The push to shape Canada’s power grid is about to face its first major test
An unprecedented push by the federal government to shape Canada’s power grid is about to ramp up – and face its first major test, courtesy of an Ontario government with a different view of electricity’s future.
The idea is to accelerate a shift in which technological advances and falling prices are already making renewables increasingly attractive relative to gas. As new federal tax credits for wind, solar and energy storage make those sources more economical, the regulations are meant to make new gas plants financially unviable, because they would have to close early in their natural lifespans.
In other interviews, a range of executives working in the electricity sector – including with provincial agencies, energy companies and industry associations – praised Mr. Guilbeault for being consultative during the policy’s development. That’s a better starting point than in Saskatchewan, Alberta, Nova Scotia and New Brunswick, which are still weaning themselves off much dirtier coal .
Initial results of the procurement are expected to be announced in May or June, probably a month or two before the draft Clean Electricity Regulations. But the new rules are already impacting the type of contracts likely to be awarded.for the regulations last year, that any gas units operational before 2025 will be allowed to run for an period past 2035.
“They thought this was going to deter unabated gas in Canada,” said Chris Kopecky, a senior vice-president with Capital Power, one of the bigger energy producers bidding for contracts in Ontario procurement, including site expansions in Windsor and the Greater Toronto Area. “And I think it’s having that effect.”Timing could be tight even to add gas turbines to existing facilities within a year and a half, and nobody yet knows how long past 2035 any units will be grandfathered.
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