B.C. Hydro predicts 'bottleneck' as electric-vehicle demand ramps-up

Bimbo Canada VPPAs secure renewable electricity from RES wind and solar projects in Alberta, totaling 170MW, via 15-year contracts to offset consumption, advance RE100 goals, and drive decarbonization across bakeries, depots, and distribution centers.

Key Points

Virtual power purchase agreements sourcing wind and solar to offset Bimbo Canadas electricity and support RE100.

✅ 15-year RES contracts for Alberta wind and solar capacity

✅ Offsets electricity for bakeries, depots, and distribution centers

✅ Advances Grupo Bimbo RE100 target for 100% renewable power

Canada's oldest and largest bakery, Bimbo Canada, has signed two virtual power purchase agreements (VPPAs) with Renewable Energy Systems  (RES) to procure renewable electricity, similar to federal green electricity contracts advancing in Alberta, that will offset 100 per cent of the company's electricity consumption in Canada. The projects are expected to be fully operational by December, 2022.

Canada is the second market, alongside the United States, to enter into VPPAs, where companies like Amazon clean energy projects are expanding rapidly. These agreements, together with additional sustainability initiatives conducted around the world by the parent company Grupo Bimbo, will help the company offset 90 per cent of its global electricity consumption.

"Bimbo Canada is committed to nourishing a better world through productive sustainability practices," said Joe McCarthy, president of Bimbo Canada. "These agreements are the next big step in reducing our environmental footprint, as peers such as Arvato's first solar plant signal industry momentum, and becoming leaders in responsible stewardship of the environment."

The 15-year agreements with RES will support the commercial development of two renewable energy projects in southern Alberta, consisting of wind and solar projects, similar to RBC's solar PPA announced in the region, totaling 170MW of installed capacity. Under these two agreements, Bimbo Canada will procure the benefit of approximately 50MW of renewable electricity to offset electricity consumption for its 16 bakeries, 14 distribution centres and 191 depots. Commercial development for the wind and solar farms will be finalized later this year by RES Canada and the projects are expected to be fully operational by the end of next year.  

"RES is proud that its Alberta wind and solar projects, amid growth such as a $200M Alberta wind farm led by a Buffett-linked firm, are helping Bimbo Canada meet its sustainability initiatives," said Peter Clibbon, RES Senior VP of Development. "It's a win-win situation with our projects delivering competitive wind and solar electricity to Bimbo Canada, and while providing our host communities with long-term tax and landowner income."

In 2018, Grupo Bimbo joined RE100, a global initiative led by The Climate Group and in partnership with Carbon Disclosure Project (CDP) and committed to operating with 100 per cent renewable electricity by 2025. As a leading supplier of fresh-baked goods and snacks for Canadian families, these agreements support the company's targets and builds upon many successful past sustainability initiatives, as market activity by Canadian Solar project sales continues nationwide.

"The renewable electricity initiatives in our operations respond to Grupo Bimbo's deep commitment that we have had for many decades globally with the planet and with present and future generations," said Daniel Servitje, global CEO of Grupo Bimbo. "With this announcement, we have achieved another important milestone for the company on our journey towards becoming 100 per cent renewable electricity by 2025."

Last year, Bimbo Canada reduced product waste and exceeded its product waste reduction target by 18 per cent, which saved four million units of products from landfills. The company also eliminated 174 metric tonnes of plastic per year (equal to 43 adult elephants) through several packaging optimization initiatives.

Earlier this year, Bimbo Canada signed the Canada Plastics Pact (CPP) and, amid a broader push for clean energy exemplified by Edmonton rooftop solar installations, earned its first ENERGY STAR certification for its Hamilton, Ontario bakery. The company will continue to work towards other initiatives that fulfill its commitment to be a sustainable, highly productive and deeply humane company.

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AP Renewables Inc. Climate Bond Award recognizes Asia-Pacific project finance, with ADB and CNBC citing the first Climate Bond, geothermal refinancing in local currency, and CGIF-backed credit enhancement for emerging markets.

Key Points

An award for APRI's certified Climate Bond, highlighting ADB-backed financing and geothermal assets across Asia-Pacific.

✅ First Climate Bond for a single project in an emerging market

✅ ADB credit enhancement and CGIF risk participation

✅ Refinanced Tiwi and MakBan geothermal assets via local currency

The Asian Development Bank (ADB) and CNBC report having given the Best Project For Corporate Finance Transaction award to a the renewable energy arm of Aboitiz Power, AP Renewables Inc. (APRI), for its innovative and impactful solutions to key development challenges.

In March 2016, APRI issued a local currency bond equivalent to $225 million to refinance sponsor equity in Tiwi and MakBan. ADB said it provided a partial credit enhancement for the bond as well as a direct loan of $37.7 million, a model also seen in EIB long-term financing for Indian solar projects.

The bond issuance was the first Climate Bond—certified by the Climate Bond Initiative—in Asia and the Pacific and the first ever Climate Bond for a single project in an emerging market.

“The project reflects APRI’s commitment to renewable energy, as outlined in the IRENA report on decarbonising energy in the region,” ADB said in a statement posted on its website.

The project also received the 2016 Bond Deal of the Year by the Project Finance International magazine of Thomson Reuters, Asia Pacific Bond Deal of the Year from IJGlobal and the Best Renewable Deal of the Year by Alpha Southeast Asia, reflecting momentum alongside large-scale energy projects in New York reported elsewhere.

ADB’s credit enhancement was risk-participated by the Credit Guarantee Investment Facility (CGIF), a multilateral facility established by Asean + 3 governments and ADB to develop bond markets in the region.

APRI is a subsidiary of AboitizPower, one of Philippines’ biggest geothermal energy producers, and the IRENA study on the Philippines' electricity crisis provides broader context as it owns and operates the Tiwi and Makiling Banahaw (MakBan) geothermal facilities, the seventh and fourth largest geothermal power stations in the world, respectively.

“The awards exemplify the ever-growing importance of the private sector in implementing development work in the region,” ADB’s Private Sector Operations Department Director General Michael Barrow said.

“Our partners in the private sector provide unique solutions to development challenges — from financing to technical expertise — and today’s winners are perfect examples of that,” he added.

The awarding ceremony took place in Yokohama, Japan during an event co-hosted by CNBC and ADB at the 50th Annual Meeting of ADB’s Board of Governors.

The awards focus on highly developmental transactions and underline the important work ADB clients undertake in developing countries in Asia and the Pacific.

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Canada EV demand surge is driven by record gas prices, zero-emission policies, and tight dealer inventory, while microchip shortages, ZEV mandates abroad, and lithium supply concerns extend wait times for new and used models.

Key Points

Canada EV demand surge is rising interest in zero-emission cars due to high gas prices and limited EV supply.

✅ Gas at $2/litre spurs zero-emission interest

✅ Dealer inventory scarce; waits up to 3 years

✅ Microchip and lithium constraints limit output

Price shock at the pump is driving  Canadians toward buying an ev. But manufacturers are having trouble keeping up with consumer demand, even as the U.S. auto sector pivots to EVs across North America.

In parts of the country, gas prices exceeded $2 per litre last month amid strong global demand for oil combined with Russia's invasion of Ukraine. Halifax-based electric vehicle salesperson Jeremie Bernardin said he's noticed an explosion of interest in zero-emission vehicles since the price of fuel started to take off.

"I think there's a lot of people that were considering electric vehicles for a very long time, and they needed that extra little push," Bernardin, who is also the president of the Electric Vehicle Association of Atlantic Canada, where Atlantic EV demand has lagged the national average, told CTVNews.ca over the phone on Wednesday.

With so few electric vehicles on dealership lots, Canadians looking to buy a brand-new zero-emission car will have to put down a deposit and get onto a waiting list. Bernardin said the wait times can be as long as three years, depending on the manufacturer and the dealership.

Tesla, which makes Canada's best-selling electric car according to the automotive publication Motor Illustrated, says delivery times for its vehicles range between three months to one year, depending on the model. But some manufacturers like Nissan have already completely sold out of their electric vehicle inventory for the 2022 model year, though recent EV assembly deals in Canada aim to expand capacity over time.

Shortages of electric vehicles have been around long before the recent spike in gas prices. In March 2021, a report commissioned by Transport Canada found that more than half of Canadian dealerships had no electric vehicles in stock. The report also found that wait times exceeded six months at 31 per cent of dealerships that had no zero-emission cars in their inventory.

Interest in used electric vehicles has also surged amid the high gas prices. Used car marketplace AutoTrader.ca says searches for electric cars in March 2022 increased 89 per cent compared to the previous year, while the number of inquiries sent to electric vehicle sellers through its platform jumped 567 per cent.

"It's understandable that when the gas prices are expensive, consumers are looking to buy and get into electric vehicles, though upfront cost remains a major barrier for many buyers today," Baris Akyurek, AutoTrader.ca's director of marketing intelligence, told CTVNews.ca in a phone interview on Wednesday.

SUPPLY CHAIN ISSUES PERSIST
The surging interest in electric vehicles also comes at a time when pandemic-induced shortages of microchips have been affecting the automotive industry at large since late 2020. Modern automobiles can have hundreds of microchips that control everything from the air conditioning to the power steering system, and a shortage of these crucial components have resulted in fewer vehicles being manufactured.

"Electric vehicles are subject to supply chain issues, just like anything else. Right now, the COVID pandemic has disrupted global supply chains. The auto industry specifically is seeing a microchip shortage that it's been struggling with for the past year or two. So those things are at play," said Joanna Kyriazis, senior policy advisor with Simon Fraser University’s Clean Energy Canada, in a phone interview with CTVNews.ca on Tuesday.

On top of that, Kyriazis says more than 80 per cent of the world's supply of electric vehicles are shipped to consumers in China and the European Union.

China has a strict zero-emission vehicle (ZEV) mandate that requires automakers to ensure that a certain minimum percentage of their vehicles are electric or hydrogen-powered. In Europe, automakers are also forced to sell more electric vehicles there in order to meet the EU's stringent fleetwide emissions standards, and in Canada, Ottawa is preparing EV sales regulations to guide adoption in the coming years.

"We don't have the same aggressive regulations in place yet to really force automakers to prioritize the Canadian market when they're deciding where to allocate their EV inventory and where to sell EVs," said Kyriazis, though Ottawa's 2035 EV mandate remains debated by some industry observers today.

Kyriazis also said she believes it's possible that a shortage of lithium and other minerals required for battery production could be a potential issue within the next five years.

"But my understanding is that the global market is not hitting a supply crunch just yet," she said. "There could be a near-term supply issue. But we're not there yet."

In order to ensure adequate supply of minerals for battery production, the federal government in its most recent budget committed to providing up to $3.8 billion over eight years to create "Canada's first critical minerals strategy." The strategy is aimed at boosting extraction and production of Canadian nickel, lithium and other minerals used as components in electric vehicles and their batteries, and it aligns with opportunities for Canada-U.S. collaboration as companies electrify.

"Canada has a lot of natural resources and a lot of experience with natural resource extraction. We really can stand to be a leader in battery production," said Harry Constatine, president of the Vancouver Electric Vehicles Association, in an interview with CTVNews.ca over the phone on Monday.

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France Plug-In Electric Car Sales September 2023 show rapid EV adoption: 45,872 plug-ins, 30% market share, BEV 19.6%, PHEV 10.2%, with Tesla Model Y leading registrations amid sustained year-over-year growth.

Key Points

France registered 45,872 plug-ins in September 2023, a 30% share, with BEVs at 19.6% and PHEVs at 10.2%.

✅ Tesla Model Y led BEVs with 5,035 registrations in September

✅ YTD plug-in share 25%; BEV 15.9%, PHEV 9.1% across passenger cars

✅ Total market up 9% YoY to 153,916; plug-ins up 35% YoY

New passenger car registrations in France increased in September by nine percent year-over-year to 153,916, mirroring global EV market growth trends, taking the year-to-date total to 1,286,247 (up 16 percent year-over-year).

The market has been expanding every month this year (recovering slightly from the 2020-2022 collapse and the period when EU EV share grew during lockdowns across the bloc) and also is becoming more and more electrifying thanks to increasing plug-in electric car sales.

According to L’Avere-France, last month 45,872 new passenger plug-in electric cars were registered in France (35 percent more than a year ago), which represented almost 30 percent of the market, aligning with the view that the age of electric cars is arriving ahead of schedule. That's a new record share for rechargeable cars and a noticeable jump compared to just over 24 percent a year ago.

What's even more impressive is that passenger all-electric car registrations increased to over 30,000 (up 34 percent year-over-year), taking a record share of 19.6 percent of the market. That's basically one in five new cars sold, and in the U.S., plug-ins logged 19 billion electric miles in 2021 as a benchmark.

Plug-in hybrids are also growing (up 35% year-over-year), and with 15,699 units sold, accounted for 10.2 percent of the market (a near record value).

Plug-in car sales in France – September 2023

So far this year, more than 341,000 new plug-in electric vehicles have been registered in France, including over 321,000 passenger plug-in cars (25 percent of the market), while in the U.S., EV sales are soaring into 2024 as well.

Plug-in car registrations year-to-date (YOY change):

• Passenger BEVs: 204,616 (up 45%) and 15.9% market share
• Passenger PHEVs: 116,446 (up 31%) and 9.1% market share
• Total passenger plug-ins: 321,062 (up 40%) and 25% market share
• Light commercial BEVs: 20,292 (up 111%)
• Light commercial PHEVs: 281 (down 38%)
• Total plug-ins: 341,635 (up 43%)

For reference, in 2022, more than 346,000 new plug-in electric vehicles were registered in France (including almost 330,000 passenger cars, which was 21.5 percent of the market).

We can already tell that the year 2023 will be very positive for electrification in France, with a potential to reach 450,000 units or so, though new EV incentive rules could reshape the competitive landscape.

Models
In terms of individual models, the Tesla Model Y again was the most registered BEV with 5,035 new registrations in September. This spectacular result enabled the Model Y to become the fifth best-selling model in the country last month (Tesla, as a brand, was seventh).

The other best-selling models are usually small city cars - Peugeot e-208 (3,924), Dacia Spring (2,514), Fiat 500 electric (2,296), and MG4 (1,945), amid measures discouraging Chinese EVs in France. Meanwhile, the best-selling electric Renault - the Megane-e - was outside the top five BEVs, which reveals to us how much has changed since the Renault Zoe times.

After the first nine months of the year, the top three BEVs are the Tesla Model Y (27,458), Dacia Spring (21,103), and Peugeot e-208 (19,074), slightly ahead of the Fiat 500 electric (17,441).

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World Bank Offshore Wind Investment drives renewables and clean energy in developing countries, funding floating turbines and shallow-water foundations to replace fossil fuels, expand grids, and scale climate finance across Latin America, Africa, and Asia.

Key Points

A World Bank program funding offshore wind to speed clean power, cut fossil fuels, and expand grids in emerging markets.

✅ US$80bn to 565 onshore wind projects since 1995

✅ Pilot funds offshore wind in Asia, Africa, Latin America

✅ Floating turbines and shallow-water foundations enable deep resources

Europe and the United States now accept onshore wind power as the cheapest way to generate electricity, and U.S. lessons from the U.K. are informing policy discussions. But this novel technology still needs subsidising before some developing countries will embrace it. Enter the World Bank.

A total of US$80 billion in subsidies from the Bank has gone over 25 years to 565 developing world onshore wind projects, to persuade governments to invest in renewables rather than rely on fossil fuels.

Central and Latin American countries have received the lions share of this investment, but the Asia Pacific region and Eastern Europe have also seen dozens of Bank-funded developments. Now the fastest-growing market is in Africa and the Middle East, where West African hydropower support can complement variable wind resources.

But while continuing to campaign for more onshore wind farms, the World Bank in 2019 started encouraging target countries to embrace offshore wind as well. This uses two approaches: turbines in shallow water, which are fixed to the seabed, and also a newer technology, involving floating turbines anchored by cables at greater depth.

The extraordinary potential for offshore wind, which is being commercially developed very fast in Europe, including the UK's offshore expansion, China and the U.S. offshore wind sector today as well, is now seen by the Bank as important for countries like Vietnam which could harness enough offshore wind power to provide all its electricity needs.

Other countries it has identified with enormous potential for offshore wind include Brazil, Indonesia, India, the Philippines, South Africa and Sri Lanka, all of them countries that need to keep building more power stations to connect every citizen to the national grid.

The Bank began investing in wind power in 1995, with its spending reaching billions of dollars annually in 2011. The biggest single recipient has been Brazil, receiving US$24.2 bn up to the end of 2018, 30 per cent of the total the Bank has invested worldwide.

Many private companies have partnered with the Bank to build the wind farms. The biggest single beneficiary is Enel, the Italian energy giant, which has received US$6.1 bn to complete projects in Brazil, Mexico, South Africa, Romania, Morocco, Bulgaria, Peru, and Russia.

Among the countries now benefitting from the Banks continuing onshore wind programme are Egypt, Morocco, Senegal, Jordan, Vietnam, Thailand, Indonesia and the Philippines.

Offshore wind now costs less than nuclear power, and global costs have fallen enough to compete in most countries with fossil fuels. Currently the fastest-growing industry in the world, it continued to grow despite Covid-19 across most markets.

Persistent coal demand

Particularly in Asia, some countries are continuing to burn large quantities of coal and are considering investing in yet more fossil fuel generation unless they can be persuaded that renewables are a better option, with an offshore wind $1 trillion outlook underscoring the scale.

Last year the World Bank began a pilot scheme to explore funding investment in offshore wind in these countries. Launching the scheme Riccardo Puliti, a senior director at the Bank, said: Offshore wind is a clean, reliable and secure source of energy with massive potential to transform the energy mix in countries that have great wind resources.

We have seen it work in Europe we can now make use of global experience to scale up offshore wind projects in emerging markets.

Using data from the Global Wind Atlas, the Bank calculated that developing countries with shallow waters like India, Turkey and Sri Lanka had huge potential with fixed turbines, while others the Philippines and South Africa, for example would need floating foundations to reach greater depths, up to 1,000 metres.

For countries like Vietnam, with a mix of shallow and deep water, wind power could solve their entire electricity needs. In theory offshore wind power could produce ten times the amount of electricity that the country currently gets from all its current power stations, the Bank says.

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Nevada EV Charging Plan will invest $100 million in highway, urban, and public charging, bus depots, and Lake Tahoe sites, advancing NV Energy's SB 448 goals for clean energy, air quality, equity, and tourism recovery.

Key Points

Program invests $100M in EV infrastructure under SB 448, led by NV Energy, expanding clean charging across Nevada.

✅ $100M for statewide charging over 3 years

✅ 50% invested in overburdened communities

✅ Supports SB 448, climate and air quality goals

The Public Utilities Commission of Nevada approved a $100 million program that will deploy charging stations for electric vehicles (EVs) along highways, in urban areas, at public buildings, in school and transit bus depots, and at Red Rocks and Lake Tahoe, as charging networks compete to expand access. Combined with the state's clean vehicle standards and its aggressive renewable energy requirements, this means cars, trucks, buses, and boats in Nevada will be powered by increasingly clean electricity, reflecting how electricity is changing across the country.

The “Economic Recovery Transportation Electrification Plan” proposed by NV Energy, aligning with utilities' bullish plans for EV charging, was required by Senate Bill (SB) 448 (Brooks). Nevada’s tourism-centric economy was hit hard by the pandemic, and, as an American EV boom accelerates nationwide, the $100 million investment in charging infrastructure for light, medium, and heavy-duty EVs over the next three years was designed to provide much needed economic stimulus without straining the state’s budget.

Half of those investments will be made in communities that have borne a disproportionate share of transportation pollution and have suffered most from COVID-19—a disease that is made more deadly by exposure to local air pollution—and, amid evolving state grid challenges that planners are addressing, ensuring equitable deployment will help protect reliability and health.

SB 448 also requires NV Energy to propose subsequent “Transportation Electrification Plans” to keep the state on track to meet its climate, air quality, and equity goals, recognizing that a much bigger grid may be needed as adoption grows. A  report from MJ Bradley & Associates commissioned by NRDC, Southwest Energy Efficiency Project, and Western Resource Advocates demonstrates Nevada could realize $21 billion in avoided expenditures on gasoline and maintenance, reduced utility bills, and environmental benefits, with parallels to New Mexico's projected benefits highlighted in recent analyses, by 2050 if more drivers make the switch to EVs.

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