Vancouver's Reversal on Gas Appliances

Western Canada Hydropower Drought strains British Columbia and Manitoba as reservoirs hit historic lows, cutting hydroelectric output and prompting power imports, natural gas peaking, and grid resilience planning amid climate change risks this winter.

Key Points

Climate-driven reservoir lows cut hydro in B.C. and Manitoba, prompting imports and backup gas to maintain reliability.

✅ Reservoirs at multi-year lows cut hydro generation capacity

✅ BC Hydro and Manitoba Hydro import electricity for reliability

✅ Natural gas turbines used; climate change elevates drought risk

Severe drought conditions in Western Canada are compelling two hydroelectricity-dependent provinces, British Columbia and Manitoba, to import power from other regions. These provinces, known for their reliance on hydroelectric power, are facing reduced electricity production due to low water levels in reservoirs this autumn and winter as energy-intensive customers encounter temporary connection limits.

While there is no immediate threat of power outages in either province, experts indicate that climate change is leading to more frequent and severe droughts. This trend places increasing pressure on hydroelectric power producers in the future, spurring interest in upgrading existing dams as part of adaptation strategies.

In British Columbia, several regions are experiencing "extreme" drought conditions as classified by the federal government. BC Hydro spokesperson Kyle Donaldson referred to these conditions as "historic," and a first call for power highlights the strain, noting that the corporation's large reservoirs in the north and southeast are at their lowest levels in many years.

To mitigate this, BC Hydro has been conserving water by utilizing less affected reservoirs and importing additional power from Alberta and various western U.S. states. Donaldson confirmed that these measures would persist in the upcoming months.

Manitoba is also facing challenges with below-normal levels in reservoirs and rivers. Since October, Manitoba Hydro has occasionally relied on its natural gas turbines to supplement hydroelectric production as electrical demand could double over the next two decades, a measure usually reserved for peak winter demand.

Bruce Owen, a spokesperson for Manitoba Hydro, reassured that there is no imminent risk of a power shortage. The corporation can import electricity from other regions, similar to how it exports clean energy in high-water years.

However, the cost implications are significant. Manitoba Hydro anticipates a financial loss for the current fiscal year, with more red ink tied to emerging generation needs, the second in a decade, with the previous one in 2021. That year, drought conditions led to a significant reduction in the company's power production capabilities, resulting in a $248-million loss.

The 2021 drought also affected hydropower production in the United States. The U.S. Department of Energy reported a 16% reduction in overall generation, with notable decreases at major facilities like Nevada's Hoover Dam, where production dropped by 25%.

Drought has long been a major concern for hydroelectricity producers, and they plan their operations with this risk in mind. Manitoba's record drought in 1940-41, for example, is a benchmark for Manitoba Hydro's operational planning to ensure sufficient electricity supply even in extreme low-water conditions.

Climate change, however, is increasing the frequency of such rare events, highlighting the need for more robust backup systems such as new turbine investments to enhance reliability. Blake Shaffer, an associate professor of economics at the University of Calgary specializing in electricity markets, emphasized the importance of hydroelectric systems incorporating the worsening drought forecasts due to climate change into their energy production planning.

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Africa Energy Investment must quadruple, says IEA, to deliver electricity access via grids, mini-grids, and stand-alone solar PV, wind, hydropower, natural gas, and geothermal, targeting $120 billion annually and 2.5% of GDP.

Key Points

Africa Energy Investment funds reliable, low-carbon electricity via grids, mini-grids, and renewables.

✅ Requires about $120B per year, or 2.5% of GDP

✅ Mix: grids, mini-grids, stand-alone solar PV and wind

✅ Targets reliability, economic growth, and electricity access

African countries will need to quadruple their rate of investment in their power sectors for the next two decades to bring reliable electricity to all Africans, as outlined in the IEA’s path to universal access analysis, an International Energy Agency (IEA) study published on Friday said.

If African countries continue on their policy trajectories, 530 million Africans will still lack electricity in 2030, the IEA report said. It said bringing reliable electricity to all Africans would require annual investment of around $120 billion and a global push for clean, affordable power to mobilize solutions.

“We’re talking about 2.5% of GDP that should go into the power sector,” Laura Cozzi, the IEA’s Chief Energy Modeller, told journalists ahead of the report’s launch. “India’s done it over the past 20 years. China has done it, with solar PV growth outpacing any other fuel, too. So it’s something that is doable.”

Taking advantage of technological advances and optimizing natural resources, as highlighted in a renewables roadmap, could help Africa’s economy grow four-fold by 2040 while requiring just 50% more energy, the agency said.

Africa’s population is currently growing at more than twice the global average rate. By 2040, it will be home to more than 2 billion people. Its cities are forecast to expand by 580 million people, a historically unprecedented pace of urbanization.

While that growth will lead to economic expansion, it will pile pressure on power sectors that have already failed to keep up with demand, with the sub-Saharan electricity challenge intensifying across the region. Nearly half of Africans - around 600 million people - do not have access to electricity. Last year, Africa accounted for nearly 70% of the global population lacking power, a proportion that has almost doubled since 2000, the IEA found.

Some 80% of companies in sub-Saharan Africa suffered frequent power disruptions in 2018, leading to financial losses that curbed economic growth.

The IEA recommended changing how power is distributed, with mini-grids and stand-alone systems like household solar playing a larger role in complementing traditional grids as targeted efforts to accelerate access funding gain momentum.

According to IEA Executive Director Fatih Birol, with the right government policies and energy strategies, Africa has an opportunity to pursue a less carbon-intensive development path than other regions.

“To achieve this, it has to take advantage of the huge potential that solar, wind, hydropower, natural gas and energy efficiency offer,” he said.

Despite possessing the world’s greatest solar potential, Africa boasts just 5 gigawatts of solar photovoltaics (PV), or less than 1% of global installed capacity, a slow green transition that underscores the scale of the challenge, the report stated.

To meet demand, African nations should add nearly 15 gigawatts of PV each year through 2040. Wind power should also expand rapidly, particularly in Ethiopia, Kenya, Senegal and South Africa. And Kenya should develop its geothermal resources.

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Yukon Renewable Energy Funding backs wind turbines, grid-scale battery storage, and transmission line upgrades, cutting diesel dependence, lowering greenhouse gas emissions, and strengthening Yukon Energy's isolated grid for remote communities, local jobs, and future growth.

Key Points

Federal support for Yukon projects adding wind, battery storage, and grid upgrades to cut diesel use and emissions.

✅ Three 100 kW wind turbines will power Destruction Bay.

✅ 8 MW battery storage smooths peaks and reduces diesel.

✅ Mayo-McQuesten 138 kV line upgrade boosts reliability.

Kluane First Nation in Yukon will receive a total of $3.1 million in funding from the federal government to install and operate wind turbines that will help reduce the community’s diesel reliance.

According to a release, the community will integrate three 100-kilowatt turbines in Destruction Bay, Yukon, providing a renewable energy source for their local power grid that will reduce greenhouse gas emissions and create local jobs in the community.

A $2-million investment from Natural Resources Canada came from the Clean Energy for Rural and Remote Communities Program, part of the Government of Canada’s Investing in Canada infrastructure plan, which supports green energy solutions across jurisdictions. Crown-Indigenous Relations’ and Northern Affairs Canada also contributed a $1.1-million investment from the Northern REACHE Program.

Also, the Government of Canada announced more than $39.2 million in funding for two Yukon Energy projects that will increase the reliability of Yukon’s electrical grid, including exploration of a potential connection to the B.C. grid to bolster resiliency, and help build the robust energy system needed to support future growth. The investment comes from the government’s Green Infrastructure Stream (GIS) of the Investing in Canada infrastructure plan.

Project 1: Grid-scale battery storage

The federal government is investing $16.5 million in Yukon Energy’s construction of a new battery storage system in Yukon. Once completed, the 8 MW battery will be the largest grid-connected battery in the North, and one of the largest in Canada, alongside major Ontario battery projects underway.

The new battery is a critical investment in Yukon Energy’s ability to meet growing demands for power and securing Yukon’s energy future. As an isolated grid, one of the largest challenges Yukon Energy faces is meeting peak demands for power during winter months, as electrification grows with EV adoption in the N.W.T. and beyond.

When complete, the new system will store excess electricity generated during off-peak periods, complementing emerging vehicle-to-grid integration approaches, and provide Yukoners with access to more power during peak periods. This new energy storage system will create a more reliable power supply and help reduce the territory’s reliance on diesel fuel. Over the 20-year life of project, the new battery is expected to reduce carbon emissions in Yukon by more than 20,000 tonnes.

A location for the new battery energy storage system has not been identified. Yukon Energy will begin permitting of the project in 2020 with construction targeted to be complete by mid-2023.

Project 2: Replacing and upgrading the Mayo to McQuesten Transmission Line

Yukon Energy has received $22.7 million in federal funding to proceed with Stage 1 of the Stewart to Keno City Transmission Project – replacing and upgrading the 65 year-old transmission line between Mayo and McQuesten. The project also includes the addition of system protection equipment at the Stewart Crossing South substation. The Yukon government, through the Yukon Development Corporation, has already provided $3.5 million towards planning for the project.

Replacing the Mayo to McQuesten transmission line is critical to Yukon Energy’s ability to deliver safe and reliable electricity to customers in the Mayo and Keno regions, mirroring broader regional transmission initiatives that enhance grid resilience, and to support economic growth in Yukon. The transmission line has reached end-of-life and become increasingly unreliable for customers in the area.

The First Nation of Na-Cho Nyak Dun has expressed their support of this project. The project has also been approved by the Yukon Environmental and Socio-Economic Assessment Board.

Yukon Energy will begin replacing and upgrading the 31 km transmission line between Mayo and McQuesten in 2020. Construction is expected to be complete in late 2020. When finished, the new 138 kV transmission line will provide more reliable electricity to customers in the Mayo and Keno regions and be equipped to support industrial growth and development in the area, including the Victoria Gold Mine, with renewable power from the Yukon grid.

Planning work for the remainder of the Stewart to Keno City Transmission Project has been completed. Yukon Energy continues to explore funding opportunities that are needed to proceed with other stages of the project.

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BC Hydro Review Phase 2 Recommendations advance affordable electricity rates, clean energy adoption, electrification, and demand response, supporting heat pumps, EV charging, and low-income programs to cut emissions and meet CleanBC climate targets.

Key Points

Policies to keep rates affordable and accelerate clean electrification via heat pump, EV, and demand response incentives.

✅ Optional rates, heat pump and EV charging incentives

✅ Demand response via controllable devices lowers peak loads

✅ Expanded support for lower-income customers and affordability

The Province and BC Hydro have released recommendations from Phase 2 of the BC Hydro Review to keep rates affordable, including through a provincial rate freeze initiative that supported households, and encourage greater use of clean, renewable electricity to reduce emissions and achieve climate targets.

“Keeping life affordable for people is a key priority of our government,” said Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation. “Affordable electricity rates not only help British Columbians, they help ensure the price of electricity remains competitive with other forms of energy, supporting the transition away from fossil fuels to clean electricity in our homes and buildings, vehicles and businesses.”

While affordable rates have always been important to BC Hydro customers, amid proposals such as a modest rate increase under review, expectations are also changing as customers look to have more choice and control over their electricity use and opportunities to save money.

Guided by input from a panel of external energy industry experts, government and BC Hydro have developed recommendations under Phase 2 of the BC Hydro Review to reduce electricity costs for individuals and businesses, even as a 3.75% increase has been discussed, as envisioned by the CleanBC climate strategy. This is also in alignment with TogetherBC, the Province’s poverty reduction strategy, and its guiding principle of affordability.

“As we promote increased use of electricity in B.C. to achieve our climate targets, we need to continue to focus on keeping electricity rates affordable, especially for lower-income families,” said Nicholas Simons, Minister of Social Development and Poverty Reduction. “Through the BC Hydro Review, and continuing engagement with stakeholders and organizations to follow, we are committed to finding ways to keep rates affordable, so everyone has access to the benefits of B.C.’s clean, reliable electricity.”

Recommendations include having BC Hydro consider providing more support for lower-income BC Hydro customers, informed by a recent surplus report that highlighted funding opportunities. These include incentives and exploring optional rates for customers to adopt electric heat pumps, and facilitating customer adoption of controllable energy devices that provide BC Hydro the ability to offer incentives in return for helping to manage a customer’s electricity use. 

Electrification of B.C.’s economy helps customers reduce their carbon footprint and supports the Province’s CleanBC climate strategy, and is an important part of keeping electricity affordable even amid higher BC Hydro rates in recent periods. As more customers make the switch from fossil fuels to using clean electricity in their homes, vehicles and businesses, BC Hydro’s electricity sales will increase, providing more revenue that helps keep rates affordable for everyone.

“We’re making the transition to a cleaner future more affordable for people and businesses across British Columbia through our CleanBC plan,” said George Heyman, Minister of Environment and Climate Change Strategy. “By working with BC Hydro and other partners, we’re making sure everyone has access to clean, affordable electricity to power technologies like high-efficiency heat pumps and electric vehicles that will reduce harmful pollution and improve our homes, buildings and communities.”

Chris O’Riley, president and CEO, BC Hydro, said: “Given the impact of COVID-19 on British Columbians, affordability is more important than ever. That’s why we are committed to continuing to keep rates affordable and offering customers more options that allow them to save on their bills while using clean electricity.”

In July 2021, the Province announced a first set of recommendations from Phase 2 of the BC Hydro Review amid a 3% rate increase approved by regulators. The next announcement from Phase 2 will include recommendations to increase the number of electric vehicles on the road.

In addition, as part of the Draft Action Plan to advance the Declaration on the Rights of Indigenous Peoples Act, the Province is proposing to engage with Indigenous peoples to identify and support new clean energy opportunities related to CleanBC, the BC Hydro Review and the British Columbia Utilities Commission Indigenous Utilities Regulation Inquiry, and to consider lessons from Ontario's hydro policy experiences as appropriate.

B.C. is the cleanest electricity-generation jurisdiction in western North America, with an average of 98% of its electricity generation coming from clean or renewable resources.

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India Nuclear Generation Shortfall highlights missed five-year plan targets due to uranium fuel scarcity, commissioning delays at Kudankulam, PFBR slippage, and PHWR equipment bottlenecks under IAEA safeguards and domestic supply constraints.

Key Points

A gap between planned and actual nuclear output due to fuel shortages, reactor delays, and first-of-a-kind hurdles.

✅ Fuel scarcity pre-2009-10 constrained unsafeguarded reactors.

✅ Kudankulam delays from protests, litigation, and remobilisation.

✅ FOAK PHWR equipment bottlenecks and PFBR slippage.

A lack of available domestically produced nuclear fuel and delays in constructing and commissioning nuclear power plants, including first-of-a-kind plants and the Prototype Fast Breeder Reactor (PFBR), meant that India failed to meet its nuclear generation targets under the governmental plans over the decade to 2017, even as global project milestones were being recorded elsewhere.

India's nuclear generation target under its 11th five-year plan, covering the period 2007-2012, was 163,395 million units (MUs) and the 12th five-year Plan (2012-17) was 241,748 MUs, Minister of state for the Department of Atomic Energy and the Prime Minister's Office Jitendra Singh told parliament on 6 February. Actual nuclear generation in those periods was 109,642 MUs and 183,488 MUs respectively, Singh said in a written answer to questions in the Lok Sabah.

Singh attributed the shortfall in generation to a lack of availability of the necessary quantities of domestically produced fuel during the three years before 2009-2010; delays to the commissioning of two 1000 MWe nuclear power plants at Kudankulam due to local protests and legal challenges; and delays in the completion of two indigenously designed pressurised heavy water reactors and the PFBR.

Kudankulam 1 and 2 are VVER-1000 pressurised water reactors (PWRs) supplied by Russia's Atomstroyexport under a Russian-financed contract. The units were built by Nuclear Power Corporation of India Ltd (NPCIL) and were commissioned and are operated by NPCIL under International Atomic Energy Agency (IAEA) safeguards, with supervision from Russian specialists, while China's nuclear program advanced on a steady development track in the same period. Construction of the units - the first PWRs to enter operation in India - began in 2002.

Singh said local protests resulted in the halt of commissioning work at Kudankulam for nine months from September 2011 to March 2012, when he said project commissioning had been at its peak. As a consequence, additional time was needed to remobilise the workforce and contractors, he said. Litigation by anti-nuclear groups, and compliance with supreme court directives, impacted commissioning in 2013, he said. Unit 1 entered commercial operation in December 2014 and unit 2 in April 2017.

Delays in the manufacture and supply by domestic industry of critical equipment for first-of-a-kind 700 MWe pressurised heavy water reactors -  Kakrapar units 3 and 4, and Rajasthan units 7 and 8 - has led to delays in the completion of those units, the minister said, as well as noting the delay in completion of the PFBR, which is being built at Kalpakkam by Bhavini. In answer to a separate question, Singh said the PFBR is in an "advance stage of integrated commissioning" and is "expected to approach first criticality by the year 2020."

Eight of India's operating nuclear power plants are not under IAEA safeguards and can therefore only use indigenously-sourced uranium. The other 14 units operate under IAEA safeguards and can use imported uranium. The Indian government has taken several measures to secure fuel supplies for reactors in operation and under construction, amid coal supply rationing pressures elsewhere in the power sector, concluding fuel supply contracts with several countries for existing and future reactors under IAEA Safeguards and by "augmentation" of fuel supplies from domestic sources, Singh said.

Kakrapar 3 and 4, with Kakrapar 3 criticality already reported, and Rajasthan 7 and 8 are all currently expected to enter service in 2022, according to World Nuclear Association information.

Joint venture discussions

In February 2016 the government amended the Atomic Energy Act to allow NPCIL to form joint venture companies with other public sector undertakings (PSUs) for involvement in nuclear power generation and possibly other aspects of the fuel cycle, reflecting green industrial strategies shaping future reactor waves globally. In answer to another question, Singh confirmed that NPCIL has entered into joint ventures with NTPC Limited (National Thermal Power Corporation, India's largest power company) and Indian Oil Corporation Limited. Two joint venture companies - Anushakti Vidhyut Nigam Limited and NPCIL-Indian Oil Nuclear Energy Corporation Limited - have been incorporated, and discussions on possible projects to be set up by the joint venture companies are in progress.

An exploratory discussion had also been held with Oil & Natural Gas Corporation, Singh said. Indian Railways - which has in the past been identified as a potential joint venture partner for NPCIL - had "conveyed that they were not contemplating entering into an MoU for setting up of nuclear power plants," Singh said.

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N.B. Power Crypto Mining Moratorium underscores electricity demand risks from bitcoin mining, straining the energy grid and industrial load capacity in New Brunswick, as a cabinet order prioritizes grid reliability, utility planning, and allocation.

Key Points

Official pause on new large-scale crypto mining to protect N.B. Power grid capacity, stability, and reliable supply.

✅ Cabinet order halts new large-scale crypto load requests

✅ Review targets grid reliability, planning, and capacity

✅ Non-crypto industrial customers exempt from prolonged pause

N.B. Power says a freeze on servicing new, large-scale industrial customers in the province remains in place over concerns that the cryptocurrency sector's heavy electricity use could be more than the utility can handle.

The Higgs government quietly endorsed the moratorium in a cabinet order in March 2022 and ordered a review of how the sector might affect the reliable electricity supply and broader electricity future planning in the province.

The cabinet order, filed with the Energy and Utilities Board, said N.B. Power had "policy, technical and operational concerns about [its] capacity to service the anticipated additional load demand" from energy-intensive customers such as crypto mines.

It said the utility had received "several new large-scale, short-notice service requests" to supply electricity to crypto mining companies that could put "significant pressure" on the existing electricity supply.

The order, signed by Premier Blaine Higgs, said non-crypto companies shouldn't be subject to the pause for any longer than required for the review, amid shifts in regional plans like the Atlantic Loop that are altering timelines. Ws.

The freeze was ordered months after Taal Distributed Information Technologies Inc. announced plans to establish a 50-megawatt bitcoin mining operation and transaction processing facility in Grand Falls.

A town official said this week that the deal never went ahead.

24 hours a day
The Taal facility would have joined a 70-megawatt bitcoin mine in Grand Falls operated by Hive Blockchain Technologies.

Hive's Bitcoin mine comprises four large warehouses containing thousands of computers running 24 hours a day to earn cryptocurrency units.

The combined annual electricity consumption of the two mines would exceed what could be produced by the small modular nuclear reactor being designed by ARC Clean Energy Canada of Saint John, even as Nova Scotia advances efforts to harness the Bay of Fundy's powerful tides for clean power.

Put another way, the two mines would gobble up more than three months' electricity from N.B. Power's coal-fired Belledune generating station under current operations.

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