Resilient LLP (formerly DeMarco Allan LLP)
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Biden-⁠Harris Administration Launches Federal-State Initiative to Modernize Power Grid

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The Biden-Harris Administration (the Administration) yesterday launched the Federal-State Modern Grid Deployment Initiative (the Initiative), along with an accompanying fact sheet. The Initiative brings together states, federal entities, and U.S. power sector stakeholders to expand grid capacity and build modern grid capabilities on both new and existing transmission and distribution lines. Implementing these solutions is expected to increase integration of renewables and clean energy sources, with the U.S. set to build more new electric generation capacity than it has in 20 years (96% of it being clean energy). The Initiative is intended to complement last month’s announcement of a public-private mobilization to upgrade 100,000 miles of existing transmission lines over the next five years. This bulletin briefly summarizes the Initiative’s key state and federal commitments: Mutual federal-state commitments. The Initiative aims to address the challenges and opportunities posed by increased load growth, a rapidly evolving energy landscape, aging infrastructure, and new grid-enhancing technologies while ensuring reliable, clean, and affordable energy for consumers. The U.S. government and participating states jointly commit to: deploy advanced grid technologies to expand capacity and enhance both new and existing transmission and distribution lines; recognize that modern grid technologies are essential for a comprehensive energy strategy, complementing the need to build out new transmission and distribution lines; work to increase state and federal cooperation for both intraregional and interregional transmission planning efforts; work collaboratively with solution providers, industry, labour organizations, and trusted validators to build a diverse workforce and ensure grid owners and operators have access to training and equipmentneeded to support modern technology deployment; facilitate collaboration among stakeholders and communities to share how to improve siting, regulatory, and economic structures most effectively; and explore opportunities to establish innovative partnership models, pool resources, and jointly plan transmission and distribution infrastructure development. State commitments. 21 state governments,…

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Ontario Publishes New Draft Regulations on Corporate Power Purchase Agreements

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Ontario’s Ministry of Energy and Natural Resources (the Ministry) has announced new draft amendments (the Proposed Amendments) to O. Reg. 429/04, Adjustments Under Section 25.33 of the Act (the Regulations). The Regulations establish the global adjustment (GA) fees Ontario’s large commercial electricity consumers must pay to fund the cost of non-wholesale market electricity contracts pursuant to section 25.33 of the Electricity Act, 1998 (the Act). The Proposed Amendments are based on feedback received from stakeholders during the consultation held in late 2023. The anticipated effective date for the Proposed Amendments is May 1, 2025.   This bulletin briefly summarizes the Proposed Amendments and key information.   Background. The Independent Electricity System Operator (IESO) began procuring new clean electricity resources in 2023 as directed by the province’s Powering Ontario’s Growth plan. The IESO initiated electricity capacity resource procurement in 2023 and plans to start electricity energy resource procurement in 2024. Key objectives. The Proposed Amendments seek to support the growth in procurement of new clean generation in the province. This is done by allowing Industrial Conservation Initiative (ICI) Class A market participants to offset their facility’s demand in the top five peak hours of a base period for settlement purposes by entering into power purchase agreements (PPAs) with non-emitting generation facilities that are not connected behind the facility’s meter.   Eligible technologies. The types of eligible technologies under the Proposed Amendments are wind, solar, hydroelectric, and biofuel. In making the announcement, the Ministry stated that it recognizes the interest in pairing these technologies with energy storage and small modular reactors (SMRs), but deferred inclusion of these additional technologies due to implementation complexities. Energy storage resources are critical to a cost-effective, safe, clean, and reliable electricity grid, and the Ministry may wish to consider expediting the eligibility of energy storage (particularly battery electric storage) under the Proposed Amendments.   Stakeholder feedback. Interested stakeholders are encouraged to submit feedback on the Proposed Amendments by June…

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G7 Climate, Energy, and Environment Ministers Commit to Urgent Action on Climate Change

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The Group of Seven (G7) recently published the Climate, Energy and Environment Ministers’ Meeting Communiqué following the G7 Ministers’ Meeting on Climate, Energy and Environment held last week in Turin, Italy. This marked the first meeting of G7 climate, energy and environment ministers (the Ministers) since COP28 last November and included renewed commitments on strengthening energy security, greenhouse gas (GHG) emission reduction, limiting global temperature increases to 1.5°C, and the imperative of transitioning to cleaner energy sources for economic growth and climate resilience. We view the Ministers’ renewed dedication to energy transition as the meeting’s most significant outcome, although it is important to note that countries heavily reliant on coal maintain some degree of flexibility. This bulletin briefly highlights key commitments made by the Ministers. Carbon Markets. Key carbon market commitments include: work jointly towards delivering robust outcomes from the Work Programme on Article 6 at COP29 in Baku, Azerbaijan later this year; explore innovative options for carbon markets and carbon pricing to contribute to mobilizing public and private contributions to climate finance; and  enhance demand and robust certification standards for carbon dioxide removals.  Energy. Key energy commitments include: phase out existing unabated coal power generation in energy systems during the first half of 2030s or in a timeline consistent with keeping a limit of 1.5°C temperature rise within reach, in line with national net-zero pathways; setting a global target of reaching 1,500 GW of energy storage in the electricity sector by 2030, six times more than in 2022;  reduce demand for and use of fossil fuels, including by rapidly scaling-up clean technologies in power generation, transportation and other end users; and phase out inefficient fossil fuel subsidies, with all countries committing to a progress report in 2025, when Canada will have the Presidency of the G7 (read our earlier bulletin on Canada’s inefficient…

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Ontario’s Electrification and Energy Transition Panel Releases Final Report

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Ontario’s Electrification and Energy Transition Panel (the Panel) has released its final report entitled Ontario’s Clean Energy Opportunity: Report of the Electrification and Energy Transition Panel (the Report). The Panel was established by the Government of Ontario to advise on opportunities for Ontario’s energy sector and identify strategic opportunities and planning reforms to help Ontario’s economy prepare for electrification and the energy transition. The Report provides a comprehensive roadmap for Ontario’s transition to a clean energy economy, emphasizing strategic planning, collaboration, innovation, and the crucial role of Indigenous partnerships.  This bulletin briefly highlights the key findings of the report and outlines the Panel’s key recommendations. Planning for electrification and the energy transition. The Report underscores the urgent and transformative shift in the global energy landscape, emphasizing the need to address climate change and support technological advancements. For example, the Report notes that Ontario faces a significant challenge regarding the future of natural gas, including increasing uncertainty about the feasibility of decarbonizing the natural gas grid and growing doubt about replacing large quantities of natural gas in a cost-effective way with cleaner alternatives such as renewable natural gas (RNG) or hydrogen. Key recommendations include: Recommendation 1 suggests that the provincial government should develop and communicate a commitment and associated policy principles for achieving a clean energy economy for Ontario by 2050 in order to provide clear direction for Ontario’s energy and economic future. Recommendation 3 provides that the provincial government should continue to seek alignment and coordination of clean energy economy objectives, standards, and policies with other governments (within and outside Canada) whenever practical and consistent with the province’s economic and policy interests. Recommendation 6 provides that in order to provide clarity to utilities, investors, and customers, the Ministry of Energy (the Ministry) should provide policy direction on the role of natural gas in Ontario’s future energy system as…

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Ontario Proposes Enabling Renewable Energy Power Purchase Agreements

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Ontario’s Ministry of Energy (the Ministry) recently proposed amendments to regulations under the Electricity Act, 1998 (the Act). The proposed amendments would amend Ontario Regulation 429/04: Adjustments Under Section 25.33 of the Act (the Regulation) to enable qualifying commercial and industrial customers to offset their facility’s demand through power purchase agreements (PPAs) with renewable generation facilities. The Regulation otherwise provides for the allocation of Global Adjustment (GA) costs to electricity customers and the rules for the Industrial Conservation Initiative (ICI). The proposed amendments follow other recent provincial support for meeting increasing corporate demand for clean and non-emitting sources of energy (see our bulletin on Ontario’s clean energy credit registry here) and the government anticipates that it will create a new market for corporate PPAs, provide system benefits, enhance industrial competitiveness in Ontario, and support new clean generation. This bulletin briefly summarizes key information regarding the proposed amendments. Overview The Ministry indicated that the proposed amendments are intended to support the growth of clean electricity generation by enabling qualifying ICI participants (Class A customers) to offset their facility’s demand in the top five peak hours of a base period through PPAs with renewable generation facilities that are not connected behind the facility’s meter. This would allow eligible ICI participants to reduce their demand during peak hours by the corresponding amount under the PPA, thereby reducing the GA charges under the ICI. The Ministry noted that contracted generation through PPAs would be treated as if it is supplied to the ICI participant behind-the-meter for the purpose of determining GA charges, similar to other “virtual” net metering arrangements. Eligible Technology The types of technologies eligible under the proposed amendments is expected to include wind, solar, small hydroelectric (i.e., less than 10 megawatts), biofuel, and battery storage. Next steps The proposed effective date for the amendments is May 1, 2024. Interested stakeholders are encouraged to review…

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