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Home » Energy Market Update: February 2025

Energy Market Update: February 2025

Alberta

Alberta’s no-go buffer zone policies leave little room for renewable energy development

As buffer zone restrictions limit land availability and opportunity for solar and wind energy, industries like oil and gas or coal mining get a free pass. By the end of 2024, the government released a map outlining a 70,0000km² buffer zone surrounding the Rockies and another 82,000km² visual impact assessment zone. The 2024 Alberta Wilderness Association (AWA) report highlighted land availability as a limitation of these buffer zones. Ruiping Luo, conservation specialist at AWA and author of the report, found the restriction could exclude 36 to 39 per cent of Alberta’s land from any renewable energy development. Moreover, these buffer zones target prairie regions with high concentrations of sun and wind resources.

Government regulations have made it difficult for clean energy projects to gain traction—and so questions arise about how Alberta can remain competitive in the evolving energy market. There are concerns that the no-go buffer zones will drive away investments—which is exactly what happened in 2023 with the moratorium on renewable projects. Meanwhile, the Alberta government announced doubling its crude oil production to the United States in early January. On top of increasing crude oil exports to the US, the moratorium on coal mining was lifted in the Rocky Mountains and Eastern Slopes—coincidentally enough, areas that reside within the designated buffer zones. Source: rabble.ca

Electricity Prices for Alberta

The Alberta power pool price averaged 5.577 cents per kWh in February 2025. This price is 2.541 cents higher than last month’s average of 3.036 cents. The pool price has averaged 5.050 cents per kWh over the last 12 months.

As of March 1, 2025, the forward market was predicting electricity prices for the calendar years of 2025, 2026, 2027, 2028, 2029, 2030, and 2031. These prices are 4.011, 4.452, 5.150, 6.200, 6.500, 6.500, and 6.500 cents per kWh respectively.

Gas Prices for Alberta

Direct Energy’s gas rate for February 2025 was $2.127 per GJ in Alberta. The March 2025 rate has been set at $2.446 per GJ. Alberta gas prices have averaged $1.538 per GJ over the last 12 months.

As of March 1, 2025, the forward market was predicting gas prices for the calendar years of 2025, 2026, 2027, 2028, and 2029. These prices are 2.12, 2.99, 3.07, 3.04, and 3.05 cents per GJ respectively.

 

British Columbia

B.C. accelerates 18 mining and energy projects in face of U.S. tariff threat

The British Columbia government has released a list of 18 critical mineral and energy projects worth roughly $20 billion that it said it’s working to accelerate in the face of ongoing tariff threats from the United States. The list includes mining projects that have received pushback from some First Nations groups in B.C. and Alaska, and an LNG project opposed by some environmental organizations. Its release comes after Premier David Eby said that the government was expediting some projects to diversify the economy, assuming there would be “four years of continual on-and-off tariff threats” from the United States under the presidency of Donald Trump. Jessica Clog, executive director and senior counsel for West Coast Environmental Law, said she was concerned the expedited process could exempt mining or pipeline projects from environmental assessments and consultation with First Nations. In addition to four mines, there are three energy security projects, and 11 BC Hydro clean energy ventures that mostly involve wind power. The 18 projects will employ approximately 8,000 people in B.C. and the provincial government is working to identify other projects. Source: Canada’s National Observer

 

Ontario

SolarBank Announces Commencement of Construction of First Battery Energy Storage Project (BESS) in Ontario

$25.8 Million Royal Bank of Canada Facility is being used to finance construction of the 4.99 MW BESS Project. The project, located in Cramahe, Ontario, secured a 22-year contract with Ontario’s Independent Electricity System Operator, will have a daily contract capacity of 4.74 MW. SolarBank Corporation is an independent renewable and clean energy project developer and owner focusing on distributed and community solar projects in Canada and the USA. The Company develops solar, Battery Energy Storage System (BESS) and EV Charging projects that sell electricity to utilities, commercial, industrial, municipal and residential off-takers. Source:  The Globe and Mail

 

Saskatchewan

DEEP Earth Energy partners to power geothermal project in Saskatchewan

DEEP Earth Energy Production Corp. (DEEP) announces a strategic collaboration with global energy technology company SLB to drive the development of Canada’s first next-generation geothermal project, located in southeast Saskatchewan. With the feasibility phase now complete, the project is poised to produce up to approximately 30 MW of emissions-free, baseload power on completion of its initial two phases — marking a major milestone for geothermal energy in Canada. Despite Canada’s vast geothermal potential, the resource has remained largely untapped due to economic and technical challenges tied to conventional extraction methods. By creatively addressing the perceived barriers to geothermal development in Canada, DEEP’s project is set to establish a new benchmark for the renewable energy sector. Source: Environment Journal

 

Manitoba

Manitoba Hydro proposes $1.4B fuel-burning generating station to stave off winter power shortages

Manitoba Hydro is proposing to spend $1.36 billion on a new fuel-burning station capable of generating 500 megawatts of electricity on demand, in order to stave off a power shortage expected as soon as five winters from now. While no decision has been made on the fuel source for the turbines, the least expensive available option would be natural gas — a fuel the province’s NDP government has promised to phase out as an electricity source by 2035. Adrien Sala, the minister responsible for Manitoba Hydro, said the Crown corporation is also looking at the use of hydrogen and renewable natural gas in the new facility.

Manitoba Hydro has a generating capacity of 6,120 megawatts when all of its generating stations are functioning and water levels are topped up on Lake Winnipeg, its main reservoir. While natural gas is widely available, Premier Wab Kinew has asked Sala to phase out the on-demand use of Manitoba’s sole existing natural gas-fired plant, the 280-watt Brandon Generating Station, by 2035. The other fuel options for the new plant — hydrogen and renewable natural gas, which is derived from biological gases emitted from the likes of compost, landfills, sewage treatment or even livestock farms — would require additional expenditures. Source: CBC

 

New Brunswick

New Investments to Help New Brunswickers Reduce Energy Costs and Stay Warm

New Brunswick homeowners need efficient heating and cooling systems to live comfortably and affordably. Choosing to heat a home with a heat pump instead of oil can help a household save thousands of dollars on heating bills every year while reducing greenhouse gas emissions. Jenica Atwin, Member of Parliament for Fredericton, on behalf of the federal Minister of Energy and Natural Resources, announced that NB Power will partner with the federal government to co-deliver the Oil to Heat Pump Affordability (OHPA) program in the province, making the shift to heat pumps even more affordable for New Brunswickers. Natural Resources Canada is investing $99.5 million in federal funding, and Environment and Climate Change Canada is also investing $23.8 million through the Low Carbon Economy Fund. Under the program, low- to median-income households in New Brunswick that heat their home with oil can apply through the NB Power website to receive coordinated grants from the Government of Canada and the Province of New Brunswick that fully cover the cost of the average oil to heat pump conversion. Source: Government of Canada

 

Prince Edward Island

Renewable Energy with Clean Tech Park

The development of the Clean Tech Park and funding opportunities through the Cleantech Research and Innovation Fund will ensure PEI continues to be a leader in all renewable energies. Before it was trendy, Prince Edward Island recognized that there was value in the strong winds that blew across the Island. The Atlantic wind test site was established in North Cape, PEI, more than 40 years ago. Since that time, it has evolved into the Wind Energy Institute of Canada, the wind energy industry’s centre of excellence. Solar and Battery Storage has been expanding on PEI in recent years with the City of Summerside leading the charge on many fronts emerging. The province has a vision for the future that sees Academia and industry mixed together to ensure emerging technologies are well suited to prosper.  The development of the Clean Tech Park and funding opportunities through the Cleantech Research and Innovation Fund will ensure PEI continues to be a leader in all renewable energies. Source: Prince Edward Island

 

Québec

Initiative launched to support renewable energy

First Nations communities looking to get into renewable energy can now seek investment through a new partnership between the Mohawk Council of Kahnawake (MCK) and the Caisse de dépôt et placement du Québec (CDPQ). Both the MCK and the Caisse, the largest institutional investor in Quebec, are ready to jointly invest in renewable energy projects in the province, all while providing the technical expertise needed to make them profitable. It was the prior Council table that reached out to the Caisse about the idea to co-invest in Indigenous-led renewable energy projects following the MCK becoming a co-owner of the Hertel-New York transmission line alongside Hydro Quebec last spring. The line, which is still under construction, will run underground from La Prairie through the Richelieu River into New York State, and is expected to deliver 1,250 megawatts of electricity to New York City. Hydro Quebec has already committed to investing upward of $110 billion into new renewable energy projects between now and 2035 to meet growing demands on its network. Source: The Eastern Door

 

Newfoundland and Labrador

Stephenville mayor, businesses still hopeful as World Energy GH2 revises plans for wind project

World Energy GH2’s plans to build a controversial wind-powered green hydrogen and ammonia plant in western Newfoundland are shifting — with the company no longer providing a timeline for construction — but Stephenville residents and businesses say they’re hopeful the project will happen. The company acknowledged in November that it was having difficulty finding markets for green hydrogen and ammonia. While it revises its plans for Project Nujio’qonik, it is “looking at other opportunities to develop renewable energy in the nearer term,” it said in a written statement. Those other opportunities could come in the form of a data centre or e-fuel production, according to spokesperson Laura Barron. The statement also noted that any new version of a project would require a new environmental assessment. Source: CBC

 

Nova Scotia

Green Choice Program adds more clean energy to grid in Nova Scotia

The Green Choice Program will add more clean energy to the grid, bring more green jobs and investments to Nova Scotia, help stabilize power rates and decrease greenhouse gas emissions. Eleven large-scale electricity customers are participating in the program. Most will get all their electricity through it. These customers include public institutions and some large industrial and commercial businesses. Six wind farms were chosen through a competitive independent procurement to support the program. They will start generating more than 2,000 gigawatt hours of clean electricity per year by the end of 2028. They will increase the clean electricity to the grid for program customers by more than 12 per cent and by nearly seven per cent for all Nova Scotia ratepayers.

Each wind farm is co-owned by a private developer and one or more Mi’kmaw community in Nova Scotia. The developers are investing about $73.5 million in social and economic benefits for communities where the wind farms are located. Benefits include training, skill development, capacity building grants and scholarships. There will be about 700 construction jobs and 30 full-time jobs to operate the wind farms. The plan aims to create a cleaner, healthier and more sustainable future and includes initiatives to reduce greenhouse gas emissions, switch to clean energy, create a clean economy, make homes and buildings energy efficient and able to stand up to the impacts of climate change. Environment Journal

 

Nunavut

Federal government invests $6M into Iqaluit hydro project.

The federal government is investing another $6 million into a once-stalled hydro project near Iqaluit that could help the city reduce its reliance on diesel-generated power. The funding is flowing to the Nunavut Nukkiksautiit Corporation (NNC), an Inuit-owned clean energy developer, for its Iqaluit Nukkiksautiit Project, which – once built – would be a 15- to 30-megawatt traditional water power plant. The project was previously under the territorial government’s Qulliq Energy Corporation (QEC). It was put on hold in 2014 due to the high capital costs, which went beyond QEC’s funding and borrowing ability. Since then, the NNC has taken over the project. As of last fall, the project’s price tag was between $400 and $500 million. Crown-Indigenous Relations and Northern Affairs Canada says it already invested $7 million into the hydroelectric project back in 2021 to understand whether the project would be feasible. Source: Eye on the Arctic

 

Northwest Territories

Electric Vehicle Charging Stations Open in Behchokǫ̀ and Fort Smith

NT Energy has opened public Electric Vehicle (EV) charging stations in both Behchokǫ̀ and Fort Smith. Along with the previously announced charging station in Hay River, these new stations are part of an EV corridor that will eventually run from Yellowknife to the NWT/Alberta Border. Both charging stations include two Level 3 chargers and two Level 2 chargers. Access is available to the charging stations 24 hours a day, seven days a week. To encourage users to move their vehicles to free up the spaces after charging is complete, there will be a cost for idling in any of the charging spots. NT Energy has set an hourly rate of $6/hour for Level 2 charging and $33/hour for Level 3 charging in both communities. The Level 3 chargers can supply up to 100 kilowatts, and the Level 2 chargers can supply up to 19.2 kilowatts. The fees will be billed in one-minute increments. Source: Northwest Territories Power Corporation

 

Yukon

Yukon government’s pause on solar power program to continue

The Yukon government is extending the pause on a program which allowed Yukoners to add solar panels to their buildings and sell any extra energy they generated. The pause on the program is also being extended to communities across the territory. The micro-generation renewable energy program — born in October 2013 — was initially paused for Whitehorse and the Southern Lakes on Dec. 14, 2023, while the government worked with utilities to study the effects of adding variable renewable energy to the Yukon grid. Now, the pause is expanded to all communities on the main grid and will last until at least January 2026. The program worked by allowing Yukoners to connect their home or business renewable electrical generation systems — like solar panels — to the Yukon grid.

This allowed these program participants to save money on their monthly electricity bills and even receive reimbursements for surplus electricity that was exported to the wider Yukon grid. As was reported by the Yukon News in March of 2024, the microgeneration program’s target of seven megawatts was reached seven years ahead of the plan. In a more recent Jan. 30, 2025, press release, YG said the first phase of the two-part study has been completed, and it recommended not adding any additional micro-generation systems while additional analyses are being completed. The second part of the study, according to the release, is expected to be completed this year, and “will focus on evaluating the effects of proposed micro-generation and utility system upgrades.” Source: The Regional