$93 Million from Recovery Act to support wind energy projects

Duke Energy Florida battery storage will add 22 MW across Trenton, Cape San Blas and Jennings, improving grid reliability, outage resilience, enabling peak shaving and deferring distribution upgrades to increase efficiency and customer value.

Key Points

Three lithium battery projects totaling 22 MW to improve Florida grid reliability, outage resilience and efficiency.

✅ 22 MW across Trenton, Cape San Blas and Jennings sites

✅ Enhances outage resilience and grid reliability

✅ Defers costly distribution upgrades and improves efficiency

Duke Energy Florida (DEF) has announced three battery energy storage projects, totaling 22 megawatts, that will improve overall reliability and support critical services during power outages.

Duke Energy, the nation's largest electric utility, unveils its new logo. (PRNewsFoto/Duke Energy) (PRNewsfoto/Duke Energy)

Collectively, the storage facilities will enhance grid operations, increase efficiencies and improve overall reliability for surrounding communities, with virtual power plant programs offering a model for coordinating distributed resources.

They will also provide important backup generation during power outages, a service that is becoming increasingly important with the number and intensity of storms that have recently impacted the state.

As the grid manager and operator, DEF can maximize the versatility of battery energy storage systems (BESS) to include multiple customer and electric system benefits such as balancing energy demand, managing intermittent resources, increasing energy security and deferring traditional power grid upgrades.

These benefits help reduce costs for customers and increase operational efficiencies.

The 11-megawatt (MW) Trenton lithium-based battery facility will be located 30 miles west of Gainesville in Gilchrist County. The energy storage project will continue to improve power reliability using newer technologies.

The 5.5-MW Cape San Blas lithium-based battery facility will be located approximately 40 miles southeast of Panama City in Gulf County. The project will provide additional power capacity to meet our customers' rising energy demand in the area. This project is an economical alternative to replacing distribution equipment necessary to accommodate local load growth.

The 5.5-MW Jennings lithium-based battery facility will be located 1.5 miles south of the Florida-Georgia border in Hamilton County. The project will continue to improve power reliability through energy storage as an alternative solution to installing new and more costly distribution equipment.

Currently the company plans to complete all three projects by the end of 2020.

"These battery projects provide electric system benefits that will help improve local reliability for our customers and provide significant energy services to the power grid," said Catherine Stempien, Duke Energy Florida state president. "Duke Energy Florida will continue to identify opportunities in battery storage technology which will deliver efficiency improvements to our customers."

Additional renewables projects

As part of DEF's commitment to renewables, the company is investing an estimated $1 billion to construct or acquire a total of 700 MW of cost-effective solar power facilities and 50 MW of battery storage through 2022.

Duke Energy is leading the industry deployment of battery technology, with SDG&E's Emerald Storage project underscoring broader adoption across the sector today. Last fall, the company and University of South Florida St. Petersburg unveiled a Tesla battery storage system that is connected to a 100-kilowatt (kW) solar array – the first of its kind in Florida.

This solar-battery microgrid system manages the energy captured by the solar array, situated on top of the university's parking garage, and similar low-income housing microgrid financing efforts are expanding access. The solar array was constructed three years ago through a $1 million grant from Duke Energy. The microgrid provides a backup power source during a power outage for the parking garage elevator, lights and electric vehicle charging stations. Click here to learn more.

In addition to expanding its battery storage technology and solar investments, DEF is investing in transportation electrification to support the growing U.S. adoption of electric vehicles (EV), including EV charging infrastructure, 530 EV charging stations and a modernized power grid to deliver the diverse and reliable energy solutions customers want and need.

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Lake Erie Connector Investment advances a 1,000 MW HVDC transmission link connecting Ontario to the PJM Interconnection, enhancing grid reliability, clean power trade, and GHG reductions through a public-private partnership led by CIB and ITC.

Key Points

A $1.7B public-private HVDC project linking Ontario and PJM to boost reliability, cut GHGs, and enable clean power trade.

✅ 1,000 MW, 117 km HVDC link between Ontario and PJM

✅ $655M CIB and $1.05B private financing, ITC to own-operate

✅ Cuts system costs, boosts reliability, reduces GHG emissions

The Canada Infrastructure Bank (CIB) and ITC Investment Holdings (ITC) have signed an agreement in principle to invest $1.7 billion in the Lake Erie Connector project.

Under the terms of the agreement, the CIB will invest up to $655 million or up to 40% of the project cost. ITC, a subsidiary of Fortis Inc., and private sector lenders will invest up to $1.05 billion, the balance of the project's capital cost.

The CIB and ITC Investment Holdings signed an agreement in principle to invest $1.7B in the Lake Erie Connector project.

The Lake Erie Connector is a proposed 117 kilometre underwater transmission line connecting Ontario with the PJM Interconnection, the largest electricity market in North America, and aligns with broader regional efforts such as the Maine transmission line to import Quebec hydro to strengthen cross-border interconnections.

The 1,000 megawatt, high-voltage direct current connection will help lower electricity costs for customers in Ontario and improve the reliability and security of Ontario's energy grid, complementing emerging solutions like battery storage across the province. The Lake Erie Connector will reduce greenhouse gas emissions and be a source of low-carbon electricity in the Ontario and U.S. electricity markets.

During construction, the Lake Erie Connector is expected to create 383 jobs per year and drive more than $300 million in economic activity, and complements major clean manufacturing investments like a $1.6 billion battery plant in the Niagara Region that supports the EV supply chain. Over its life, the project will provide 845 permanent jobs and economic benefits by boosting Ontario's GDP by $8.8 billion.

The project will also help Ontario to optimize its current infrastructure, avoid costs associated with existing production curtailments or shutdowns. It can leverage existing generation capacity and transmission lines to support electricity demand, alongside new resources such as the largest battery storage project planned for southwestern Ontario.

ITC continues its discussions with First Nations communities and is working towards meaningful participation in the near term and as the project moves forward to financial close.

The CIB anticipates financial close late in 2021, pending final project transmission agreements, with construction commencing soon after. ITC will own the transmission line and be responsible for all aspects of design, engineering, construction, operations and maintenance.

ITC acquired the Lake Erie Connector project in August 2014 and it has received all necessary regulatory and permitting approvals, including a U.S. Presidential Permit and approval from the Canada Energy Regulator.

This is the CIB's first investment commitment in a transmission project and another example of the CIB's momentum to quickly implement its $10B Growth Plan, amid broader investments in green energy solutions in British Columbia that support clean growth.

Endorsements

This project will allow Ontario to export its clean, non-emitting power to one of the largest power markets in the world and, as a result, benefit Canadians economically while also significantly contributing to greenhouse gas emissions reductions in the PJM market. The project allows Ontario to better manage peak capacity and meet future reliability needs in a more sustainable way. This is a true win-win for both Canada and the U.S., both economically and environmentally.
Ehren Cory, CEO, Canada Infrastructure Bank

The Lake Erie Connector has tremendous potential to generate customer savings, help achieve shared carbon reduction goals, and increase electricity system reliability and flexibility. We look forward to working with the CIB, provincial and federal governments to support a more affordable, customer-focused system for Ontarians. 
Jon Jipping, EVP & COO, ITC Investment Holdings Inc., a subsidiary of Canadian-based Fortis Inc. 

We are encouraged by this recent announcement by the Canada Infrastructure Bank. Mississaugas of the Credit First Nation has an interest in projects within our historic treaty lands that have environmental benefits and that offer economic participation for our community.
Chief Stacey Laforme, Mississaugas of the Credit First Nation

While our evaluation of the project continues, we recognize this project can contribute to the economic resilience of our Shareholder, the Mississaugas of the Credit First Nation. Subject to the successful conclusion of our collaborative efforts with ITC, we look forward to our involvement in building the necessary infrastructure that enable Ontario's economic engine.
Leonard Rickard, CEO, Mississaugas of the Credit Business Corporation

The Lake Erie Connector demonstrates the advantages of public-private partnerships to develop critical infrastructure that delivers greater value to Ontarians. Connecting Ontario's electricity grid to the PJM electricity market will bring significant, tangible benefits to our province. This new connection will create high-quality jobs, improve system flexibility, and allow Ontario to export more excess electricity to promote cost-savings for Ontario's electricity consumers.
Greg Rickford, Minister of Energy, Northern Development and Mines, Minister of Indigenous Affairs

With the US pledging to achieve a carbon-free electrical grid by 2035, Canada has an opportunity to export clean power, helping to reduce emissions, maximizing clean power use and making electricity more affordable for Canadians. The Lake Erie Connector is a perfect example of that. The Canada Infrastructure Bank's investment will give Ontario direct access to North America's largest electricity market - 13 states and D.C. This is part of our infrastructure plan to create jobs across the country, tackle climate change, and increase Canada's competitiveness in the clean economy, alongside innovation programs like the Hydrogen Innovation Fund that foster clean technology.

Quick Facts

• The Lake Erie Connector is a 1,000 megawatt, 117 kilometre long underwater transmission line connecting Ontario and Pennsylvania.
• The PJM Interconnection is a regional transmission organization coordinating the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
• The project will help to reduce electricity system costs for customers in Ontario, and aligns with ongoing consultations on industrial electricity pricing and programs, while helping to support future capacity needs.
• The CIB is mandated to invest CAD $35 billion and attract private sector investment into new revenue-generating infrastructure projects that are in the public interest and support Canadian economic growth.
• The investment commitment is subject to final due diligence and approval by the CIB's Board.

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India Renewable Energy Surge 2024 signals coal's decline as solar and wind capacity soar, aided by policy incentives, grid upgrades, energy storage, and falling costs, accelerating decarbonization and clean power growth.

Key Points

Q1 2024 saw renewables outpace coal in new capacity, led by cheaper solar, wind, policy support, and storage.

✅ 71.5% of new Q1 capacity came from renewables

✅ Solar and wind expand on falling costs and faster permitting

✅ Grid integration needs storage, skills, and just transition

In a landmark shift for the world's second-most populous nation, coal has finally been dethroned as the king of India's energy supply. The first quarter of 2024 saw a historic surge in renewable energy capacity, particularly on-grid solar development across states, pushing its share of power generation past 71.5%. This remarkable feat marks a turning point in India's journey towards a cleaner and more sustainable energy future.

For decades, coal has been the backbone of India's power sector, fueling rapid economic growth but also leading to concerning levels of air pollution. However, a confluence of factors has driven this dramatic shift, even as coal generation surges create short-term fluctuations in the mix. Firstly, the cost of solar and wind power has plummeted in recent years, making them increasingly competitive with coal. Secondly, the Indian government has set ambitious renewable energy targets, aiming for 50% of cumulative power generation capacity from non-fossil fuel sources by 2030. Thirdly, growing public awareness about the environmental impact of coal has spurred a demand for cleaner alternatives.

This surge in renewables is not just about replacing coal. The first quarter of 2024 witnessed a record-breaking addition of 13,669 megawatts (MW) of power generation capacity, with renewables accounting for a staggering 71.5% of that figure, aligning with 30% global renewable electricity milestones seen worldwide. This rapid expansion is driven by factors like falling equipment costs, streamlined permitting processes, and attractive government incentives. Solar and wind energy are leading the charge, and in other major markets renewables are projected to reach one-fourth of U.S. generation in the near term, with large-scale solar farms and wind turbine installations dotting the Indian landscape.

The transition away from coal presents both opportunities and challenges. On the positive side, cleaner air will lead to significant health benefits for millions of Indians. Additionally, India can establish itself as a global leader in the renewable energy sector, attracting investments and creating new jobs, echoing how China's solar PV expansion reshaped markets in the previous decade. However, challenges remain. Integrating such a large amount of variable renewable energy sources like solar and wind into the grid requires robust energy storage solutions. Furthermore, millions of jobs in the coal sector need to be transitioned to new opportunities in the green economy.

Despite these challenges, India's move towards renewables is a significant development with global implications, as U.S. renewable electricity surpassed coal in 2022, underscoring broader momentum. It demonstrates the growing viability of clean energy solutions and paves the way for other developing nations to follow suit. India's success story can inspire a global shift towards a more sustainable energy future, one powered by the sun, wind, and other renewable resources.

Looking ahead, continued government support, technological advancements, and innovative financing mechanisms will be crucial for sustaining India's renewable energy momentum. The future of India's energy sector is undoubtedly bright, fueled by the clean and abundant power of the sun and the wind, as wind and solar surpassed coal in the U.S. in recent comparisons. The world will be watching closely to see if India can successfully navigate this energy transition, setting an example for other nations struggling to balance development with environmental responsibility.

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Eskom Wind Power Curtailment reflects South Africa's lockdown-driven drop in electricity demand, prompting grid-balancing measures as Eskom signals reduced IPP procurement from renewable energy projects during low-demand hours, despite guarantees and flexible generation constraints.

Key Points

A temporary reduction of wind IPP purchases by Eskom to balance surplus grid capacity during the COVID-19 lockdown slump

✅ Demand drop of 7,500 MW reduced need for variable renewables.

✅ Curtailment likely during low-demand early-morning hours.

✅ IPP revenues protected via contract extensions and guarantees.

South African state utility Eskom has told independent wind farms that it could buy less of their power in the coming days, as electricity demand has plummeted during a lockdown, reflecting the Covid-19 impact on renewables worldwide, aimed at curbing the spread of the coronavirus.

Eskom, which is mired in a financial crisis and has struggled to keep the lights on in the past year, said on Tuesday that power demand had dropped by more than 7,500 megawatts since the lockdown started on Friday and that it had taken offline some of its own generators.

The utility supplements its generating capacity, which is mainly derived from coal, by buying power from solar and wind farms, as wind becomes a competitive source of electricity globally, under contracts signed as part of the government’s renewable energy programme.

Spokesman Sikonathi Mantshantsha said Eskom had not yet curtailed power procurement from wind farms but that it had told them, echoing industry warnings on wind investment risk seen by the sector, this could happen “for a few hours a day during the next few days, perhaps until the lockdown is lifted”.

“Most of them are able to feed power into the grid in the early hours of the day. That coincides with the lowest demand period and can highlight curtailment challenges when supply exceeds need. And we now have a lot more capacity than needed,” Mantshantsha said.

During the lockdown imposed by President Cyril Ramaphosa, businesses apart from those deemed “essential services” are closed, mirroring Spanish wind factory closures elsewhere. Many power-hungry mines and furnaces have suspended operations.

Eskom has relatively little of its own “flexible generation” capacity, which can be ramped up or down easily, unlike regions riding a renewables boom in South Australia to export power.

The government has committed to buy up to 200 billion rand ($11.1 billion) of electricity from independent power producers and has issued state guarantees for those purchases.

“They will be compensated for their losses, amid U.S. utility-solar slowdowns being reported - each day lost will be added to their contracts,” Mantshantsha said of the wind farms. “In the end they will not be worse off.”

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Alberta Power Grid Level 2 Alert signals AESO reserve power usage, load management, supply shortage from generator outages, low wind, and limited imports, urging peak demand conservation to avoid blackouts and preserve grid reliability.

Key Points

An AESO status where reserves power the grid and load management is used during supply constraints to prevent blackouts.

✅ Triggered by outages, low wind, and reduced import capacity

✅ Peak hours 4 to 7 pm saw conservation requests

✅ Several hundred MW margin from Level 3 load shedding

Alberta's energy grid ran on reserves Wednesday, after multiple factors led to a supply shortage, a scenario explored in U.S. grid COVID response discussions as operators plan for contingencies.

At 3:52 p.m. Wednesday, the Alberta Electric System Operator issued a Level 2 alert, meaning that reserves were being used to supply energy requirements and that load management procedures had been implemented, while operators elsewhere adopted Ontario power staffing lockdown measures during COVID-19 for continuity. The alert ended at 6:06 p.m.

"This is due to unplanned generator outages, low wind and a reduction of import capability," the agency said in a post to social media. "Supply is tight but still meeting demand."

AESO spokesperson Mike Deising said the intertie with Saskatchewan had tripped off, and an issue on the British Columbia side of the border, as seen during BC Hydro storm response events, meant the province couldn't import power. 

"There are no blackouts … this just means we're using our reserve power, and that's a standard procedure we'll deploy," he said. 

AESO had asked that people reduce their energy consumption between 4 and 7 p.m., similar to Cal ISO conservation calls during grid strain, which is typically when peak use occurs. 

Deising said the system was several hundred MWs away from needing to move to an alert Level 3, with utilities such as FortisAlberta precautions in place to support continuity, which is when power is cut off to some customers in order to keep the system operating. Deising said Level 2 alerts are fairly rare and occur every few years. The last Level 3 alert was in 2013. 

According to the supply and demand report on AESO's website, the load on the grid at 5 p.m. was 10,643 MW.

That's down significantly from last week, when a heat wave pushed demand to record highs on the grid, with loads in the 11,700 MW range, contrasting with Ontario demand drop during COVID when many stayed home. 

A heat warning was issued Wednesday for Edmonton and surrounding areas shortly before 4 p.m., with temperatures above 29 C expected over the next three days, with many households seeing residential electricity use up during such periods. 

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EV Subsidies in Canada influence greenhouse-gas emissions based on electricity grid mix; in Ontario and Quebec they reduce pollution, while fossil-fuel grids blunt benefits. Compare costs per tonne with carbon tax and renewable energy policies.

Key Points

Government rebates for electric vehicles, whose emissions impact and cost-effectiveness depend on provincial grid mix.

✅ Impact varies by grid emissions; clean hydro-nuclear cuts CO2.

✅ MEI estimates up to $523 per tonne vs $50 carbon price.

✅ Best value: tax carbon; target renewables, efficiency, hybrids.

Bad ideas sometimes look better, and sell better, than good ones – as with the proclaimed electric-car revolution that policymakers tout today. Not always, or else Canada wouldn’t be the mostly well-run place that it is. But sometimes politicians embrace a less-than-best policy – because its attractive appearance may make it more likely to win the popularity contest, right now, even though it will fail in the long run.

The most seasoned political advisers know it. Pollsters too. Voters, in contrast, don’t know what they don’t know, which is why bad policy often triumphs. At first glance, the wrong sometimes looks like it must be right, while better and best give the appearance of being bad and worst.

This week, the Montreal Economic Institute put out a study on the costs and benefits of taxpayer subsidies for electric cars. They considered the logic of the huge amounts of money being offered to purchasers in the country’s two largest provinces. In Quebec, if you buy an electric vehicle, the government will give you up to $8,000; in Ontario, buying an electric car or truck entitles you to a cheque from the taxpayer of between $6,000 and $14,000. The subsidies are rich because the cars aren’t cheap.

Will putting more electric cars on the road lower greenhouse-gas emissions? Yes – in some provinces, where they can be better for the planet when the grid is clean. But it all depends on how a province generates electricity. In places like Alberta, Saskatchewan, Nova Scotia and Nunavut territory, where most electricity comes from burning fossil fuels, an electric car may actually generate more greenhouse gases than one running on traditional gasoline. The tailpipe of an electric vehicle may not have any emissions. But quite a lot of emissions may have been generated to produce the power that went to the socket that charged it.

A few years ago, University of Toronto engineering professor Christopher Kennedy estimated that electric cars are only less polluting than the gasoline vehicles they replace when the local electrical grid produces a good chunk of its power from renewable sources – thereby lowering emissions to less than roughly 600 tonnes of CO2 per gigawatt hour.

Unfortunately, the electricity-generating systems in lots of places – from India to China to many American states – are well above that threshold. In those jurisdictions, an electric car will be powered in whole or in large part by electricity created from the burning of a fossil fuel, such as coal. As a result, that car, though carrying the green monicker of “electric,” is likely to be more polluting than a less costly model with an internal combustion or hybrid engine.

The same goes for the Canadian juridictions mentioned above. Their electricity is dirtier, so operating an electric car there won’t be very green. Alberta, for example, is aiming to generate 30 per cent of its electricity from renewable sources by 2030 – which means that the other 70 per cent of its electricity will still come from fossil fuels. (Today, the figure is even higher.) An Albertan trading in a gasoline car for an electric vehicle is making a statement – just not the one he or she likely has in mind.

In Ontario and Quebec, however, most electricity is generated from non-polluting sources, even though Canada still produced 18% from fossil fuels in 2019 overall. Nearly all of Quebec’s power comes from hydro, and more than 90 per cent of Ontario’s electricity is from zero-emission generation, mainly hydro and nuclear. British Columbia, Manitoba and Newfoundland and Labrador also produce the bulk of their electricity from hydro. Electric cars in those provinces, powered as they are by mostly clean electricity, should reduce emissions, relative to gas-powered cars.

But here’s the rub: Electric cars are currently expensive, and, as a recent survey shows, consequently not all that popular. Ontario and Quebec introduced those big subsidies in an attempt to get people to buy them. Those subsidies will surely put more electric cars on the road and in the driveways of (mostly wealthy) people. It will be a very visible policy – hey, look at all those electrics on the highway and at the mall!

However, that result will be achieved at great cost. According to the MEI, for Ontario to reach its goal of electrics constituting 5 per cent of new vehicles sold, the province will have to dish out up to $8.6-billion in subsidies over the next 13 years.

And the environmental benefits achieved? Again, according to the MEI estimate, that huge sum will lower the province’s greenhouse-gas emissions by just 2.4 per cent. If the MEI’s estimate is right, that’s far too many bucks for far too small an environmental bang.

Here’s another way to look at it: How much does it cost to reduce greenhouse-gas emissions by other means? Well, B.C.’s current carbon tax is $30 a tonne, or a little less than 7 cents on a litre of gasoline. It has caused GHG emissions per unit of GDP to fall in small but meaningful ways, thanks to consumers and businesses making millions of little, unspectacular decisions to reduce their energy costs. The federal government wants all provinces to impose a cost equivalent to $50 a tonne – and every economic model says that extra cost will make a dent in greenhouse-gas emissions, though in ways that will not involve politicians getting to cut any ribbons or hold parades.

What’s the effective cost of Ontario’s subsidy for electric cars? The MEI pegs it at $523 per tonne. Yes, that subsidy will lower emissions. It just does so in what appears to be the most expensive and inefficient way possible, rather than the cheapest way, namely a simple, boring and mildly painful carbon tax.

Electric vehicles are an amazing technology. But they’ve also become a way of expressing something that’s come to be known as “virtue signalling.” A government that wants to look green sees logic in throwing money at such an obvious, on-brand symbol, or touting a 2035 EV mandate as evidence of ambition. But the result is an off-target policy – and a signal that is mostly noise.

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