ELECTRICITY · ELECTRICITY 101 The following slide deck contains data and information about CEA and...

2

ELECTRICITY

101The following slide deck contains data and

information about CEA and the Canadian Electricity

Industry. The data is derived from 3rd party sources

(i.e., World Bank, StatsCan, IEA, Environment

Canada) and has been visualized by CEA.

Table of Contents

Canadian Electricity Association

L E A R N M O R E A B O U T T H E N A T I O N A L V O I C E O F

C A N A D I A N E L E C T R I C I T Y .

• Vision and Mission

• Strategic Goals

• CEA Councils

• Energy Efficiency

• Smart Grid

• Human Resources

• Sustainable Electricity

• Vision 2050

4

Canadian Electricity

Association (CEA)

Founded in 1891, the Canadian Electricity

Association is the national forum and voice of the

evolving electricity business sector in Canada.

Vision: CEA will be the leading energy association, indispensable to the regional, national, and international success of its

members, ensuring they remain at the forefront of customer service, sustainability , and technological innovation.

Mission: CEA is the national voice for safe, secure and sustainable electricity for all Canadians, and provides its members with

value-added products and services to advance the strategic interests of Canada’s electricity industry.

5

Scenarios and Issues CEA and the

Industry

Effectiveness

Member Services

Canadian Electricity

Association

Through scenarios identify emerging trends and issues, and promote the interests of members accordingly.

Business Scenarios and Emerging Issues

Ensure the appropriate positioning of electricity, CEA and the industry.

CEA and the Industry

Create and share knowledge to mitigate members’ business risk, and provide the services and support that members need.

Member Services

Ensure the efficiency and effectiveness of the organization.

Association Effectiveness

Canadian Electricity Association Strategic Goals

6

CEA Councils

The story of our industry is told through our councils and committees

Seeks to increase the value of electricity service to Canadians.

Customer

Promotes competitive and efficient electricity markets in Canada and the United States.

Power Marketers

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.

Distribution

Formulates positions on transmission, including cross border reliability, electric and magnetic fields and utility properties.

Transmission

Develops and Influences policy associated with investment in electricity generation infrastructure as well as manages environmental and health impacts related to generation.

Generation

7

Energy Efficiency and Conservation Demand Management

The Canadian Electricity Association (CEA) will facilitate the development of key Energy Efficiency & Conservation Demand Management (EE&CDM) messages to be used on a national basis and for policy advocacy. The main objective is to consistently convey the cost/benefits of EE&CDM to key stakeholders and member customers.

EE and CDM is a cost-effective option that contributes to meeting climate change targets.

Encouraging EE and CDM is good for utility business and the economy.

EE and CDM is a cost effective and complementary alternative to address infrastructure constraints.

Electric Utilities are leaders in EE and CDM and are well positioned to design, deliver education and programs to customers.

EE and CDM initiatives can be maximized through an integrated and collaborated approach between government and utilities.

8

EE and CDM initiatives respond to needs of utility customers.

• 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 collaborationamong vendors, policy-makers, regulators and utilities

Smart Grid

9

• Providing a safe environment for general public as well as ensuring the 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

Human Resources

10

Commitment by CEA Member Utilities

Sustainable Electricity Program

11

LOW-CARBON FUTURE

Climate change management and mitigation

Internal energy efficiency and customer conservation programs

Electrification of transportation, buildings and processes

INFRASTRUCTURE RENEWAL AND MODERNIZATION

Investments in new and refurbished infrastructure

Integration of renewable energy

System reliability and resiliency against severe weather impacts

BUILDING RELATIONSHIPS

Early engagement and consultation with local communities, stakeholders and Aboriginal Peoples

Enhancement of the customer experience

Support for low-income customers

RISK-MANAGEMENT SYSTEMS

Environmental stewardship

Employee, contractor and public health and safety

Security management systems and standards

BUSINESSINNOVATION

Investments in innovation and technology advancement

Engagement of regulators, supply chain partners and other stakeholders

Employee recruitment, training and retention

In 2016, the CEA Sustainable Electricity Program adopted a new set of strategic

pillars and performance indicators to better communicate the electricity sector’s

sustainability goals and commitments:

Vision for Canada’s Electricity Sector

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.

Vision 2050

12

Regulatory

C A N A D A H A S A S T R O N G R E G U L A T O R Y E N V I R O N M E N T .

• Canada’s Multi-Jurisdictional

Environment

• Electricity Structures Market in

Canada

• Canada’s Regulatory Regime

• The Integrated North-American Grid

• NERC Regions

• Regulations to Address GHG

13

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

Canada’s Multi-Jurisdictional Environment

14

• Vertically-integrated Crown Corporation.

Nunavut

NWT

Yukon

BC

Alberta

Saskatchewan

Newfoundland

Nova Scotia

PEI


• Investor-owned distribution utility provides service in several communities.

• Vertically-integrated Crown Corporation and investor-owned distribution utility.

• Procures electricity from New England market and long-term contracts with New Brunswick.

• Wholesale open access

• Investor-owned utility regulated on cost-of-service

New Brunswick• Wholesale open access

• Vertically-integrated Crown corporation

Québec• Wholesale open access


• Expanding IPP development

Ontario

• Industry unbundling (1998)

• Wholesale & retail open

• access (2002)

• Hybrid regulation and competition model

Manitoba• Wholesale open access


• Wholesale open access



• Investor-owned distribution utility provides service in several communities.

• Wholesale and industrial open access

• Vertically-integrated Crown Corporation serves 94% of customers

• Mandatory Power Pool

• Wholesale & retail open access (2001)

• Fully competitive wholesale market

Electricity Market Structure in Canada

15

Canada’s Regulatory Regime for Large Energy Projects

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 ActMVRMA – 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 Act16

17

The Integrated North American Grid

Details: Lines shown are 345kV and

above. Transmission Lines under

345KV do not appear on this map.

18

North American Electric Reliability

Corporation Regions (NERC)

Source: NERC

19

Regulations to Address GHG emissions from

Coal-fired Electricity (2012)

Source: Environment Canada

• 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.

Industry

T H I S I N D U S T R Y E M P L O Y S O V E R 8 0 , 0 0 0 P E O P L E .

• Industry Overview

• Labour Statistics

• Customer Reliability

• Electricity Consumption with

Human Development Index

20

62.8 TW.hNet Exports

648 TW.hGeneration

99.91% Customer Reliability

80,730 Employed

$31.2 Billion GDP

Electricity supports quality of life, economic well-being, and a clean environment.

Electricity

CANADIAN

ELECTRICI

TY

INDUSTRY2.69 Billion Trade Revenue

39.16% CO2 Eq. Reduction Since 2000

Over 80% Non-Emitting

CO2

Industry Overview

21

22

Industry Labour Statistics in Canada

Source: StatsCan, CANSIM Table 383-0031 | Data Retrieved: May 2018; Visual Created by the Canadian Electricity Association

Excludes contractors, consultants, vendors and related manufacturers dedicated to the industry.

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Peo

ple

Electric Power (Generation, Transmission and Distribution)

2017: 80,730

23

Customer Reliability in Canada

Source: Canadian Electricity Association, Service Continuity Committee

Data Retrieved: May 2018; Visual Created by the Canadian Electricity Association

99.84%

99.86%

99.88%

99.90%

99.92%

99.94%

99.96%

99.98%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Canadian Index of Reliability (IoR)

IOR (All Events) IoR (Sig events removed)

2013 Ice Storm, 2013 Alberta and Toronto Floods,

2015 BC Windstorm

2010 Hurricane Igor and Earl

24

Electricity Consumption Benefit

Data Source: HDI data, HDI Definition: United Nations; and Energy Consumption: Open Data Portal, World Bank

Data Retrieved: August 2017; Visual Created by the Canadian Electricity Association

25

Trade

E L E C T R I C I T Y T R A D I N G B E T W E E N C A N A D A A N D

T H E U S A B E G A N I N 1 9 0 1 .

• Major Canada-US Transmission

Interconnections

• Canadian Electricity Exports/Imports

by Province

• National Trade Volume Trends

• Trade Prices Trends

• Trade Revenue Trends

26

Major Canada-U.S.

Transmission Interconnections

Source: National Energy Board

Data Retrieved: July 2016; Visual Created by the Canadian Electricity Association

27

Canadian Electricity Imports and Exports by Region (2016)

Data displayed are in gigawatt-hours. Numbers may not sum due to rounding.Source: National Energy Board, Electricity Exports and Imports, 2016.

28

Canadian Electricity Imports and Exports by Region (2017)

Data displayed are in gigawatt-hours. Numbers may not sum due to rounding.Source: National Energy Board, Electricity Exports and Imports, 2017.

BCEXP 13,975IMP 8,597NET 5,378 AB

EXP 622IMP 578NET 44

SKEXP 266IMP 35

NET 231

MBEXP 9,951IMP 161

NET 9,790ON

EXP 16,967IMP 206

NET 16,761

QCEXP 27,250

IMP 125NET 27,125

NBEXP 1,233IMP 202

NET 1,031

NSEXP 79IMP 0

NET 79

NLEXP 1,399

IMP 0NET 1,399

CANADAEXP 72,141IMP 9,904

NET 62,237

29

Trade Volume

Data Source: National Energy Board (NEB) and Statistics Canada, CANSIM Table 176-0064


0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Terr

awat

t.h

ou

rs (

TW.h

)

Canada-U.S. Electricity Trade Volume (1990-2017)

Exports (TW.h) Imports (TW.h) Net Exports (TW.h)

30

Trade Prices

Data Source: National Energy Board (NEB).


0

20

40

60

80

100

120

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

CD

N$

/MW

.h

Canada - U.S. Electricity Trade Prices (1997-2017)

Exports (CDN$/MW.h) Imports (CDN$/MW.h)

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Bill

ion

CD

N$

Canada - U.S. Trade Revenue (1990 -2017)

Exports Imports Net

31

Trade Revenue

Data Source: National Energy Board (NEB).


California Energy Crisis (2000 – 2001)

Global Financial Crisis(2009)

32

Supply & Demand

A R E S U M E O F A N A L Y T I C S F R O M M A Y 2 0 1 4 T O M A Y 2 0 1 5

• Generation Capacity (US and Canada)

• Electricity Demand in Canada (1 year)

• Electricity Demand in Canada (1990-2015)

• Electricity Generation by Fuel (1995-

2015)

• Electricity Generation Outlook (2040)

• Electricity Generation Breakdown

Comparison (2015)

Generation by Province (2016)

• Canada’s Wind Capacity (2016)

33 Data Source: U.S. Data from Energy Information Administration, 2016; Canada Data from StastCan,CANSIM Table 127-0009


Generating Capacity143.44 GW

Generating Capacity 1,177.18 GW

Canada United States

Generating Capacity (US. & Canada, 2017)

Conventional Steam Turbine

14.49%

Combustion Turbine8.66%

Internal Combustion

Turbine0.94%

Nuclear9.78%

Hydro56.36%

Wind8.35%

Solar/Tidal1.43%

Coal24.67%

Petroleum3.35%

Natural Gas43.54%

Nuclear8.90%

Hydro8.58%

Wind6.97%

Solar1.88%

Biomass1.36%

Geothermal0.32%

Other0.42%

34

Electricity Demand

Data Source: StatsCan CANSIM Table 128-0016


Total Electricity Demand in Canada for 2016 = 501.90 TWh

Industrial41%

Transportation1%

Residential33%

Public Administration3%

Agriculture2%

Commercial and Institutional20%

ELECTRICITY DEMAND BY SECTOR IN CANADA (2016)

35

Electricity Demand by Sector (Trend)



Total Electricity Demand in Canada for 2016 = 501.90 TWh0

100

200

300

400

500

600

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

TWh

Electricity Demand by Sector in Canada (1990-2016)

Industrial Transportation Residential Public Administration Agriculture Commercial & Institutional

36

Electricity Generation by Fuel

Data Source: StatsCan CANSIM Table 127-0001, Table 127-0002, 128-0014

Data Retrieved: June 2018; Visual Created by the Canadian Electricity Association

Total Electricity Generation by Utilities & Industry in Canada, 2015 = 640.43 TWh

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Twh

Generation by Fuel (1995-2016)

Hydro Nuclear Coal and Coke Natural Gas Oil and Diesel Biomass Solar Wind Tidal Steam from Waste Heat

Total Electricity Generation by Utilities & Industry in Canada, 2016 = 648.11TWh

37

Electricity Generation Outlook by Fuel Type

Source: NEB, https://www.neb-one.gc.ca/nrg/ntgrtd/ftr/2016/index-eng.html#s8

Data Retrieved: June 2018;

2040

https://www.neb-one.gc.ca/nrg/ntgrtd/ftr/2016/index-eng.html#s8

38 Data Source: Statistics Canada CANSIM Table 127-0001, 128-0014, Table 25-10-0019-01


Generated587.91 TWh

Generated648.29 TWh

Electricity Generation Breakdown

Hydro, 60.82%

Nuclear, 16.45%

Coal and Coke, 10.55%

Natural Gas, 7.19%

Oil and Diesel, 0.59%

Biomass, 0.38%

Solar, 0.30%

Wind, 5.06%

Tidal, 0.00%

Steam from Waste Heat, 0.02%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Generation by Fuel - Utilities Only (2016)


Hydro, 59.55%

Nuclear, 14.82%

Coal and Coke, 9.50%

Natural Gas, 9.88%

Oil and Diesel, 0.62%

Biomass, 1.24%Solar, 0.31%

Wind, 4.73%

Tidal, 0.00%

Steam from Waste Heat, 0.04%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Generation by Fuel Industry and Electric Utilities (2016)


39

Supply Industries and Utilities by Province

Data Source: StatsCan CANSIM Table 127-0001, 128-0014, 127-0007


40

Canada’s Wind Capacity (2017)

Data Source: CANWEA (as of December 2017)

Data Retrieved: February 2018; Visual Created by the Canadian Electricity Association

Province/Territory Capacity (MW)

Yukon 0.8

NWT 9.2

Nunavut 0

British Columbia 698

Alberta 1,479

Saskatchewan 221

Manitoba 258

Ontario 4,900

Québec 3,510

New Brunswick 294

PEI 204

Nova Scotia 610

Newfoundland 55

12,239 MW

41

Environmental Sustainability

T H E E N V I R O N M E N T I S E V E R Y T H I N G T H A T I S N ’ T M E .

A L B E R T E I N S T E I N

• Low Emissions and Sustainable

Technologies

• Emissions - Sulphur Oxide

• Emissions - Nitrogen Oxide

• Emissions – Mercury

• Emissions – Particulate Matter

• Emissions Trends (previous 4 trends)

• Emissions – Carbon Dioxide Equivalent

• CO2 source by Economic Sector Trend

• Factors on the Change in GHG Emissions

• Coal Fleet Profile

• NOx and Sox Reductions from CO2 regulation

• GHG Emissions in the US (1990-2015)

• GHG Emissions by Sector

Canada with US

Low Emission and Sustainable Technologies Used

for Electricity Generation in Canada

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

BiomassUses 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

42

43

Sulphur Oxide Emissions

Source: Environment and Climate Change Canada, Air Pollutant Emissions Database


Since 2000, the Canadian electricity sector has reduced its SOxEmissions by 59.12%

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

Kilo

ton

ne(

Kt)

Electricity Sector in Canada Sulphur Oxide (SOx) Emissions (1990-2016)

44Source: Environment and Climate Change Canada, Air Pollutant Emissions Database


In 2016, in Canada Sulphur Oxide emissions were measured at 1,066.63 kilotonnes

Sulphur Oxide Emissions

Total Ores and Mineral Industries

45%

Total Oil and Gas Industry23%

Total Electric Power Generation

24%

Total Manufacturing4%

Total Transportation2%

Total Agriculture1%

Total Commercial/Residential/Institutional

1%

2016 Sulphur Oxide Emissions in Canada by Sources

45

Nitrogen Oxide Emissions

Since 2000, The Canadian electricity sector has reduced its NOx Emissions by 50.54%



0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

Kilo

ton

ne

(kt)

Electricity Sector in Canada Nitrogen Oxide (NOx) Emissions (1990-2016)



In 2016, in Canada Nitrogen Oxide emissions were measured at 1,813.72 kilotons

Nitrogen Oxide Emissions


4%

Total Oil and Gas Industry

27%


9%

Total Manufacturing

4%


Total Commercial/Residential/In

stitutional4%

2016 Nitrogen Oxide Emissions in Canada by Source

47

Mercury Emissions



Since 2000, the Canadian electricity sector has reduced its Hg Emissions by 66.7%

0

500

1000

1500

2000

2500

3000

Kilo

gram

s (k

g)

Electricity Sector in Canada Mercury Emissions (1990-2016)



In 2016, in Canada Mercury emissions were measured at 4,280.80 kg

Mercury Emissions


33%

Total Oil and Gas Industry

2%


17%

Total Manufacturing3%


Total Commercial/Residential/I

nstitutional13%

Total Incineration and Waste30%

2016 Mercury Emissions in Canada by Source



Since 2000, the Canadian electricity sector has reduced its PM2.5 emissions by 85.25%

Particulate Matter Emissions

0.00

10.00

20.00

30.00

40.00

50.00

60.00

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

Kilo

ton

nes

(kt

)

Electricity Sector in Canada PM2.5 Emissions (kt)



In 2016, in Canada PM2.5 emissions were measured at 1,605.81 kilotonnes

Particulate Matter Emissions

Ores and Mineral Industries

2.06%

Oil and Gas Industry0.70%

Electric Power Generation0.21%

Manufacturing1.09%

Transportation2.27%

Agriculture19.19%

Commercial/Residential/Institutional

11.43%

Dust62.32%

Fires0.56%

2016 Particulate Mattr Emissions by Source in Canada

51

Emissions Trends (1990-2016)



0.00

10.00

20.00

30.00

40.00

50.00

60.00

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Kilo

ton

nes

(kt

)

Electricity Sector in Canada PM2.5 Emissions (kt)

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

Kilo

ton

ne(

Kt)

Electricity Sector in Canada Sulphur Oxide (SOx) Emissions

0

500

1000

1500

2000

2500

3000

19901992199419961998200020022004200620082010201220142016

Kilo

gram

s (k

g)

Electricity Sector in Canada Mercury Emissions

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

Kilo

ton

ne

(kt)

Electricity Sector in Canada Nitrogen Oxide (NOx) Emissions (1990-2016)



Since 2000, the Canadian electricity sector has reduced its CO2 Eq. Emissions by 39.16%

Carbon Dioxide (CO2) Emissions

0

20

40

60

80

100

120

140

Meg

ato

nn

es o

f C

02

Eq.

Electricity Sector Greenhouse Gas Emissions in Canada (1990-2016)

Coal Natural gas Other



In 2016, in Canada CO2

Eq. emissions were measured at 704 Megatonnes


Oil and Gas 26%

Electricity 11%

Transportation25%

Heavy Industry11%

Buildings11%

Agriculture10%

Waste & Others6%

2016 CO2 Equivalent Emissions by Economic Sector in Canada

54




0

20

40

60

80

100

120

140

160

180

200

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

1990-2016 Trend of CO2 Eq. Emissions by Economic Sector

Oil and gas

Transportation

Buildings

Electricity

Heavy industry

Agriculture

Waste and others

55

Electricity Sector Leads In CO2 Eq. Reduction

Source: Environment and Climate Change Canada, Canada‘s Emissions Trends 2014


Electricity Transportation Oil & Gas BuildingsEmissions-

intensive & Tradeexposed

Agriculture Waste and Others

2005 121 168 159 84 89 68 47

2012 86 165 173 80 78 69 47

2020 71 167 204 98 90 70 46

Change 2005 to 2020 -50 -1 45 14 1 2 -1

-100

-50

0

50

100

150

200

250

Mt

CO

2Eq

Forecasted Change in Emissions by Sector 2005-2020

56

Factors on the Change in GHG Emissions

Source: UNFCCC, National Inventory Report for Canada, for 1990-2015


1990 - 2015 2005 - 2015

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.

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Cap

acit

y (M

W)

Coal Capacity Reduction - Retirement as per the Proposed Amendment to the Coal Regulation (2018)

57

Coal Fleet Profile (MW)

Source: NPRI data

Data Retrieved June 2018; Visual Created by the Canadian Electricity Association

58

NOx and SO2 Reductions from CO2 Regulation

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

Source: NPRI data


Reduction in NOx emissions from 2002 levels:

• 50% reduction by 2020


Reduction in SO2 emission from 2002 levels:



59

U.S. Greenhouse Gas Emissions Trends (1990-2016)

Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks (1990-2016), Figure ES-14

Data Retrieved: June 2018; Visual Created by the U.S. Environmental Protection Agency

60

U.S./Canada Greenhouse Gas Emissions (2016)

Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks (1990-2016), Figure ES-14; Environment Canada, National Inventory Report (1990-2016) Table S-3,

Data Retrieved: July 2018; Visual Created by the U.S. Environmental Protection Agency

Emission Total –Canada: 704 Mt CO2 Eq.

Emission Total –United States: 6,511 Mt CO2 Eq.

Electricity Generation, 28.03%

Transportation, 28.15% Industry, 21.34%

Agriculture, 9.29%

Commercial, 6.30%

Residential, 5.04%

U.S. Territories, 0.71%

2016

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

U.S. GHG Emissions by Economic Sector (2016)

Oil and Gas , 25.94% Electricity , 11.16%Transportation, 24.62%

Heavy Industry, 10.61%

Buildings, 11.56%

Agriculture, 10.22%

Waste & Others, 5.88%

2016

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

GHG Emissions in Canada by Sector (2016)

61

• Canada’s Future Residential

Electricity Needs

• Population Growth and Residential

Needs (BAU)

• Population Growth and Residential

Needs (Economic)

• Household Spending

(1999-2015: Cumulative Change)

• Household Spending 1999 vs. 2015

• Household Spending 2010 vs. 2015

• Multinational Comparisons

Residential Pricing (Bar chart)


Residential Pricing (Bubble Chart)

• Pricing Canadian Urban Centres

– Residential


Industrial Pricing (Bar chart)


Industrial Pricing (Bubble Chart)

• Electric Vehicle Penetration (Canada)

• Electric Vehicle Penetration (World)

Price & Customers

T H E R E I S A F U N D A M E N T A L C O S T I N P R O V I S I O N I N G

E L E C T R I C I T Y F O R A N A T I O N .

62

Canada’s Future Residential Electricity Needs

Data Source: StatsCan, CANSIM Table 052-0005; Moderate Growth from Canada’s Energy Future 2016, Open Data Portal


RESIDENTIAL USAGE129,831 GWh/yr

POPULATION27.79 Million

2015



2040


2050



B U S I N E S S A S U S U A L S C E N A R I O

Demand with Moderate Economic Growth Residential Usage350,660 GWh/yr

Residential Usage373,092 GWh/yr

1990


Population Growth and Residential Needs

Data Source: StatsCan, CANSIM Table 052-0005


0

50000

100000

150000

200000

250000

0

10000

20000

30000

40000

50000

60000

70000

Elec

tric

ity

Nee

ds

(GW

.h/y

r)

Per

son

s (x

1,0

00

)

Forecasted Population Growth in Canada (2025 - 2055)

Electricity Needs Low Growth Moderate Growth High Growth

Business as usual scenario. Electricity Needs based on Moderate Population Growth.

63

64Data Source: StatsCan, CANSIM Table 052-0005 , Moderate Growth from Canada’s Energy Future 2016, Open Data Portal


0

50000

100000

150000

200000

250000

300000

350000

400000

450000

0

10000

20000

30000

40000

50000

60000

70000

Elec

tric

ity

Nee

ds

(GW

.h/y

r)

Per

son

s (x

1,0

00

)

Forecasted Population Growth in Canada (2025 - 2055)

Electricity Needs With Moderate Economic Growth Electricity Needs (BAU) Low Growth Moderate Growth High Growth

Moderate Economic and Population Growth and Energy prices. Electricity needs are far superior.

Population Growth and Residential Needs

65Data Source: StatsCan, Table: 11-10-0222-01 (formerly CANSIM 203-0021)Retrieved: June 2018; Visual Created by the Canadian Electricity Association

Electricity47.04%

Cumulative changes per Household from 1999-2016.

Internet Services235.79%

Household Spending (1999 - 2016)

73.8%

760.9%

58.6%74.8%

756.6%

140.4%

Percentage increase in 2015 comparing against 1999 household spending levels.

Data Description

Property Taxes

Internet Services

Electricity Public Transit

Cell Phone Services

Waterand Sewage

133.5 TW.hResidential Demand in 1999

164.2 TW.hResidential Demand in 2016

Data Source: StatsCan, CANSIM Table 203-0021

Data Retrieved: June 2018; Visual Created by the Canadian Electricity Association66

Household Spending (1999 vs. 2015)

67Data Source: StatsCan, CANSIM Table 203-0021


Spending Increases Per Household Comparing 2016 to 2010.

Property Taxes18.12%

Electricity18.22%

Internet Services53.09%

Cell Phone Services51.16%

Public Transit9.72%

Water and Sewage28.57%

Household Spending (2010 vs. 2016)

68

Multinational Comparison (Residential Pricing)

Data Source: World Energy Statistics 2016, IEA


69Data Source: World Energy Statistics 2017, IEA, and Open Data Portal, World Bank


Multinational Comparison (Residential Pricing)

Shaded area indicates top

quartile.

70

Canadian Urban Centres Comparison

(Residential Pricing)

Data Source: 2017 Edition Comparison of Electricity Prices in North America in Major North American Cities, Hydro-Québec


Pricing is impacted by time-of-use rates, consumption patterns, adjustment clauses. This data is taken from Hydro-Québec price comparison study and is calculated according to base rates.

71

Multinational Comparison (Industrial Pricing)

Data Source: World Energy Statistics 2016, IEA


72Data Source: World Energy Statistics 2016, IEA, and Open Data Portal, World Bank


Multinational Comparison (Industrial Pricing)

Shaded area indicates top

quartile.

73

Electric Vehicle Sales (Canada)

Data Source: World EV Outlook 2017, IEA,


In 2016 Canada sold a total of 11.58 Thousand EV’s

74

Electric Vehicle Penetration (World)

Data Source: World EV Outlook 2017, IEA,


75

Financials

I N 2 0 1 6 T H E E L E C T R I C I T Y I N D U S T R Y R E P R E S E N T E D

1 . 7 % O F T H E N A T I O N A L G D P .

• GDP Contribution • Utility Investments • Utility Investments (with

Conference Board of Canada

reference)

76

GDP Contribution



0

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Bill

ion

s

Electric Power(Generation, Transmission, Distribution) to Canada's GDP (2000-2017)

Electricity GDP (2007 Chained Dollars)

30.6 Billion CDN$

31.2 Billion CDN$

77

Utility Investments

Data Source: StatsCan CANSIM Table 029-0050, Annual Capital and Repair Expenditures Survey


0

5,000

10,000

15,000

20,000

25,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CD

N d

olla

rs (

x 1

,00

0,0

00

)

Annual Capital and Repair Expenditures

Power distribution networks Electric power infrastructure

78

Data Source: StatsCan CANSIM Table 029-0050, Annual Capital and Repair Expenditures Survey; Conference Board of Canada, Shedding Light on the Economic Impact of Investing in Electricity Infrastructure, 2012


Or 17.38 Billion CDN$ annually from 2010 to 2030

Conference Board of Canada: Total Investment Required by 2030 = 347.5 Billion CDN$

Utility Investments

0

5,000

10,000

15,000

20,000

25,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CD

N d

olla

rs (

x 1

,00

0,0

00

)

Annual Capital and Repair Expenditures

Power distribution networks Electric power infrastructure Annual Spending Requirements

79

Infrastructure Projects

I N F R A S T R U C T U R E I S C R I T I C A L T O N A T I O N A L

S E C U R I T Y A N D L O N G E V I T Y .

• Known Generating Stations (Renew/MPMO) Slide 1

• Known Generating Stations (Renew/MPMO) Slide 2

• Manitoba-Minnesota Transmission Project

• Known Transmission Projects (Renew/MPMO)

80

Known Generation Projects (Renew/MPMO)

Data Source: MPMO Tracker, (Major Project Management Office), Renew Magazine Top 100 Projects List

Data Retrieved: May 2018,; Visual Created by the Canadian Electricity Association

Project Name Description ProponentProject

TypeLocation Value ($)

Estimated Completion

Amisk Hydroelectric Project 330 MW AHP Development Corp Hydro AB TBD TBD

Beauharnois Station RenovationsRefurbishment

Hydro-Quebec Hydro QC 1.6 2019

Bruce Power Nuclear Refurbishment

6,300 MW Bruce Power Nuclear ON 13B 2030

Chinook Power Station 350 MW SaskPower Natural Gas SK 0.68B 2019

Darlington Nuclear Refurbishment 3,512 MW OPG Nuclear ON 12.8B 2025

Genesee 4 and 5 Generation Units 1060 MW ENMAX, Capital Power Natural Gas AB 1.4B 2019

Gordon Shrum Power Station Refurbishment

Refurbishment BCHydro Hydro BC 0.6B 2022

Great Spirit Power Project 930 MW Focus Energy GroupNatural Gas

AB 1.5B TBD

John Hart Generating Station Replacement Project

Refurbishment BCHydro Hydro BC 1.093B 2019

81

Project Name Description Proponent Project Type Location Value ($) Source

Keeyask Hydroelectric Generation

695 MWKeeyask Hydropower Limited Partnership

Hydro MB 8.7B 2020

Lower Churchill Hydroelectric Generation

3,074 MW Nalcor Energy Hydro NL TBD TBD

Milner Energy Centre520 MW

ExpansionMaxim Power Natural Gas AB 1B 2020

Muskrat Falls Project 824 MWNalcor Energy ,

EmeraHydro NL 12.7B 2020

Naikun Offshore Wind Energy 396 MW Naikun Wind Energy Wind BC TBD TBD

Rehabilitation of Robert Bourassa Generating Units

Refurbishment Hydro-Quebec Hydro QC 0.743B TBD

Romaine Complex 1,550 MW Hydro Quebec Hydro QC 6.5B 2020

Site C Clean Energy Hydroelectric Generation

1,100 MW BC Hydro Hydro BC 9.385B 2024

Tazi Twe HydroelectricGeneration

50 MWSaskatchewan Power

Corp.Hydro SK 0.5B 2019

Known Generation Projects (Renew/MPMO)



82

MPMO Project Name Description Proponent Location Value ($)Estimated

Completion

Bipole III Transmission Line 1,384 km line Manitoba Hydro MB 5.04B 2018

Chamouchouane-Bout-de-l’IleTransmission Line

735 kV line (406 km) Hydro-Quebec QC 1.4B 2018

East-West Transmission Tie 230kV line NextEra Energy Canada/ Enbridge ON 0.6B 2020

Fort McMurray Transmission Line500 kV AC line (over

900km)AESO AB 1.43B 2019

ITC Lake Erie Connector50 kV International Power

Line (IPL)ITC Holdings Coporation ON TBD TBD

Juan de Fuca Power Cable 550 MW line Sea Breeze Power BC 0.665B TBD

Manitoba-Minnesota Transmission Project

500 kV AC line Manitoba Hydro MB TBD TBD

Maritime Link Transmission500-MW, +/- 200 to

250-kV HVDC & HVACENL Maritime Link Inc. NL/NS 1.577B 2018

Romaine 315kV and 735kV lines Hydro Quebec QC 1.3B 2020

Wakaynikaneyap Transmission Project

1,800 km line FortisOntario ON 1.35B 2024

Major Transmission Projects (MPMO/Renew)



83

Manitoba-Minnesota Transmission Project



Winnipeg

HVDC Line +/- 500kV(600 miles)

HVDC Line +/- 500kV(850 miles)

Manitoba Hydro

Minnesota

Power

• 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 NorthDakota.

• Overall project enhances regional reliability and provides energy market benefits.

• 2020 expected in-service date.

New Line

Existing Line

84

FOR MORE INFORMATIONCONTACT US

Canadian Electricity Association

275 Slater Street, Suite 1500

Ottawa, Ontario, K1P 5H9

613.230.9263

Twitter: @CDNElectricity

LinkedIn: https://www.linkedin.com/company-beta/370763/

Facebook: canadianelectricityassociation

https://www.linkedin.com/company-beta/370763/

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