Danske Commodities electricity export application

Summary#

Danske Commodities US LLC applied on February 14, 2024 to the Canada Energy Regulator for permission to export up to 900,000 MWh of electricity a year. The regulator is asking for public feedback before it decides on a permit or a formal licensing process; written comments are due by April 9, 2024.

What it does#

• The application asks, under Division 2 of Part 7 of the Canadian Energy Regulator Act, for authorization to export up to 900,000 MWh (combined firm and interruptible energy) each year for 10 years.
• The Commission of the Canada Energy Regulator is inviting written submissions from interested parties and will consider those views before deciding on a permit or recommending a licence process.
• The Commission specifically wants comments on:
  • the likely effect of the export on provinces other than the one from which the electricity would be exported, and
  • whether the applicant has informed people who had expressed interest in buying electricity for use in Canada and given them a fair chance to buy on comparable terms.
• Written submissions must be filed online with the CER and emailed to the applicant by April 9, 2024. Any answers the applicant wishes to file in response to submissions must be filed and emailed by April 24, 2024.
• The applicant will provide a copy of its application on request (email: nkr@danskecommodities.com). The application is also on the CER website. For filing help or questions contact the Secretary of the Commission (telephone: 403‑292‑4800; email: secretary@cer-rec.gc.ca).

Who's affected#

• Electricity market participants in Canada: generators, utilities, retailers and large commercial/industrial buyers.
• Provincial governments and provincial electricity regulators, especially in provinces where the exported electricity would originate.
• Companies or organizations that said they were interested in buying electricity for use in Canada.
• Transmission operators and cross‑border trade stakeholders.
• Typical households are less likely to see immediate direct effects, but the price and availability of electricity in some provinces could be affected indirectly.

Why it matters#

• Allowing exports at this scale (900,000 MWh per year) can change how much electricity is available in domestic markets and could influence prices in some provinces.
• The public comment process gives domestic buyers, provinces, and other stakeholders a chance to raise concerns about supply, price, or fairness before a permit or licence is granted.
• The regulator is explicitly checking whether Canadians who wanted to buy electricity were given the same opportunity as foreign buyers.