Whitehorse, Yukon (June 21, 2018) – The Canadian Electricity Association’s Board of Directors met today in Whitehorse, Yukon, and issued the following statement on the importance of investing in electricity infrastructure in Canada’s North:
“In honour of National Indigenous Peoples Day, the CEA Board of Directors acknowledges the important role that Indigenous groups must play in the development of clean energy alternatives in the North, as active community members, project partners and developers.
Electricity is the foundation of our modern society. It powers homes, schools, hospitals, and businesses, and is the backbone of a vibrant economy. Access to affordable, reliable electricity enables economic growth. Sparse Northern populations and a high cost of living require unique and innovative approaches. Ultimately, we must ensure a level playing field across Canada when it comes to energy accessibility and affordability.
Canada was built on the principle of equal opportunity. For this great promise to hold true today, all citizens must have reasonable access to the electricity infrastructure that powers their lives.
Diesel generators are the backbone of electricity systems in many Northern communities, providing reliable power to people living in the most demanding environments in Canada. Many of these generators are at full capacity and the cost of electricity in some regions is as much as ten times the Canadian average. This limits local economic opportunities and stifles growth.
This must change. Now is the time for utilities, communities, Indigenous governments and other levels of Government to work together collaboratively to optimize our collective strengths and provide affordable, reliable and safe renewable energy sources to meet the needs of Northerners.
This need includes adequate electricity supply to support industrial development (e.g. providing energy to new mine sites and electrifying existing sites). Economic growth and electrification in turn create the demand needed to justify investments in the transmission grid, which may lead to interconnections with provincial electricity grids and better system reliability and affordability for all.
Developments in integrated clean energy solutions provide an opportunity to address energy access and environmental sustainability, and to provide an opportunity for economic participation by communities and Indigenous governments. Led by policy mandates and customer preferences, Canada is undertaking an energy transition, moving to a lower-carbon model. Clean electricity is critical to achieving this vision. Improvements to existing technology must also be included in the discussion.
New technology and use of fuels that result in reduced greenhouse gas emissions from diesel generators should be acknowledged as part of the solution. Currently, over 65% of communities in the North rely solely on diesel fuel to meet their basic energy needs. This is an environmental as well as an economic challenge. With targeted investments, governments can help communities join the transition without sacrificing reliability or affordability.
The national energy transition cannot be for just some. It must include all Canadians, in all regions of our country, including the participation of Northern local communities and Indigenous governments. The development of local renewable energy sources provides tangible opportunities for utility service providers, communities and Indigenous governments to work together – in partnership – to enable participation in the energy sector, create jobs and help the environment.
The CEA Board of Directors therefore stands together in support of increased electricity infrastructure investments in the North. Electricity infrastructure lifts communities towards a brighter future while providing training and good jobs.
We propose the following six priorities for immediate Federal, Provincial and Territorial action:
- All levels of Government should recognize that communities and Indigenous governments must have input into the electricity infrastructure decisions that affect them. A strategy for their inclusion in partnerships, developed in consultation with existing utility service providers in the North, must be prioritized and actioned.
- The Government of Canada, led by Indigenous Services Canada Minister Philpott, should expand the Northern REACHE Program to provide seed funding to support the development of energy projects in Northern communities. The Minister should also expand support for capacity building in Indigenous communities, allowing Indigenous groups to more fully participate in future energy development opportunities.
- The Government of Canada, led by Infrastructure Minister Sohi, should prioritize Northern electricity projects in the Green Infrastructure, Rural and Northern Communities, and Arctic Energy Fund components of the Investing in Canada Plan; and in all future infrastructure funding programs. Canada needs to better serve these communities by facilitating creative and collaborative funding solutions from all levels of government.
- The Government of Canada, led by Natural Resources Minister Carr, should include interconnections between Territories and Provinces as a priority focus area when studying the feasibility of inter-jurisdictional transmission lines. Such transmission interconnections would create the opportunity for clean energy exports from the North to the South, and to support the energy transitions underway in Alberta and Saskatchewan.
- The Government of Canada, led by Innovation, Science and Economic Development Minister Bains, should prioritize funding for the research and development of innovative clean and alternative electricity pilot projects in northern and remote communities.
- All levels of Government should commit to leaving no Canadian behind in the transition to cleaner forms of energy. Diesel generation is currently the lowest-cost option for meeting capacity needs in many communities and is also very reliable. We must strive to find electricity solutions that match the cost and performance attributes of diesel in order to transition communities to cleaner sources of energy. Where fuel switching is not technically or economically feasible in the near term, adequate energy availability and reliability should be prioritized. Until reliability can be ensured and clean technology put in place, projects that reduce reduced greenhouse gas emissions through lower diesel consumption should be eligible for funding support.
In the North, as is the same across Canada, the quality of life for residents and the realization of economic development projects depend on improved electricity infrastructure.
The Canadian electricity sector stands ready to work with northern communities and all levels of government to reduce diesel reliance nationwide and move towards a more sustainable, affordable, reliable, clean energy future for all Canadians.”
Ray Robinson
President & CEO, Saint John Energy
Chair of the CEA Board of Directors
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Additional quotes:
Andrew Hall, President and CEO, Yukon Energy
“On behalf of Yukon Energy Corporation, I would like to welcome the Canadian Electricity Association to the North for this historic meeting. It is fitting that the CEA is meeting to talk about energy issues on National Aboriginal Day; YEC recognizes that partnerships with self-governing First Nations are essential to forging a sustainable energy future in Yukon.”
Jay Grewal, President and CEO, Northwest Territories Power Corporation
“We are at a pivotal moment in history with transformational projects underway or planned in the electricity sector. Utilities in the North are strong and resilient power providers, developing energy solutions that allow us to serve customers in some of the most challenging conditions in the world. Collectively we see exciting opportunities emerging from the Federal government’s willingness to invest in our aging infrastructure, in expanding our hydro resources and in renewable technology. The North is eager to participate in the transition to a clean energy future while still maintaining the affordability and reliability that our customers require.”
Wayne Stensby, Managing Director, Global Electricity Business, ATCO
“We believe the North has enormous resource potential and an important role to play in Canada’s future. From local wind, solar and biomass projects to displace diesel to large-scale hydro opportunities that would significantly reduce greenhouse gas emissions in Southern Canada, the development of renewable energy must include collaborative partnerships with all parties including local Indigenous communities. The time to work together is now.”
Hon. Sergio Marchi, President and CEO, Canadian Electricity Association (CEA)
“For the first time in its 127-year history, CEA’s Board of Directors has met in Canada’s North. This historic meeting underscores the national imperative to increase energy infrastructure investments in the North to drive economic growth and to ensure that no Canadian is left behind in our transition to a clean energy future.”