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The race to make Canada's power grids more resilient – before it's too late
The race to make Canada's power grids more resilient – before it's too late

CTV News

time15-07-2025

  • Climate
  • CTV News

The race to make Canada's power grids more resilient – before it's too late

A giant fireball is seen as a wildfire rips through the forest 16 km south of Fort McMurray, Alberta on highway 63 on May 7, 2016. THE CANADIAN PRESS/Jonathan Hayward This is the second of a two-part report on the resiliency of Canada's power grids in the face of climate change and increasing extreme weather. Among the first to enter Jasper National Park after wildfires tore through it last year was a crew with Atco Electric trying to get the power back on. 'There was [...] debris everywhere,' said Amanda Mattern, vice president of the utility's electric operations. 'Assessing the damage after the Jasper wildfires was challenging and really emotional for our whole team.' ATCO Electric Jasper park ATCO Electric crew on site in the aftermath of the Jasper Wildfire in 2024. (Credit: ATCO Electric) Keeping electricity flowing in the face of extreme weather events like this one has become a central issue for many in Canada's electricity sector and experts in the field who are looking for solutions with innovation and urgency. Weathering the storm, hardening the grid with technology The Grid Modernization Centre at the University of Toronto was developed to do exactly that. It's equipped with high-powered technology to run real-time simulations of Canada's electrical energy systems. 'The problem is not necessarily a lack of sufficient action on the utility side,' said Ali Hooshyar, director of the centre. 'The problem is the magnitude of the challenge that the utilities are facing.' The centre's high-powered technology simulates scenarios where the grid could be under strain, such as in the case of a lightning strike on a transmission line during a storm. This real-time modelling exercise is used to test the performance of actual grid components before the worst-case scenarios occur. 'We need to make sure that the grid is modernized, the grid is made robust against potential severe weather conditions that could occur in the future,' he said. While the centre is a more recent effort to harden Canada's grids, for utilities like Nova Scotia Power, the threat of extreme weather isn't new. But it is getting worse. 'Right now, it would definitely be the biggest vulnerability [to the grid] with these weather patterns that we're seeing,' said Matt Drover, senior director of energy delivery. 'They're much more severe, much more intense, and they're definitely taking a toll.' Replacing old electricity poles with bigger, stronger ones to better withstand storms is one of Nova Scotia Power's solutions to making its critical grid infrastructure more resilient to the consequences of climate change. Smarter grids, new risks Building a 'smarter' grid that uses digital technology, sensors and software to communicate information also allows utilities to make supply and demand decisions faster and more efficiently. For example, Drover explained NS Power is installing smart devices across the province that can segment circuits, effectively localizing outages, so that when a tree does fall on a transmission line, fewer customers would be impacted. But implementing new technologies to make the grid smarter comes with risks. Recently, Nova Scotia Power was hit with a cybersecurity breach that gave thieves access to data belonging to 280,000 customers. The utility has not said how the breach occurred. 'When you make something smarter and you start to depend on sensors, communication technology and intelligent computing, you basically shift the vulnerability,' said Deepa Kundar, a managing director of the Grid Modernization Centre. Her research group is working to prevent and respond to this growing vulnerability. Energy sovereignty with an east-west grid While utilities and industry innovators work on technological solutions to strengthen Canada's grid, a recent surge in political will for nation-building projects may provide another avenue to increased reliability: a national east-west grid. Hydro workers Hydro workers perform maintenance on power lines in Renfrew County, Ont., on July 8, 2024. THE CANADIAN PRESS/Sean Kilpatrick During the election, Prime Minister Mark Carney promised to work with provinces to build an east-west grid to secure Canadian energy independence, as the country grapples with U.S. President Donald Trump's threats to Canadian sovereignty. Canada's power grid is made up of three primary systems: the Western grid, the Eastern grid, and the Quebec grid, which includes Atlantic Canada. While the provinces are responsible for generating their own electricity, these grids are structured in a north-south configuration to facilitate electricity imports and exports to the United States. In many cases, Canadian provinces transfer electricity more easily with the United States than with each other. But recent interest in energy sovereignty and proposed projects like a Yukon-B.C. interconnection that would, for the first time, connect the territory to the rest of North America, may see Canada shift towards a pan-Canadian grid that would encourage less reliance on the U.S. for energy transfers while strengthening the grid against severe weather threats. In its latest report from April, the North American Electric Reliability Corporation (NERC) found Quebec and Nova Scotia will be particularly vulnerable to outages in extreme weather scenarios going forward, especially during cold snaps. Part of the industry watchdog's recommendation was to increase transfer capability to Quebec, importing additional energy from New Brunswick, Ontario, New York, and New England, while Nova Scotia could mitigate its power shortfall by adding transfer capability from New Brunswick. The NERC report identified adding 12 to 14 gigawatts of transfer capability between provinces could help grids stay resilient in extreme conditions. Diversifying the energy supply 'We're going to require an all-of-the-above approach,' to meet the challenge of extreme weather, said Francis Bradley, president and CEO of Electricity Canada, a national group representing the electricity sector. That includes new technologies, more interconnections between provinces, and diverse power generation options. 'We're going to need more wind, more solar, more hydro, more nuclear to be able to meet the challenges of the future,' he said. More than half of Canada's electricity comes from hydro generation, but drought conditions in recent years have decreased outputs. According to Statistics Canada, in 2024, hydroelectricity generation was down nearly five per cent from the previous year and 3.5 per cent lower than the five-year average going back to 2019. The West Pubnico Point Wind Farm The West Pubnico Point Wind Farm is seen in Lower West Pubnico, N.S. on Aug. 9, 2021. The operation includes 17 Vestas V-80 turbines which produce 30.6 megawatts of electricity, enough to power more than 9,000 homes. There are more than 300 commercial wind turbines generating electricity in the province. THE CANADIAN PRESS/Andrew Vaughan More supply options mean greater reliability and energy resiliency when extreme weather events strain the grid. For example, wind and solar plants are not affected by drought conditions, unlike hydro, and can help ensure a stable power supply. Empowering Canadians to support the grid There may also be a role for Canadians to play. Currently, in moments of high electricity demand, like during a heat wave or a cold snap, many operators urge consumers to reduce their use, in turn, lessening the load on the grid. For example, during Alberta's cold snap in January 2024, the Alberta Electric System Operator (AESO) used a grid alert when the power system was under stress, asking consumers in the region to reduce their electricity use. Almost immediately after the alert was issued, AESO reported it saw a significant 200 MW drop in electricity demand. While that demand response involves consumers playing an important role in mitigating power shortfalls in a traditional grid system, new technologies, new infrastructure, and diversification can all be part of a future solution to keep the country powered on during difficult situations. 'You take electricity for granted until you don't have it,' Hooshyar explained. As climate change accelerates, Canada's grid systems will be tested, but adding diverse 'layers of reliability' now are critical to preventing catastrophic failure before it's too late. Rukshar Ali is a multi-platform journalist from Calgary and a recipient of the Sachedina - CTV News - Fellowship.

ATCO says savings to come despite Alberta Utilities Commission decision
ATCO says savings to come despite Alberta Utilities Commission decision

Calgary Herald

time29-05-2025

  • Business
  • Calgary Herald

ATCO says savings to come despite Alberta Utilities Commission decision

Southern Alberta-based ATCO says efficiency initiatives will save its utility customers more than $500 million despite an Alberta Utilities Commission decision. Article content Article content The AUC decision report that was released Wednesday notes that the commission found ATCO's performance-based regulation (PBR) plans 'did not operate as intended in each of 2021 and 2022.' Article content Through PBR, which is used to regulate distribution utilities in Alberta, utilities are incentivized to find efficiencies in their work and pass those on to customers through rates. Article content Article content ATCO maintains it operated within the PBR, and says established rules are now being interpreted and administered differently after the fact. It has been granted the right to appeal one of the AUC's reopener decisions, which will be heard in the Alberta Court of Appeal. Article content Article content Although it has been ordered to refund tens of millions, ATCO asserts that it should be held until the appeal is heard by the court in October. Article content The report does not directly dispute the $500 million in cost savings, and the chief operating officer of ATCO Energy Systems doesn't believe that is the AUC's intent. Article content 'This would be the AUC looking for an additional piece on top of that 500 million,' said Jason Sharpe. 'I wouldn't want someone to look at this decision and say, ATCO isn't committed to delivering lower rates for customers and being more efficient.' Article content In an email an AUC spokesperson said the regulator won't be providing interviews on the matter, but noted it has directed ATCO Electric and ATCO Gas to refund a total of $71 million. Article content Article content This comes 'after finding the companies' 2021 and 2022 rates were not just and reasonable,' resulting in overcharging of customers. Refunds to ATCO Electric and ATCO Gas customers will be $35 million and $36 million respectively. Article content 'The refund will be provided over a six-month period from Sept. 2025 to Feb. 2026, through a rate rider on bills,' the email read. Article content However, ATCO's appeal has been granted the right to be heard, and if they are correct there would be no refund. Article content By going ahead of the appeal, he said customers could end up with a refund on their bill that gets 'clawed back' after the fact.

ATCO's Efficiency Initiatives to Save Alberta Utility Customers More Than Half a Billion Dollars
ATCO's Efficiency Initiatives to Save Alberta Utility Customers More Than Half a Billion Dollars

Cision Canada

time26-05-2025

  • Business
  • Cision Canada

ATCO's Efficiency Initiatives to Save Alberta Utility Customers More Than Half a Billion Dollars

Among the updates ATCO provided to share owners at its recent Annual General Meeting was that its ATCO Gas and ATCO Electric businesses are on track to deliver more than $500 million in savings in distribution rates to its Alberta customers during the current regulatory rate period of 2023-2028. Distribution rates are the costs of operating the pipes and wires that provide natural gas and electricity to homes and businesses and represent the portion of the utility bill that ATCO Gas and ATCO Electric are responsible for. This achievement reflects an eight per cent reduction in natural gas and electricity utility distribution rates, made possible through ATCO's focused efficiency measures and cost-saving initiatives since 2018. Of note, ATCO is the only Alberta utility delivering natural gas and electricity distribution rate reductions to customers over the 2023-2028 period. "At ATCO, we understand the pressures Albertans face with rising costs across essential services," said Jason Sharpe, Chief Operating Officer of ATCO Energy Systems. "We're very proud of how our team members — who are also utility customers themselves — have worked diligently to deliver meaningful savings while maintaining the reliability and safety our customers expect." ATCO remains steadfast in its mission to serve Albertans with integrity, transparency, and a long-term vision for reliable and affordable energy. "These savings are not just numbers, they represent ATCO's deep-rooted commitment to our customers and communities," noted Mr. Sharpe. The ATCO group of companies continues to advocate for a regulatory and business environment that supports innovation, efficiency and affordability—ensuring Alberta remains one of the most attractive places to live and work. About ATCO As a global enterprise, ATCO Ltd. and its subsidiary and affiliate companies have approximately 21,000 employees and assets of $27 billion. ATCO is committed to future prosperity by working to meet the world's essential energy, housing, security and transportation challenges. ATCO Structures designs, builds and delivers products to service the essential need for housing and shelter around the globe. ATCO Frontec provides operational support services to government, defence and commercial clients. ATCO Energy Systems delivers essential energy for an evolving world through its electricity and natural gas transmission and distribution, and international electricity operations. ATCO EnPower creates sustainable energy solutions in the areas of electricity generation, energy storage, industrial water and cleaner fuels. ATCO Australia develops, builds, owns and operates energy and infrastructure assets. ATCO Energy and Home Services provides retail electricity and natural gas services, home maintenance services and professional home advice that bring exceptional comfort, peace of mind and freedom to homeowners and customers. ATCO also has investments in ports and transportation logistics, the processing and marketing of ash, retail food services and commercial real estate. More information can be found at Investor Inquiries: Colin Jackson Senior Vice President, Financial Operations [email protected] 403-808-2636 Media Inquiries: Kurt Kadatz Director, Corporate Communications [email protected] 587-228-4571 Forward Looking Information Advisory Certain statements contained in this news release constitute forward-looking information, including, but not limited to, references to reductions in natural gas and electricity distribution rates to be delivered to customers during the regulatory rate period from 2023-2028. Although we believe that the expectations reflected in the forward-looking information are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct. Forward-looking information should not be unduly relied upon. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors, which may cause actual results, levels of activity, and achievements to differ materially from those anticipated in such forward-looking information. The forward-looking information reflects beliefs and assumptions with respect to, among other things, the applicability and stability of legal and regulatory requirements; continuing collaboration with certain business partners, and regulatory and environmental groups; the performance of assets and equipment; the ability to meet current project schedules, and other assumptions inherent in management's expectations in respect of the forward-looking information identified herein. Actual results could differ materially from those anticipated in this forward-looking information as a result of, among other things, risks inherent in the performance of assets; applicable laws and regulations and the interpretation and manner of enforcement of such laws and regulations; changes to government policies; regulatory decisions; competitive factors; evolving market or economic conditions; credit risk; interest rate fluctuations; the availability and cost of labour, materials, services, and infrastructure; future demand for resources; the development and execution of projects; prices of electricity and natural gas; the risk of operational disruptions, outages, or force majeure events; the occurrence of unexpected events such as fires, extreme weather conditions, explosions, blow-outs, equipment failures, transportation incidents, and other accidents or similar events; global pandemics; the imposition of or changes to customs duties, tariffs or other trade restrictions; geopolitical tensions and wars; and other risk factors, many of which are beyond the control of the Company. Due to the interdependencies and correlation of these factors, the impact of any one material assumption or risk on a forward-looking statement cannot be determined with certainty. Readers are cautioned that the foregoing lists are not exhaustive. For additional information about the principal risks that are faced by the companies, see "Business Risks and Risk Management" in Management's Discussion and Analysis for ATCO Ltd. and Canadian Utilities Limited for the year ended December 31, 2024. Any forward-looking information contained in this news release represents management's expectations as of the date hereof, and is subject to change after such date. The companies disclaim any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.

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