Utility wants to deploy largest grid battery ever

By Reuters


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Southern California Edison said it is seeking a U.S. grant to store wind power in the largest-ever grid storage battery, to be built by A123 Systems.

The utility, a unit of Edison International, wants $65 million in grants from the U.S. Department of Energy for the pilot storage project and for another project involving integration of home energy management systems into the electric grid.

The utility wants $25 million for the battery project, which would be the largest ever for power grid applications, Paul De Martini, vice president of advanced technologies, said in an interview.

U.S. utilities are racing to increase their production of electricity from renewable energy sources to meet stricter state environmental rules and to gear up for any U.S. move to regulate greenhouse gas emissions from fossil fuels.

But wind and solar are intermittent energy sources, and storing the power — at an economically viable rate — is seen as crucial to making 'alternative' energy truly mainstream.

Southern California Edison is seeking the money from a $615 million fund that the DOE has set up for "smart grid"-related pilot projects. Smart grid technology measures and modifies power usage in homes and businesses, improving grid reliability.

The company wants privately held A123 Systems to assemble a utility-scale battery that would be made up of smaller batteries in an 8,000-square-foot building at an existing substation in the Tehachapi region in California.

The project is important to the California utility as it expects to have about 4,500 megawatts of wind power in the Tehachapi region by around 2015 and needs to find a way to store the power, De Martini said.

"We do recognize that there is a need for energy storage to help with mitigating some of the intermittency of wind," he said.

Southern California Edison is one of the leaders in delivering renewable energy to customers. It transmitted 65 percent of all solar energy produced in the United States last year.

A123 Systems, which makes lithium-ion battery packs for use in plug-in hybrid vehicles, was one of the big winners of the competition for $1.5 billion in federal stimulus funds for companies that make advanced automotive batteries.

The Watertown, Massachusetts-based company, which counts General Electric among its shareholders, received $249 million to build a battery factory in the United States.

The approval of Southern California Edison's application would be a big boost for A123 Systems' push into energy storage batteries for the grid.

The result of the applications is expected in November, De Martini said.

For the second pilot project on smart grid integration, Southern California Edison is seeking $40 million from the DOE and will be working with GE, SunPower Corp and Boeing Co, he said.

Utility companies around the world are laying the groundwork to upgrade their networks with smart grid technology.

Separately, another California utility, Pacific Gas and Electric Co, is seeking $25 million from the DOE's smart grid fund for a compressed air energy storage project, which aims to pump compressed air into an underground reservoir, using mainly wind energy produced during non-peak hours. The air would be released to generate electricity during periods of peak demand.

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Ontario Poised to Miss 2030 Emissions Target

Ontario Poised to Miss 2030 Emissions Target highlights how rising greenhouse gas emissions from electricity generation and natural gas power plants threaten Ontario’s climate goals, environmental sustainability, and clean energy transition efforts amid growing economic and policy challenges.

 

Why is Ontario Poised to Miss 2030 Emissions Target?

Ontario Poised to Miss 2030 Emissions Target examines the province’s setback in meeting climate goals due to higher power-sector emissions and shifting energy policies.

✅ Rising greenhouse gas emissions from gas-fired electricity generation

✅ Climate policy uncertainty and missed environmental targets

✅ Balancing clean energy transition with economic pressures

Ontario’s path toward meeting its 2030 greenhouse gas emissions target has taken a sharp turn for the worse, according to internal government documents obtained by Global News. The province, once on track to surpass its reduction goals, is now projected to miss them—largely due to rising emissions from electricity generation, even as the IEA net-zero electricity report highlights rising demand nationwide.

In October 2024, the Ford government’s internal analysis indicated that Ontario was on track to reduce emissions by 28 percent below 2005 levels by 2030, effectively exceeding its target. But a subsequent update in January 2025 revealed a grim reversal. The new forecast showed an increase of about eight megatonnes (Mt) of emissions compared to the previous model, with most of the rise attributed to the province’s energy policies.

“This forecast is about 8 Mt higher than the October 2024 forecast, mainly due to higher electricity sector emissions that reflect the latest ENERGY/IESO energy planning and assumptions,” the internal document stated.

While the analysis did not specify which policy shifts triggered the change, experts point to Ontario’s growing reliance on natural gas. The use of gas-fired power plants has surged to fill temporary gaps created by nuclear refurbishment projects and other grid constraints, even as renewable energy’s role grows. In fact, natural gas generation in early 2025 reached its highest level since 2012.

The internal report cited “changing electricity generation,” nuclear power refurbishment, and “policy uncertainty” as major risks to achieving the province’s climate goals. But the situation may be even worse than the government’s updated forecast suggests.

On Wednesday, Ontario’s auditor general warned that the January projections were overly optimistic. The watchdog’s new report concluded the province could fall even further behind its 2030 emissions target, noting that reductions had likely been overestimated in several sectors, including transportation—such as electric vehicle sales—and waste management. “An even wider margin” of missed goals was now expected, the auditor said.

Environment Minister Todd McCarthy defended the government’s position, arguing that climate goals must be balanced against economic realities. “We cannot put families’ financial, household budgets at risk by going off in a direction that’s not achievable,” McCarthy said.

The minister declined to commit to new emissions targets beyond 2030—or even to confirm that the existing goals would be met—but insisted efforts were ongoing. “We are continuing to meet our commitment to at least try to meet our commitment for the 2030 target,” he told reporters. “But targets are not outcomes. We believe in achievable outcomes, not unrealistic objectives.”

Environmental advocates warn that Ontario’s reliance on fossil-fuel generation could lock the province into higher emissions for years, undermining national efforts to decarbonize Canada’s electricity grid. With cleaning up Canada’s electricity expected to play a central role in both industrial growth and climate action, the province’s backslide represents a significant setback for Canada’s overall emissions strategy.

Other provinces face similar challenges; for example, B.C. is projected to miss its 2050 targets by a wide margin.

As Ontario weighs its next steps, the tension between energy security, affordability, and environmental responsibility continues to define the province’s path toward a lower-carbon future and Canada’s 2050 net-zero target over the long term.

 

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Is tidal energy the surge remote coastal communities need?

BC Tidal Energy Micro-Grids harness predictable tidal currents to replace diesel in remote Indigenous coastal communities, integrating marine renewables, storage, and demand management for resilient off-grid power along Vancouver Island and Haida Gwaii.

 

Key Points

Community-run tidal turbines and storage deliver reliable, diesel-free electricity to remote B.C. coastal communities.

✅ Predictable power from tidal currents reduces diesel dependence

✅ Integrates storage, demand management, and microgrid controls

✅ Local jobs via marine supply chains and community ownership

 

Many remote West Coast communities are reliant on diesel for electricity generation, which poses a number of negative economic and environmental effects.

But some sites along B.C.’s extensive coastline are ideal for tidal energy micro-grids that may well be the answer for off-grid communities to generate clean power, suggested experts at a COAST (Centre for Ocean Applied Sustainable Technologies) virtual event Wednesday.

There are 40 isolated coastal communities, many Indigenous communities, and 32 of them are primarily reliant on diesel for electricity generation, said Ben Whitby, program manager at PRIMED, a marine renewable energy research lab at the University of Victoria (UVic).

Besides being a costly and unreliable source of energy, there are environmental and community health considerations associated with shipping diesel to remote communities and running generators, Whitby said.

“It's not purely an economic question,” he said.

“You've got the emissions associated with diesel generation. There's also the risks of transporting diesel … and sometimes in a lot of remote communities on Vancouver Island, when deliveries of diesel don't come through, they end up with no power for three or four days at a time.”

The Heiltsuk First Nation, which suffered a 110,000-litre diesel spill in its territorial waters in 2016, is an unfortunate case study for the potential environmental, social, and cultural risks remote coastal communities face from the transport of fossil fuels along the rough shoreline.

A U.S. barge hauling fuel for coastal communities in Alaska ran aground in Gale Pass, fouling a sacred and primary Heiltsuk food-harvesting area.

There are a number of potential tidal energy sites near off-grid communities along the mainland, on both sides of Vancouver Island, and in the Haida Gwaii region, Whitby said.

Tidal energy exploits the natural ebb and flow of the coast’s tidal water using technologies like underwater kite turbines to capture currents, and is a highly predictable source of renewable energy, he said.

Micro-grids are self-reliant energy systems drawing on renewables from ocean, wave power resources, wind, solar, small hydro, and geothermal sources.

The community, rather than a public utility like BC Hydro, is responsible for demand management, storage, and generation with the power systems running independently or alongside backup fuel generators — offering the operators a measure of energy sovereignty.

Depending on proximity, cost, and renewable solutions, tidal energy isn’t necessarily the solution for every community, Whitby noted, adding that in comparison to hydro, tidal energy is still more expensive.

However, the best candidates for tidal energy are small, off-grid communities largely dependent on costly fossil fuels, Whitby said.

“That's really why the focus in B.C. is at a smaller scale,” he said.

“The time it would take (these communities) to recoup any capital investment is a lot shorter.

“And the cost is actually on a par because they're already paying a significant amount of money for that diesel-generated power.”

Lisa Kalynchuk, vice-president of research and innovation at UVic, said she was excited by the possibilities associated with tidal power, not only in B.C., but for all of Canada’s coasts.

“Canada has approximately 40,000 megawatts available on our three coastlines,” Kalynchuk said.

“Of course, not all this power can be realized, but it does exist, so that leads us to the hard part — tapping into this available energy and delivering it to those remote communities that need it.”

Challenges to establishing tidal power include the added cost and complexity of construction in remote communities, the storage of intermittent power for later use, the economic model, though B.C.’s streamlined regulatory process may ease approvals, the costs associated with tidal power installations, and financing for small communities, she said.

But smaller tidal energy projects can potentially set a track record for more nascent marine renewables, as groups like Marine Renewables Canada pivot to offshore wind development, at a lower cost and without facing the same social or regulatory resistance a large-scale project might face.

A successful tidal energy demo project was set up using a MAVI tidal turbine in Blind Channel to power a private resort on West Thurlow Island, part of the outer Discovery Islands chain wedged between Vancouver Island and the mainland, Whitby said.

The channel’s strong tidal currents, which routinely reach six knots and are close to the marina, proved a good site to test the small-scale turbine and associated micro-grid system that could be replicated to power remote communities, he said.

The mooring system, cable, and turbine were installed fairly rapidly and ran through the summer of 2017. The system is no longer active as provincial and federal funding for the project came to an end.

“But as a proof of concept, we think it was very successful,” Whitby said, adding micro-grid tidal power is still in the early stages of development.

Ideally, the project will be revived with new funding, so it can continue to act as a test site for marine renewable energy and to showcase the system to remote coastal communities that might want to consider tidal power, he said.

In addition to harnessing a local, renewable energy source and increasing energy independence, tidal energy micro-grids can fuel employment and new business opportunities, said Whitby.

The Blind Channel project was installed using the local supply chain out of nearby Campbell River, he said.

“Most of the vessels and support came from that area, so it was all really locally sourced.”

Funding from senior levels of government would likely need to be provided to set up a permanent tidal energy demonstration site, with recent tidal energy investments in Nova Scotia offering a model, or to help a community do case studies and finance a project, Whitby said.

Both the federal and provincial governments have established funding streams to transition remote communities away from relying on diesel.

But remote community projects funded federally or provincially to date have focused on more established renewables, such as hydro, solar, biomass, or wind.

The goal of B.C.’s Remote Community Energy Strategy, part of the CleanBC plan and aligned with zero-emissions electricity by 2035 targets across Canada, is to reduce diesel use for electricity 80 per cent by 2030 by targeting 22 of the largest diesel locations in the province, many of which fall along the coast.

The province has announced a number of significant investments to shift Indigenous coastal communities away from diesel-generated electricity, but they predominantly involve solar or hydro projects.

A situation that’s not likely to change, as the funding application guide in 2020 deemed tidal projects as ineligible for cash.

Yet, the potential for establishing tidal energy micro-grids in B.C. is good, Kalynchuk said, noting UVic is a hub for significant research expertise and several local companies, including ocean and river power innovators working in the region, are employing and developing related service technologies to install and maintain the systems.

“It also addresses our growing need to find alternative sources of energy in the face of the current climate crisis,” she said.

“The path forward is complex and layered, but one essential component in combating climate change is a move away from fossil fuels to other sources of energy that are renewable and environmentally friendly.”

 

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Opinion: The awesome, revolutionary electric-car revolution that doesn't actually exist

Ecofiscal Commission EV Policy Shift examines carbon pricing limits, endorsing signal boosters like subsidies, EV incentives, and coal bans, amid advisory changes and public pushback, to accelerate emissions cuts beyond market-based taxes and regulations.

 

Key Points

An updated stance recognizing carbon pricing limits and backing EV incentives, subsidies, and rules to reduce emissions.

✅ Carbon pricing plus subsidies, EV incentives

✅ Advisory shift; Jack Mintz departs

✅ Focus on emissions cuts, coal power bans

 

Something strange happened at the Ecofiscal Commission recently. Earlier this month, the carbon-tax advocacy group featured on its website as one of its advisers the renowned Canadian economist (and FP Comment columnist) Jack M. Mintz. The other day, suddenly and without fanfare, Mintz was gone from the website, and the commission’s advisory board.

Advisers come and advisers go, of course, but it turns out there was an impetus for Mintz’s departure. The Ecofiscal Commission in its latest report, dropped just before Canada Day, seemingly shifted from its position that carbon prices were so excellent at mimicking market forces that the tax could repeal and replace virtually the entire vast expensive gallimaufry of subsidies, caps, rules and regulations that are costing Canada a fortune in business and bureaucrats. As some Ecofiscal commissioners wrote just a few months ago, policies that “dictate specific technologies or methods for reducing emissions constrain private choice and increase costs” and were a bad idea.

But, in this latest report, the commission is now musing about the benefits of carbon-tax “signal boosters”: that is, EV subsidies and rules to, for instance, get people to start buying electric vehicles (EVs), as well as bans on coal-fired power. “Even well designed carbon pricing can have limitations,” rationalized the commission. Mintz said he had “misgivings” about the change of tack. He decided it best if he focus his advisory energies elsewhere.

It’s hard to blame the commission for falling like everyone else for the electric-car mania that’s sweeping the nation and the world. Electric cars offer a sexiness that dreary old carbon taxes can never hope to match — especially in light of a new Angus Reid poll last week that showed the majority of Canadians now want governments to shelve any plans for carbon taxes.

So far, because nobody’s really driving these miracle machines, said mania has been limited to breathless news reports about how the electric-vehicle revolution is about to rock our world. EVs comprise just two-tenths of a per cent of all passenger vehicles in North America, despite the media’s endless hype and efforts of green-obsessed governments to cover much of the price tag, like Ontario’s $14,000 rebate for Tesla buyers. In Europe, where virtue-signalling urban environmentalism is the coolest, they’re not feeling the vehicular electricity much more: EVs account for barely one per cent of personal vehicles in France, the U.K. and Germany. When Hong Kong cancelled Tesla rebates in April, sales fell to zero.

Going by the ballyhoo, you’d think EVs were at an inflection point and an unstoppable juggernaut. But it’s one that has yet to even get started. In his 2011 State of the Union address, then president Barack Obama predicted one million electric cars on the road by 2015. Four years later, there wasn’t even a third that many. California offered so many different subsidies for electric vehicles that low-income families could get rebates of up to US$13,500, but it still isn’t even close to reaching its target of having zero-emission vehicles make up 15 per cent of California auto sales by 2025, being stuck at three per cent since 2014. Ontario’s Liberal government last year announced to much laughter its plan to ensure that every family would have at least one zero-emission vehicle (ZEV) by 2024, and Quebec made a plan to make ZEVs worth 15.5 per cent of sales by 2020, while Ottawa’s 2035 EV mandate attracts criticism too. Let’s see how that’s going: Currently, ZEVs make up 0.16 per cent of new vehicle sales in Ontario and 0.38 per cent in Quebec.

The latest sensational but bogus EV news out last week was France’s government announcing the “end of the sale of gasoline and diesel cars by 2040,” and Volvo apparently announcing that as of 2019, all its models would be “electric.” Both announcements made international headlines. Both are baloney. France provided no actual details about this plan (will it literally become a crime to sell a gasoline car? Will hybrids, run partly on gasoline, be allowed?), but more importantly, as automotive writer Ed Wiseman pointed out in The Guardian, a lot will happen in technology and automotive use over the next 23 years that France has no way to predict, with changes in self-driving cars, public car-sharing and fuel technologies. Imagine making rules for today’s internet back in 1994.

Volvo, meanwhile, looked to be recycling and repackaging years-old news to seize on today’s infatuation with electric vehicles to burnish its now Chinese-owned brand. Since 2010, Volvo’s plan has been to focus on engines that were partly electric, with electric turbochargers, but still based on gasoline. Volvo doesn’t actually have an all-electric model, but the gasoline-swigging engine of its popular XC90 SUV is, partly, electrical. When Volvo said all its models would in two years be “electric,” it meant this kind of engine, not that it was phasing out the internal-combustion gasoline engine. But that is what it wanted reporters to think, and judging by all the massive and inaccurate coverage, it worked.

The real story being missed is just how pathetic things look right now for electric cars. Gasoline prices in the U.S. turned historically cheap in 2015 and stayed cheap, icing demand for gasless cars. Tesla, whose founder’s self-promotion had made the niche carmaker magically more valuable than powerhouses like Ford and GM, haemorrhaged US$12 billion in market value last week after tepid sales figures brought some investors back to Earth, even as the company’s new Model 3 began rolling off the line.

Not helping is that environmental claims about environmental cars are falling apart. In June, Tesla was rocked by a controversial Swedish study that found that making one of its car batteries released as much CO2 as eight years of gasoline-powered driving. And Bloomberg reported last week on a study by Chinese engineers that found that electric vehicles, because of battery manufacturing and charging by fossil-fuel-powered electricity sources, emit 50-per-cent more carbon than do internal-combustion engines. Still, the electric-vehicle hype not only continues unabated, it gets bigger and louder every day. If some car company figures out how to harness it, we’d finally have a real automotive revolution on our hands.

Kevin Libin, Financial Post

 

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New rules give British households right to sell solar power back to energy firms

UK Smart Export Guarantee enables households to sell surplus solar energy to suppliers, with dynamic export tariffs, grid payments, and battery-friendly incentives, boosting local renewable generation, microgeneration uptake, and decarbonisation across Britain.

 

Key Points

UK Smart Export Guarantee pays homes for exporting surplus solar power to the grid via supplier tariffs.

✅ Suppliers must pay households for exported kWh.

✅ Dynamic tariffs incentivize daytime solar generation.

✅ Batteries boost self-consumption and grid flexibility.

 

Britain’s biggest energy companies will have to buy renewable energy from their own customers through community-generated green electricity models under new laws to be introduced this week.

Homeowners who install new rooftop solar panels from 1 January 2020 will be able to lower their bills as many seek to cut soaring bills by selling the energy they do not need to their supplier.

A record was set at noon on a Friday in May 2017, when solar energy supplied around a quarter of the UK’s electricity, and a recent award that adds 10 GW of renewables indicates further growth.

However, solar panel owners are not always at home on sunny days to reap the benefit. The new rules will allow them to make money if they generate electricity for the grid.

Some 800,000 householders with solar panels already benefit from payments under a previous scheme. However, the subsidies were controversially scrapped by the government in April, with similar reduced credits for solar owners seen in other regions, causing the number of new installations to fall by 94% in May from the month before.

Labour accused the government last week of “actively dismantling” the solar industry. The sector will still struggle this summer as the change does not come in for another seven months, so homeowners have no incentive to buy panels this year.

Chris Skidmore, the minister for energy and clean growth, said the government wanted to increase the number of small-scale generators without adding the cost of subsidies to energy bills. “The future of energy is local and the new smart export guarantee will ensure households that choose to become green energy generators will be guaranteed a payment for electricity supplied to the grid,” he said. The government also hopes to encourage homes with solar panels to install batteries to help manage excess solar power on networks.

Greg Jackson, the founder of Octopus Energy, said: “These smart export tariffs are game-changing when it comes to harnessing the power of citizens to tackle climate change”.

A few suppliers, including Octopus, already offer to buy solar power from their customers, often setting terms for how solar owners are paid that reflect market conditions.

“They mean homes and businesses can be paid for producing clean electricity just like traditional generators, replacing old dirty power stations and pumping more renewable energy into the grid. This will help bring down prices for everyone as we use cheaper power generated locally by our neighbours,” Jackson said.

Léonie Greene, a director at the Solar Trade Association, said it was “vital” that even “very small players” were paid a fair price. “We will be watching the market like a hawk to see if competitive offers come forward that properly value the power that smart solar homes can contribute to the decarbonising electricity grid,” she said.

 

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Kenney holds the power as electricity sector faces profound change

Alberta Electricity Market Reform reshapes policy under the UCP, weighing a capacity market versus energy-only design, AESO reliability rules, renewables targets, coal phase-out, carbon pricing, consumer rates, and investment certainty before AUC decisions.

 

Key Points

Alberta Electricity Market Reform is the UCP plan to reassess capacity vs energy-only, renewables, and carbon pricing.

✅ Reviews capacity market timeline and AESO procurement

✅ Alters subsidies for renewables; slows wind and solar growth

✅ Adjusts industrial carbon levy; audits Balancing Pool losses

 

Hearings kicked off this week into the future of the province’s electricity market design, amid an electricity market reshuffle pledged by the province, but a high-stakes decision about the industry’s fate — affecting billions of dollars in investment and consumer costs — won’t be made inside the meeting room of the Alberta Utilities Commission.

Instead, it will take place in the office of Jason Kenney, as the incoming premier prepares to pivot away from the seismic reforms to Alberta’s electricity sector introduced by the Notley government.

The United Conservative Party has promised to adopt market-based policies, reflecting changes to how Alberta produces and pays for power, that will reset how the sector operates, from its approach to renewable energy and carbon pricing to re-evaluating the planned transition to an electricity “capacity market.”

“Every ball in electricity is up in the air right now,” Vittoria Bellissimo, of the Industrial Power Consumers Association of Alberta, said Tuesday during a break in the commission hearings.

Industry players are uncertain how quickly the UCP will change direction on power policies, but there’s little doubt Kenney’s government will take a strikingly different approach to the sector that keeps the lights on in Alberta.

“There’s some things they are going to change that are going to impact the electricity industry significantly,” said Duane Reid-Carlson, chief executive of consultancy EDC Associates.

“But I don’t think it’s going to be upheaval. I think the new government will proceed with caution because electricity is the foundation of our economy.”

Alberta’s electricity market has been turned on its head in recent years due to the recession, power prices dropping to near two-decade lows and several transformative policies initiated by the NDP.

The Notley government’s climate plan included an accelerated phase-out of all coal-fired generation and set targets for more renewable energy.

The most significant, but least-understood, move has been the planned shift to an electricity capacity market in 2021.

Under the strategy, generators will no longer solely be paid for the power produced and sold into the market; they will also receive payments for having electricity capacity available to the grid on demand.

The change was recommended by the Alberta Electric System Operator (AESO) as a way to reduce price volatility and provide more reliability than the current energy-only market, which some argue needs more competition to deliver better outcomes.

The independent system operator and industry officials have spent more than two years planning the transition since the switch was announced in late 2016. Proposed rules for the new system, outlining market changes, are now being discussed at the Alberta Utilities Commission hearings.

However, there is no ironclad guarantee the system remake will go ahead following the UCP’s election victory last week — amid calls to scrap the overhaul from a Calgary retailer — it plans to study the issue further — while other substantive electricity changes are already in store.

The UCP has promised to end “costly subsidies” to renewable energy developments and abandon the NDP’s pledge to have such energy sources make up 30 per cent of all power generation by 2030.

It will remove the planned phase-out of coal-fired electricity generation, although federal regulations for a 2030 prohibition remain in place.

It will also ask the auditor general to conduct a special audit of the massive losses sustained by the province’s Balancing Pool due to power purchase arrangements being handed back to the agency three years ago.

While Kenney has pledged to cancel the provincewide carbon tax, a levy on large industrial greenhouse gas emitters (such has power plants) will still be charged, although at a reduced rate of $20 a tonne.

The biggest unknown remains the power market’s structure, which underpins how the entire system operates.

The UCP has promised to consult on the shift to the capacity market and report back to Albertans within 90 days.

The complex issue may sound like an eye-glazer, but it will have a profound effect on industry investment, as well as how much consumers pay on their monthly electricity bills.

A number of industry players worry the capacity market will lead AESO to procure more power than is necessary, foisting unnecessary costs onto all Albertans.

“I still have concerns for what the impact on consumers is going to be,” said energy market consultant Sheldon Fulton. “I’d love to see the capacity market go away.”

An analysis by EDC Associates found the transition to a capacity market will procure additional electricity before it’s needed, requiring consumers to pay up to 40 per cent more — an extra $1.4 billion — for power in 2021-22 than under the existing market structure.

“I don’t think there’s any prejudged outcome,” said Blake Shaffer, former head trader at TransAlta Corp. and a fellow-in-residence at the C.D. Howe Institute.

“But it really matters about getting this right.”

Evan Bahry, executive director of the Independent Power Producers Society of Alberta, said the fact the UCP’s review was confined to just 90 days is helpful, as it avoids throwing the entire industry into a prolonged period of uncertainty.

As for the greening of Alberta’s power grid, amid growing attention to clean grids and storage, the demise of the NDP’s Renewable Electricity Program will likely slow down the rapid pace of wind and solar development. But it’s unlikely to stop the growth trend as costs continue to fall for such developments.

“Renewables over the last number of years have evolved to the point that they make sense on a subsidy-free basis,” said Dan Balaban, CEO of Greengate Power Corp., which has developed 480 MW of wind power in Alberta and Ontario.

“There is a path to clean electricity ahead.”

Chris Varcoe is a Calgary Herald columnist.

 

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Alberta Carbon tax is gone, but consumer price cap on electricity will remain

Alberta Electricity Rate Cap stays despite carbon tax repeal, keeping the Regulated Rate Option at 6.8 cents/kWh. Levy funds cover market gaps as the UCP reviews NDP policies to maintain affordable utility bills.

 

Key Points

Program capping RRO power at 6.8 cents/kWh, using levy funds to offset market prices while the UCP reviews policy.

✅ RRO cap fixed at 6.8 cents/kWh for eligible customers

✅ Levy funds pay generators when market prices exceed the cap

✅ UCP reviewing NDP policies to ensure affordable rates

 

Alberta's carbon tax has been cancelled, but a consumer price cap on electricity — which the levy pays for — is staying in place for now.

June electricity rates are due out on Monday, about four days after the new UCP government did away with the carbon charge on natural gas and vehicle fuel.

Part of the levy's revenue was earmarked by the previous NDP government to keep power prices at or below 6.8 cents per kilowatt hour under new electricity rules set by the province.

"The Regulated Rate Option cap of 6.8 cents/kWh was implemented by the previous government and currently remains in effect. We are reviewing all policies put in place by the former government and will make decisions that ensure more affordable electricity rates for job-creators and Albertans," said a spokesperson for Alberta's energy ministry in an emailed statement.

Albertans with regulated rate contracts and all City of Medicine Hat utility customers only pay that amount or less, though some Alberta ratepayers have faced deferral-related arrears.

If the actual market price rises above that, the difference is paid to generators directly from levy funds, a buffer that matters as experts warn prices are set to soar later this year.

The government has paid more than $55 million to utilities over the past year ending in March 2019, due to that electricity price cap being in place.

Alberta Energy says the price gap program will continue, at least for the time being, amid electricity policy changes being considered.

 

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