UK to fast-track vital grid connections

Lion Electric Battery Plant Quebec secures near $100M public investment for an automated battery-pack assembly in Saint-Jérôme, fueling EV manufacturing, R&D, local supply chains, and heavy-duty zero-emission vehicle competitiveness and jobs.

Key Points

Automated battery-pack plant in Saint-Jérôme boosting EV manufacturing and strengthening Quebec's supply chain.

✅ $100M joint federal-provincial investment announced

✅ 135 jobs in 2023; 150 more long-term positions

✅ R&D hub to enhance heavy-duty EV battery performance

Canadian Prime Minister of Canada, Justin Trudeau, and the Premier of Quebec, François Legault, have announced an equal investment totalling nearly $100 million to Lion Electric, as a B.C. battery plant announcement has done in another province, for the establishment of a highly automated battery-pack assembly plant in Saint–Jérôme, in the Laurentians. This project, valued at nearly $185 million, will create 135 jobs when construction of the plant is completed in 2023. It is also expected that 150 additional jobs will be created over the longer term.

For the announcement, Mr. Trudeau and Mr. Legault were accompanied by the Minister of Innovation, Science and Industry, François-Philippe Champagne, by Quebec's Minister of Economy and Innovation, Pierre Fitzgibbon, and by Marc Bédard, President and Founder of Lion Electric.

The battery packs assembled at the new plant will be used in Lion Electric vehicles. This strategic investment will allow the company to improve its cost structure, and better control the design and shape of its batteries, making it more competitive in the heavy-duty electric vehicle market, as EV assembly deals put Canada in the race. Ultimately, the company will be able to increase the volume of its vehicle production. Lion Electric will be the first Canadian manufacturer of medium and heavy-duty vehicles to have state-of-the-art, automated battery-pack manufacturing facilities.

The company will also establish a research and development innovation centre within its manufacturing plant, which will allow it to test and refine products for future use, including batteries for emergency vehicles such as ambulances. The company will test innovations from research and development, including energy storage capacity and battery performance. The results will make these products more competitive in the North American market, where a Niagara Region battery plant signals growing demand.

The company said it expects to employ 135 people at the plant when it is operational by 2023. It also plans to invest in a research and development facility that could create a number of spinoff jobs.

"When we talk about an economic recovery that's good for workers, for families and for the environment, this is exactly the kind of project we mean," Trudeau said at a news conference in Montreal.

Trudeau toured Lion Electric's factory in Saint-Jérôme, Que., last March, just before the pandemic. (Ryan Remiorz/The Canadian Press)
It was the prime minister's first trip to Montreal in more than a year. He said one of the reasons he decided to attend the announcement was to illustrate the importance of the green economy and how Canada can capitalize on the U.S. EV pivot for future job growth.

The project also aligns with the Legault government's desire to create a supply chain within Quebec that is able to feed the electric vehicle industry, where Canada-U.S. collaboration could accelerate progress.

At Monday's announcement, Economy Minister Pierre Fitzgibbon spoke at length about the province's deposits of lithium and nickel — key components in electric vehicle batteries — as well as its supply of low-emission hydroelectricity.

"If we play our cards right, we could become world leaders in this market of the future," Fitzgibbon said.

Currently, many of those strategic minerals found in Quebec are exported to Asia where they are turned into battery cells, and then imported back to Quebec by companies like Lion, said Mickaël Dollé, a chemistry professor at the Université de Montréal.

By opening a battery assembly plant in Quebec, Lion could help stimulate more cell-makers, such as the Northvolt project near Montreal, to set up shop in the province. Further localizing the supply chain, Dollé said, means better value and a greener product. 

But other countries have the same goal in mind, he said, and the window for the province to establish itself as an important player in the emerging electric vehicle battery industry is closing quickly, as major Ford Oakville deal commitments accelerate competition.

"The decision has to be taken now, or in the coming months, but if we wait too long we may miss our main goal which is to get our own supply chain in Canada," Dollé said.

What's in a name?
Monday's announcement was closely watched in Quebec for what it foretold about the political future as well as the economic one.

By coming to Montreal and touring a vaccination clinic before making the funding announcement, Trudeau fed speculation in the province that he is preparing to call an election soon.

Intrigue also surrounded the informal meeting Trudeau had with Legault on Monday. The Quebec premier and members of his government have repeatedly expressed frustration with Trudeau during the pandemic.

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Germany is extending its vehicle tax exemption for electric cars until 2035, a federal move aimed at boosting EV sales, supporting the auto industry, and advancing the country’s transition to cleaner, more sustainable transportation.

Why is Germany Exempting EVs from Vehicle Tax Until 2035?

Germany is exempting electric vehicles from vehicle tax until 2035 to boost EV adoption, support its auto industry, and meet national climate targets.

✅ Encourages consumers to buy zero-emission cars

✅ Protects jobs in the automotive sector

✅ Advances Germany’s clean energy transition

Germany’s federal government has confirmed plans to extend the country’s vehicle tax exemption for electric cars until 2035, as part of a renewed push to accelerate the nation’s e-mobility transition and support its struggling automotive industry. The move, announced by Finance Minister Lars Klingbeil, comes just weeks before the existing exemption was set to expire.

“In order to get many more electric cars on the road in the coming years, we need to provide the right incentives now,” Klingbeil told the German Press Agency (DPA). “That is why we will continue to exempt electric cars from vehicle tax.”

Under the proposed law, the exemption will apply to new fully electric vehicles registered until December 31, 2030, with benefits lasting until the end of 2035. According to the Finance Ministry, the measure aims to “provide an incentive for the early purchase of a purely electric vehicle.” While popular among consumers and automakers, the plan is expected to cost the federal budget several hundred million euros in lost revenue.

Without the extension, the tax relief for new battery-electric vehicles (BEVs) would have ended on January 1, 2026, creating uncertainty for automakers and potential buyers. The urgency to pass the new legislation reflects the government’s goal to maintain Germany’s momentum toward electrification, even as the age of electric cars accelerates amid economic headwinds and fierce international competition.

The exemption’s renewal was originally included in the coalition agreement between the Christian Democratic Union (CDU), the Christian Social Union (CSU), and the Social Democratic Party (SPD). It follows two other measures from the government’s “investment booster” package—raising the maximum gross price for EV tax incentives to €100,000 and allowing special depreciation for electric vehicles. However, the vehicle tax measure was previously in jeopardy due to Germany’s tight fiscal situation. The Finance Ministry had cautioned that every proposal in the coalition deal was “subject to financing,” and a plan to end EV subsidies led to speculation that the EV tax break could be dropped altogether.

Klingbeil’s announcement coincides with an upcoming “automotive dialogue” summit at the Chancellery, hosted by Chancellor Friedrich Merz. The meeting will bring together representatives from federal ministries, regional governments, automakers advancing initiatives such as Daimler’s electrification plan across their portfolios, and trade unions to address both domestic and international challenges facing Germany’s car industry. Topics will include slowing EV sales growth in China, the ongoing tariff dispute with the United States, where EPA emissions rules are expected to boost EV sales, and strategies for strengthening Germany’s global competitiveness.

“We must now put together a strong package to lead the German automotive industry into the future and secure jobs,” Klingbeil said. “We want the best cars to continue to be built in Germany. Everyone knows that the future is electric.”

The government is also expected to revisit a proposed program to help low- and middle-income households access electric cars, addressing affordability concerns that persist across markets, modelled on France’s “social leasing” initiative. Though included in the coalition agreement, progress on that program has stalled, and few details have emerged since its announcement.

Germany’s latest tax policy move signals renewed confidence in its electric vehicle transition, despite budget constraints and a turbulent global market, as the 10-year EV outlook points to most cars being electric worldwide. Extending the exemption until 2035 sends a clear message to consumers and manufacturers alike: the country remains committed to building its clean transport future—one electric car at a time.

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O2 Tidal Turbine delivers tidal energy in Orkney, Scotland, supplying grid-connected renewable power via EMEC and enabling green hydrogen production, providing clean electricity with predictable generation from strong coastal currents.

Key Points

A 2 MW, grid-connected tidal device in Orkney that delivers clean power and enables EMEC green hydrogen production.

✅ 2 MW capacity; powers ~2,000 UK homes via EMEC grid

✅ Predictable renewable output from strong coastal currents

✅ Enables onshore electrolyzer to produce green hydrogen

“The world’s most powerful” tidal turbine has been hooked up to the onshore electricity grid in Orkney, a northerly archipelago in Scotland, and is ready to provide homes with clean, green electricity, even as a major UK offshore windfarm begins supplying power this week.

The tidal turbine, known as the O2, was developed by Scottish engineering firm Orbital Marine Power. On July 28, they announced O2 “commenced grid connected power generation” at the European Marine Energy Centre (EMEC) in Orkney, meaning it's all set up and providing energy to the local power grid, similar to another Scottish tidal project that recently powered nearly 4,000 homes.

The 74-meter-long (242-foot) turbine is said to be “the world’s most powerful” tidal turbine. It will lay in the waters off Orkney for the next 15 years with the capacity to meet the annual electricity demand of around 2,000 UK homes. The 2MW turbine is also set to power the EMEC’s land-based electrolyzer that will generate green hydrogen (hydrogen made without fossil fuels) that can also be used as a clean energy source, in a UK energy system that recently set a wind generation record for output.

“Our vision is that this project is the trigger to the harnessing of tidal stream resources around the world and, alongside investment in UK offshore wind, to play a role in tackling climate change whilst creating a new, low-carbon industrial sector,” Orbital CEO, Andrew Scott, said in a press release.

Tidal energy is harnessed by converting energy from the natural rise and fall of ocean tides and currents. The O2 turbine consists of two submerged blades with a 20-meter (65-foot) diameter attached to a turbine that will move with the shifting currents of Orkney’s coast to generate electricity. Electricity is then transferred from the turbine along the seabed via cables towards the local onshore electricity network, a setup also being used by a Nova Scotia tidal project to supply the grid today.

This method of harnessing energy is not just desirable because it doesn't release carbon emissions, but it’s more predictable than other renewable energy sources, such as solar or Scotland's wind farms that can be influenced by weather conditions. Tidal energy production is still in its infancy and there are relatively few large-scale tidal power plants in the world, but many argue that some parts of the world could potentially draw huge benefits from this innovative form of hydropower, especially coastal regions with strong currents such as the northern stretches of the UK and the Bay of Fundy in Atlantic Canada.

The largest tidal power operation in the world is the Sihwa Lake project on the west coast of South Korea, which harnesses enough power to support the domestic needs of a city with a population of 500,000 people. However, once fully operational, the MeyGen tidal power project in northern Scotland hopes to snatch its title.

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Canada Electricity Decarbonization Costs indicate challenging greenhouse gas reductions across a fragmented grid, with wind, solar, nuclear, and natural gas tradeoffs, significant GDP impacts, and Net Zero targets constrained by intermittency and limited interties.

Key Points

Costs to cut power CO2 via wind, solar, gas, and nuclear, considering grid limits, intermittency, and GDP impacts.

✅ Alberta model: eliminate coal; add wind, solar, gas; 26-40% CO2 cuts

✅ Nuclear option enables >75% cuts at higher but feasible system costs

✅ National costs 1-2% GDP; reserves, transmission, land, and waste not included

Along with many western developed countries, Canada has pledged to reduce its greenhouse gas emissions by 40–45 percent by 2030 from 2005 emissions levels, and to achieve net-zero emissions by 2050.

This is a huge challenge that, when considered on a global scale, will do little to stop climate change because emissions by developing countries are rising faster than emissions are being reduced in developed countries. Even so, the potential for achieving emissions reduction targets is extremely challenging as there are questions as to how and whether targets can be met and at what cost. Because electricity can be produced from any source of energy, including wind, solar, geothermal, tidal, and any combustible material, climate change policies have focused especially on nations’ electricity grids, and in Canada cleaning up electricity is viewed as critical to meeting climate pledges.

Canada’s electricity grid consists of ten separate provincial grids that are weakly connected by transmission interties to adjacent grids and, in some cases, to electricity systems in the United States. At times, these interties are helpful in addressing small imbalances between electricity supply and demand so as to prevent brownouts or even blackouts, and are a source of export revenue for provinces that have abundant hydroelectricity, such as British Columbia, Manitoba, and Quebec.

Due to generally low intertie capacities between provinces, electricity trade is generally a very small proportion of total generation, though electricity has been a national climate success in recent years. Essentially, provincial grids are stand alone, generating electricity to meet domestic demand (known as load) from the lowest cost local resources.

Because climate change policies have focused on electricity (viz., wind and solar energy, electric vehicles), and Canada will need more electricity to hit net-zero according to the IEA, this study employs information from the Alberta electricity system to provide an estimate of the possible costs of reducing national CO2 emissions related to power generation. The Alberta system serves as an excellent case study for examining the potential for eliminating fossil-fuel generation because of its large coal fleet, favourable solar irradiance, exceptional wind regimes, and potential for utilizing BC’s reservoirs for storage.

Using a model of the Alberta electricity system, we find that it is infeasible to rely solely on renewable sources of energy for 100 percent of power generation—the costs are prohibitive. Under perfect conditions, however, CO2 emissions from the Alberta grid can be reduced by 26 to 40 percent by eliminating coal and replacing it with renewable energy such as wind and solar, and gas, but by more than 75 percent if nuclear power is permitted. The associated costs are estimated to be some $1.4 billion per year to reduce emissions by at most 40 percent, or $1.9 billion annually to reduce emissions by 75 percent or more using nuclear power (an option not considered feasible at this time).

Based on cost estimates from Alberta, and Ontario’s experience with subsidies to renewable energy, and warnings that the switch from fossil fuels to electricity could cost about $1.4 trillion, the costs of relying on changes to electricity generation (essentially eliminating coal and replacing it with renewable energy sources and gas) to reduce national CO2 emissions by about 7.4 percent range from some $16.8 to $33.7 billion annually. This constitutes some 1–2 percent of Canada’s GDP.

The national estimates provided here are conservative, however. They are based on removing coal-fired power from power grids throughout Canada. We could not account for scenarios where the scale of intermittency turned out worse than indicated in our dataset—available wind and solar energy might be lower than indicated by the available data. To take this into account, a reserve market is required, but the costs of operating such a capacity market were not included in the estimates provided in this study. Also ignored are the costs associated with the value of land in other alternative uses, the need for added transmission lines, environmental and human health costs, and the life-cycle costs of using intermittent renewable sources of energy, including costs related to the disposal of hazardous wastes from solar panels and wind turbines.

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Microgrid solar outage algorithms optimize renewable energy during blackouts using grid-forming inverters, islanding control, demand forecasting, and energy storage from batteries and EVs, improving reliability by up to 35% for resilient power sharing.

Key Points

Algorithms that island homes, forecast demand, and prioritize critical loads using storage and grid-forming inverters.

✅ Disconnects inverters to form resilient neighborhood microgrids

✅ Forecasts solar, wind, and demand; allocates energy fairly

✅ Uses EVs and batteries; boosts reliability by up to 35%

Some people who have solar panels on their roof are under the impression that they can use them to power their home in the case of an outage, but that simply is not the case. Homes do remain connected to the grid during outages, as U.S. power outage risks grow, but the devices tasked with managing solar panels are normally turned off due to safety concerns. This permanent grid connection essentially prevents homeowners from drawing on the power that their own renewable energy resources generate.

This could be about to change, however, thanks to the efforts of a team of University of California San Diego engineers who have come up with algorithms that would enable homes to share and use their power in outages by disconnecting solar inverters from the grid. Their algorithms work with the existing technology and would have the added benefit of boosting the system’s reliability by as much as 35 percent.

The genius of their work lies in the ability of the algorithm to prioritize the distribution of power from the renewable resources in outages. Their equation considers forecasts for wind and solar power generation to address clean energy intermittency challenges and the available energy storage, including batteries and electric vehicles. It combines this information with the projected energy usage of residents and the amount of energy the homes are able to produce. It can be programmed to prioritize in several different ways, the most vital of which is by favoring those who need power urgently, such as those using life support equipment. It could also prioritize those who are willing to pay extra or reward those who typically generate an energy surplus during normal operations.

Learning lessons from past outages

Lead author Abdulelah H. Habib said the engineers were inspired to find a way to use the renewable power in outages by the events of Hurricane Sandy. This storm affected more than eight million people on the nation’s East Coast, some of whom were left without power for as long as two weeks.

According to the researchers, most customers prefer sharing community-scale storage systems over having systems in each home because of the lower costs. One of the paper’s senior authors, Raymond de Callafon, said that homes that are connected together are not only more resilient in power outages but they also happen to be more resilient to price fluctuations.

Each home needs to be equipped with special circuit breakers that can be remotely controlled, while utilities would need to install some communications methods so the power systems within a particular residential cluster can communicate amongst themselves. They also need a “grid forming inverter” to help them connect to one another and manage excess solar on networks safely.

One stumbling block that will have to be overcome is the current regulations. Most states do not allow individual homeowners to sell power to other homeowners, so there would have to be some adjustments to make this a reality.

Solar power growing in popularity

Solar power’s popularity is currently on the rise, and reductions in cost as the technology improves are only expected to drive this growth even further. REC CEO Steve O’Neil told CNBC that the installation rates of solar double every two years, a trend that informs residential solar economics for homeowners even though just two percent of the planet’s electricity comes from converting sunlight to energy. This means there is plenty of room for expansion. The world’s current solar capacity is 305 gigawatts, compared to just 50 gigawatts in 2010.

In addition, he pointed out that the price of solar energy has dropped by 70 percent since the year 2010 and continues to fall; it costs around eight cents per kilowatt hour at the moment. Another factor that could boost adoption is storage improvements, driven by affordable solar batteries that expand capacity, which will allow solar energy to be used even on overcast days.

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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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