Peak Power Receives $765,000 From Canadian Government to Deploy 117 V1G EV Chargers

SEA Electric school bus conversions bring EV electrification to Type A and Type C fleets, adding V2G, smart charging, battery packs, and zero-emissions performance while extending service life with cost-effective retrofits across US school districts.

Key Points

Retrofit EV drivetrains for Type A and C buses, adding V2G and smart charging to cut emissions and costs.

✅ Converts 10,000 Type A and C school buses over five years

✅ Adds V2G, smart charging, and fleet battery management

✅ Cuts diesel fumes, maintenance, and total cost of ownership

Converting a Porsche 356C to electric power is a challenge. There’s precious little room for batteries, converters, and such. But converting a school bus? That’s as easy as falling off a log, even if adoption challenges persist in the sector today. A bus has acres of space for batteries and the electronics need to power an electric motor.

One of the dumbest ideas human beings ever came up with was sealing school children inside a diesel powered bus for the trip to and from school. Check out our recent article on the impact of fossil fuel pollution on the human body. Among other things, fine particulates in the exhaust gases of an internal combustion engine have been shown to lower cognitive function. Whose bright idea was it to make school kids walk through a cloud of diesel fumes twice a day when those same fumes make it harder for them to learn?

Help may be on the way, as lessons from the largest e-bus fleet offer guidance for scaling. SEA Electric, a provider of electric commercial vehicles originally from Australia and now based in Los Angeles has stuck a deal with Midwest Transit Equipment to convert 10,000 existing school buses to electric vehicles over the next five years. Midwest will provide the buses to be converted to the SEA Drive propulsion system. SEA Electric will complete the conversions using its “extensive network of up-fitting partners,” Nick Casas, vice president of sales and marketing for SEA Electric, says in a press release.

After the conversions are completed, the electric buses will have vehicle to grid (V2G) capability that will allow them to help balance the local electrical grid, where state power grids face new demands, and “smart charge” when electricity prices are lowest. The school buses to be converted are of the US school bus class Type A  or Type C. Type A is the smallest US school bus with a length of 6 to 7.5 metres and is based on a van chassis. The traditional Type C school buses are built on truck architectures.

SEA Electric says that the conversion will extend the life of the buses by more than ten years, with early deployments like B.C. electric school buses demonstrating real-world performance, and that two to three converted buses can be had for the price of one new electric bus. Mike Menyhart, chief strategy officer at SEA Electric says, “The secondary use of school buses fitted with all-electric drivetrains makes a lot of sense. It keeps costs down, opens up considerable availability, creates green jobs right here in the US, all while making a difference in the environment and the health of the communities we serve.”

According to John McKinney, CEO of Midwest Transport Equipment, the partnership with SEA Electric will ensure that it can respond more quickly to customers’ needs as policies like California's 2035 school-bus mandate accelerate demand in key markets. “As the industry moves towards zero emissions we are positioned well with our SEA Electric partnership to be a leader of the electrification movement.”

According to Nick Casas, SEA Electric will plans to expand it operations to the UK soon, and intends to do business in six countries in Europe, including Germany, in the years to come. SEA says it will have delivered more than 500 electric commercial vehicles in 2021 and plans to put more than 15,000 electric vehicles on the road by the end of 2023. Just a few weeks ago, SEA Electric announced an order for 1,150 electric trucks based on the Toyota Hino cargo van for the GATR company of California, highlighting truck fleet power needs that utilities must plan for today.

Electric school buses make so much sense. No fumes to fog young brains, lower maintenance costs, and lower fuel costs are all pluses, especially as bus depot charging hubs scale across markets, adding resilience. Extending the service life of an existing bus by a decade will obviously pay big dividends for school bus fleet operators like MTE. It’s a win/win/win situation for all concerned, with the possible exception of diesel mechanics. But the upside there is they can be retrained in how to maintain electric vehicles, a skill that will be in increasing demand as the EV revolution picks up speed.

Related News

• Electricity Forum News

• EV Infrastructure News

Labrador EV Charging Infrastructure faces gaps, with few fast chargers; Level 2 dominates, fueling range anxiety for Tesla and Chevrolet Bolt drivers, despite rebates and Newfoundland's network linking St. John's to Port aux Basques.

Key Points

It refers to the current and planned network of Level 2 and Level 3 charging sites across Labrador.

✅ 2 public Level 2 chargers: Happy Valley-Goose Bay and Churchill Falls

✅ Phase 2: 3 fast chargers planned for HV-GB, Churchill Falls, Labrador City

✅ $2,500 rebates offered; rural range anxiety still deters buyers

Retired pilot Allan Carlson is used to crossing Labrador by air.

But he recently traversed the Big Land in an entirely new way, driving for hours on end in his electric car.

The vehicle in question is a Tesla Model S P100D, which Carlson says he can drive up to 500 kilometres on a full charge — and sometimes even a little more.

After catching a ferry to Blanc-Sablon, Que., earlier this month, he managed to reach Happy Valley-Goose Bay, over 600 kilometres away.

To get there, though, he had to use the public charging station in Blanc-Sablon. He also had to push the limits of what his car could muster. 

But more affordable mass-market electric vehicles don't have the battery power of a top-of-the-range Tesla, prompting the Big Land's first EV owner to wonder when Labrador infrastructure will catch up to the high-speed charging network recently unveiled across Newfoundland this summer.

Phillip Rideout, an electrician who lives in Nain, bought a Chevrolet Bolt EV for his son — the range of which tops out at under 350 kilometres, depending on driving patterns and weather conditions.

He's comfortable driving the car within Nain but said he's concerned about traveling to southern Labrador on a single charge.

"It's a start in getting these 14 charging stations across the island," Rideout said of Newfoundland's new network, "but there is still more work to be done."

The provincial government continues to push an electric-vehicle future, however, even as energy efficiency rankings trail the national average, despite Labradorians like Rideout feeling left out of the loop.

Bernard Davis, minister of environment and climate change, earlier this month announced that government is accepting applications for its electric-vehicle rebate program, as the N.W.T. EV initiative pursues similar goals.

Under the $500,000 program, anyone looking to buy a new or used EV would be entitled to $2,500 in rebates, an attempt by the provincial government to increase EV adoption.

But according to a survey conducted this year by polling firm Leger for the Canadian Vehicle Manufacturer's Association, 51 per cent of rural Canadians found a lack of fast-charging public infrastructure to be a major deterrent to buying an electric car, even as Atlantic EV interest lags overall, according to recent data.

While Newfoundland's 14-charger network, operated by N.L. Hydro and Newfoundland Power, allows drivers to travel from St. John's to Port aux Basques, and 10 new fast-charging stations are planned along the Trans-Canada in New Brunswick, Labrador in contrast has just two publicly available charging locations: one at the YMCA in Happy Valley-Goose Bay and the other near the town office of Churchill Falls.

This is the proposed second phase of additional Level 2 and Level 3 charging locations across Labrador. (TakeChargeNL)
These are slower, Level 2 chargers, as opposed to newer Level 3 charging stations on the island. A Level 2 system averages 50 kilometres of range per hour, and a Level 3 systems can add up to 250 kilometres within the same time frame, making them about five times faster.

Even though all of the fast-charging stations have gone to Newfoundland, MHA for Lake Melville Perry Trimper is optimistic about Labrador's electric future.

Trimper has owned an EV in St. Johns since 2016, but told CBC he'd be comfortable driving it in Happy Valley-Goose Bay.

He acknowledged, however, that prospective owners in Labrador might not be able to drive far from their home charging outlet. 

More promises
If rural skepticism driven by poor infrastructure continues, the urban population could lead the way in adoption, allowing the new subsidies to disproportionately go toward larger population centres, Davis acknowledged.

"Obviously people are not going to purchase electric vehicles if they don't believe they can charge them where they want to be or where they want to go," Davis said in an interview in early September.

Under the provincial government's Phase 2 proposal, Newfoundland and Labrador is projected to get 19 charging stations, with three going to Labrador in Happy Valley-Goose Bay, Churchill Falls and Labrador City, taking cues from NB Power's public network in building regional coverage.

Davis would not commit to a specific cutoff period for the rebate program or a timeline for the first fast-charging stations in Labrador to be built.

"At some point, we are not going to need to place any subsidy on electric vehicles," he said, "but that time is not today and that's why these subsidies are important right now."

Future demand 
Goose Bay Motors manager Joel Hamlen thinks drivers in Labrador could shift away from gas vehicles eventually, even as EV shortages and wait times persist.

But he says it'll take investment into a charging network to get there.

"If we can get something set up where these people can travel down the roads and use these vehicles in the province … I am sure there will be even more of a demand," Hamlen said.

Related News

• Electricity Forum News

• EV Infrastructure News

ONroute EV Charging Stations now live on Ontario's Highways 401 and 400, powered by Ivy Charging Network with 150 kW fast chargers, Tesla-compatible ports, Canadian Tire support, and government-backed clean transportation infrastructure.

Key Points

ONroute EV Charging Stations are Ivy-managed 150 kW fast-charging hubs along Highways 401/400, compatible with all EVs.

✅ Up to 150 kW DC fast charging; ~100 km added in about 10 minutes

✅ Compatible with all EV models, including Tesla-compatible ports

✅ Located along Highways 401/400; 2-4 chargers per ONroute site

Electric vehicle (EV) drivers can now charge at 10 ONroute locations along Highways 401 and 400, reflecting progress on the province's charging network rollout to date.

Ivy Charging Network, ONroute and their partners, Canadian Tire Corporation (CTC) and the Ministry of Transportation (MTO) announced the opening of four Charge & Go EV fast-charging stations today: Ingleside, Innisfil, Tilbury North, Woodstock

Each of Ivy's Charge & Go level 3 fast-chargers at ONroute locations will support the charging of all EV models, including charging ports for Tesla drivers.

Quick Facts

Ivy Charging Network is installing 69 level 3 fast-chargers across all ONroute locations, with the possibility of further expansion as Ontario makes it easier to build charging stations through supportive measures.

Ivy's ONroute Charge & Go locations will offer charging speeds of up-to 150 kWs, delivering up to a 100 km charge in 10 minutes.

This partnership is part of CTC's ongoing expansion of EV charging infrastructure across Canada, as utilities like BC Hydro add more stations across southern B.C.

Ivy Charging Network is a joint venture between Hydro One and Ontario Power Generation.

Natural Resources Canada, through its Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative, invested $8-million to help build the broader Ivy Charging Network, alongside other federal funding for smart chargers supporting deployments, providing access to 160 level 3 fast-chargers across Ontario including these ONroute locations.

'Our partnership with ONroute, Canadian Tire and the Ontario Ministry of Transportation will end range anxiety for EV drivers travelling on the province's major highways. These new fast-charging locations will give drivers the confidence they need on their road trips, to get them where they need to go this summer,' said Michael Kitchen, General Manager, Ivy Charging Network.

'ONroute is proud to now offer EV charging stations to our customers, in partnership with Ivy and Canadian Tire. We are focused on supporting the growth of electric cars and offering this convenience for our customers as we strive to be the recharge destination for all travelers across Ontario,' said Melanie Teed-Murch, Chief Executive Officer of ONroute.

'Together with our partners, CTC is proud to announce the opening of EV fast-charging stations at four additional ONroute locations along the 400-series highways. Our network of EV charging stations is just one of the ways CTC is supporting EV drivers of today and tomorrow to make life in Canada better, with growth similar to NB Power's public charging network underway,' said Micheline Davies, SVP, Automotive, Canadian Tire Corporation. 'We will have approximately 140 sites across the country by the end of the year, making CTC one of the largest retail networks of EV fast charging stations in Canada.'

'We're giving Canadians cleaner transportation options to get to where they need to go by making zero-emission charging and alternative-fuels refueling infrastructure more accessible, as seen with new fast-charging stations in N.B. announced recently. Investments like the ones announced today in Ontario will put Canadians in the driver's seat on the road to a net-zero future and help achieve our climate goals,' said the Honourable Jonathan Wilkinson, Minister of Natural Resources.

'Ontario is putting shovels in the ground to build critical infrastructure that will boost EV ownership, support Ontario's growing EV manufacturing industry and reduce emissions, complementing progress such as the first fast-charging network in N.L. now in place,' said Todd Smith, Minister of Energy. 'With EV fast chargers now available at ten ONroute stations along our province's business highways it's even more convenient than ever for workers and families to grab a coffee or a meal while charging their car.'

Related News

• Electricity Forum News

• EV Infrastructure News

Canada Distributed Energy faces disruption as solar, smart grids, microgrids, and storage scale utility-scale renewables, challenging centralized utilities and accelerating decarbonization, grid modernization, and distributed generation across provinces like Alberta.

Key Points

Canada Distributed Energy shifts from centralized grids to local solar, wind, and storage for reliable low-carbon power.

✅ Morgan Solar and Enbridge launch Alberta Solar One, 13.7 MW.

✅ Optical films boost panel efficiency, lowering cost per watt.

✅ Strong utilities slow adoption of microgrids and smart grids.

By Nick Waddell

Disruption is coming to electricity generation but Canada has become a laggard when it comes to not just adoption of alternative energy sources but in moving to a more distributed model of electricity generation. That’s according to Mike Andrade, CEO of Morgan Solar, whose new solar project in conjunction with Enbridge has just come online in Alberta, a province known as a powerhouse for both green and fossil energy in Canada.

“There’s a lot of inertia to Canada’s electrical system and I don’t think that bodes well,” said Andrade, who spoke on BNN Bloomberg on Thursday. 

“Canada is one of the poorest places for uptake of solar, as NEB data on solar demand indicates,” Andrade said, “I believe a lot of it has to do with the fact that we have strong provincial utilities that have their mandates and their chosen technologies.”

Alberta Solar One, a 13.7 MW power facility near Lethbridge, Alberta, had its unveiling this week amid red-hot solar growth in Alberta that shows no sign of slowing. It’s a 36,500-panel farm constructed by Enbridge in a quick six-month turnaround as part of the power company’s pledge to become a carbon-free generator by 2050. Along with solar, Enbridge has made big investments in offshore and onshore wind farms in the United States, while also producing so-called green hydrogen at an Ontario plant.

Private company Morgan Solar considers the Alberta Solar One project as the first utility-scale validation of its technology, which uses optical films to redirect light onto photovoltaic cells to further power production. 

“We use an advanced modelling system and a variety of tools to design very simple optical systems that can be easily inserted into a panel,” Andrade said. “They cost less and bring down the cost per watt. It captures light that would otherwise miss the cells and so you get more power per cell area than any other commercial technology at this point.”

Like renewables in general, solar energy has been thrust into the spotlight as governments worldwide aim to make good on their climate change and emissions pledges, with analyses showing zero-emissions electricity by 2035 is possible in Canada, and convert power generation from fossil fuels to alternative sources. 

The market has paid attention, too, driving up values on renewable energy stocks across the board, including solar stocks, as provinces like Alberta explore selling renewable energy into broader markets. Last year, the Invesco Solar ETF, which tracks the MAC Global Solar Energy Index, soared 234 per cent, while Canadian companies with solar assets like Algonquin Power and Northland Power have been winners over the past few years.

Canadian cleantech companies involved in the solar power sector have also fared well, with names like UGE International (UGE International Stock Quote, Chart, News, Analyst. Financials TSXV:UGE), Aurora Solar and 5N Plus (5N Plus Stock Quote, Chart, News, Analysts, Financials TSX:VNP) having attracted investor attention of late.

Currently, part of the push in alternative energy involves the move from centralized to a more distributed picture of power generation, where solar panels, wind turbines and small modular nuclear reactors can operate close to or within sources of consumption like cities.

But Andrade says Canada has a lot of catching up to do on that front, especially as its current system seems devoted to maintaining the precedence of large, centralized power production — along with the utility companies that generate it.

“Canada is going to be left with this big, old fashioned hub and spoke model, and that’s increasingly going to be out-competed by a distributed grid, call them smart grids or micro grids,” Andrade said.

“That’s the future that solar is going to drive along with storage, and I personally don’t think Canada is prepared for it, not because we can’t do it but because regulatory and incumbency is holding us back from doing that,” he said.

“We pay our utilities, saying, ‘You invest capital and we’ll give you a fixed return on capital.’ Well, guess what? You’re going to get large, centralized capital projects which are going to get big central generation hub and spoke distribution,” Andrade said.

Ahead of the Canadian federal government’s tabling next week of its first budget in two years, many in the energy sector will be taking notes on the Liberal government’s investments in the so-called green recovery after the economic downturn, with renewable energy proponents hoping for further support, noting Alberta’s renewable energy surge could power thousands of jobs, to shift Canada’s resource sector away from fossil fuels.

By comparison, President Biden in the US recently unveiled his $2-billion infrastructure plan which put precedence on greening the country’s power grid, encouraging the adoption of electric vehicles and supporting renewable resource development, and Canadian studies suggest 2035 zero-emission power is practical and profitable as well across the national grid. 

On disruption in power generation, Andrade said there are parallels to be drawn from information technology, which has historically made a point of discarded outdated models along the way.

“I was at IBM, and they had the mainframe business and that got blown up. I also worked with Nortel and Celestica and they got blown up —and it wasn’t due to having better central hub and spoke systems. They got beat up by this distributed system,” Andrade said. 

“The same thing is going to happen here and the disruption is coming in electricity generation as well,” he said.

About The Author - Nick Waddell

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

Related News

• Electricity Forum News

• Renewable Energy News

California 100% Clean Energy by 2030 proposes accelerating SB 100 with solar, wind, offshore wind, and battery storage to decarbonize the grid, enhance reliability, and reduce blackouts, leveraging transmission upgrades and long-duration storage solutions.

Key Points

Proposal to accelerate SB 100 to 2030, delivering a carbon-free grid via renewables, storage, and new transmission.

✅ Accelerates SB 100 to a 2030 carbon-free electricity target

✅ Scales solar, wind, offshore wind, and battery storage capacity

✅ Requires transmission build-out and demand response for reliability

Amid a spate of wildfires that have covered large portions of California with unhealthy air, an environmental group that frequently lobbies the Legislature in Sacramento is calling on the state to accelerate by 15 years California's commitment to derive 100 percent of its electricity from carbon-free sources.

But skeptics point to last month's pair of rolling blackouts and say moving up the mandate would be too risky.

"Once again, California is experiencing some of the worst that climate change has to offer, whether it's horrendous air quality, whether it's wildfires, whether it's scorching heat," said Dan Jacobson, state director of Environment California. "This should not be the new normal and we shouldn't allow this to become normal."

Signed by then-Gov. Jerry Brown in 2018, Senate Bill 100 commits California by 2045 to use only sources of energy that produce no greenhouse gas emissions to power the electric grid, a target that echoes Minnesota's 2050 carbon-free plan now under consideration.

Implemented through the state's Renewable Portfolio Standard, SB 100 mandates 60 percent of the state's power will come from renewable sources such as solar and wind within the next 10 years. By 2045, the remaining 40 percent can come from other zero-carbon sources, such as large hydroelectric dams, a strategy aligned with Canada's electricity decarbonization efforts toward climate pledges.

SB 100 also requires three state agencies _ the California Energy Commission, the California Public Utilities Commission and the California Air Resources Board _ to send a report to the Legislature reviewing various aspects of the legislation.

The topics include scenarios in which SB 100's requirements can be accelerated. Following an Energy Commission workshop earlier this month, Environment California sent a six-page note to all three agencies urging a 100 percent clean energy standard by 2030.

The group pointed to comments by Gov. Gavin Newsom after he toured the devastation in Butte County caused by the North Complex fire.

"Across the entire spectrum, our (state) goals are inadequate to the reality we are experiencing," Newsom said Sept. 11 at the Oroville State Recreation Area.

Newsom "wants to look at his climate policies and see what he can accelerate," Jacobson said. "And we want to encourage him to take a look at going to 100 percent by 2030."

Jacobson said Newsom cam change the policy by issuing an executive order but "it would probably take some legislative action" to codify it.

However, Assemblyman Jim Cooper, a Democrat from the Sacramento suburb of Elk Grove, is not on board.

"I think someday we're going to be there but we can't move to all renewable sources right now," Cooper said. "It doesn't work. We've got all these burned-out areas that depend upon electricity. How is that working out? They don't have it."

In mid-August, California experienced statewide rolling blackouts for the first time since 2001.

The California Independent System Operator _ which manages the electric grid for about 80 percent of the state _ ordered utilities to ratchet back power, fearing the grid did not have enough supply to match a surge in demand as people cranked up their air conditioners during a stubborn heat wave that lingered over the West.

The outages affected about 400,000 California homes and businesses for more than an hour on Aug. 14 and 200,000 customers for about 20 minutes on Aug. 15.

The grid operator, known as the CAISO for short, avoided two additional days of blackouts in August and two more in September thanks to household utility customers and large energy users scaling back demand.

CAISO Chief Executive Officer Steve Berberich said the outages were not due to renewable energy sources in California's power mix. "This was a matter of running out of capacity to serve load" across all hours, Berberich told the Los Angeles Times.

California has plenty of renewable resources _ especially solar power _ during the day. The challenge comes when solar production rapidly declines as the sun goes down, especially between 7 p.m. and 8 p.m. in what grid operators call the "net load peak."

The loss of those megawatts of generation has to be replaced by other sources. And in an electric grid, system operators have to balance supply and demand instantaneously, generating every kilowatt that is demanded by customers who expect their lighting/heating/air conditioning to come on the moment they flip a switch.

Two weeks after the rotating outages, the State Water Resources Control Board voted to extend the lives of four natural gas plants in the Los Angeles area. Natural gas accounts for the largest single source of California's power mix _ 34.23 percent. But natural gas is a fossil fuel, not a carbon-free resource.

Jacobson said moving the mandate to 2030 can be achieved by more rapid deployment of renewable sources across the state.

The Public Utilities Commission has already directed power companies to ramp up capacity for energy storage, such as lithium-ion batteries that can be used when solar production falls off.

Long-term storage is another option. That includes pumped hydro projects in which hydroelectric facilities pump water from one reservoir up to another and then release it. The ensuing rush of water generates electricity when the grid needs it.

Environment California also pointed to offshore wind projects along the coast of Central and Northern California that it estimates could generate as much as 3 gigawatts of power by 2030 and 10 gigawatts by 2040. Offshore wind supporters say its potential is much greater than land-based wind farms because ocean breezes are stronger and steadier.

Gary Ackerman, a utilities and energy consultant with more than four decades of experience in power issues affecting states in the West, said the 2045 mandate was "an unwise policy to begin with" and to accommodate a "swift transition (to 2030), you're going to put the entire grid and everybody in it at risk."

But Ackerman's larger concern is whether enough transmission lines can be constructed in California to bring the electricity where it needs to go.

"I believe Californians consider transmission lines in their backyard about the same way they think about low-income housing _ it's great to have, but not in my backyard," Ackerman said. "The state is not prepared to build the infrastructure that will allow this grandiose build-out."

Cooper said he worries about how much it will cost the average utility customer, especially low and middle-income households. The average retail price for electricity in California is 16.58 cents per kilowatt-hour, compared to 10.53 nationally, according to the U.S. Energy Information Administration.

"What's sad is, we've had 110-degree days and there are people up here in the Central Valley that never turned their air conditioners on because they can't afford that bill," Cooper said.

Jacobson said the utilities commission can intervene if costs get too high. He also pointed to a recent study from the Goldman School of Public Policy at UC Berkeley that predicted the U.S. can deliver 90 percent clean, carbon-free electric grid by 2035 that is reliable and at no extra cost in consumers' bills.

"Every time we wait and say, 'Oh, what about the cost? Is it going to be too expensive?' we're just making the cost unbearable for our kids and grandkids," Jacobson said. "They're the ones who are going to pay the billions of dollars for all the remediation that has to happen ... What's it going to cost if we do nothing, or don't go fast enough?"

The joint agency report on SB 100 from the Energy Commission, the Public Utilities Commission and the Air Resources Board is due at the beginning of next year.

Related News

• Electricity Forum News

• Climate Change News

Biden Impact on Canadian Energy Exports highlights shifts in trade policy, tariffs, carbon pricing, and Keystone XL, with implications for aluminum, softwood lumber, electricity trade, fracking limits, and small modular nuclear reactors.

Key Points

How Biden-era trade, climate rules, and tariffs may reshape Canadian energy and exports.

✅ Reduced tariff volatility and friendlier trade policy toward allies

✅ Climate alignment: carbon pricing, clean power, cross-border electricity

✅ Potential gains for oil, gas, aluminum, and softwood lumber exporters

There is little doubt among industry associations, the Conference Board of Canada and C.D. Howe Institute that a Joe Biden White House will be better for Canadian resource and energy exporters – even Alberta’s beleaguered oil industry, despite Biden’s promise to kill the Keystone XL pipeline.

The consensus among industry observers in the lead-up to the November 3 U.S. presidential election was that a re-elected Donald Trump would become even more pugnacious on trade and protectionism, putting electricity exports at risk for Canadian utilities, which would be bad for Canadian exporters. The Justin Trudeau government would likely come under increased pressure to lower Canadian business taxes to compete with Trump’s low-tax climate.

“A Joe Biden victory would likely lead to higher taxes for both corporations and wealthy Americans to help pay down the gigantic fiscal deficit that is currently running at plus-US$5 trillion,” the conference board concluded in a recent analysis.

On trade and tariffs, the conference board said: “Many but not all of these ongoing trade disputes would wither away under a Joe Biden administration. He would likely run a broad trade policy favouring strategic allies like Canada.

While Canadian industries like forestry and aluminum smelting benefited from strong demand and prices in the U.S. under Trump, the forced renegotiation of the North American Free Trade Agreement failed end tariffs and duties on things like softwood lumber and aluminum ingots, even as Canadians backed tariffs on energy and minerals during the dispute.

The uncertainty over trade issues, and Trump’s tax cuts, which made Canada’s tax regime less competitive, have contributed to a period of low business investment in Canada during Trump's presidency.

“For Canada, we’ve seen a period, since this administration has been in power, where investment has eroded steadily,” conference board chief economist Pedro Antunes said. “We are not doing well at all, in terms of private capital investment in Canada.”

Alberta’s oil industry has been hit particularly hard, with a slew of divestments by big energy giants, and cancellations of major projects, like the $20 billion Frontier oilsands project, scrubbed by Teck Resources.

While domestic policies and global market forces are partly to blame for falling investments in Canada’s oil and gas sector, up until the pandemic hit, investment in oil and gas increased significantly in the U.S., while declining in Canada, during Trump’s first term.

Biden is also expected to level the playing field with respect to climate change policies. Canadian industries pay carbon taxes and face regulations that their counterparts in the U.S. don’t. That has disadvantaged energy-intensive, trade-exposed industries like mines and pulp mills in Canada.

“With Biden in office, Canada will once again have a partner at the federal level in the states in the transition to a decarbonized economy,” said Josha MacNab, national policy director for the Pembina Institute.

Biden’s policies might also favour importing aluminum, cross-laminated timber, fuel cells and other lower-carbon products and commodities from Canada.

At least one observer believes that Canada’s oil and gas sector might benefit more from a Biden White House, despite Biden’s pledge to kill the Keystone XL pipeline.

“I think Joe Biden could be very good for Alberta,” Christopher Sands, director of the Wilson International Center’s Canada Institute, said in a recent discussion hosted by the C.D. Howe Institute.

Sands added that the presidential permit Biden has promised to tear up on the Keystone XL pipeline project is a construction permit, not an operating permit.

“The segment of that pipeline that crosses the U.S.-Canada border, which is the only place that the presidential permit applies, has been built,” Sands said. “So I think that’s somewhat of an empty threat.”

He added that, if Biden bans fracking on federal lands, as he has promised, and implements other restrictions that make it more costly for American oil and gas producers, it might increase the demand for Canadian oil and gas in the U.S. The demand would be highest in the U.S. Midwest, which depends largely on Marcellus Shale production, notably in Pennsylvania, and Western Canada for its oil and gas.

One of the Canadian industries directly affected by the Trump administration was aluminum smelting, which is relevant for B.C. because Rio Tinto plc’s Kitimat smelter exports aluminum to the U.S.

Jean Simard, president of the Aluminum Association of Canada, said one of Trump’s legacies was the reactivation of a little-used mechanism – Section 232 of the Trade Expansion Act – to hit Canada and other countries, notably China, with import tariffs.

The 10 per cent tariffs on aluminum cost Canadian aluminum producers US$15 million in the month of August alone, Simard said.

The Trump administration eventually exempted Canadian aluminum exports from the tariffs, then reintroduced them, and then, one week before the election, exempted them again.

These on-again, off-again tariff threats create tremendous uncertainty, not just for Canadian producers, but also for U.S. buyers. That kind of uncertainty is likely to ease under a Biden presidency.

Simard said Biden’s track record suggests he is well-disposed towards Canada and less confrontational with allies and trade partners in general, and some in Washington have called for a stronger U.S.-Canada energy partnership as well.

Meanwhile, softwood lumber tariffs have been imposed by Democrats and Republicans alike. But there are compelling reasons for ending the Canada-U.S. softwood lumber war.

Home renovation and repair in the United States has done surprisingly well during the pandemic.

As a result of sawmill curtailments in the U.S. due to pandemic restrictions and high demand for lumber in the U.S. housing sector, North American lumbers prices broke records this summer, soaring as high as US$900 per thousand board feet.

“It shows that there’s very strong demand for our product,” said Susan Yurkovich, president of the Council of Forest Industries.

Ultimately, the duties Canadian lumber exporters pay are passed on to U.S. consumers.

Sands said Biden’s climate action pledges, including a clean electricity standard, could increase opportunities for trading electricity between Canada in the U.S., as the U.S. increasingly looks to Canada for green power, and could also be good for Canadian nuclear power technology.

Strong climate change policies necessarily result in an increased demand for low-carbon electricity, and advancing clean grids, which Canada has in abundance, thanks to both hydro and nuclear power.

“[Biden] does share the desire to act on climate change, but unlike some of his fellow party members who are more signed on to a Green New Deal, he’s open to pragmatic solutions that might get the job done quickly and efficiently,” Sands said.

“This is a huge opportunity for small, modular nuclear reactors, and Atomic Energy Canada has some great designs. There’s a real opportunity for a nuclear revival.” 

Related News

• Electricity Forum News

• Energy Policy News