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How Will We Power Our Electricity Future?

How Will We Power Our Electricity Future?. Pollution Probe Energy Literacy Workshop March 17, 2011 Vancouver, BC. Elizabeth Majeau Director, Generation & Environment Canadian Electricity Association. CEA’s Corporate Utility Members. City of Medicine Hat Electric Utility.

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How Will We Power Our Electricity Future?

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  1. How Will We Power Our Electricity Future? Pollution Probe Energy Literacy Workshop March 17, 2011 Vancouver, BC Elizabeth Majeau Director, Generation & Environment Canadian Electricity Association

  2. CEA’s Corporate Utility Members City of Medicine Hat Electric Utility Manicouagan Power Company Limited Distribution

  3. Presentation Outline • “Electricity 101” • Need for Infrastructure Investment • Pillars of Electricity System • Opportunities and Challenges • What Does the Future Hold?

  4. Electricity Demand in Canada by Sector, 1990 - 2008 Total Electricity Demand in Canada, 2008 = 548.8 TWh Source: Statistics Canada, Energy Statistics Handbook, Q4:2009

  5. Electricity Generation in Canada by Fuel Type*, 2009 Total Electricity Generation in Canada, 2009 = 575.2 TWh *Numbers may not sum to 100 percent due to rounding. Source: Statistics Canada, Survey 2151, 2010

  6. Electricity Generation in Canada by Province and Fuel Type, 2009 Total Electricity Generation in Canada, 2009 = 575.2 TWh 193.8 143.7 62.2 59.6 38.4 33.8 18.4 11.6 13.1 0.1 Source: Statistics Canada, Survey 2151, 2009

  7. Canada’s Bulk Transmission Grid Total Length of High Voltage Transmission Lines (>230 kV) in Canada = 74,640 km Statistical Source: North American Electric Reliability Council (NERC)Map Source: Global Energy Network Institute (GENI)

  8. Good Neighbours: Canada-US Electricity Trade

  9. Good Neighbours: Canada-US Electricity Trade

  10. Selected World Residential Electricity Prices, 2009 Source for Canada: Hydro Quebec, Comparison of Electricity Prices in Major North American Cities, 2009Source for Rest of World: International Energy Agency, Key World Energy Statistics 2009

  11. Selected World Industrial Electricity Prices, 2009 Source for Canada: Hydro Quebec, Comparison of Electricity Prices in Major North American Cities, 2009Source for Rest of World: International Energy Agency, Key World Energy Statistics 2009

  12. Canada Must Invest in its Electricity Infrastructure • The average age of generating units in Canada is approximately 32 years; some of the oldest units are over 100 years old • Canada’s current transmission system was designed to serve a population of 20 million • Between 1990 and 2007 only 6,700 additional kilometers of high voltage transmission lines (400 km per year) were added • Growing population, economic recovery and growth, and new ideas about how Canadians want their energy needs met will contribute to demand growth

  13. Investing in BC’s Electricity Infrastructure • BC Hydro expects electricity demand in BC to grow as much as 40 percent in the next 20 years • Clean Energy Act – 66 percent of BC’s electricity demand will be met with conservation and efficiency measures by 2020 • Most electricity infrastructure in BC was built between 1950 and 1980 • Last major hydro project to come online was Revelstoke dam in 1985 • BC Hydro’s three year capital plan includes $6 billion to upgrade and expand the system • Undergoing an Integrated Resource Planning process to look at meeting long term demand

  14. Projected Capital Investment Requirements Source: International Energy Agency, World Energy Outlook 20082007 US-CAN exchange rate: Bank of Canada

  15. Capital Investment in Canada’s Electric Power Sector, 1990 – 2009(billions of constant 2002 dollars) Source: Statistics Canada, Survey 2820, 2010

  16. Investing in BC’s Electricity Infrastructure

  17. Pillars of the Electricity System • Affordability • Reliability • Sustainability

  18. Opportunities and Challenges • Climate policy • Evolving electricity production and delivery model • Smart Grid • Regulatory processes • Public education and engagement

  19. Greenhouse Gas (GHG) Emissions in Canada by Sector, 2008 Source: Environment Canada, National Inventory Report 1990 – 2008 *includes stationary sources such as mining, manufacturing, and construction, and fugitive sources.

  20. Balancing Demand with Non-Dispatchable Supply

  21. What is Smart Grid? “A smart grid is a modern electricity system. It uses sensors, monitoring, communications, automation and computers to improve the flexibility, security, reliability, efficiency, and safety of the electricity system.” -Enabling Tomorrow’s Electricity System: Report of the Ontario Smart Grid Forum “A smart grid is an electricity network that can intelligentlyintegrate the behaviour and actions of all users connected to it – generators, consumers and those that do both – in order to efficiently ensure sustainable, economic and secure electricity supply. A smart grid, involving a combination of software and hardware allowing more efficient power routing and enabling consumers to manage their demand, is an important part of the solution for the future.” -Smart Grids and Networks of the Future – EURELECTRIC Views. “An automated, widely distributed energy delivery network, the Smart Grid will be characterized by a two-way flow of electricity and information and will be capable of monitoring everything from power plants to customer preferences to individual appliances. It incorporates into the grid the benefits of distributed computing and communications to deliver real-time information and enable the near-instantaneous balance of supply and demand at the device level.” -The Smart Grid: An Introduction – U.S. Department of Energy

  22. A Complex Regulatory Environment • Shared responsibility between federal, provincial and territorial jurisdictions • Regulatory processes characterized by duplication and inefficiencies (process vs. outcomes) • Lack of clarity on stakeholder and aboriginal engagement • Key regulations applying to electricity projects: • Canadian Environmental Assessment Act (CEAA) • Species at Risk Act (SARA) • Fisheries Act

  23. Public Education and Engagement • Lack of public understanding as to where electricity comes from • Indifference or opposition towards electricity infrastructure projects and “not-in-my-backyard” (NIMBY) sentiments • Tradeoffs associated with investing in a more sustainable electricity system – price increases will occur • Using technology to manage electricity consumption and bills • Human resources and training needs

  24. Electricity: The Answer to our Energy Challenge Electricity is emerging at the centre of energy and environmental policy Electricity has the potential to: • Expand clean energy access • Address growing demand • Reduce carbon emissions through technology

  25. The Future of the Electricity Industry • The sector will experience an increase of new technologies across the industry • Entrepreneurs will develop new technologies with efficient end-uses • Using a control system, customers will be able to program their decisions, allowing them to make energy decisions and better manage their bills • Innovative third party producers and suppliers will be essential for the sector in 2030

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