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Western Canada Hydropower Drought strains British Columbia and Manitoba as reservoirs hit historic lows, cutting hydroelectric output and prompting power imports, natural gas peaking, and grid resilience planning amid climate change risks this winter.

Key Points

Climate-driven reservoir lows cut hydro in B.C. and Manitoba, prompting imports and backup gas to maintain reliability.

✅ Reservoirs at multi-year lows cut hydro generation capacity

✅ BC Hydro and Manitoba Hydro import electricity for reliability

✅ Natural gas turbines used; climate change elevates drought risk

Severe drought conditions in Western Canada are compelling two hydroelectricity-dependent provinces, British Columbia and Manitoba, to import power from other regions. These provinces, known for their reliance on hydroelectric power, are facing reduced electricity production due to low water levels in reservoirs this autumn and winter as energy-intensive customers encounter temporary connection limits.

While there is no immediate threat of power outages in either province, experts indicate that climate change is leading to more frequent and severe droughts. This trend places increasing pressure on hydroelectric power producers in the future, spurring interest in upgrading existing dams as part of adaptation strategies.

In British Columbia, several regions are experiencing "extreme" drought conditions as classified by the federal government. BC Hydro spokesperson Kyle Donaldson referred to these conditions as "historic," and a first call for power highlights the strain, noting that the corporation's large reservoirs in the north and southeast are at their lowest levels in many years.

To mitigate this, BC Hydro has been conserving water by utilizing less affected reservoirs and importing additional power from Alberta and various western U.S. states. Donaldson confirmed that these measures would persist in the upcoming months.

Manitoba is also facing challenges with below-normal levels in reservoirs and rivers. Since October, Manitoba Hydro has occasionally relied on its natural gas turbines to supplement hydroelectric production as electrical demand could double over the next two decades, a measure usually reserved for peak winter demand.

Bruce Owen, a spokesperson for Manitoba Hydro, reassured that there is no imminent risk of a power shortage. The corporation can import electricity from other regions, similar to how it exports clean energy in high-water years.

However, the cost implications are significant. Manitoba Hydro anticipates a financial loss for the current fiscal year, with more red ink tied to emerging generation needs, the second in a decade, with the previous one in 2021. That year, drought conditions led to a significant reduction in the company's power production capabilities, resulting in a $248-million loss.

The 2021 drought also affected hydropower production in the United States. The U.S. Department of Energy reported a 16% reduction in overall generation, with notable decreases at major facilities like Nevada's Hoover Dam, where production dropped by 25%.

Drought has long been a major concern for hydroelectricity producers, and they plan their operations with this risk in mind. Manitoba's record drought in 1940-41, for example, is a benchmark for Manitoba Hydro's operational planning to ensure sufficient electricity supply even in extreme low-water conditions.

Climate change, however, is increasing the frequency of such rare events, highlighting the need for more robust backup systems such as new turbine investments to enhance reliability. Blake Shaffer, an associate professor of economics at the University of Calgary specializing in electricity markets, emphasized the importance of hydroelectric systems incorporating the worsening drought forecasts due to climate change into their energy production planning.

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FortisAlberta COVID-19 response delivers safe electricity distribution across Alberta, with remote monitoring, 24/7 support, outage alerts, dispersed crews, and business continuity measures to sustain essential services for customers and communities.

Key Points

Plan ensuring reliable electricity in Alberta through 24/7 support, remote monitoring, outage alerts, and dispersed crews.

✅ 24/7 customer support via 310-WIRE and mobile app

✅ Remote monitoring and rapid outage restoration

✅ Dispersed crews in 50 communities for faster response

As the COVID-19 pandemic continues to evolve in Alberta (and around the world), FortisAlberta is taking the necessary actions and precautions informed by utility disaster planning to protect the health and well-being of its employees and to provide electricity service to its customers. FortisAlberta serves more than half a million customers with the electricity they depend on to take care of their families and community members throughout our province.

"We recognize these are challenging times as while most Albertans are asked to stay home others continue to work in the community to provide essential services, including utility workers in Ontario demonstrating support efforts. As your electricity distribution provider, please be assured you can count on us to do what we do best – provide our customers with safe and reliable electricity service wherever and whenever they need it," says Michael Mosher, FortisAlberta President and CEO.

FortisAlberta is proud to be a part of the communities it serves and commits to keeping the lights on for its customers. The company is providing a full range of services for its customers and has instilled best practices within critical parts of its business. The company's control centre continues to remotely monitor, control, and restore, where possible, the delivery of power across the entire province, including during events such as an Alberta grid alert that stress the system. Early in March, FortisAlberta implemented its business continuity plan and the company remains fully accessible to customers 24/7 by phone at 310-WIRE (9473) or through its mobile app where customers can report outages online or view details of an outage. Customers can also sign up for outage alerts to their mobile phone and/or email address to let them know if an outage does occur.

FortisAlberta's power line employees are geographically dispersed across 50 different communities so they can quickly address any issues that may arise. The company has implemented work from home measures and isolation best practices, and is planning for potential on-site lockdowns where necessary to ensure no disruption to customers.

FortisAlberta will continue to remain in close communication with its stakeholders to provide updates to customers and with industry associations to share guidance specific to the electricity sector, including insights on the evolving U.S. grid response to COVID-19 from peer utilities. FortisAlberta will also continue to invest in and empower its communities by contributing to organizations that offer programs and services aligned with the greatest needs in the communities it serves.

With the Alberta Government's recent announcement to provide relief to eligible Albertans by deferring electricity and gas charges for up to 90 days, similar to some B.C. relief measures being implemented, FortisAlberta is committed to working with stakeholders and retail partners to ensure this option is available to customers quickly and efficiently, and to learn from initiatives like the Hydro One relief fund that support customers.

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Electric mining equipment enables zero-emission, diesel-free operations at Goldcorp's Borden mine, using Sandvik battery-electric drills and LHD trucks to cut ventilation costs, noise, and maintenance while improving underground air quality.

Key Points

Battery-powered mining equipment replaces diesel, cutting emissions and ventilation costs in underground operations.

✅ Cuts diesel use, heat load, and noise in underground headings.

✅ Reduces ventilation infrastructure and operating expense.

✅ Improves air quality, worker health, and equipment uptime.

Mining operations get a lot of flack for creating environmental problems around the world. Yet they provide much of the basic material that keeps the global economy humming. Some mining companies are drilling down in their efforts to clean up their acts, exploring solutions such as recovering mine heat for power to reduce environmental impact.

As the world’s fourth-largest gold mining company Goldcorp has received its share of criticism about the impact it has on the environment.

In 2016, the Canadian company decided to do something about it. It partnered with mining-equipment company Sandvik and began to convert one of its mines into an all-electric operation, a process that is expected to take until 2021.

The efforts to build an all-electric mine began with the Sandvik DD422iE in Goldcorp’s Borden mine in Ontario, Canada.

Goldcorp's Borden mine in Borden, Ontario, CanadaGoldcorp's Borden mine in Borden, Ontario, Canada

The machine weighs 60,000 pounds and runs non-stop on a giant cord. It has a 75-kwh sodium nickel chloride battery to buffer power demands, a crucial consideration as power-hungry Bitcoin facilities can trigger curtailments during heat waves, and to move the drill from one part of the mine to another.

This electric rock-chewing machine removes the need for the immense ventilation systems needed to clean the emissions that diesel engines normally spew beneath the surface in a conventional mining operation, though the overall footprint depends on electricity sources, as regions with Clean B.C. power imports illustrate in practice.

These electric devices improve air quality, dramatically reduce noise pollution, and remove costly maintenance of internal combustion engines, Goldcorp says.

More importantly, when these electric boring machines are used across the board, it will eliminate the negative health effects those diesel drills have on miners.

“It would be a challenge to go back,” says big drill operator Adam Ladouceur.

Mining with electric equipment also removes second- or third-highest expenditure in mining, the diesel fuel used to power the drills, said Goldcorp spokesman Pierre Noel, even as industries pursue dedicated energy deals like Bitcoin mining in Medicine Hat to manage power costs. (The biggest expense is the cost of labor.)

Electric load, haul, dump machine at Goldcorp Borden mine in OntarioElectric load, haul, dump machine at Goldcorp Borden mine in Ontario

Aside from initial cost, the electric Borden mine will save approximately $7 million ($9 million Canadian) annually just on diesel, propane and electricity.

Along with various sizes of electric drills and excavating tools, Goldcorp has started using electric powered LHD (load, haul, dump) trucks to crush and remove the ore it extracts, and Sandvik is working to increase the charging speed for battery packs in the 40-ton electric trucks which transport the ore out of the mines, while utilities add capacity with new BC generating stations coming online.

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Hydro-Québec Bill 34 Refund issues $535M customer credits tied to electricity rates, consumption-based rebates, and variance accounts, averaging $60 per account and 2.49% of 2018-2019 usage, via bill credits or mailed cheques.

Key Points

A $535M credit refunding 2.49% of 2018-2019 usage to Hydro-Québec customers via bill credits or cheques.

✅ Applies to 2018-2019 consumption; average refund about $60.

✅ Current customers get bill credits; former customers receive cheques.

✅ Refund equals 2.49% of usage from variance accounts under prior rates.

Following the adoption of Bill 34 in December 2019, a total amount of $535 million will be refunded to customers who were Hydro-Québec account holders in 2018 or 2019. This amount was accumulated in variance accounts required under the previous rate system between January 1, 2018, and December 31, 2019.

If you are still a Hydro-Québec customer, a credit will be applied to your bill in the coming weeks, and improving billing layout clarity is a focus in some provinces as well. The amount will be indicated on your bill.

An average refund amount of $60. The refund amount is calculated based on the quantity of electricity that each customer consumed in 2018 and 2019. The refund will correspond to 2,49% of each customer's consumption between January 1, 2018, and December 31, 2019, for an average of approximately $60, while Ontario hydro rates are set to increase on Nov. 1.

The following chart provides an overview of the refund amount based on the type of home. Naturally, the number of occupants, electricity use habits and features of the home, such as insulation and energy efficiency, may have a significant impact on the amount of the refund, and in other provinces, oversight debates continue following a BC Hydro fund surplus revelation.

What if you were an account holder in 2018 or 2019 but you are no longer a Hydro-Québec customer?
People who were account holders in 2018 or 2019, but who are no longer Hydro-Québec customers will receive their credit by cheque, a lump sum credit approach seen elsewhere.

To receive their cheque, these people must get in touch to update their address in one of the following ways:  

If they have a Hydro-Québec Customer Space and remember their access code, they can update their profile.

Anyone without a Customer Space or who doesn't remember their access code can fill out the Request for a credit form at the following address: www.hydroquebec.com/credit in which they can indicate the address where they wish to receive their cheque, where applicable.

Those who cannot send us their address online can call 514 385-7252 or 1 888 385-7252 to give it to a customer services representative, as utilities like Hydro One have moved to reconnect customers in some cases. Note that the process will take longer on the phone, especially if the call volume is high.

UPDATE: Hydro-Québec will be returning an additional $35 million to customers under the adoption of Bill 34, amid overcharging allegations reported elsewhere.

Energy Minister Jonatan Julien announced on Tuesday that the public utility will be refunding a total of $535 million to customers between January and April.

The legislation, which was passed in December, allows the Quebec government to take control of the rates charged for electricity in the province, including decisions on whether to seek a rate hike next year under the new framework.

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Developing Countries Clean Energy investment fell as renewable energy financing slowed in China; solar and wind growth lagged while coal power hit new highs, raising emissions risks for emerging markets and complicating climate change goals.

Key Points

Renewables investment and power trends in emerging nations: solar, wind, coal shifts, and steps toward decarbonization.

✅ Investment fell to $133b; China dropped to $86b

✅ Coal power rose to 6,900 TWh; 47% generation share

✅ New coal builds declined to 39 GW, decade low

New clean energy investment slid by more than a fifth in developing countries last year due to a slowdown in China, while the amount of coal-fired power generation jumped to a new high, reflecting global power demand trends, a recent annual survey showed.

Bloomberg New Energy Finance (BNEF) surveyed 104 emerging markets and found that developing nations were moving towards cleaner, low-emissions sources in many regions, but not fast enough to limit carbon dioxide emissions or the effects of climate change.

New investment in wind, solar and other clean energy projects dropped to $133 billion last year from $169 billion a year earlier, mainly due to a slump in Chinese investment, even as electricity investment globally surpasses oil and gas for the first time, the research showed.

China’s clean energy investment fell to $86 billion from $122 billion a year earlier, with dynamics in China's electricity sector also in focus. Investment by India and Brazil also declined, mainly due to lower costs for solar and wind.

However, the volume of coal-fired power generation produced and consumed in developing countries increased to a new high of 6,900 terrawatt hours (TWh) last year, even as renewables are poised to eclipse coal globally, from 6,400 TWh in 2017.

The increase of 500 TWh is equivalent to the power consumed in the U.S. state of Texas in one year, underscoring how surging electricity demand is putting power systems under strain. Coal accounted for 47% of all power generation across the 104 countries.

“The transition from coal toward cleaner sources in developing nations is underway,” said Ethan Zindler, head of Americas at BNEF. “But like trying to turn a massive oil tanker, it takes time.”

Despite the spike in coal-fired generation, the amount of new coal capacity which was added to the grid in developing countries declined, with Europe's renewables crowding out gas offering a contrasting pathway. New construction of coal plants fell to its lowest level in a decade last year of 39 gigawatts (GW).

The report comes a week ahead of United Nations climate talks in Madrid, Spain, where more than 190 countries will flesh out the details of an accord to limit global warming.

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Inventoried Energy Program pays ISO-NE generators for fuel security to boost winter reliability, with FERC approval, covering fossil, nuclear, hydropower, and batteries, complementing capacity markets to enhance grid resilience during severe cold snaps.

Key Points

ISO-NE program paying generators to hold fuel or energy reserves for emergencies, boosting winter reliability.

✅ FERC-approved stopgap for 2023 and 2024 winter seasons

✅ Pays for on-site fuel or stored energy during cold-trigger events

✅ Open to fossil, nuclear, hydro, batteries; limited gas participation

Electricity ratepayers in New England will pay tens of millions of dollars to fossil fuel and nuclear power plants later this decade under a program that proponents say is needed to keep the lights on during severe winters but which critics call a subsidy with little benefit to consumers or the grid, even as Connecticut is pushing a market overhaul across the region.

Last week the Federal Energy Regulatory Commission said ISO-New England, which runs the six-state power grid, can create what it calls the Inventoried Energy Program or IEP. This basically will pay certain power plants to stockpile of fuel for use in emergencies during two upcoming winters as longer-term solutions are developed.

The federal commission called it a reasonable short-term solution to avoid brownouts which doesn’t favor any given technology.

Not all agree, however, including FERC Commissioner Richard Glick, who wrote a fiery dissent to the other three commissioners.

“The program will hand out tens of millions of dollars to nuclear, coal and hydropower generators without any indication that those payments will cause the slightest change in those generators’ behavior,” Glick wrote. “Handing out money for nothing is a windfall, not a just and reasonable rate.”

The program is the latest reaction by ISO-NE to the winter of 2013-14 when New England almost saw brownouts because of a shortage of natural gas to create electricity during a pair of week-long deep freezes.

ISO-New England says the situation is more critical now because of the possible retirement of the gas-fired Mystic Generating Station in Massachusetts. As with closed nuclear plants such as Vermont Yankee and Pilgrim in Massachusetts, power plant owners say lower electricity prices, partly due to cheap renewables and partly to stagnant demand, means they can’t be profitable just by selling power.

Programs like the IEP are meant to subsidize such plants – “incentivize” is the industry term – even though some argue there is no need to subsidize nuclear in deregulated markets so they’ll stay open if they are needed.

The IEP approved last week will be applied to the winters of 2023 and 2024, after a different subsidy program expires. It sets prices, despite warnings about rushing pricing changes from industry groups, for stocking certain amounts of fuel and payments during any “trigger” event, defined as a day when the average of high and low temperatures at Bradley International Airport in Connecticut is no more than 17 degrees Fahrenheit.

These payments will be made on top of a complex system of grid auctions used to decide how much various plants get paid for generating electricity at which times.

ISO-NE estimates the new program will cost between $102 million and $148 million each winter, depending on weather and market conditions.

It says the payments are open to plants that burn oil, coal, nuclear fuel, wood chips or trash; utility-scale battery storage facilities; and hydropower dams “that store water in a pond or reservoir.” Natural gas plants can participate if they guarantee to have fuel available, but that seems less likely because of winter heating contracts.

A major complaint and groups that filed petitions opposing the project is that ISO-NE presented little supporting evidence of how prices, amount and overall cost were determined. ISO-NE argued that there wasn’t time for such analysis before the Mystic shutdown, and FERC agreed.

“The proposal is a step in the right direction … while ISO-NE finishes developing a long-term market solution,” the commission said in its ruling.

The program is the latest example of complexities facing the nation’s electricity system evolves in the face of solar and wind power, which produce electricity so cheaply that they can render traditional power uneconomic but which can’t always produce power on demand, prompting discussions of Texas grid improvements among policymakers. Another major factor is climate change, which has increased the pressure to support renewable alternatives to plants that burn fossil fuels, as well as stagnant electricity demand caused by increased efficiency.

Opponents, including many environmental groups, say electricity utilities and regulators are too quick to prop up existing systems, as the 145-mile Maine transmission line debate shows, built when electricity was sent one way from a few big plants to many customers. They argue that to combat climate change as well as limit cost, the emphasis must be on developing “non-wire alternatives” such as smart systems for controlling demand, in order to take advantage of the current system in which electricity goes two ways, such as from rooftop solar back into the grid.

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