Elon Musk says cheaper, more powerful electric vehicle batteries are 3 years off


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Tesla Battery Day Innovations detail larger cylindrical EV cells with higher energy density, greater power, longer range, cobalt-free chemistry, automated manufacturing, battery recycling, and lower cost per kWh to enable an affordable electric car.

 

Key Points

Tesla Battery Day innovations are new EV cells and methods to cut costs, extend range, and scale production.

✅ Larger cylindrical cells: 5x energy, 6x power, 16% more range

✅ Automation and recycling to cut battery cost per kWh

✅ Near-zero cobalt chemistry, in-house cell factories worldwide

 

Elon Musk described a new generation of electric vehicle batteries that will be more powerful, longer lasting, and half as expensive as the company’s current cells at Tesla’s “Battery Day”.

Tesla’s new larger cylindrical cells will provide five times more energy, six times more power and 16% greater driving range, Musk said, adding that full production is about three years away.

“We do not have an affordable car. That’s something we will have in the future. But we’ve got to get the cost of batteries down,” Musk said.

To help reduce cost, Musk said Tesla planned to recycle battery cells at its Nevada “gigafactory,” while reducing cobalt – one of the most expensive battery materials – to virtually zero. It also plans to manufacture its own battery cells at several highly automated factories around the world.

The automaker plans to produce the new cells via a highly automated, continuous-motion assembly process, according to Drew Baglino, Tesla senior vice-president of powertrain and energy engineering, a contrast with GM and Ford battery strategies in the broader market today.

Speaking at the event, during which Musk outlined plans to cut costs and reiterated a huge future for Tesla's energy business during the presentation, the CEO acknowledged that Tesla does not have its new battery design and manufacturing process fully complete.

The automaker’s shares slipped as Musk forecast the change could take three years. Tesla has frequently missed production targets.

Tesla expects to eventually be able to build as many as 20m electric vehicles a year, aligning with within-a-decade EV adoption outlooks cited by analysts. This year, the entire auto industry expects to deliver 80m cars globally.

At the opening of the event, which drew over 270,000 online viewers, Musk walked on stage as about 240 shareholders – each sitting in a Tesla Model 3 in the company parking lot – honked their car horns in approval.

As automakers shift from horsepower to kilowatts to comply with stricter environmental regulations amid an age of electric cars that appears ahead of schedule, investors are looking for evidence that Tesla can increase its lead in electrification technology over legacy automakers who generate most of their sales and profits from combustion-engine vehicles.

While average electric vehicle prices have decreased in recent years thanks to changes in battery composition and evidence that they are better for the planet and household budgets, they are still more expensive than conventional cars, with the battery estimated to make up a quarter to a third of an electric vehicle’s cost.

Some researchers estimate that price parity, or the point at which electric vehicles are equal in value to internal combustion cars, is reached when battery packs cost $100 per kilowatt hour (kWh), a potential inflection point for mass adoption.

Tesla’s battery packs cost $156 per kWh in 2019, according to electric vehicle consulting firm Cairn Energy Research Advisors, with some studies noting that EVs save money over time for consumers, which would put the cost of a 90-kWh pack at around $14,000.

Tesla is also building its own cell manufacturing facility at its new factory in Germany in addition to the new plant in Fremont.

 

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Completion of 1st fast-charging network 'just the beginning' for electric car owners in N.L.

Newfoundland EV Fast-Charging Network enables DC fast charging along the Trans-Canada Highway, from Port aux Basques to St. John's, with Level 3 stations, reducing range anxiety and accelerating electric vehicle adoption.

 

Key Points

A DC fast charging corridor with Level 3 stations every 70 km, enabling EV road trips and easing range anxiety.

✅ 14 Level 3 DC fast chargers across the Trans-Canada Highway

✅ Charges most EVs to 80% in under an hour, $15/hr prorated

✅ Expansion planned into Labrador with 19 additional fast chargers

 

The first electric vehicle fast-charging network is now up and running across Newfoundland, which the province's main energy provider hopes will make road trips easier for electric car owners and encourage more drivers to go electric in the future.

With the last of the 14 charging stations coming online in Corner Brook earlier this month, drivers now have a place to charge up about every 70 kilometres along the Trans-Canada Highway, where 10 new fast-charging stations in N.B. are being planned, from Port aux Basques to St. John's, along with one in Gros Morne National Park.

Jennifer Williams, president & CEO of Newfoundland and Labrador Hydro, says many potential electric vehicle owners have been hesitant to give up on gasoline without fast chargers available across the island.

"The majority of people who were interested in EVs said one of the major barriers to them was indeed not having a fast-charging network that they could access," she said.

"We really believe that this is going to help people cross over and become an EV owner."

The charging network was first announced in October 2019, with an eye to having all 14 chargers up and running by the end of 2020. When work began, Newfoundland and Labrador was the only province in Canada without any publicly available Level 3 chargers, even as NB Power's public charging network was expanding elsewhere.

After some COVID-19 pandemic-related delays, the stations are now up and running and can charge most EVs to 80 per cent in less than an hour at a prorated cost of $15 an hour

"The pandemic did have some effect, but we're there now and we're really happy and this is just the beginning," said Williams.

Public charging becoming 'a non-issue'
That's encouraging for Jon Seary, an electric car owner and a co-founder of advocacy group Drive Electric N.L. He says the lack of fast chargers has been the "deal breaker" for many people looking to buy electric vehicles.

"Now you can drive right across the province. You can choose to stop at any of these to top up," Seary said.

Joe Butler, who is also a co-founder of the group, says the fast chargers have already made trips easier as they've come online across the island.

"In the past, it was a major impediment, really, to get anywhere, but now it's changed dramatically," said Butler.

"I just came back from Gros Morne and I had two stops and I was home, so the convenience factor if you just travel occasionally outside of town makes all the difference."

Jon Seary and Joe Butler stand with a slower level-two charging station on Kenmount Road in St. John's. 'We are at the cusp now of seeing a huge upswing in electric vehicle adoption,' Seary said. (Gavin Simms/CBC)
Seary said according to numbers from provincial motor vehicle registration, there were 195 electric cars on the road at the end of 2020, but he estimates that there are now closer to 300 vehicles in use in the province — with the potential for many more.

"We are at the cusp now of seeing a huge upswing in electric vehicle adoption," he said, even though Atlantic Canadians have been less inclined to buy EVs so far. 

"The cost of the cars is coming way down, and has come down. More places are selling them and the availability of public charging is becoming a non-issue as we put more and more charging stations out there."

The future is electric but the province's infrastructure is lagging behind, says non-profit
But Seary said there is still more work to be done to improve the province's charging infrastructure to catch up with other parts of the country. 

"We are lagging the rest of the country," Seary said, even as the N.W.T. encourages more residents to drive EVs through new initiatives.

"We have opportunities for federal funding for our charging infrastructure and it needs to be moving now. We have the surplus from Muskrat Falls to use and we have a climate that's not going to wait … this is the time to get going with this now."

Williams said together with Newfoundland Power, N.L. Hydro is now working on 19 more fast chargers to be placed elsewhere in the province and into Labrador, where the N.L. government has promoted EV adoption but infrastructure has lagged in some areas.

"We've heard very loudly and very clearly from the folks in Labrador, as well as other parts of the province, that they want to have charging stations in their neck of the woods too," she said.

"Putting them in Labrador, we believe that we'll help people get over that concern and that fear. There are EV owners in Labrador … so we believe it can work there as well."

With more chargers and electric vehicles comes less reliance on burning fossil fuels, and utilities like Nova Scotia Power are piloting vehicle-to-grid integration to amplify benefits, and Williams said 21 tonnes of greenhouse gas emissions have already been offset with the chargers as they've come online over the past few months.

"It actually does equate to as if you had powered a whole house all year, but the important part to remember [is that] these are an enabler. Putting these in place is enabling people to purchase electric vehicles," she said.

"You do 90 per cent of your charging at home, so if we're seeing about 20 tonnes has been offset in the short period of time they've been in service, for the vehicles that are charging at home, imagine how much they're actually offsetting. We figure it's well in excess of 200 tons."

 

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Here's why the U.S. electric grid isn't running on 100% renewable energy yet

US Renewable Energy Transition is the shift from fossil fuels to wind, solar, and nuclear, targeting net-zero emissions via grid modernization, battery storage, and new transmission to replace legacy plants and meet rising electrification.

 

Key Points

The move to decarbonize electricity by scaling wind, solar, and nuclear with storage and transmission upgrades.

✅ Falling LCOE makes wind and solar competitive with gas and coal.

✅ 4-hour lithium-ion storage shifts solar to evening peak demand.

✅ New high-voltage transmission links resource-rich regions to load.

 

Generating electricity to power homes and businesses is a significant contributor to climate change. In the United States, one quarter of greenhouse gas emissions come from electricity production, according to the Environmental Protection Agency.

Solar panels and wind farms can generate electricity without releasing any greenhouse gas emissions, and recent research suggests wind and solar could meet about 80% of U.S. demand with supportive infrastructure. Nuclear power plants can too, although today’s plants generate long-lasting radioactive waste, which has no permanent storage repository.

But the U.S. electrical sector is still dependent on fossil fuels. In 2021, 61 percent of electricity generation came from burning coal, natural gas, or petroleum. Only 20 percent of the electricity in the U.S. came from renewables, mostly wind energy, hydropower and solar energy, according to the U.S. Energy Information Administration, and in 2022 renewable electricity surpassed coal nationwide as portfolios shifted. Another 19 percent came from nuclear power.

The contribution from renewables has been increasing steadily since the 1990s, and the rate of increase has accelerated, with renewables projected to reach one-fourth of U.S. generation in the near term. For example, wind power provided only 2.8 billion kilowatt-hours of electricity in 1990, doubling to 5.6 billion in 2000. But from there, it skyrocketed, growing to 94.6 billion in 2010 and 379.8 billion in 2021.

That’s progress, as the U.S. moves toward 30% electricity from wind and solar this decade, but it’s not happening fast enough to eliminate the worst effects of climate change for our descendants.

“We need to eliminate global emissions of greenhouse gases by 2050,” philanthropist and technologist Bill Gates wrote in his 2023 annual letter. “Extreme weather is already causing more suffering, and if we don’t get to net-zero emissions, our grandchildren will grow up in a world that is dramatically worse off.”

And the problem is actually bigger than it looks, even as pathways to zero-emissions electricity by 2035 are being developed.

“We need not just to create as much electricity as we have now, but three times as much,” says Saul Griffith, an entrepreneur who’s sold companies to Google and Autodesk and has written books on mass electrification. To get to zero emissions, all the cars and heating systems and stoves will have to be powered with electricity, said Griffith. Electricity is not necessarily clean, but at least it it can be, unlike gas-powered stoves or gasoline-powered cars.

The technology to generate electricity with wind and solar has existed for decades. So why isn’t the electric grid already 100% powered by renewables? And what will it take to get there?

First of all, renewables have only recently become cost-competitive with fossil fuels for generating electricity. Even then, prices depend on the location, Paul Denholm of the National Renewable Energy Laboratory told CNBC.

In California and Arizona, where there is a lot of sun, solar energy is often the cheapest option, whereas in places like Maine, solar is just on the edge of being the cheapest energy source, Denholm said. In places with lots of wind like North Dakota, wind power is cost-competitive with fossil fuels, but in the Southeast, it’s still a close call.

Then there’s the cost of transitioning the current power generation infrastructure, which was built around burning fossil fuels, and policymakers are weighing ways to meet U.S. decarbonization goals as they plan grid investments.

“You’ve got an existing power plant, it’s paid off. Now you need renewables to be cheaper than running that plant to actually retire an old plant,” Denholm explained. “You need new renewables to be cheaper just in the variable costs, or the operating cost of that power plant.”

There are some places where that is true, but it’s not universally so.

“Primarily, it just takes a long time to turn over the capital stock of a multitrillion-dollar industry,” Denholm said. “We just have a huge amount of legacy equipment out there. And it just takes awhile for that all to be turned over.”

 

Intermittency and transmission
One of the biggest barriers to a 100% renewable grid is the intermittency of many renewable power sources, the dirty secret of clean energy that planners must manage. The wind doesn’t always blow and the sun doesn’t always shine — and the windiest and sunniest places are not close to all the country’s major population centers.

Wind resources in the United States, according to the the National Renewable Energy Laboratory, a national laboratory of the U.S. Department of Energy.
Wind resources in the United States, according to the the National Renewable Energy Laboratory, a national laboratory of the U.S. Department of Energy.
National Renewable Energy Laboratory, a national laboratory of the U.S. Department of Energy.
The solution is a combination of batteries to store excess power for times when generation is low, and transmission lines to take the power where it is needed.

Long-duration batteries are under development, but Denholm said a lot of progress can be made simply with utility-scale batteries that store energy for a few hours.

“One of the biggest problems right now is shifting a little bit of solar energy, for instance, from say, 11 a.m. and noon to the peak demand at 6 p.m. or 7 p.m. So you really only need a few hours of batteries,” Denholm told CNBC. “You can actually meet that with conventional lithium ion batteries. This is very close to the type of batteries that are being put in cars today. You can go really far with that.”

So far, battery usage has been low because wind and solar are primarily used to buffer the grid when energy sources are low, rather than as a primary source. For the first 20% to 40% of the electricity in a region to come from wind and solar, battery storage is not needed, Denholm said. When renewable penetration starts reaching closer to 50%, then battery storage becomes necessary. And building and deploying all those batteries will take time and money.
 

 

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Most planned U.S. battery storage additions in next three years to be paired with solar

U.S. Solar-Plus-Storage Growth 2021-2024 highlights rising battery storage co-location with solar PV, grid flexibility, RTO/ISO market signals, and ITC incentives, enabling peak shaving, firming renewable output, and reliable night-time power.

 

Key Points

Summary of U.S. plans pairing battery storage with solar PV, guided by RTO/ISO markets, grid needs, and ITC policy.

✅ 9.4 GW (63%) co-located with solar PV by 2024

✅ 97% of standalone capacity sited in RTO/ISO regions

✅ ITC improves project economics and grid services revenue

 

Of the 14.5 gigawatts (GW) of battery storage power capacity planned to come online amid anticipated growth in solar and storage in the United States from 2021 to 2024, 9.4 GW (63%) will be co-located with a solar photovoltaic (PV) solar-plus-storage power plant, based on data reported to us and published in our Annual Electric Generator Report. Another 1.3 GW of battery storage will be co-located at sites with wind turbines or fossil fuel-fired generators, such as natural gas-fired plants. The remaining 4.0 GW of planned battery storage will be located at standalone sites.

Historically, most U.S. battery systems have been located at standalone sites. Of the 1.5 GW of operating battery storage capacity in the United States at the end of 2020, 71% was standalone, and 29% was located onsite with other power generators.

Most standalone battery energy storage sites have been planned or built in power markets that are governed by regional transmission organizations (RTOs) and independent system operators (ISOs). RTOs and ISOs can enforce standard market rules that lay out clear revenue streams for energy storage projects in their regions, which promotes the deployment of battery storage systems. Of the utility-scale pipeline battery systems announced to come online from 2021 to 2024, 97% of the standalone battery capacity and 60% of the co-located battery capacity are in RTO/ISO regions.

Over 90% of the planned battery storage capacity outside of RTO and ISO regions will be co-located with a solar PV plant. At some solar PV co-located plants, the batteries can charge directly from the onsite solar generator when electricity demand and prices are low. They can then discharge electricity to the grid when peak demand is higher or when solar generation is unavailable, such as at night.

Although factors such as cloud cover can affect solar generation output, solar generators, now the number three renewable source in the U.S., in particular can effectively pair with battery storage because of their relatively regular daily generation patterns. This predictability works well with battery systems because battery systems are limited in how long they can discharge their power capacity before needing to recharge. If paired with a wind turbine, for example, a battery system could go days before having the opportunity to fully recharge.

Another advantage of pairing batteries with renewable generators is the ability to take advantage of tax incentives such as the Investment Tax Credit (ITC), which is available for solar projects, and other favorable government plans supporting deployment.

 

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Electricity or hydrogen - What is the future of vehicles?

Hydrogen vs Battery-Electric Vehicles compare FCEV and BEV tech for range, charging and refueling, zero-emissions, infrastructure in Canada, highlighting urban commuting, heavy-duty use, fast 5-minute fills, 30-minute fast charging, and renewable hydrogen from surplus wind.

 

Key Points

Hydrogen FCEVs suit long range and heavy-duty use; BEVs excel in urban commutes with overnight charging.

✅ FCEVs refuel in about 5 minutes; ideal for long range and heavy duty.

✅ BEVs fit urban commuting with home or night charging; fewer stops.

✅ Hydrogen enables energy storage from surplus wind and hydro power.

 

We’re constantly hearing that battery-electric cars are the future, as automakers pursue Canada-U.S. collaboration on EVs across the industry, so I was surprised to see that companies like Toyota, Honda and Hyundai are making hydrogen fuel-cell cars. Which technology is better? Could hydrogen still win? – Pete, Kingston

They’re both in their electric youth, relatively speaking, but the ultimate winner in the race between hydrogen and battery electric will likely be both.

“It’s not really a competition – they’ll both co-exist and there will also be plug-in hydrogen hybrids,” said Walter Merida, director of the Clean Energy Research Centre at the University of British Columbia. “Battery-electric vehicles [BEVs] are better for an urban environment where you have time to recharge and fuel-cell electric vehicles [FCEVs] are better-suited for long range and heavy duty.”

Last year, there were 9,840 BEVs sold in Canada, up from 5,130 the year before. If you include plug-in hybrids, the number sold in 2017 grows to 18,560, though many buyers now face EV shortages and wait times amid high gasoline prices.

And how many hydrogen vehicles were sold in Canada last year?

#google#

None – although Hyundai leased out about a half-dozen hydrogen Tucsons in British Columbia for $599 a month, which included fuel from Powertech labs in Surrey.

In January, Toyota announced it will be selling the Mirai in Quebec later this year. And Hyundai said it will offer about 25 Nexos for sale.

“It’s chicken or egg,” said Michael Fowler, a professor of chemical engineering at the University of Waterloo. “Car manufacturers won’t release cars into the market unless there’s a refuelling station and companies won’t build a refuelling station unless there are cars to fuel.”

Right now, there are no retail hydrogen refuelling stations in Canada. While there are plans under way to add stations in B.C., Ontario and Quebec, we’re still behind Japan, Europe and California, though experts outline how Canada can capitalize on the U.S. EV pivot to accelerate progress.

“In 2007, Ontario had a hydrogen strategy and they were starting to develop hydrogen vehicles and they dropped that in favour of the Green Energy Act and it was a complete disaster,” Fowler said. “The reality is the government of the day listened to the wrong people.”

It’s tough to pinpoint a single reason why governments focused on building charging stations instead of hydrogen stations, Merida said.

“It’s ironic, you know – the fuel cell was invented in Vancouver. Geoffrey Ballard was one of the pioneers of this technology,” Merida said. “And for a while, Canada was a global leader, but eventually government programs were discontinued and that was very disruptive to the sector.”

 

HYDROGEN FOR THE MASSES?

While we tend to think of BEVs when we think of electric cars, fuel-cell vehicles are electric, too; the hydrogen passes through a fuel cell stack, where it mixes with oxygen from the atmosphere to produce an electric current.

That current powers electric motors to drive the wheels and extra energy goes to a battery pack that’s used to boost acceleration (it’s also charged by regenerative braking).

Except for water that drips out of the hydrogen car, they’re both zero-emission on the road.

But a big advantage for hydrogen is that, if you can find a station, you can pull up to a pump and fill up in five minutes or less – the same way we do now at nearly 12,000 gas stations.

Compare that with fast-charging stations that can charge a battery to 80 per cent in 30 minutes – each station only handles one car at a time. What if you get there and it’s busy – or broken? And right now, there are only 139 of them in Canada.

And at slower, Level 2 stations, cars have to be plugged in for hours to recharge.

In a 2018 KPMG survey of auto executives, 55 per cent said that moves to switch entirely to pure battery-electric vehicles will fail because there won’t be enough charging stations, and some critics argue the 2035 EV mandate is delusional given infrastructure constraints.

“Ontario just invested $20-million in public charging stations and that’s going to service 100 or 200 cars a day,” Fowler said. “If you were to invest that in hydrogen stations, you’d be able to service thousands of cars a day.”

And when you do charge at a station, you might not be using clean power, as 18% of Canada’s 2019 electricity came from fossil fuels according to national data, Fowler said.

“At least in Ontario, in order to charge at a public station during the day, you have to rev up a natural-gas plant somewhere,” Fowler said. “So the only way you’re getting zero emissions is when you can charge at night using excess nuclear, hydro or wind that’s not being used.”

But hydrogen can be made when surplus green energy is stored, Fowler said.

“In Ontario, we have lots of wind in the spring and the fall, when we don’t need the electricity,” he said.

And eventually, you’ll be able to connect your fuel-cell vehicle to the grid and sell the power it produces, Merida said.

“The amount of power generation you have in these moving platforms is quite significant,” Merida said.

There are other strikes against battery-electric, including reduced range by 30 per cent or more in the winter and the need to upgrade infrastructure such as electrical transformers so they can handle more than just a handful of cars on each street charging at night, Fowler said.

In that KPMG survey, executives predicted a nearly equal split between BEVs, FCEVs, hybrids and gasoline engines by 2040.

“Battery-electric vehicles will serve a certain niche – they’ll be small commuter vehicles in certain cities,” Fowler said. “But for the way we use cars today – the family car, the suburban car, buses and probably trucks – it will be the fuel cell.”

 

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Wind Turbine Operations and Maintenance Industry Detailed Analysis and Forecast by 2025

Wind Turbine Operations and Maintenance Market is expanding as offshore and onshore renewables scale, driven by aging turbines, investment, UAV inspections, and predictive O&M services, despite skills shortages and rising logistics costs.

 

Key Points

Sector delivering inspection, repair, and predictive services to keep wind assets reliable onshore and offshore.

✅ Aging turbines and investor funding drive service demand

✅ UAV inspections and predictive analytics cut downtime

✅ Offshore growth offsets skills and logistics constraints

 

Wind turbines are capable of producing vast amounts of electricity at competitive prices, provided they are efficiently maintained and operated. Being a cleaner, greener source of energy, wind energy is also more reliable than other sources of power generation, with growth despite COVID-19 recorded across markets. Therefore, the demand for wind energy is slated to soar over the next few years, fuelling the growth of the global market for wind turbine operations and maintenance. By application, offshore and onshore wind turbine operations and maintenance are the two major segments of the market.

 

Global Wind Turbine Operations and Maintenance Market: Key Trends

The rising number of aging wind turbines emerges as a considerable potential for the growth of the market. The increasing downpour of funds from financial institutions and public and private investors has also been playing a significant role in the expansion of the market, with interest also flowing toward wave and tidal energy technologies that inform O&M practices. On the other hand, insufficient number of skilled personnel, coupled with increasing costs of logistics, remains a key concern restricting the growth of the market. However, the growing demand for offshore wind turbines across the globe is likely to materialize into fresh opportunities.

 

Global Wind Turbine Operations and Maintenance Market: Market Potential

A number of market players have been offering diverse services with a view to make a mark in the global market for wind turbine operations and maintenance. For instance, Scotland-based SgurrEnergy announced the provision of unmanned aerial vehicles (UAVs), commonly known as drones, as a part of its inspection services. Detailed and accurate assessments of wind turbines can be obtained through these drones, which are fitted with cameras, with four times quicker inspections than traditional methods, claims the company. This new approach has not only reduced downtime, but also has prevented the risks faced by inspection personnel.

The increasing number of approvals and new projects is preparing the ground for a rising demand for wind turbine operations and maintenance. In March 2017, for example, the Scottish government approved the installation of eight 6-megawatt wind turbines off the coast of Aberdeen, towards the northeast. The state of Maryland in the U.S. will witness the installation of a new offshore wind plant, encouraging greater adoption of wind energy in the country. The U.K., a leader in UK offshore wind deployment, has also been keeping pace with the developments, with the installation of a 400-MW offshore wind farm, off the Sussex coast throughout 2017. The Rampion project will be developed by E.on, who has partnered with Canada-based Enbridge Inc. and the UK Green Investment Bank plc.

 

Global Wind Turbine Operations and Maintenance Market: Regional Outlook

Based on geography, the global market for wind turbine operations and maintenance has been segmented into Asia Pacific, Europe, North America, and Rest of the World (RoW). Countries such as India, China, Spain, France, Germany, Scotland, and Brazil are some of the prominent users of wind energy and are therefore likely to account for a considerable share in the market. In the U.S., favorable government policies are backing the growth of the market, though analyses note that a prolonged solar ITC extension could pressure wind competitiveness. For instance, in 2013, a legislation that permits energy companies to transfer the costs of offshore wind credits to ratepayers was approved. Asia Pacific is a market with vast potential, with India and China being major contributors aiding the expansion of the market.

 

Global Wind Turbine Operations and Maintenance Market: Competitive Analysis

Some of the major companies operating in the global market for wind turbine operations and maintenance are Gamesa Corporacion Tecnologica, Xinjiang Goldwind Science & Technologies, Vestas Wind Systems A/S, Upwind Solutions, Inc, GE Wind Turbine, Guodian United Power Technology Company Ltd., Nordex SE, Enercon GmbH, Siemens Wind Power GmbH, and Suzlon Group. A number of firms have been focusing on mergers and acquisitions to extend their presence across new regions.

 

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Canada unveils plan for regulating offshore wind

Canada Offshore Wind Amendments streamline offshore energy regulators in Nova Scotia and Newfoundland and Labrador, enabling green hydrogen, submerged land licences, regional assessments, MPAs standards, while raising fisheries compensation, navigation, and Indigenous consultation considerations.

 

Key Points

Reforms assign offshore wind to joint regulators, enable seabed licensing, and address fisheries and Indigenous issues.

✅ Assigns wind oversight to Canada-NS and Canada-NL offshore regulators

✅ Introduces single submerged land licence and regional assessments

✅ Addresses fisheries, navigation, MPAs, and Indigenous consultation

 

Canada's offshore accords with Nova Scotia and Newfoundland and Labrador are being updated to promote development of offshore wind farms, but it's not clear yet whether any compensation will be paid to fishermen displaced by wind farms.

Amendments introduced Tuesday in Ottawa by the federal government assign regulatory authority for wind power to jointly managed offshore boards — now renamed the Canada-Nova Scotia Offshore Energy Regulator and Canada-Newfoundland and Labrador Offshore Energy Regulator.

Previously the boards regulated only offshore oil and gas projects.

The industry association promoting offshore wind development, Marine Renewables Canada, called the changes a crucial step.

"The tabling of the accord act amendments marks the beginning of, really, a new industry, one that can play a significant role in our clean energy future," said  Lisen Bassett, a spokesperson for Marine Renewables Canada. 

Nova Scotia's lone member of the federal cabinet, Immigration Minister Sean Fraser, also talked up prospects at a news conference in Ottawa.


'We have lots of water'

"The potential that we have, particularly when it comes to offshore wind and hydrogen is extraordinary," said Fraser.

"There are real projects, like Vineyard Wind, with real investors talking about real jobs."

Sharing the stage with assembled Liberal MPs from Nova Scotia and Newfoundland and Labrador was Nova Scotia Environment Minister Tim Halman, representing a Progressive Conservative government in Halifax.

"If you've ever visited us or Newfoundland, you know we have lots of water, you know we have lots of wind, and we're gearing up to take advantage of those natural resources in a clean, sustainable way. We're paving the way for projects such as offshore wind, tidal energy in Nova Scotia, and green hydrogen production," said Halman.

Before a call for bids is issued, authorities will identify areas suitable for development, conservation or fishing.

The legislation does not outline compensation to fishermen excluded from offshore areas because of wind farm approvals.


Regional assessments

Federal officials said potential conflicts can be addressed in regional assessments underway in both provinces.

Minister of Natural Resources of Canada Jonathan Wilkinson said fisheries and navigation issues will have to be dealt with.

"Those are things that will have to be addressed in the context of each potential project. But the idea is obviously to ensure that those impacts are not significant," Wilkinson said.

Speaking after the event, Christine Bonnell-Eisnor, chair of what is still called the Canada Nova Scotia Offshore Petroleum Board, said what compensation — if any — will be paid to fishermen has yet to be determined.

"It is a question that we're asking as well. Governments are setting the policy and what terms and conditions would be associated with a sea bed licence. That is a question governments are working on and what compensation would look like for fishers."

Scott Tessier, who chairs  the Newfoundland Board, added "the experience has been the same next door in Nova Scotia, the petroleum sector and the fishing sector have an excellent history of cooperation and communication and I don't expect it look any different for offshore renewable energy projects."


Nova Scotia in a hurry to get going

The legislation says the offshore regulator would promote compensation schemes developed by industry and fishing groups linked to fishing gear.

Nova Scotia is in a hurry to get going.

The Houston government has set a target of issuing five gigawatts of licences for offshore wind by 2030, with leasing starting in 2025, reflecting momentum in the U.S. offshore wind market as well. It is intended largely for green hydrogen production. That's almost twice the province's peak electricity demand in winter, which is 2.2 gigawatts.

The amendments will streamline seabed approvals by creating a single "submerged land" licence, echoing B.C.'s streamlined process for clean energy projects, instead of the exploration, significant discovery and production licences used for petroleum development.

Federal and provincial ministers will issue calls for bids and approve licences, akin to BOEM lease requests seen in the U.S. market.

The amendments will ensure Marine Protected Area's  (MPAs) standards apply in all offshore areas governed by the regulations.


Marine protected areas

Wilkinson suggested, but declined, three times to explicitly state that offshore wind farms would be excluded from within Marine Protected Areas.

After this story was initially published on Tuesday, Natural Resources Canada sent CBC a statement indicating offshore wind farms may be permitted inside MPAs.

Spokesperson Barre Campbell noted that all MPAs established in Canada after April 25, 2019, will be subject to the Department of Fisheries and Oceans new standards that prohibit key industrial activities, including oil and gas exploration, development and production.

"Offshore renewable energy activities and infrastructure are not key industrial activities," Campbell said in a statement.

"Other activities may be prohibited, however, if they are not consistent with the conservation objectives that are established by the relevant department that has or that will establish a marine protected area."


Federal impact assessment process

The new federal impact assessment process will apply in offshore energy development, and recent legal rulings such as the Cornwall wind farm decision highlight how courts can influence project timelines.

For petroleum projects, future significant discovery licences will be limited to 25 years replacing the current indefinite term.

Existing significant discovery licences have been an ongoing exception and are not subject to the 25-year limit. Both offshore energy regulators will be given the authority to fulfil the Crown's duty to consult with Indigenous peoples

 

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