MillÂ’s power going green

EU Electricity Market Reform CFDs seek stable prices via contracts for difference, balancing renewables and nuclear, shielding consumers, and boosting competitiveness as France and Germany clash over scope, grid expansion, and hydrogen production.

Key Points

EU framework using contracts for difference to stabilize power prices, support renewables and nuclear, and protect users.

✅ Guarantees strike prices for new low-carbon generation

✅ Balances consumer protection with industrial competitiveness

✅ Disputed scope: nuclear inclusion, grids, hydrogen eligibility

Despite record temperatures this October, Europe is slowly shifting towards winter - its second since the Ukraine war started and prompted Russia to cut gas supplies to the continent amid an energy crisis that has reshaped policy.

After prices surged last winter, when gas and electricity bills “nearly doubled in all EU capitals”, the EU decided to take emergency measures to limit prices.

In March, the European Commission proposed a reform to revamp the electricity market “to boost renewables, better protect consumers and enhance industrial competitiveness”.

However, France and Germany are struggling to find a compromise as rolling back prices is tougher than it appears and the clock is ticking as European energy ministers prepare to meet on 17 October in Luxembourg.

The controversy around CFDs
At the heart of the issue are contracts for difference (CFDs).

By providing a guaranteed price for electricity, CFDs aim to support investment in renewable energy projects.

France - having 56 nuclear reactors - is lobbying for nuclear energy to be included in the CFDs, but this has caught the withering eye of Germany.

Berlin suspects Paris of wanting an exception that would give its industry a competitive advantage and plead that it should only apply to new investments.

France wants ‘to regain control of the price’
The disagreement is at the heart of the bilateral talks in Hamburg, which started on Monday, between the French and German governments.

French President Emmanuel Macron promised “to regain control of the price of electricity, at the French and European level” and outlined a new pricing scheme in a speech at the end of September.

As gas electricity is much more expensive than nuclear electricity, France might be tempted to switch to a national system rather than a European one after a deal with EDF on prices to be more competitive economically.

However, France is "confident" that it will reach an agreement with Germany on electricity market reforms, Macron said on Friday.

Siding with France are other pro-nuclear countries such as Hungary, the Czech Republic and Poland, while Germany can count on the support of Austria, Luxembourg, Belgium and Italy amid opposition from nine EU countries to treating market reforms as a price fix.

But even if a last-minute agreement is reached, the two countries’ struggles over energy are creeping into all current European negotiations on the subject.

Germany wants a massive extension of electricity grids on the continent so that it can import energy; France is banking on energy sovereignty and national production.

France wants to be able to use nuclear energy to produce clean hydrogen, while Germany is reluctant, and so on.

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BC Hydro Clean Energy Champions highlights Vancouver's Bloedel Conservatory electrification with a massive heat pump, clean electricity, LED lighting, deep energy efficiency, and 90% greenhouse gas reductions advancing climate action across buildings and industry.

Key Points

A BC Hydro program honoring clean electricity adoption in homes, transport, and industry to replace fossil fuels.

✅ Vancouver's Bloedel Conservatory cut GHGs by 90% with a heat pump

✅ LEDs and electrification boost efficiency, comfort, and reliability

✅ Nominations open for residents, businesses, and Indigenous groups

The City of Vancouver has been selected as BC Hydro’s first Clean Energy Champion for energy efficient upgrades made at the Bloedel Conservatory that cut greenhouse gas emissions by 90 per cent, a meaningful step given concerns about 2050 greenhouse gas targets in B.C.

BC Hydro’s Clean Energy Champions program is officially being launched today to recognize residents, businesses, municipalities, Indigenous and community groups across B.C. that have made the choice to switch from using fossil fuels to using clean electricity in three primary areas: homes and buildings, transportation, and industry, even as drought challenges power generation in B.C. The City of Vancouver is being recognized as the first champion for demonstrating its commitment to using clean energy, including power from projects like Site C's electricity, to fight climate change at its landmark Bloedel Conservatory.

Earlier this year, the City of Vancouver installed a large air source heat pump at Bloedel Conservatory – more than 50 times the size of a heat pump used in a typical B.C. home – that uses electricity instead of natural gas to heat and cool the dome's interior, which is home to more than 500 exotic plants and flowers, and 100 exotic birds, aligning with citywide debates such as Vancouver’s reversal on gas appliances policy. It is the biggest heat pump the City of Vancouver has ever installed, with 210 tonnes of cooling capacity.

A heat pump that provides cooling in the summer and heating in the winter, helping reduce reliance on wasteful air conditioning that can drive up energy bills, is ideal for the conservatory, as its dome is completely made of glass, which can be challenging for temperature regulation. While the dome experiences a lot of heat loss in the colder months, its need for cooling in warmer weather is even greater to ensure the safety of the wildlife and plants that call it home.

The clean energy upgrades do not end there though. All lighting in the building has been upgraded to energy-efficient LEDs, reflecting conservation themes highlighted by 2018 Earth Hour electricity use discussions, and outside colour-changing LEDs now surround the perimeter and light up the dome at night.

BC Hydro is calling for nominations from B.C. residents, businesses, municipalities or Indigenous and community groups that have taken steps to lower their carbon footprint and adopt new clean energy technologies, and continues to support customers through programs like its winter payment plan during colder months. If you or someone you know is a Clean Energy Champion, nominate them at bchydro.com/cleanenergychampions.

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Alberta Coal Phase-Out signals a clean energy transition, replacing coal with natural gas and renewables, cutting greenhouse gas emissions, leveraging a carbon levy, and supporting workers in Alberta's evolving electricity market.

Key Points

Alberta Coal Phase-Out moves power from coal to lower-emission natural gas and renewables to reduce grid emissions.

✅ Last coal plant closed: Genesee Generating Station, Sept 30, 2023

✅ Shift to natural gas and renewables lowers emissions

✅ Carbon levy and incentives accelerated clean power build-out

The closure of the Genesee Generating Station on September 30, 2023, marked a significant milestone in Alberta's energy history, as the province moved to retire coal power by 2023 ahead of its 2030 provincial deadline. The Genesee, located near Calgary, was the province's last remaining coal-fired power plant. Its closure represents the culmination of a multi-year effort to transition Alberta's electricity sector away from coal and towards cleaner sources of energy.

For decades, coal was the backbone of Alberta's electricity grid. Coal-fired plants were reliable and relatively inexpensive to operate. However, coal also has a significant environmental impact. The burning of coal releases greenhouse gases, including carbon dioxide, a major contributor to climate change. Coal plants also produce air pollutants such as sulfur dioxide and nitrogen oxide, which can cause respiratory problems and acid rain, and in some regions electricity is projected to get dirtier as gas use expands.

In recognition of these environmental concerns, the Alberta government began to develop plans to phase out coal-fired power generation in the early 2000s. The government implemented a number of policies to encourage the shift from coal to cleaner energy such as natural gas and renewable energy. These policies included providing financial incentives for the construction of new natural gas plants and renewable energy facilities, as well as imposing a carbon levy on coal-fired generation.

The phase-out of coal was also driven by economic factors. The cost of natural gas has declined significantly in recent years, making it a more competitive fuel source for electricity generation as producers switch to gas under evolving market conditions. Additionally, the Alberta government faced increasing pressure from the federal government to reduce greenhouse gas emissions.

The transition away from coal has not been without its challenges. Coal mining and coal-fired power generation have long been important parts of Alberta's economy. The closure of coal plants has resulted in job losses in the affected communities. The government has implemented programs to help workers transition to new jobs in the clean energy sector.

Despite these challenges, the closure of the Genesee Generating Station is a positive development for Alberta's environment and climate. Coal-fired power generation is one of the largest sources of greenhouse gas emissions in Alberta, and recent wind generation outpacing coal underscores the sector's transformation. The closure of the Genesee is expected to result in a significant reduction in emissions, helping Alberta to meet its climate change targets.

The transition away from coal also presents opportunities for Alberta. The province has vast natural gas resources, which can be used to generate electricity with lower emissions than coal. Alberta is also well-positioned to develop renewable energy sources, such as wind power and solar power. These renewable energy sources can help to further reduce emissions and create new jobs in the clean energy sector.

The closure of the Genesee Generating Station is a significant milestone in Alberta's energy history. It represents the end of an era for coal-fired power generation in the province, a shift mirrored by the UK's last coal station going offline earlier this year. However, it also marks the beginning of a new era for Alberta's energy sector. By transitioning to cleaner sources of energy, Alberta can reduce its environmental impact and create a more sustainable energy future.

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Canada Clean Electricity drives a net-zero grid by 2035, scaling renewables like wind, solar, and hydro, with storage, smart grids, interprovincial transmission, and electrification of vehicles, buildings, and industry to cut emissions and costs.

Key Points

Canada Clean Electricity is a shift to a net-zero grid by 2035 using renewables, storage, and smart grids to decarbonize

✅ Doubles non-emitting generation for electrified transport and heating

✅ Expands wind, solar, hydro with storage and smart-grid balancing

✅ Builds interprovincial lines and faster permitting with Indigenous partners

By Merran Smith and Mark Zacharias

Canada is an electricity heavyweight. In addition to being the world’s sixth-largest electricity producer and third-largest electricity exporter in the global electricity market today, Canada can boast an electricity grid that is now 83 per cent emission-free, not to mention residential electricity rates that are the cheapest in the Group of Seven countries.

Indeed, on the face of it, the country’s clean electricity system appears poised for success. With an abundance of sunshine and blustery plains, Alberta and Saskatchewan, the Prairie provinces most often cited for wind and solar, have wind- and solar-power potential that rivals the best on the continent. Meanwhile, British Columbia, Manitoba, Quebec, and Newfoundland and Labrador have long excelled at generating low-cost hydro power.

So it would only be natural to assume that Canada, with this solid head start and its generous geography, is already positioned to provide enough affordable clean electricity to power our much-touted net-zero and economic ambitions.

But the reality is that Canada, like most countries, is not yet prepared for a world increasingly committed to carbon neutrality, in part because demand for solar electricity has lagged, even as overall momentum grows.

The federal government’s forthcoming Clean Electricity Standard – a policy promised by the governing Liberals during the most recent election campaign and restated for an international audience by Prime Minister Justin Trudeau at the United Nations’ COP26 climate summit – would require all electricity in the country to be net zero by 2035 nationwide, setting a new benchmark. But while that’s an encouraging start, it is by no means the end goal. Electrification – that is, hooking up our vehicles, heating systems and industry to a clean electricity grid – will require Canada to produce roughly twice as much non-emitting electricity as it does today in just under three decades.

This massive ramp-up in clean electricity will require significant investment from governments and utilities, along with their co-operation on measures and projects such as interprovincial power lines to build an electric, connected and clean system that can deliver benefits nationwide. It will require energy storage solutions, smart grids to balance supply and demand, and energy-efficient buildings and appliances to cut energy waste.

While Canada has mostly relied on large-scale hydroelectric and nuclear power in the past, newer sources of electricity such as solar, wind, geothermal, and biomass with carbon capture and storage will, in many cases, be the superior option going forward, thanks to the rapidly falling costs of such technology and shorter construction times. And yet Canada added less solar and wind generation in the past five years than all but three G20 countries – Indonesia, Russia and Saudi Arabia, with some experts calling it a solar power laggard in recent years. That will need to change, quickly.

In addition, Canada’s Constitution places electricity policy under provincial jurisdiction, which has produced a patchwork of electricity systems across the country that use different energy sources, regulatory models, and approaches to trade and collaboration. While this model has worked to date, given our low consumer rates and high power reliability, collaborative action and a cohesive vision will be needed – not just for a 100-per-cent clean grid by 2035, but for a net-zero-enabling one by 2050.

Right now, it takes too long to move a clean power project from the proposal stage to operation – and far too long if we hope to attain a clean grid by 2035 and a net-zero-enabling one by 2050. This means that federal, provincial, territorial and Indigenous governments must work with rural communities and industry stakeholders to accelerate the approvals, financing and construction of clean energy projects and provide investor certainty.

In doing so, Canada can set a course to carbon neutrality while driving job creation and economic competitiveness, a transition many analyses deem practical and profitable in the long run. Our closest trading partners and many of the world’s largest companies and investors are demanding cleaner goods. A clean grid underpins clean production, just as it underpins our climate goals.

The International Energy Agency estimates that, for the world to reach net zero by 2050, clean electricity generation worldwide must increase by more than 2.5 times between today and 2050. Countries are already plotting their energy pathways, and there is much to learn from each other.

Consider South Australia. The state currently gets 62 per cent of its electricity from wind and solar and, combined with grid-scale battery storage, has not lost a single hour of electricity in the past five years. South Australia expects 100 per cent of its electricity to come from renewable sources before 2030. An added bonus given today’s high energy prices: Annual household electricity costs have declined there by 303 Australian dollars ($276) since 2018.

The transition to clean energy is not about sacrificing our way of life – it’s about improving it. But we’ll need the power to make it happen. That work needs to start now.

Merran Smith is the executive director of Clean Energy Canada, a program at the Morris J. Wosk Centre for Dialogue at Simon Fraser University in Vancouver. Mark Zacharias is a special adviser at Clean Energy Canada and visiting professor at the Simon Fraser University School of Public Policy.

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Alberta Rate of Last Resort provides a baseline electricity price, boosting energy reliability, affordability, and consumer protection amid market volatility, aligning with grid modernization, integration, pricing transparency, and oversight from the Alberta Utilities Commission.

Key Points

A fallback electricity rate ensuring affordable, reliable power and consumer protection during market volatility.

✅ Guarantees a stable baseline price when markets spike

✅ Supports vulnerable customers lacking competitive offers

✅ Overseen by AUC to balance protection and competition

The Alberta government has announced significant strides in its electricity market reforms, unveiling a new plan under new electricity rules that aims to enhance energy reliability and affordability for consumers. This initiative, highlighted by the introduction of a "rate of last resort," is a critical response to ongoing challenges in the province's electricity sector, particularly following recent market volatility and increasing consumer concerns about rising electricity prices across the province.

Understanding the Rate of Last Resort

The "rate of last resort" (RLR) is designed to ensure that all Albertans have access to affordable electricity, even when they face challenges securing a competitive rate in the open market. This measure is particularly beneficial for those who may not have the means or the knowledge to navigate complex energy contracts, such as low-income families or seniors.

Under this new plan, the RLR will serve as a safety net, guaranteeing a stable and predictable rate for customers who find themselves without a competitive provider. This move is seen as a crucial step in addressing the needs of vulnerable populations who might otherwise be at risk of being shut out of the energy market.

Market Volatility and Consumer Protection

Alberta's electricity market has faced significant fluctuations over the past few years, and is headed for a reshuffle as policymakers respond to unpredictability in pricing and service availability. The rise in energy costs has caused distress among consumers, with many advocating for stronger protections against sudden price hikes.

The government's recent decision to implement the RLR is a direct acknowledgment of these concerns. By creating a baseline rate, officials aim to provide consumers with peace of mind, knowing that there is a fallback option should market conditions turn unfavorable. This initiative complements other measures aimed at enhancing consumer protections, including improved transparency in pricing, the consumer price cap on power bills being advanced, and the regulation of energy suppliers.

Broader Implications for Alberta’s Energy Landscape

This plan is not only about consumer protection; it also represents a broader shift towards a more sustainable and stable energy market in Alberta, aligning with proposed electricity market changes under consideration. The introduction of the RLR is part of a comprehensive strategy that includes investments in renewable energy and infrastructure improvements. By modernizing the grid and promoting cleaner energy sources, the government aims to reduce dependency on fossil fuels while maintaining reliability and affordability.

Additionally, this move aligns with the province's goals to meet climate targets and transition to a more sustainable energy future as Alberta is changing how it produces and pays for electricity through policy updates. As the demand for clean energy grows, Alberta is positioning itself to be a leader in this transformation, appealing to both residents and businesses committed to sustainability.

Public and Industry Reactions

The announcement has garnered mixed reactions from various stakeholders. While consumer advocacy groups have largely praised the government's efforts to protect consumers and ensure affordable electricity, some industry experts express concerns about potential long-term impacts on competition, arguing the market needs competition to remain dynamic. They argue that while the RLR provides immediate relief, it could disincentivize companies from offering competitive rates, leading to a less dynamic market in the future.

The Alberta Utilities Commission (AUC) is expected to play a pivotal role in overseeing the implementation of the RLR, ensuring that it operates effectively and that any unintended consequences are addressed swiftly. This regulatory oversight will be crucial in balancing consumer protection with the need for a competitive energy market.

Conclusion

As Alberta forges ahead with its electricity market reforms, the introduction of the rate of last resort marks a significant step in enhancing consumer protection and ensuring energy affordability. While challenges remain, the government's proactive approach reflects a commitment to addressing the needs of all Albertans, particularly those most vulnerable to market fluctuations.

In this evolving energy landscape, the RLR will serve not only as a safety net for consumers but also as a foundation for a more sustainable and reliable electricity system. As Alberta continues to adapt to changing energy demands and climate considerations, the effectiveness of these measures will be closely monitored, shaping the future of the province’s electricity market.

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Ontario COVID-19 Business Tax Relief outlines permanent Employer Health Tax exemptions, lower Business Education Tax rates, optional municipal property tax cuts, and hydro bill subsidies to support small businesses, industrial and commercial recovery.

Key Points

A provincial package of tax breaks and hydro subsidies to help small, industrial, and commercial businesses recover.

✅ Permanent Employer Health Tax exemption to $1M payroll

✅ Lower Business Education Tax rates for 94% of firms

✅ Hydro subsidies cut medium-large rates by 14-16%

The Ontario government's latest plan to help businesses survive and recover from the COVID-19 pandemic includes a suite of new tax breaks for small businesses and $1.3 billion to subsidize electricity bills for industrial and commercial operations.

The new measures were announced Thursday as part of Ontario's 2020 budget, which sets new provincial records for both spending and deficit projections.

The government of Premier Doug Ford says the budget will address barriers impeding long-term growth, ensuring the province forges a path to a full recovery from the pandemic.

"When the pandemic is over, Ontario will come back with a vengeance, stronger and more prosperous than ever before," Ford said at an afternoon news conference.

Small businesses with payrolls under $1 million will no longer have to pay the Employer Health Tax. The province temporarily raised the exemption from $490,000 to $1 million earlier this year, but the government is now making the change permanent.

The higher exemption means that about 90 per cent of Ontario businesses will no longer have to pay the tax, amounting to about $360 million by 2022, according to the province.

"We have heard from employers across Ontario that this measure helped them keep workers on the job during COVID-19," Finance Minister Rod Phillips told the legislature.

The 2020 budget lowers rates for the Business Education Tax (BET), a property tax earmarked for public education. More than 200,000 Ontario businesses, or 94 per cent, will see a lower rate.

"I believe this budget takes some significant initial steps to help stabilize the economy and help businesses, especially small businesses," said Toronto Mayor John Tory in a statement. Tory's office estimates that reductions to the BET will result in $117 million in lower taxes for commercial properties in Canada's largest city.

Municipal governments will also be permitted to reduce property taxes for small businesses, should they choose to do so. The province says it will "consider matching these reductions," which could amount to $385 million in tax relief by 2023.

Finance Minister Rod Phillips tabled the largest spending plan in Ontario history on Thursday afternoon. (Frank Gunn/The Canadian Press)
Municipalities currently have few options to provide targeted relief to local businesses. Guelph Mayor Cam Guthrie, chair of Ontario's Big City Mayors, said the prospect of lowering property taxes will likely be welcomed by local governments across the province.

"I really am looking forward to looking into that because it would give targeted relief to these businesses that have been asking for something from local governments for the past nine months," he said in an interview.

Tax cuts 'won't help a boarded up business,' NDP says
The 2020 budget does not contain any new direct funding for small businesses or their employees. NDP leader Andrea Horwath, who has proposed to make hydro public again, said those types of funding would help businesses more than potential tax reductions.

"A future hydro or tax cut won't help a boarded up business and it certainly won't help the folks that used to work there," Horwath said.

"Those measures are great if you're a company that's doing really well ... but let's face it, main streets across Ontario are crumbling."

Ontario did reveal on Thursday more details about a previously announced $300-million fund to support businesses in Toronto, Ottawa, Peel Region and York Region, which were placed under modified Stage 2 restrictions this fall. The money can be used to cover property taxes and energy bills for eligible businesses.

In a similar move, B.C. provided a three-month break on electricity bills for residents and businesses during the pandemic.

An undetermined amount of the $300 million will also be made available to businesses that are placed under "control" and "lockdown" rules, which are the two most severe restrictions in the province's updated reopening guidelines announced in October.

No regions are currently under these restrictions.

Elsewhere, B.C. saw commercial electricity consumption plummet during the COVID-19 pandemic.

Government to subsidize hydro bills for industrial businesses
The Ford government, which earlier oversaw a Hydro One leadership overhaul, is also taking aim at what it calls "job-killing electricity prices" in Ontario's industrial and commercial sectors.

The budget includes a $1.3 billion investment over three years to subsidize their hydro bills, a move praised by Canadian Manufacturers & Exporters as supportive of industry, which the province says have been inflated due to contracts signed by the previous Liberal government to purchase electricity generated by wind, solar and bioenergy.

"This is the legacy that is making our businesses uncompetitive," Phillips told reporters Thursday afternoon.

Ontario says its $1.3-billion investment to subsidize electricity bills will offset expensive contracts for green energy signed by the previous Liberal government. (Patrick Pleul/dpa via Associated Press)
The investment will lower rates for medium- and large-sized business by between 14 and 16 per cent, and follows an OEB decision on Hydro One rates that affects transmission and distribution costs, according to Ontario's calculations. Phillips said those rates will be among the lowest of any jurisdiction in the Great Lakes region.

The provincial government said the investment is necessary for Ontario to recover from the COVID-19 downturn. The Ford government expects that no further subsidies will be required by around 2040.

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