Hidden power

POLICY

Expanding the grid with flexible demand

What happened: The key to energy affordability could be laying in plain sight.

Flexible demand - shifting electricity use to off-peak times or using less during peak hours - offers a cheaper, faster alternative to only building out new supply according to the Canadian Climate Institute.

The details: Canada's electricity demand is expected to more than double by 2050, with peak loads growing up to 60% in Ontario and Alberta.

That means bigger jumps between maximum and average power demand - and more generating capacity that needs to be built in order to meet higher peak loads but ends up sitting idle the rest of the time.

Why it matters: Flexible demand programs allow utilities to reduce or delay major infrastructure upgrades, while operating the grid more efficiently.

It can also improve grid reliability by responding to extreme weather or outages, and can be faster to deploy than building new generation.

The big picture: Flexible load is becoming a key strategy for grid operators where data centres are driving up demand.

In the US, utilities are green-lighting large grid connection requests for data centres that are able to curtail demand during specific hours. Research found that even a 1% curtailment of demand could unlock 100GW of capacity.

Many data centres already have on-site generation and energy storage for reliability. Flexible loads could prevent or delay the need for major infrastructure upgrades and let new data centres connect faster.

Grids across Canada are anticipating significant load growth from data centres. Grid connection requests in Alberta have surged from 200MW in Q1 2024 to more than 11,800 MW in Q1 2025. Flexible loads could be a critical lever in meeting demand while protecting affordability.

What’s missing:

• Aligned incentives - utilities often earn returns on capital projects or have firm mandates to focus on reliability

• Better data access to build stronger business cases and deploy where it's needed most

• Compensation that recognizes the full grid benefits

• Grid operators and regulators need to graduate from pilots to scaling up

The bottom line: Grids can’t build their way out of rising electricity demand with generation alone. Flexible demand can become a piece of core grid infrastructure - planned, procured, and compensated alongside wires and power plants.

CLIMATE CAPITAL

🛍️ Re-commerce platform Frate Returns was acquired by US-based Route, integrating customer-to-customer exchanges and smart returns.

🚌 GreenPower Motors secured US$12.95 million in financing to recapitalize and accelerate production of its electric buses. GreenPower also landed US$14.6 million from the State of New Mexico to build a new manufacturing plant in the state.

IN THE FIELD

🔋 EV charging company Hypercharge Networks launched an energy storage subsidiary, Hypercorp Energy Solutions.

🔌 Soneil Spark launched a new mobile EV charging solution for remote, off-grid commercial customers. The system can operate as a fully independent power hub or integrate with existing energy systems.

⛏️ Vancouver miner Eldorado Gold is deploying 10 heavy battery electric vehicles from Sweden’s Sandvik at its Lamaque gold mine in Quebec.

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SIGNALS & CURRENTS

US exits the world: The Trump administration withdrew the US from the UNFCCC and IPCC, along with 60+ other international organizations. Trump called the organizations “contrary to the interests” of the US.

EV deal with China: China and the EU agreed on steps to resolve their EV trade dispute, including price floors for Chinese vehicles and manufacturing investments.

• The EU deal shows how Canada could ease tariffs on Chinese vehicles to allow more affordable vehicles while protecting competition for domestic car makers.

• Doug Ford wants to see more EV factories from Chinese car makers before tariffs budge

Moving the goal posts: Danielle Smith wants Ottawa to approve a pipeline in six months to respond to US plans to ramp up oil production in Venezuela - not the two years it agreed to in the MOU it signed with the feds just over a month ago.

CBAM boost: The EU’s Carbon Border Adjustments took effect this month, and could boost demand for Canadian minerals. Canada’s energy supply is typically cleaner than other mineral-producing countries, saving EU buyers from buying more carbon allowances.

QUICK HITS

• Ontario will build a 900MW underwater transmission line to hook Toronto up to SMRs

• Climate misinformation could be a national security risk for Canada

• GM takes a $7.1B hit from its EV pullback

• Permafrost thaw could be accelerating a fire-climate feedback loop in the Arctic

• Copper’s supply gap continues to grow

• One year later, here’s how NYC’s congestion pricing is doing

• Meta goes nuclear for +6GW of power

COMMUNITY

💻️ dcbel is hiring a Lead UX/UI Designer to transform how people interact with energy at home

💡 AI for Earth: Hosted by Amii, this program helps post-secondary students in Environmental Sciences and Meteorology build AI literacy & skills.

📅 Carbon Unbound: Hundreds of climate leaders gather in Vancouver, where sea, land, and air unite to drive bold gigaton-scale solutions. Jan 22-23, Vancouver.

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