Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has...

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CANADA’S ELECTRICITY INDUSTRY

Transcript of Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has...

Page 1: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

CANADA’S ELECTRICITY

INDUSTRY

Page 2: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Table of Contents

Page 2

• Table of Contents

• The Canadian Electricity Association (CEA)

• CEA’s Corporate Utility Members

• CEA Corporate Partners Program Membership

• CEA Mission Statement

• CEA Strategic Goals

• Canada’s Multi-Jurisdictional Environment

• Canada’s Market Structure

• North American Electric Reliability Corporation

(NERC) Regions

• Electricity Demand in Canada by Sector, 2014

• Electricity Demand in Canada by Sector, 1990 - 2014

• Electricity Generation in Canada by Fuel Type, 2014

• Electricity Generation in Canada by Fuel Type, 1990

- 2014

• Electricity Generation in Canada by Province and

Fuel Type, 2014

• Canada-US Electricity Trade Volume, 1990 – 2014

• Canada-US Natural Gas Trade Volume, 1990 – 2014

• Canada-US Natural Gas Trade Volume, 1998 – 2014

• Canada-US Electricity Trade Revenue, 1990 – 2012

• Canada-US Natural Gas Trade Revenue, 1990 – 2014

• Canada-US Natural Gas Trade Revenue, 2002 – 2015

• Canada-US Natural Gas Export/Import prices, 2002

– 2015

• Canada-US Electricity Export/Import prices, 1997 –

2014

• Canada-US Natural Gas and Electricity

Export/Import prices

• Canada-US Electricity Trade – 2014 (GWh)

• Electricity Export and Imports between Canada and

U.S. (2014)

• Major Canada-U.S. Transmission Interconnections

• Manitoba-Minnesota Grid Connections

• U.S. Canada Electricity Trade Volume

• Major Canada-U.S. Transmission Interconnections

• Utility Investment in Canada’s Transmission &

Distribution Cables & Lines, 1998 - 2010

• Electric Power Generation, Transmission and

Distribution Sector Contribution to Canada’s GDP,

1990 – 2012

• Capital Investment in Canada’s Electric Power

Sector, 1990 – 2012

• Electric Sector Environmental Protection

Expenditures by type, 2012

• Environmental Protection Expenditures by the

Electric Power Sector, 1996 – 2012

• Greenhouse Gas (GHG) Emissions in Canada by

Sector, 2014

• Greenhouse Gas (GHG) Emissions in Canada for

Energy Sector, 2014

• Nitrogen Oxide (NOx) Emissions in Canada by

Sources, 2014

• Sulphur Oxide (SOx) Emissions in Canada by

Sources, 2014

• Electric Sector Sulphur Oxide (SOx) Emissions in

Canada, 1990 - 2014

• Mercury Emissions in Canada by Sources, 2014

• Electric Sector Mercury Emissions in Canada, 1990

- 2014

• Particulate Matter (PM2.5) Emissions in Canada by

Sources, 2014

• Electric Sector Particulate Matter (PM) Emissions in

Canada, 1990 - 2014

• 2014 CO2 Electricity Emissions and Intensity in

Canada

• Utility Generated Electricity by Source and GHG

emissions, 1990-2013

• Factors Contributing to GHG emissions, 1990-2014

• Factors Contributing to GHG emissions, 2005-2014

• Greenhouse Gas (GHG) Emissions in Canada and

the US by Sector, 2014

• Electricity Generating Capacity in the US and

Canada by Fuel Type,1 2014

• Electricity Generation in the US and Canada by Fuel

Type,1 2014

• Building the Next Generation of Infrastructure:

Capital Investment Requirements

• Active MPMO Electricity Sector Projects

• Active MPMO Electricity Sector Projects – indirect

relevance

• Active MPMO Electricity Sector Projects - New

• Canada’s Regulatory Regime for Large Energy

Projects

• Average Residential Electricity Price in Canada,

1998 – 2014 (cents/kWh)

• Selected World Residential Electricity Prices, 2014

• Selected World Industrial Electricity Prices, 2014

• The Percentage Change in Household Expenditures

2000-2013

• Canada’s Future Residential Electricity Needs

• Low Emission and Sustainable Technologies Used

for Electricity Generation in Canada

• Canadian Electricity Statistics

• Installed Wind Capacity in Canada as of April 2013

• Existing Coal Facilities in Canada – End of Life and

Regulatory Shut Down

• Proposed Regulations to address GHG emissions

from coal-fired electricity

• The CEA Councils

• Vision 2050

• CEA Sustainability Program

• Energy Efficiency

• Smart Grid

• Economic Value

• Electricity in Canada at a Glance

• For More Information...

Page 3: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

The Canadian Electricity Association (CEA)

• Founded in 1891, the Canadian Electricity Association is the

national forum and voice of the evolving electricity business in

Canada.

• Mission Statement: A safe, secure, reliable, sustainable and

competitively-priced supply of electricity is essential to Canada’s

prosperity.

Page 3

Page 4: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

CEA’s Corporate Utility Members

Page 4

Page 7: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

CEA Mission Statement

A safe, secure, reliable, sustainable and

competitively priced supply of electricity is essential

to Canada’s prosperity. CEA is the voice of the

Canadian electricity industry, promoting electricity

as the critical enabler of the economy and

Canadians’ expectations for an enhanced quality of

life.

Page 7

Page 8: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

CEA Strategic Goals

Infrastructure – Ability to build needed electricity infrastructure, to meet growing

demand and replace aging assets.

Energy Efficiency – Ability to provide options to customers to assist them in using

electricity more efficiently, manage costs and minimize environmental impacts.

Technology – Ability to maximize and deploy leading-edge technologies.

Regulation – Need for more coordinated, effective and efficient regulatory regimes

within and between governments, and more timely decisions.

Environment – Need for holistic approach and greater regulatory coherence on

environmental issues.

Security – Need to ensure the long-term security, reliability and stability of the

electricity system.

Page 8

Page 9: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Canada’s Multi-Jurisdictional Environment

Page 9

Jurisdictional Division of Responsibility

Provincial/Territorial Governments Federal Government

• Resource management within

provincial boundaries

• Intra-provincial trade and commerce

• Intra-provincial environmental

impacts

• Generation and transmission of

electrical energy

• Conservation and demand response

policies

Resource management on frontier

lands

Nuclear safety

Inter-provincial and international trade

Trans-boundary environmental

impacts

Environmental impacts where federal

lands, investment or powers apply

Codes, standards and labeling relating

to conservation and demand

Other policies of national interest

Page 10: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Page 10

Saskatchewan

• Wholesale open

access

• Vertically-integrated

Crown corporation

Alberta

• Mandatory Power Pool

• Wholesale & retail open access

since 2001

• Fully competitive wholesale market

Manitoba

• Wholesale open access

• Vertically-integrated Crown

corporation

Ontario

• Industry unbundling in 1998

• Wholesale & retail open access

since 2002

• Hybrid regulation and competition

model

Québec

• Wholesale open access

• Vertically-integrated Crown

corporation

• Expanding IPP development

Newfoundland

• Vertically-

integrated Crown

corporation and

investor-owned

distribution utility

New Brunswick

• Wholesale open

access

• Vertically-integrated

Crown corporation

Nova Scotia

• Wholesale open

access

• Investor-owned

utility regulated on

cost-of-service

BC

• Wholesale & industrial

open access

• Vertically-integrated

Crown corporation serves

94% of customers

PEI

• Procures electricity

from New England

market and long-

term contracts with

New Brunswick

Electricity Market Structures in Canada

Page 11: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

North American Electric Reliability

Corporation (NERC) Regions

Page 11

Page 12: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electricity Demand in Canada by Sector, 2014

Page 12

Transportation1%

Public Administration3%

Industrial43%

Residential33%

Commercial & Institutional

18%

Agriculture2%

Total Electricity Demand in Canada, 2014 = 491.22 TWh

*Numbers may not sum to 100 percent due to rounding

Source: Statistics Canada, Catalogue no 57-003-X, Report on Energy Supply and Demand in Canada, 2014 preliminary

Updated August, 2016

Page 13: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electricity Demand in Canada by Sector,

1990 - 2014

Page 13

Total Electricity Demand in Canada, 2014 = 491.22 TWh

0

100

200

300

400

500

600

199019911992199319941995199619971998199920002001200220032004200520062007200820092011201220132014

Dem

and

(TW

h)

Commercial & Institutional Agriculture

Public Administration Residential

Transportation Industrial

Source: Statistics Canada, Catalogue no 57-003-X, Report on Energy Supply and

Demand in Canada, 2014 preliminary

Updated April, 2016

Since 2003 electricity demand has

decreased 7% and, since an historic

high in 2008, 12%

Page 14: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electricity Consumption in Canada by Sector, 2003 - 2013

Page 14

Total Electricity Consumption in Canada, 2013 = 485.19 TWh

0

100

200

300

400

500

600

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Dem

and

(TW

h)

Commercial & Public Services Agriculture/Forestry

Other non-specified Residential

Transportation Industrial

Source: IEA Statistics, Canada: Electricity and Heat 2003-2013

Updated January 6,, 2016

Since 2003 electricity

consumption has decreased

3.2% and, since an historic

high in 2008, 7.5%

Page 15: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electricity Generation in Canada by Fuel Type,

2014

Page 15

Hydro60.6%

Conventional Steam14.6%

Nuclear16.2%

Internal Combustion0.3%

Combustion Turbine6.5%

Tidal0.00%

Wind1.8%

Solar0.05%

Total Electricity Generated in Canada, 2014 = 627.68 TWh

*Numbers may not sum to 100 percent due to rounding.

Source: Statistics Canada, Electric power generation, by class of electricity producer, annual (CANSIM Table 127-0007), 2014

Retrieved April, 2016

Page 16: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electricity Generation in Canada by Fuel

Type, 1990 - 2014

Page 16

0

100

200

300

400

500

600

700

Gen

erat

ion

(TW

h)

Solar Wind Tidal

Combustion Turbine Internal Combustion Nuclear

Conventional Steam Hydro*

Total Electricity Generation in Canada, 2014 = 627.68 TWh

*Prior to 2008, wind and tidal generation are included in hydro.

Source: Statistics Canada, Electric power generation, by class of electricity producer, annual (CANSIM Table 127-0007), 2014

Retrieved April. 2016

Page 17: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electricity Generation in Canada by

Province and Fuel Type, 2014

Page 17

Total Electricity Generation in Canada, 2014 = 627.68 TWh

0

50

100

150

200

250

BC AB SK MB ON QC NB* NS PEI NFLD

Gen

era

tio

n (

TW

h)

Solar

Tidal

Wind

Combustion Turbine

Internal Combustion

Nuclear

Conventional Steam

Hydro

Source: Statistics Canada, Electric power generation, by class of electricity producer, annual

(CANSIM Table 127-0007), 2014

Retrieved August, 2016

75.867

35.6

16.3

41.1

0.6

157.1

10.6

199.9

22.3

*Point Lepreau nuclear generating station resumed power production on November 23, 2012, nuclear has been re-established as a major

source (about 30%) of electricity in New Brunswick.

Page 18: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Canada-U.S. Electricity Trade Volume, 1990

– 2015

Page 18

Source: National Energy Board, Electricity Exports and Imports, 2015.

Retrieved August, 2016

0

10

20

30

40

50

60

70

Tera

watt-

hour

s (TW

h)

Page 19: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Canada-U.S. Natural Gas Trade Volume,

1990 – 2015

Page 19

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Billio

n cub

ic mete

rs

Exports Imports Net

Source: Statistics Canada, Natural Gas Exports and Imports, 2015

Retrieved August, 2016

Page 20: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Canada-U.S. Electricity Trade Revenue, 1990 –

2015

Page 20

California Energy Crisis of 2000 and 2001 was the situation when California had a shortage of electricity

Source: National Energy Board, Electricity Exports and Imports, 2015 Retrieved August, 2016

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Billio

n $ CD

N

Exports = $3.1 billion in 2015

Imports = $0.3 Billion in 2015

Net = $2.8 Billion in 2015

California Energy Crisis

Page 21: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Canada-U.S. Natural Gas Trade Revenue,

1990 – 2015

Page 21

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Billi

on $

CDN

Exports Imports Net

Source: Statistics Canada, Natural Gas Exports and Imports, 2015

Retrieved April, 2016

Page 22: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Canada-U.S. Natural Gas Export/Import

Prices, 2002 – 2015

Page 22

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

CAN

$/G

J

Exports Imports

Source: Statistics Canada, Natural Gas Exports and Imports, 2015

Retrieved April, 2016

Page 23: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Canada-U.S. Electricity Export/Import

Prices/MWh, 1997 – 2015

Page 23

0.0

20.0

40.0

60.0

80.0

100.0

120.0

CAN$

/MW

h

Exports Imports

Source: National Energy Board, Electricity Exports and Imports, 2015

Retrieved August, 2016

Page 24: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Canada-U.S. Natural Gas and Electricity

Export/Import Price Comparison, 2002 –

2015

Page 24

0

1

2

3

4

5

6

7

8

9

10

0

20

40

60

80

100

120

CAN$

/GJ

CAN$

/MWh

Electricity Exports Electricity Imports Natural Gas Exports Natural Gas Imports

Source: National Energy Board, 2015

Retrieved August, 2016

Page 25: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Page 25

Page 26: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Major Canada-U.S. Transmission Interconnections

Page 26

Source: National Energy Board

Page 27: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Page 27

Electricity Exports and Imports Between

Canada and the U.S. (2014)

Data displayed are in gigawatt hours

Numbers may not sum due to rounding

Source: National Electricity Board, Export and Imports, 2014.

Page 28: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

The Integrated North American Grid

Page 28

Map copyright CEA.

Lines shown are 345kV and above. There are

numerous interconnections between Canada and the

U.S. under 345KV that do not appear on this map.

Page 29: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

• Manitoba Hydro (MH): 500 kV line

to U.S. border.

• Minnesota Power (MP): 500 kV

line from border to Duluth.

• “Hydro by wire” from Manitoba

enables “wind by wire” from North

Dakota.

• Overall project enhances regional

reliability and provides energy

market benefits.

• 2020 expected in-service date.

Page 29

Winnipeg

HVDC Line +/- 500kV

(600 miles)

HVDC Line +/- 500kV

(850 miles)

Manitoba

Hydro

Minnesota

Power

Manitoba-Minnesota Transmission Project

New Line

Existing Line

Page 30: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Utility Investment in Canada’s Transmission

and Distribution Cable and Lines, 2006 –

2012

Page 30

Source: CANSIM Table 029-0050 Capital and repair expenditures, by industry and type of asset, Canada, provinces and territories.

Retrieved April, 2016

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

2006 2007 2008 2009 2010 2011 2012

Transmission Distribution

Bill

ion

s (

Cu

rre

nt)

CD

N $

Page 31: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electric Power Generation, Transmission and Distribution

Sector Contribution to Canada’s GDP, 2010- 2015 (2007

constant dollars)

Page 31

Source: Statistics Canada, Gross domestic product at basic prices, utilities, trade,

transportation, and communications. April, 2016

$28.2

$28.4

$28.6

$28.8

$29.0

$29.2

$29.4

$29.6

$29.8

$30.0

$30.2

Billio

n $

CD

N 2

00

7 C

on

sta

nt

2015 = $29.63 billion

Page 32: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Capital Investment in Canada’s Electric Power Sector, 2007–

2013 (billions of constant 2007 dollars)

Page 32 Source: Statistics Canada, CANSIM Table 031-0002

Retrieved June 21, 2015

0.02.04.06.08.0

10.012.014.016.018.020.0

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Bil

lio

n $

CD

N 2

00

7 C

on

sta

nt

Intellectual Property Products

Machinery and equipment

Engineering construction

Building construction

Total capital investment in 2013 = $20.8billion

Page 33: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electric Sector Environmental Protection

Expenditures by type, 2012

Page 33

Total electric sector environmental protection expenditures, 2012 = $1301.6 million

Environmental monitoring

3% Environmental assessments and

audits15%

Reclamation and decommissioning

27%

Wildlife and habitat protection

6%

Waste management and sewerage

services42%

Pollution prevention, abatement and control

7%

Fees, fines and licenses

0%

Other0%

Source: Statistics Canada, Environmental Protection Expenditures in the Business Sector, 2012

Retrieved June 9, 2015

Page 34: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Environmental Protection Expenditures by

the Electric Power Sector, 1996 – 2012

Page 34

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

1996 1998 2000 2002 2004 2006 2008 2010 2012

Mill

ions

of

dolla

rs

Operating

Capital

Total electric sector environmental protection expenditures, 2012 = $1301.6 million

Source: Statistics Canada, Environmental Protection Expenditures in the Business Sector, 2010

Retrieved June 9, 2013

Page 35: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Greenhouse Gas (GHG) Emissions in

Canada by Sector, 2014

Page 35

Oil and Gas (179 Mt CO2 equivalent)

24.8%

Electricity (85 Mt CO2

equivalent)12.3%

Transportation (170 Mt CO2 equivalent)

23.6% Emissions Intensive & Trade Exposed Industries (76 Mt CO2equivalent)

11.2%

Buildings (86 Mt CO2

equivalent)11.5%

Agriculture (75 Mt CO2 equivalent)

9.9%

Waste & Others (54 Mt CO2 equivalent)

6.7%

Total GHG Emissions in Canada, 2014 = 732 Mt CO2 Equivalent

Note: Emissions do not include the following sectors: land use change and forestry, solvent and other product use and biomass

Source: Environment Canada, National Inventory Report 1990-2014: Greenhouse Gas Source and Sinks in Canada, Report date: April, 2016

Page 36: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Greenhouse Gas (GHG) Emissions in

Canada for Energy Sector, 2014

Page 36

Transportation28.5%

Emissions Intensive and Trade Exposed

Industries13.6%

Electricity & Heat Generation

12.1%Fossil FuelIndustries*

10.5%

Buildings10.8%

Agriculture0.6%

Waste, Light Manufacturing, Construction & Forest Resources

7.6%

Total GHG Emissions in Canada, 2014=732 Mt CO2 Equivalent

*includes Oil & Gas and Coal Production

Note: Total energy sector emissions include all those under the National Inventory Category, ‘Energy’

Source: Environment Canada, National Inventory Report 1990-2014: Greenhouse Gas Source and Sinks in Canada, Report date: April, 2016

Total Energy Sector GHG Emissions in Canada, 2014=594 Mt CO2 Equivalent

Page 37: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

CO2 Emissions in Canada for Public

Electricity and Heat Production Sector, 2014

Page 37

Coal, 61.6 Mt CO2E

Natural Gas, 19.0 Mt CO2E

Other fuels, 4.8 Mt CO2E

Other emissions, 0.8 Mt CO2E

Source: UNFCCC, National Inventory Submission for Canada, for 1990-2014, Report dated April, 2016

Total Public Electricity & Heat Sector CO2 Emissions in Canada, 2014 = 85.5 Megatonnes

Page 38: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Utility-Generated Electricity by Source and GHG

Emissions, 1990–2013

Page 38

Source: UNFCCC, National Inventory Report for Canada, for 1990-2013,

Retrieved June 10, 2015

Page 39: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Factors Contributing to GHG Emissions Reductions

in the Electricity Sector , 1990-2014, Mt CO2E

Page 39 Source: UNFCCC, National Inventory Report for Canada, for 1990-2014,

Retrieved April, 2016

Notes:

Demand – the level of electricity generation activity in the utility sector and consists of generation from combustion and non-combustion sources.

Generation mix – the relative share of combustion and non-combustion sources in generation activity.

Fuel mix (combustion generation) – the relative share of each fuel used to generate electricity.

Energy efficiency – the efficiency of the equipment used in combustion related generation of electricity.

Emission factors – The emission factor effect reflects changes to fuel energy content over time.

Demand Fuel Mix Energy

Efficiency

Emission

FactorsTotal Changes in Emissions

Generation

Mix

Advances in the Generation and Fuel Mix have led to a 9 Mt reduction

in emissions despite a 22.8 MWh increase in demand.

Page 40: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Factors Contributing to GHG Emissions Reductions

in the Electricity Sector , 2005-2014, Mt CO2E

Page 40 Source: UNFCCC, National Inventory Report for Canada, for 1990-2014,

Retrieved April, 2016

Notes:

Demand – the level of electricity generation activity in the sector and consists of generation from combustion and non-combustion sources.

Generation mix – the relative share of combustion and non-combustion sources in generation activity.

Fuel mix (combustion generation) –the relative share of each fuel used to generate electricity.

Energy efficiency –the efficiency of the equipment used in combustion related generation of electricity.

Emission factors – The emission factor effect reflects changes to fuel energy content over time.

Demand Fuel MixEnergy

EfficiencyEmission

FactorsTotal Changes in EmissionsGeneration

Mix

Significant reduction in emissions are

the result of Canada’s non-emitting

Generation mix

Page 41: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Nitrogen Oxide (NOx) Emissions in Canada

by Sources, 2014

Page 41

Mobile Sources54.6%

Upstream Petroleum23.2%

Other Industrial8.9%

Open & Natural Sources0.6%

Electric Power8.6%

Residential/Commercial Fuel & Wood

3.0%

Incineration & Miscellaneous

0.1%

Total NOx Emissions in Canada, 2014 = 1,922.5 Kilotonnes

Source: Environment Canada, National Pollutant Release Inventory, 2014 Air pollutant emissions summary for Canada

Retrieved April, 2016

Page 42: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Sulphur Oxide (SOx) Emissions in Canada

by Sources, 2014

Page 42

Source: Environment Canada, National Pollutant Release Inventory, 2014 Air pollutant emissions summary for Canada

Retrieved April, 2016

Mobile Sources0.3%Petroleum Industry (Up-

& Downstream)24.5%

Other Industrial15.1%

Open & Natural Sources1.0%

Electric Power24.2%

Residential/Commercial Fuel & Wood

3.0%

Incineration & Miscellaneous

0.2%

Non-Ferrous Smelting and Refining Industry

33.6%

Total SOx Emissions in Canada, 2014 = 1,142.5 Kilotonnes

Page 43: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electric Sector Sulphur Oxide (SOx)

Emissions in Canada, 1990 - 2014

Page 43

Total Electric Sector SOx Emissions in Canada, 2014 = 269 Kilotonnes

0

100

200

300

400

500

600

700

800

Kil

oto

nn

es

SO

x

Source: Environment Canada, National Pollutant Release Inventory (NPRI) Retrieved April, 2016

Page 44: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Mercury Emissions in Canada by Sources, 2014

Page 44

Mobile Sources2.4%

Petroleum Industry (Up-& Downstream)

2.4%Other Industrial Sources6.5%

Open Sources17.4%

Electric Power21.5%

Residential & Commercial Fuel &

Wood4.6%

Incineration & Miscellaneous

12.1%

Non-Ferrous Smelting and Refining Industry

8.1%

Cement and Concrete Industry

8.4%

Iron and Steel Industries16.5%

Total Mercury Emissions in Canada, 2014 = 3,888.4 Kilograms

Source: Environment Canada, National Pollutant Release Inventory, 2014 Air pollutant emissions summary for Canada

Retrieved April, 2016

Page 45: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electric Sector Mercury Emissions in

Canada, 1990 - 2014

Page 45

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Kilo

gra

ms

Me

rcu

ry

Total Electric Sector Mercury Emissions in Canada, 2014 = 762 Kilograms

Source: Environment Canada, National Pollutant Release Inventory (NPRI)

Retrieved on April, 2016

Page 46: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Particulate Matter (PM2.5) Emissions in

Canada by Sources, 2014

Page 46

Total PM2.5 Emissions in Canada, 2014 = 1,799.5 Kilotonnes

Mobile Sources2.8%

Petroleum Industry (Up-& Downstream)

0.6%

Other Industrial2.9%

Open & Natural Sources (Inc. Agriculture &

Waste)83.2%

Electric Power0.2% Residential &

Commercial Fuel & Wood9.2%

Incineration & Miscellaneous

0.6%

Mining and Rock Quarrying

0.6%

Source: Environment Canada, National Pollutant Release Inventory,

2014 Air pollutant emissions summary for Canada

Retrieved April,, 2016

Page 47: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electric Sector Particulate Matter (PM2.5)

Emissions in Canada, 1990 - 2014

Page 47

0

5

10

15

20

25

30

35

40

Kil

oto

nn

es P

M2

.5

Total Electric Sector PM2.5 Emissions in Canada, 2014 = 3,977 Kilotonnes

Source: Environment Canada, National Pollutant Release Inventory (NPRI)

Retrieved on April, 2016

Page 48: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

2014 CO2 Electricity Emissions and Intensity

in Canada

Page 48

97.9 103.095.7

89.8 88.3 85.5

210 210

190180

160 160

0

50

100

150

200

250

20

40

60

80

100

120

2009 2010 2011 2012 2013 2014

Absolute Emissions Emissions Intensity

Millio

ns o

f To

nn

es

To

nn

es/G

Wh

Source: National Inventory Report, 1990-2014

85.5MT CO2 e

Emissions

160Tonnes/GWh CO2 e

System Intensity

Page 49: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Greenhouse Gas (GHG) Emissions in

Canada and the US by Sector, 2014

Page 49

Transportation23.4%

Oil & Gas26.3%

Electricity & Heat Generation

10.7%

Agriculture10.0%

Industrial Processes

10.4%Residential

6.3%

Commercial & Institutional

5.6%

Waste 7.4%

Total GHG Emissions in Canada, 2014 = 732 Mt CO2 Equivalent

Source: Environment Canada, National Inventory Report and US GHG Emissions and Sinks 1990- 2014, retrieved April, 2016

Inventory of U.S. Greenhouse Gas Emissions and Sinks, 1990-2014, retrieved April 2016

Electric Power Industry30.3%

Transportation26.4%

Industry21.3%

Agriculture9.1%

Commerical6.6%

Residential5.7%

U.S. Territories0.7%

Total GHG Emissions in US, 2014 = 6,108 Mt

CO2 Equivalent

Page 50: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electricity Generating Capacity in the US

and Canada by Fuel Type,1 2014

50

1Numbers may not sum to 100 percent due to rounding.

Source: US Energy Information Administration, Electric Power Monthly, November 2014 and

Statistics Canada, CANSIM Table 127-0009, 2014

Conventional Steam (Coal),

15.67%

Hydro, 59.02%

Nuclear, 10.58%

Combustion Turbine

8%

Internal Combustion, …

Tidal and Solar, 0.30% Wind,

4.64%

Canada

Total Generating Capacity = 132.7 GW

Coal28%

Petroleum4%

Natural Gas40%

Nuclear9%

Hydro8%

Wind6%

Others5%

United States

Total Generating Capacity = 1,066.3 GW

Page 51: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electricity Generation in the US and Canada

by Fuel Type,1 2014

Page 51

1Numbers may not sum to 100 percent due to rounding.

Source: US Energy Information Administration, Electric Power Monthly and Statistics Canada, Survey 2151, 2015,

Retrieved Nov 26,, 2015

Hydro61%

Conventional Steam (Coal)

15%

Nuclear16%

Internal Combustion

0%

Combustion Turbine

6% Wind2%

Solar0%

Canada

Hydro7.0%

Coal41.5%

Natural Gas29.1%

Nuclear20.6%

Petroleum0.7%

Other renewables

0.3%

Other gas0.3%

Other0.3%

United States

Note: Total Electricity Generation in 2014 = 4, 092 TWhNote: Total Electricity Generation in

2014 = 627.68TWh

Page 52: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Building the Next Generation of

Infrastructure: Capital Investment

Requirements

Page 52

Billions of 2010 CDN dollars

Generation Transmission Distribution Total

2010 – 2030 195.7 35.8 62.3 293.8

Source: The Conference Board of Canada, Shedding Light on the Economic Impact of Investing in Electricity Infrastructure,

February 2012

Total Canadian Electric Sector Investment Required by 2030 =

293.8 Billion in 2010 CDN dollars, or 347.5 Billion in current CDN dollars.

Page 53: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Active MPMO Electricity Sector Projects

Page 53

MPMO Project Name Description Proponent Project Type Location

Labrador - Island Transmission Link 1,100 km line Nalcor Energy Transmission NL

Maritime Link Transmission500-MW, +/- 200 to 250-kV

HVDC & HVACENL Maritime Link Inc. Transmission NL/NS

Keeyask Hydroelectric Generation 695 MWKeeyask Hydropower Limited

PartnershipHydro MB

Lower Churchill Hydroelectric Generation 3,074 MW Nalcor Energy Hydro NL

Site C Clean Energy Hydroelectric Generation 1,100 MW BC Hydro Hydro BC

Darlington New Nuclear Power Plant Up to 4,800 MW OPG Nuclear ON

NaiKun Offshore Wind Energy 320 MW (off-shore) NaiKun Wind Development Wind BC

Tazi Twe Hydroelectric Generation 50 MW Saskatchewan Power Corp. Hydro SK

Source: Major Projects Management Office, Project Tracker, updated April, 2016

Page 54: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Active MPMO Electricity Sector Projects –

indirect relevance

Page 54

MPMO Project Name Description Proponent Project Type Location

Bow City Coal Mine and Power 2x 500 MW Bow City Power Ltd. Coal AB

Deep Geological Depository Waste Management Ontario Power Generation Nuclear ON

Source: Major Projects Management Office, Project Tracker, Updated April, 2016

Note: indirect relevance refers to projects that are indirectly related to electricity generation and include infrastructure related activities, such as mining

(of coal for power generation), waste management (of radioactive waste) and dam (re)construction

Page 55: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Non-MPMO Electricity Sector Projects – new

proposals

Page 55

MPMO Project Name Description Proponent Project Type Location

Bipole III Transmission Line 1,475 km Manitoba Hydro Transmission MB

Chamouchouane - Bout-de-l'Île Transmission Line 735 kV Quebec Hydro Transmission QC

Green Electron Natural Gas Power Generation

Project300 MW

Greenfield South Power

CorporationGeneration ON

Hawkeye Green Energy Hydroelectric Generation 175 MWHawkeye Energy

CorporationHydro BC

Mica 5 and 6 1000 MW BC Hydro Hydro BC

Rocky Creek Wind Power 500 MWRupert Peace Power

CorporationWind BC

Trillium Offshore Wind Farm 414 MWTrillium Power Wind

CorporationWind ON

Source: Major Projects Management Office, Project Tracker, Retrieved June 19, 2015

Note: indirect relevance refers to projects that are indirectly related to electricity generation and include infrastructure related activities, such as mining

(of coal for power generation), waste management (of radioactive waste) and dam (re)construction

Page 56: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Canada’s Regulatory Regime for Large

Energy Projects

Page 56

Environmental Assessment Process PermittingPlanning Follow-up

Species at Risk Act - EC/DFO

Canadian Environmental Assessment Act - CEA Agency*

Explosives Act - NRCan

Fisheries Act - DFO

NWPA - TC

Metal Mining Effluent Regulations - EC/DFO

National Energy Board Act - NEB*

Nuclear Safety and Control Act - CNSC*

Impact reviews (YESAA, MVRMA Land Claim / CEAA)

Innuvialuit Final Agreement - INAC* Management Boards

Territorial Lands / Water ActLand use plans

Others: MBCA / IBWTA / CPRA / Offshore Accords / CEPA

*Permits required under other Acts trigger CEAA OGD participants

Illustrative – some components would not apply to same project

NWPA – Navigable Waters Protection Act / YESAA – Yukon Environmental and Socio-Economic Assessment Act

MVRMA – Mackenzie Valley Resource Management Act / MBCA - Migratory Birds Convention Act /

IBWTA – International Boundary Waters Treaty Act / CPRA – Canadian Petroleum Resource Act /

Offshore Accords – Canada - NS and NFLD Offshore Accords / CEPA – Canadian Environmental Protection Act

Page 57: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Average Residential Electricity Price in

Canada, 1998 – 2015 (cents/kWh)

Page 57

9.77 9.67 9.40 9.58 9.66 9.85 9.58 9.79 9.9410.34 10.44

10.82 10.76

12.1511.85 11.94 12.15 12.32

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Ce

nts

/kW

h

Source: Hydro Quebec, Comparison of Electricity Prices in Major North American Cities, 1998 – 2015, Retrieved August, 2016

Ontario Hydro: Electricity Rates by Province, Retrieved June 20, 2015

Notes: Based on 1,000 kWh monthly consumption

Average electricity price is an average of 11 major Canadian cities for years 1998-2008 and an average of 12 major

Canadian cities for years 2009-2015; and may not represent an exact national average.

Page 58: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Selected World Residential Electricity

Prices, 2014

Page 58

0 5 10 15 20 25 30 35 40 45

Mexico

Canada

United States

Turkey

Poland

Finland

France

Switzerland

Belgium

Japan

United Kingdom

Austria

Ireland

Italy

Denmark

US cents/kWh

Source : International Energy Agency, Key World Energy Statistics 2015 with 2014 data

Hydro Quebec, Comparison of Electricity Prices in North American Cities 2014

Page 59: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Selected World Industrial Electricity Prices,

2014

Page 59

0 5 10 15 20 25 30 35

United States

Canada

Poland

Denmark

Finland

Turkey

Mexico

France

Belgium

Switzerland

United Kingdom

Portugal

Ireland

Italy

US cents/kWh

Source : International Energy Agency, Key World Energy Statistics 2015 with 2014 data

Hydro Quebec, Comparison of Electricity Prices in North American Cities 2014

Page 60: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Percentage Change in Household

Expenditures 2000-2014

Page 60

0%

50%

100%

150%

200%

250%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

(Ye

ar

ove

r Ye

ar

Pe

rce

nta

ge

C

hang

e)

Property Taxes Electricity Water Internet Services

Note: The price increase for the residential electricity sector has increased 39% between

1999 and 2013, the lowest amongst property taxes, water and internet services for principle

accommodation.

Source: Statistics Canada, Survey of Household Spending, 2015

Page 61: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Canada’s Future Residential Electricity

Needs

Page 61

Reference: Graphics from BC Hydro: Lighting the Way. Estimates based on a

business as usual scenario. Stats Canada Population Projections: Table 052-0005

Page 62: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Low Emission and Sustainable Technologies

Used for Electricity Generation in Canada

Page 62

Resource Advantages Challenges

Wind Power No fuel cost, no emissions or waste, renewable

source of energy, commercially viable source of

power

Less cost competitive than conventional energy source,

variable energy resource, transmission issues,

environmental concerns with regards to noise and

interaction with birds, land use issues

Small Hydro Low capital costs, many potential sites in Canada,

well established technology, able to meet small

incremental capacity needs, reduction in GHG

emissions

Regulatory approval can be costly and time consuming,

access to grid, local opposition to new development

Biomass Uses landfill gas, wood pellets, and waste products

to create electricity, reduces greenhouse gas, high

availability of sites

High capital equipment and fuel costs; produces some

emissions; access to transmission, competition for

biomass materials use

Geothermal

Energy

Reliable source of power, low fuel and operating

costs, clean and renewable source of energy

High capital costs, connecting to the grid can be difficult,

few potential sites in Canada

Solar PV Reliable, renewable energy source with zero

emissions and silent operation, fuel is free, suitable

for areas where fossil fuels are expensive or where

there is no connection to the grid

Restrictive and lack of grid connection for remote areas,

not cost competitive, sun does not always shine and

potential varies across regions

Ocean Energy Costs are expected to decline as technology

develops, intermittent, but predictable source of

green energy

Potentially intrusive to marine life, investment is needed

to promote research and development

Clean Coal Highly efficient, potential for reduced greenhouse

gas emissions

High capital costs, lengthy start-up period

Page 63: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Canadian Electricity Statistics

By the Global numbers…

5 Canada’s world ranking in

primary energy production

(2014)

6 Canada’s world ranking in

primary energy consumption

(2014 )

24.3 Per cent of Canada’s total

exports that were energy

related (2014)

2 Canada’s ranking in

Hydroelectricity generation

(2015)

By the Domestic numbers…

10.4% of Canada’s electricity

produced from nuclear

generation (2014)

9.63 Per cent of Canada’s

electricity produced by coal

(2014)

60.3 Per cent of Canada’s

electricity generated from

hydropower (2014)

627.68 Terawatt-hours of total

electricity generation (2014)

Page 63

Page 64: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Installed Wind Capacity in Canada as of

December 2015

Page 64

Source: Canadian Wind Energy Association, retrieved August, 2016

Page 65: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Coal Fleet Profile (MW)

Page 65

(Source: NPRI data)

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Cap

acit

y (

MW

)

Coal Capacity Reduction - Retirement as per the Coal Regulation*

* Retirement age 45-50 years as per the 2012 Reduction of Carbon Dioxide Emissions from Coal-

Fired Generation of Electricity Regulations. Includes Ontario coal shutdown by 2014.

Page 66: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

NOx and SO2 Reductions from CO₂Regulation

Page 66

Source and assumptions: NPRI data was used for existing unit emissions, forecast based on 2009-2011 operation, coal unit

retirement from 45-50 years as outlined in the 2012 Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of

Electricity Regulations

Reduction in NOx emissions from 2002 levels:

50% reduction by 2020

80%reduction by 2030

Reduction in SO2 emission from 2002 levels:

54% reduction by 2020

84% reduction by 2030

Page 67: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Page 67

-50

0

50

100

150

200

250

Forecasted Change in Emissions by Sector: 2005-2020

2005 2012 2020 Change 2005 to 2020

-50-1 +45

+14 +1 +2-1

Electricity leading all Canadian industrial

sectors in reduction of CO2

Source: Environment Canada, Canada's Emission Trends 2014.

Retrieved March 15, 2016

Mt

CO

2 E

q

Electricity leads all sectors in current (35 Mt CO2E)

and anticipated (50 Mt CO2E) reductions in CO2

Page 68: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Regulations to address GHG emissions from

coal-fired electricity (Sept. 2012)

• Establish an emissions performance standard of 420 tonnes of CO2 per gigawatt

hour of electricity produced for new coal-fired electricity generation units (those

commissioned after July 1,2015), and units that have reached the end of their

life.

• The proposed Regulations are to be promulgated under the Canadian

Environmental Protection Act (CEPA) and are set to come into effect on July 1,

2015.

• Existing and new units may apply for a deferral in meeting the performance

standard until January 1, 2025, if the technology for Carbon Capture and

Storage (CCS) is incorporated.

• The regulation will be effective only if compliance is achievable.

• Compliance will contribute to clarity and stability for industry that will enable

investment in electricity infrastructure to flow.

• Cumulative reduction in GHG emissions of approximately 214 megatonnes and

cumulative health benefits of $4.2 billion expected in the first 21 years.

• Some jurisdictions will be more heavily impacted than others.

Page 68

Page 69: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Vision 2050: the sector’s vision for Canada’s

electricity system between now and 2050

• The four key recommendations of Vision 2050 include:

• accelerating customer innovation and management of energy;

• implementing financial instruments for carbon reduction, including a

North American carbon price that is implemented across the

economy;

• enabling electric vehicles; and,

• expanding collaboration with the U.S. to optimize electricity assets

while expanding opportunities for electricity storage and the export

of low-carbon electricity.

Page 69Source: Canadian Electricity Association, 2014 Sustainable

Electricity Annual Report, Engaged for a Sustainable Future

Page 70: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

The CEA’s Sustainable Electricity Program:

Guiding member efforts on sustainability

Page 70Source: Canadian Electricity Association, 2014 Sustainable

Electricity Annual Report, Engaged for a Sustainable Future

Page 71: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

The CEA Councils• Generation Council

• Develops and influences policy associated with investment in electricity

generation infrastructure, as well as manages environmental and health

impacts related to generation

• Transmission Council

• Formulates positions on transmission, including cross border reliability,

electric and magnetic fields and utility properties

• Distribution Council

• Focuses on technological and regulatory developments associated with

smart grid development and deployment, advanced meter performance,

power quality issues, and national trends in provincial distribution utility

regulation

• Customer Council

• Seeks to increase the value of electricity service to Canadians

• Power Marketers Council

• Promotes competitive and efficient electricity markets in Canada and the

United States

Page 71

Page 72: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Energy Efficiency

• Commitment to sustainability through efficient production, delivery and

use of energy, while promoting energy conservation and demand side

management

• CEA’s involvement in initiatives• Old refrigerator removal

• Exchange programs to lower air conditioner levels during peak summer demand

• Support for implementation of new technologies – smart meters for time-of-use pricing

• Promotion of conservation programs by CEA member utilities for their

larger commercial, industrial and direct customers

• Demand Side Management• can be a least cost option,

• postpones the development of new power plants,

• improves energy efficiency

• Partnership among CEA, NRCan and utilities in promotion of ENERGY

STAR qualified light fixtures

Page 72

Page 73: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Smart Grid

• A suite of information-based applications through increased automation of the electricity grid

and the underlying automation and communication infrastructure itself

• Smart grid is posed to deliver grid resilience, environmental performance, and/or operational

efficiencies

• Design and implementation of the smart grid integrated system aims to achieve desired

customer priorities, interoperability with legacy infrastructure, and be appropriate for use

with respect to geographical location and other needs

• Key characteristics or capabilities:

• Demand response, facilitation of distributed generation, facilitation of electric vehicles,

optimization of asset use, and problem detection and mitigation

• Capabilities supported by development of hard infrastructure, soft infrastructure

through stakeholder engagement

• Expected results in new service offerings, reduced delivery charges, and faster

response time

• Security, privacy, implementation cost, and stakeholder engagement requires collaboration

among vendors, policy-makers, regulators and utilities

Page 73

Page 74: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Human Resources –

Commitment by CEA member utilities

• Providing safe environment for general public as well as ensuring

health and safety of employees and contractors in the workplace,

• Support a fair, respectful and diverse workplace for our employees and

contractors, and investing in human resources

• Partnering with communities and stakeholders, communicating and

engaging in a transparent and timely manner

• Engaging Aboriginal Communities while respecting their culture and

traditions

Page 74

Page 75: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Economic Value

Page 75

Economic Indicators for 2015 All Canadian

Sectors

Contribution

Canadian

Electricity

Sector

Contribution

GDP (billions chained 2007 dollars) 1,652.1 27.9

Merchandise Exports (dollars x

1,000,000)

525,304 3,137

Merchandise Imports (dollars x

1,000,000)

547,765 306.6

Page 76: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

Electricity in Canada at a Glance

Page 76

Indicator Value

Total Generation in 2014 (Twh) 627.8

Total Demand in 2014 (Twh) 491.2

Average Price in 2014 (¢/kWh)

Residential

Industrial

12.15

7.31

Canada – US trade volume in 2014 (Twh): exports/imports

58/12.8

Canada – US trade revenue in 2014 (billions $): exports/imports

2.9/0.6

Capital Expenditure on New/Refurbished Infrastructure in 2010

(billion $) 8.8

Environmental Expenditure in 2012 (million $) 1301.6

GHG emissions from Public Electricity and Heat Production Sector

(CO2, CH4 and N2O eq. Mt) in 2013

85

Page 77: Electricity 101 -Slide Deck...Updated January 6,, 2016 Since 2003 electricity consumption has decreased 3.2% and, since an historic high in 2008, 7.5% Electricity Generation in Canada

For more information, contact:

Canadian Electricity Association

275 Slater Street, Suite 1500

Ottawa, ON K1P 5H9

613 230 9263

[email protected]

Page 77