Ottawa (December 17) – A “Canadian” electricity regulation must be achievable in all provinces; the final Clean Electricity Regulations (CERs) announced today do not meet this test.
The CERs will set strict limits on how and where electricity can be generated, limiting certain types of generation and will determine how trillions of dollars' worth of investment will be spent.
Since 2005, the Canadian power industry has reduced emissions by 62%, more than any other economic sector of the Canadian economy. Electricity in Canada is over 84% non-emitting, with that number expected to continue rising. This has been driven by the retirement of coal plants, expansion of renewables, and the use of existing non-emitting assets like hydro and nuclear power.
There are significant regional differences within Canada. While the objectives of the Clean Electricity Regulations seem to be easier to achieve in some provinces, other provinces rely more on fossil fuels to generate electricity. The stringent CER regulations will create reliability and affordability challenges across Canada, particularly in provinces like Ontario, Saskatchewan and Alberta. The regulations will add unnecessary costs as these provinces work towards decarbonized economies by 2050.
Electricity today represents just 47 megatonnes of annual greenhouse gas emissions. The Canadian Electricity Advisory Council reported that electricity has the potential to reduce over 268 megatonnes from other sectors through the electrification of the broader economy.
This is where the government needs to be putting its focus.
Electricity Canada and its members participated in countless technical consultations with Environment and Climate Change Canada during the development of these regulations. Throughout, our members and their respective jurisdictions have provided substantive data indicating what can be realistically achieved. We are disappointed that a national standard that would meet the needs of all Canadians was disregarded.
Simply put, the Government of Canada has opted to advance a regulation that will leave key Canadian jurisdictions behind.
Throughout the process of drafting this national regulation, Electricity Canada has repeatedly urged the federal government to appreciate that the means to generate electricity is unique to every province and territory.
The electricity sector is concerned that these regulations will make electricity less reliable and less affordable in affected parts of the country and threaten the ability to grow its economy while reducing carbon emissions.
Electricity Canada had urged Environment and Climate Change Canada to concentrate on higher-emitting sectors and allow the electricity sector to help decarbonize the broader economy through increased fuel-switching, electrification and efficiency programs.
When it comes to the CERs, Electricity Canada is concerned that:
- Until new technology becomes commercially available at scale, electricity providers in some jurisdictions will need natural gas to operate their systems safely and affordably.
- Independent system operators in the most affected jurisdictions have been unable to confirm that the CERs are achievable while maintaining reliability.
As indicated in the federal government’s final electricity advisory report, Powering Canada: A blueprint for success, the greatest challenge facing the electricity industry will be to double or triple the size of the grid by 2050. We need regulations that can enable this unprecedented growth across Canada.
QUOTE
“Our industry is committed to achieving a net zero economy by 2050 and our track record of reducing emissions by 62% since 2005 shows just how serious we are. When it comes to how emissions are reduced in each province while maintaining a safe supply of electricity, system operators know best – and many of them continue to be ignored, which puts parts of the Canadian grid at risk. We’re disappointed to see that the final Clean Electricity Regulations have been unable to meet a threshold that protects reliability in all parts of Canada.”
About Electricity Canada:
Founded in 1891, Electricity Canada (formerly the Canadian Electricity Association) is the national forum and voice of the evolving and innovative electricity business in Canada. The Association supports, through its advocacy efforts, the regional, national, and international success of its members. Electricity Canada members generate, transmit, and distribute electrical energy to industrial, commercial, residential, and institutional customers across Canada. Members include integrated electric utilities, independent power producers, transmission and distribution companies, power marketers, and system operators, who together deliver electricity to all Canadians, in every province and territory.
For additional Information:
Graeme Burk
Director of Communications