Alberta
Alberta emergency power alert underlines challenge of energy transition on Prairies
The January 13th emergency alert from the province of Alberta, warning of rotating power outages because of pressure on the electrical grid caused by the extreme cold, underlines just how difficult the energy transition is going to be in the Prairie provinces, according to economist Andrew Leach. It also demonstrates why more flexibility is needed in Ottawa’s Clean Energy Regulations to decarbonize the country’s electricity grids, he says.
The province’s energy grid had as little as 10 megawatts in reserve power at one point on Saturday night, according to the AESO supply demand report. If rotating outages are required, they would occur simultaneously in small pockets across the province and they would be approximately 30 minutes in duration. Pointing to the fact that the province had a 12 per cent increase in power generating capacity last year, and is expecting similar growth this year, Leif Sollid the communications manager for AESO, said grid alerts, like those issued over the past few days, should become less necessary in the future. But Leach says not all additional capacity is created equal, especially on the Prairies. “You could have had 50,000 megawatts, all the solar farms and wind farms in the world located in Alberta, and it still wouldn’t have come anywhere close to closing that gap.” That’s why Leach says regulatory flexibility is needed for the part of the country that is awash in cheap energy in the summer, from wind and solar, but in the depths of winter, during really cold conditions and really high energy loads, those resources do not generate a lot of power. Source: CBC
Electricity Prices for Alberta
The Alberta power pool price averaged 15.278 cents per kWh in January 2024. This price is 10.073 cents higher than last month’s average of 5.205 cents. The pool price has averaged 13.577 cents per kWh over the last 12 months.
As of February 1, 2024, the forward market was predicting electricity prices for the calendar years of 2024, 2025, 2026, 2027, 2028, and 2029. These prices are 7.824, 6.304, 6.450, 6.800, 6.850 and 6.850 cents per kWh respectively.
Gas Prices for Alberta
Direct Energy’s gas rate for January 2024 was $2.173 per GJ in Alberta. The February 2024 rate has been set at $4.430 per GJ. Alberta gas prices have averaged $2.809 per GJ over the last 12 months.
As of February 1, 2024, the forward market was predicting gas prices for the calendar years of 2024, 2025, 2026, and 2027. These prices are 1.97, 3.08, 3.46, 3.42, and 3.35 cents per GJ respectively.
British Columbia
Premier announces new actions to build electricity system, create jobs
BC Hydro will embark on an unprecedented level of construction over the next 10 years, building out British Columbia’s electricity system to power a growing clean economy and communities, and create new jobs. At the B.C. Natural Resources Forum in Prince George, Premier Eby announced a $36-billion investment for community and regional infrastructure projects that will deliver clean, affordable electricity to people and businesses in the future. BC Hydro’s updated 10-year capital plan, Power Pathway: Building BC’s energy future, includes almost $36 billion in community and regional infrastructure investments throughout the province between 2024-25 and 2033-34.
This represents an increase of 50% over BC Hydro’s previous capital plan ($24 billion) and includes a significant increase in electrification and emissions-reduction infrastructure projects (nearly $10 billion, up from $1 billion). BC Hydro’s goal is to acquire new sources of clean, renewable electricity, including wind and solar. B.C. is well positioned to add additional intermittent renewables to the grid as its integrated, flexible system of hydro-electric dams act as batteries. The reservoirs store water and allow BC Hydro to ramp production up or down almost instantly, providing a reliable back up for when the sun isn’t shining, or the wind isn’t blowing. In addition to the 10-year capital plan, Premier Eby announced that the Province and BC Hydro are implementing a new streamlined, one-window approval process to speed up approvals to get electricity to in-demand industries faster, and to support jobs. Source: British Columbia
Ontario
Ontario plans to keep Pickering Nuclear Power Station open for decades
Ontario is planning to push ahead with a complete renovation of Pickering Nuclear Power Station, scrapping previous plans to retire the decades-old facility. “The refurbishment of Pickering would create thousands of new jobs and help produce at least another 30 years of safe, reliable and clean electricity to power the next major international investment, the new homes we are building and industries as they grow and electrify,” said Minister of Energy Todd Smith. The minister announced that the refurbishment will proceed and that OPG plans on spending $2 billion on engineering and design work for the project expected to be completed in the mid-2030s. Pickering alone is responsible for around 14 per cent of Ontario’s electricity. The nuclear power plant — which has been operating since the 1980s — has become an increasingly key part of Ontario’s energy plans as the province faces a supply shortage in the 2020s and early 2030s. By the Ford government’s own admission, Ontario will become a power-hungry province over the course of this decade as new electric vehicle battery manufacturing plants, electrification of transportation networks and increased population growth contribute to the demand. Source: Global News
Saskatchewan
Here’s how Saskatchewan trades energy with its neighbours
After Saskatchewan’s move to provide emergency power to Alberta made headlines – CTV News spoke to SaskPower to chat about the longstanding practice of sharing electricity to keep the lights on. Jeff Nichols is the manager of economic grid optimization and trading with the provincial crown corporation. He explained that power sharing between provinces is a routine and necessary practice. The trading of electricity is done through various “interconnections” in the form of cross-border transmission lines. Saskatchewan itself shares interconnections with Manitoba, Alberta and North Dakota. Canada and the United States share a highly integrated electricity grid – with every province boasting an interconnection with at least one neighbouring U.S. state. The result is 35 cross border transmission lines tying the two nations together according to the national energy forum Electricity Canada.
SaskPower says 2023 was a record year for SaskPower’s export revenue. According to Nichols, those exports represented slightly less than four per cent of SaskPower’s total electricity sales for the year. Electricity imports are a bit different for the province. Saskatchewan has several long-term supply agreements with Manitoba Hydro, which can provide up to 290 MW of electricity per hour. Saskatchewan’s grid has a net capacity of 5,353 MW. The province’s power use record was set on Dec. 30 of 2021 with 3,910 MW. The system is broken down into six types of generation: natural gas (1645 MW), coal (1106 MW), wind (309 MW), hydro (254 MW), solar (3 MW) and other assorted sources (137 MW). Natural gas and coal make up 80 per cent of Saskatchewan’s generating capacity. Source: CTV Regina
Manitoba
Manitoba Hydro may need new sources of power by 2029
Manitoba Hydro’s boss, Jay Grewal, is warning the power utility may need to have new forms of electricity generation running by 2029 or 2030. It was the first time any Hydro official has stated publicly the utility could run out of capacity in five or six years without new power generation. The path forward will involve Hydro entering into agreements with independent electricity producers within the province. The new infrastructure needs will result in higher electricity prices for customers, but Grewal said Hydro will continue to remain one of the cheapest electricity jurisdictions in North America. The independent Public Utilities Board recently granted a one per cent increase in the cost of electricity last September, and another one per cent increase scheduled to take effect in April. The current NDP government campaigned on an election promise to freeze electricity rates for one year, but Finance Minister Adrien Sala suggested late last year it might happen later than planned because the utility is projecting a net loss this fiscal year, mainly due to drought conditions. Source: CBC
New Brunswick
Oil companies in N.B. being overcompensated for federal clean fuel costs, experts say
New Brunswick has been overestimating the cost of federal clean fuel regulations on oil companies and have allowed consumers to be overcharged by millions of dollars since last July as a result, two expert witnesses told an Energy and Utilities Board hearing this week. Timothy Auger of the group Advanced BioFuels Canada and Vijay Muralidharan of Calgary-based R Cube Economic Consulting Inc. are each challenging a formula adopted last year by the EUB to calculate the cost of federal clean fuel rules on oil companies. This week, that formula is allowing oil companies to add 5.22 cents per litre to the price of gasoline and 5.82 cents to the price of diesel in New Brunswick to pay for the cost of regulations that took effect nationally in July. The New Brunswick government passed legislation in 2022 to allow oil companies to pass clean fuel charges onto consumers and instructed the Energy and Utilities Board to determine what those costs might be.
The EUB is now reviewing the controversial formula it adopted for that purpose last year after agreeing to the recommendation of a single consulting firm, Grant Thornton. A notable absence at the hearing was the federal department behind the clean fuel regulations, Environment and Climate Change Canada. Its minister, Steven Guilbeault, heavily criticized the EUB’s original decision and pledged to have his officials show up at the first opportunity to prove clean fuel regulations involve little cost to oil companies in the early years. “Unfortunately, Environment [and] Climate Change Canada, despite being given certainly every opportunity to do so, has not come forward to participate in this proceeding or actually to present any evidence,” Stewart said at the beginning of proceedings. Source: CBC
Prince Edward Island
Summerside solar farm expected to produce enough electricity to power thousands of homes
While many cities across Canada are talking the talk about the green transition, Summerside (opens in a new tab), P.E.I., is walking the walk. Summerside Sunback, a 68-acre solar farm nestled in the province’s second-largest city, is expected to produce enough electricity to power more than 2,500 homes each year. Now that the site is up and running, 62 per cent of the power used by the city comes from local renewable sources. Officials say it reduces the power the city has to buy each year by 20 per cent, representing almost $2 million a year. There are more than 48,000 solar panels at the farm. With an acre of battery capacity, that means they can save excess power generated by the farm during the sunniest part of the day for high demand times in the evening. It took nearly two years and $70 million to complete. Costs were mostly split between the city, province, and federal government. They say the farm reduces the city’s greenhouse gas emissions by the equivalent of 1,700 cars each year. Those involved say projects like this could serve as a blueprint for how Canadians power their communities amid rising electric needs and the transition away from fossil fuels. Source: CTV News Atlantic
Québec
Mohawk Council of Kahnawake to benefit from new wind farm
A new deal has been reached between Hydro-Québec, the Mohawk Council of Kahnawake and the MRC des Jardins-de-Napierville, involving three municipalities, and the Township of Hemmingford. Twenty-one wind turbines are slated to be built producing 147 MW of power, enough electricity for more than 30,000 homes. Energy demands are soaring in the province according to Hydro-Québec and the public utility company is projecting to double its wind energy production. On January 26, the utility company announced eight new wind turbine contracts with six of them involving partnerships with Indigenous communities. Indigenous communities hope the projects will continue to produce big financial windfalls for their people. Source: Global News
Newfoundland and Labrador
N.L. Power rates could jump beyond projected 5.5 per cent in 2025, says PUB
Newfoundland and Labrador’s Public Utilities Board says power rates in the province could increase more than rates proposed by Newfoundland Power over the next two years, according to a news release from the PUB. Newfoundland Power made its general rate application to the PUB in December, asking the board for a full review of its costs in 2025 and 2026 to be recovered in customer rates. If approved, the application would result in an average rate increase of 5.5 per cent in 2025 for customers of Newfoundland Power and for customers of Newfoundland and Labrador Hydro whose rates are based on Newfoundland Power’s rate. According to a news release sent by the PUB earlier this month, the utility wants an increase because of higher costs since its last application. It also wants a greater return on equity, from 8.5 per cent to 9.85 per cent. Newfoundland Power also asked for a 1.5 per cent rate increase which would come into effect this July. Source: CBC
Nova Scotia
N.S. proposes taking on $117M in costs from Nova Scotia Power to limit 2024 power bill increases
The Nova Scotia government says it hopes to stave off steep electricity rate hikes by handing Nova Scotia Power (NSP) $117 million for fuel costs the utility was set to recover from customers this year. Minister of Natural Resources and Renewables Tory Rushton said Monday that customers will still have to pay the entire amount, but it will be spread out over a 10-year period, limiting bill increases to just 1.1 per cent in 2024, instead of seven per cent if the government had not acted. In its application to the board Monday, NSP said it must recover at least $117 million of roughly $395 million in unrecovered fuel costs in 2024 or risk having its credit rating further downgraded. But even if it’s approved, that doesn’t mean customers are necessarily safe from seeing their power bills increase further in the coming years.
The costs are the amount NSP paid for fossil fuels it burned to generate electricity. Those costs jumped because of international events like the war in Ukraine, and more fuel was needed because NSP did not receive the expected amounts of renewable energy from the troubled Muskrat Falls hydroelectric project in Labrador. Political opposition say the measure, while offering rate payers some reprieve, needs to go farther to make a difference for Nova Scotians. Nova Scotia Liberal Leader Zach Churchill echoed the sentiment and added that to really make a difference for Nova Scotians, the province needs to stop using “Band-Aids” and move away from coal power. Source: CBC
Nunavut
Climate change is robbing Inuit of their food and culture, yet compensation is out of reach
In the rapidly warming Arctic, Inuit homes are about to fall into the ocean as coastlines quickly deteriorate. Sea ice melting is giving way to new powerful cyclones. And as the permafrost thaws, a staggering amount of methane is released, pushing the planet-warming greenhouse gas emissions in the Earth’s atmosphere to even more dangerous levels. As the Arctic suffers from these profound changes, fossil fuel companies are increasingly eyeing it for new oil and gas extraction, while the tourism industry sees fresh opportunities for business, too.
For Inuit, whose cultures are based on an intimate relationship with the environment, these physical changes give way to cultural transformation. Near Pond Inlet in Nunavut, the Mary River mine operated by Baffinland, crushes and screens iron ore on site and transports it by ship to points in Europe and Asia. The underwater noise from these ships is a “form of pollution” that impacts narwhal territory. Inuit depend on marine animals for healthy foods and maintaining culture and language, she said. As climate change and pollution affect the availability of these animals, the result is a greater dependence on imported food that sells at grossly inflated prices, perpetuating poverty levels unmatched anywhere else in the country. Source: Canada’s National Observer
Northwest Territories
N.W.T.’s carbon tax exemption for heating fuel unlikely to deter homeowners from going green, advocate says
People in the Northwest Territories will continue to adopt greener home heating technologies with or without a carbon tax, according to the executive director of the Yellowknife-based not-for-profit Arctic Energy Alliance (AEA). Mark Heyck said the cost of energy in the territory is so high that he expects the Alliance’s energy-saving programs to be popular no matter what. The territorial government is creating an N.W.T. exemption on the carbon tax on home heating oil, since the federal government has offered such an exception to the federal carbon tax, according to N.W.T. Finance Minister Caroline Wawzonek. Asked if the exemption would discourage people from taking advantage of the AEA’s energy efficiency and greener energy programs, Wawzonek echoed Heyck, saying that the high cost of fuel and the obvious impacts on climate change in the North are motivating people to look for alternatives to fossil fuel heat, with or without the extra tax.
Ultimately, the large-scale solutions are needed to wean N.W.T. off its dependence on fossil fuels. Those include going ahead with the proposed Taltson hydro expansion and increasing the number of transmission lines from hydro-electric sources in the south of the territory. Wawzonek would also like to see the federal government work with the territory to explore the potential of small modular nuclear reactors. Source: CBC
Yukon
Yukon gov’t’s emissions targets ‘not possible’ without energy storage, report says
Without energy storage, the Yukon government could miss its emissions targets, a report suggests. Produced by Navius Research, a Vancouver-based firm, and commissioned by the government, the report analyzes how the territory can meet electricity demand into 2050 in the most economical way. The analysis factors in things like wind and solar projects, which “are the most cost-effective options for meeting new electricity demand on both integrated and remote grids.” The report, obtained by CBC News and not yet public, is in response to the territorial government’s goal to reduce emissions by 45 per cent this decade under its climate change plan, called Our Clean Future. Central to that work is ensuring 97 per cent of the territory’s electricity comes from renewables.
But the challenge with adding solar arrays or wind turbines to the territory’s power system is that the electricity they generate is variable — at the whims of weather. Enter energy storage. Specifically, pumped hydro storage and lithium-ion batteries, which the report states are “the two most promising technologies for storing electricity in the Yukon.” To Michael Ross, the industrial research chair in northern energy innovation at Yukon University, wind and solar projects aren’t a panacea to meeting targets. Without the right storage, he said generated electricity will go to waste, adding that the timing of what’s stored when, matters. He said the government needs to figure out how to store power on a daily basis and keep costs down. Source: CBC