 per cent of its calls to outdoor users attempting to capture content for social media.

Survey results highlighted in the BC Hydro report show that 15 per cent of British Columbians admit to putting themselves in a dangerous position "to achieve the 'perfect' shot."

Awareness also influences careers, as many young Canadians say they would work in electricity if they knew more.

The survey was conducted online by 800 B.C. residents. For comparison purposes, a probability sample of the same size would yield a margin of error of plus or minus 3.5 per cent, 19 times out of 20.

During the pandemic, the U.S. grid overseer issued a coronavirus warning to highlight operational risks.

Risky activities include standing at the edge of a cliff, knowingly disobeying safety signage or trespassing, or taking a selfie from a dangerous height.

Two per cent of British Columbians admit to injuring themselves in the name of a selfie.

"We want people to stay safe. We want to remind the public to stay a safe distance away from our infrastructure, and follow safety guidance near downed lines, as electricity and generating facilities can be dangerous," said Conway.

BC Hydro is urging all visitors to obey signage, steer clear of power-generating equipment and to stay on designated trails.

 

Related News

View more

European Power Hits Records as Plants Start to Buckle in Heat

European Power Crisis intensifies as record electricity prices, nuclear output cuts, gas supply strain, heatwave drought, and Rhine shipping bottlenecks hit Germany, France, and Switzerland, tightening winter storage and driving long-term contracts higher.

 

Key Points

A surge in European power prices from heatwaves, nuclear curbs, Rhine coal limits, and reduced Russian gas supply.

✅ Record year-ahead prices in Germany and France

✅ Nuclear output curbed by warm river cooling limits

✅ Rhine low water disrupts coal logistics and generation

 

Benchmark power prices in Europe hit fresh records Friday as utilities are increasingly reducing electricity output in western Europe because of the hot weather. 

Next-year contracts in Germany and France, Europe’s biggest economies rose to new highs after Switzerland’s Axpo Holding AG announced curbs at one of its nuclear plants. Electricite de France SA is also reducing nuclear output because of high river temperatures and cooling water restrictions, while Uniper SE in Germany is struggling to get enough coal up the river Rhine. 

Europe is suffering its worst energy crunch in decades, and losing nuclear power is compounding the strain as gas cuts made by Russia in retaliation for sanctions drive a surge in prices. The extreme heat led to the driest July on record in France and is underscoring the impact that a warming climate is having on vital infrastructure.

Water levels on Germany’s Rhine have fallen so low that the river may effectively close soon, impacting supplies of coal to the plants next to it. The Rhone and Garonne in France and the Aare in Switzerland are all too warm to be used to cool nuclear plants effectively, forcing operators to limit energy output under environmental constraints. 

Northwest European weather forecast for the next two weeks:
relates to European Power Hits Records as Plants Start to Buckle in Heat
  
The German year-ahead contract gained as much as 2% to 413 euros a megawatt-hour on the European Energy Exchange AG. The French equivalent rose 1.9% to a record 535 euros. Long-term prices are coming under pressure because producing less power from nuclear and coal will increase the demand for natural gas, which is badly needed to fill storage sites ahead of the winter.  


France to Curb Nuclear Output as Europe’s Energy Crisis Worsens
Uniper SE said on Thursday that two of its coal-fired stations along the Rhine may need to curb output during the next few weeks as transporting coal along the Rhine becomes impossible. 

Plants on the river near Mannheim and Karlsruhe, operated by Grosskraftwerk Mannheim AG and EnBW AG, have previously struggled to source coal because of the shallow water, even as German renewables deliver more electricity than coal and nuclear at times. Both companies said generation hasn’t been affected yet. 

“The low tide is not currently affecting our generation of energy because our plants do not have the need for continuous fresh water,” a Steag GmbH spokesman said on Friday. “But the low tide level can make running plants and transporting coal more complicated than usual.”

The spokesman said though that there is slight reduction in output of about 10 to 15 megawatts, which would equate to a few percent, because of the hot temperatures. “This has been happening over some time now and is a problem for everyone because the plant system is not designed to withstand such hot temperatures,” he said.

 

Related News

View more

The gloves are off - Alberta suspends electricity purchase talks with B.C.

Alberta-BC Pipeline Dispute centers on Trans Mountain expansion, diluted bitumen shipments, federal approval, spill response capacity, and electricity trade, as Alberta suspends power talks and Ottawa insists the Kinder Morgan project proceeds in national interest.

 

Key Points

Dispute over Trans Mountain expansion, bitumen limits, and jurisdiction between Alberta, B.C., and Canada.

✅ Alberta suspends BC electricity talks as leverage

✅ Ottawa affirms federal approval and spill response

✅ BC plans advisory panel on diluted bitumen risks

 

Alberta Premier Rachel Notley says her government is suspending talks with British Columbia on the purchase of electricity from the western province.

It’s the first step in Alberta’s fight against the B.C. government’s proposal to obstruct the Kinder Morgan oil pipeline expansion project by banning increased shipments of diluted bitumen to the province’s coast.

Up to $500 million annually for B.C.’s coffers from electricity exports hangs in the balance, Notley said.

“We’re prepared to do what it takes to get this pipeline built — whatever it takes,” she told a news conference Thursday after speaking with Prime Minister Justin Trudeau on the phone.

Notley said she told Trudeau, who’s in Edmonton for a town-hall meeting, that the federal government needs to act decisively to end the dispute.

Speaking on Edmonton talk radio station CHED earlier in the day, Trudeau said the pipeline expansion is in the national interest and will go ahead, even as the federal government undertakes a study on electrification across sectors.

“That pipeline is going to get built,” Trudeau said. “We will stand by our decision. We will ensure that the Kinder Morgan pipeline gets built.”

B.C.’s environment minister has said his minority government plans to ban increased shipments until it can determine that shippers are prepared and able to properly clean up a spill, and, separately, has implemented an electricity rate freeze affecting consumers. He said he will establish an independent scientific advisory panel to study the issue.

The move infuriated Notley, who has accused B.C. of trying to change the rules after the federal government gave the project the green light. B.C. has the right to regulate how any spills would be cleaned up, but can’t dictate what flows through pipelines, she said.

Trudeau said Canada needs to get Alberta’s oil safely to markets other than the U.S. energy market today. He said the federal government did the research and has spent billions on spill response.

“The Kinder Morgan pipeline is not a danger to the B.C. coast,” he said.

Notley said she thanked Trudeau for his assurance that the project will go ahead, but the federal government has to do more to ensure the pipeline’s expansion.

“This is not an Alberta-B.C. issue. This is a Canada-B.C. issue,” she said. “This kind of uncertainty is bad for investment and bad for working people

“Enough is enough. We need to get these things built.”

B.C. Premier John Horgan said his government consulted Alberta and Ottawa about his province’s intentions, noting that Columbia River Treaty talks also shape regional electricity policy.

“I don’t see what the problem is,” Horgan said Thursday at a school opening north of Kelowna, B.C. “It’s within our jurisdiction to put in place regulations to protect the public interest.

“That’s what we are doing.”

He downplayed any possibility of court action or sanctions by Alberta.

“There’s nothing to take to court,” Horgan said. “We are consulting with the people of B.C. It’s way too premature to talk about those sorts of issues.

“Sabre-rattling doesn’t get you very far.”

Speaking in Ottawa, Natural Resources Minister Jim Carr wouldn’t say what Canada might do if British Columbia implements its regulation.

“That’s speculative,” said Carr.

He noted at this point, B.C. has just pledged to consult. He said the federal government heard from thousands of people before the pipeline was approved.

“That’s what they have announced — an intention to consult. We have already consulted.”

B.C.’s proposal creates more uncertainty for Kinder Morgan’s already-delayed Trans Mountain expansion project that would nearly triple the capacity of its pipeline system to 890,000 barrels a day.

 

Related News

View more

New rules give British households right to sell solar power back to energy firms

UK Smart Export Guarantee enables households to sell surplus solar energy to suppliers, with dynamic export tariffs, grid payments, and battery-friendly incentives, boosting local renewable generation, microgeneration uptake, and decarbonisation across Britain.

 

Key Points

UK Smart Export Guarantee pays homes for exporting surplus solar power to the grid via supplier tariffs.

✅ Suppliers must pay households for exported kWh.

✅ Dynamic tariffs incentivize daytime solar generation.

✅ Batteries boost self-consumption and grid flexibility.

 

Britain’s biggest energy companies will have to buy renewable energy from their own customers through community-generated green electricity models under new laws to be introduced this week.

Homeowners who install new rooftop solar panels from 1 January 2020 will be able to lower their bills as many seek to cut soaring bills by selling the energy they do not need to their supplier.

A record was set at noon on a Friday in May 2017, when solar energy supplied around a quarter of the UK’s electricity, and a recent award that adds 10 GW of renewables indicates further growth.

However, solar panel owners are not always at home on sunny days to reap the benefit. The new rules will allow them to make money if they generate electricity for the grid.

Some 800,000 householders with solar panels already benefit from payments under a previous scheme. However, the subsidies were controversially scrapped by the government in April, with similar reduced credits for solar owners seen in other regions, causing the number of new installations to fall by 94% in May from the month before.

Labour accused the government last week of “actively dismantling” the solar industry. The sector will still struggle this summer as the change does not come in for another seven months, so homeowners have no incentive to buy panels this year.

Chris Skidmore, the minister for energy and clean growth, said the government wanted to increase the number of small-scale generators without adding the cost of subsidies to energy bills. “The future of energy is local and the new smart export guarantee will ensure households that choose to become green energy generators will be guaranteed a payment for electricity supplied to the grid,” he said. The government also hopes to encourage homes with solar panels to install batteries to help manage excess solar power on networks.

Greg Jackson, the founder of Octopus Energy, said: “These smart export tariffs are game-changing when it comes to harnessing the power of citizens to tackle climate change”.

A few suppliers, including Octopus, already offer to buy solar power from their customers, often setting terms for how solar owners are paid that reflect market conditions.

“They mean homes and businesses can be paid for producing clean electricity just like traditional generators, replacing old dirty power stations and pumping more renewable energy into the grid. This will help bring down prices for everyone as we use cheaper power generated locally by our neighbours,” Jackson said.

Léonie Greene, a director at the Solar Trade Association, said it was “vital” that even “very small players” were paid a fair price. “We will be watching the market like a hawk to see if competitive offers come forward that properly value the power that smart solar homes can contribute to the decarbonising electricity grid,” she said.

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.