Appeared in a Special Issue of the Report on Business on Climate Change – June 29th, 2018
Traditionally, Canadian electricity companies have had a simple mandate: Keep the lights on.
Today, electricity companies are expected to also provide a broad range of energy services through data-driven, customer-centric system operations platforms that manage responsive loads, electric vehicles, storage devices and more, all while achieving environmental and social sustainability — and protecting affordability.
Delivering on this expanded mandate requires an ironclad commitment to innovation. We must go beyond replacing “like with like” and instead fundamentally reimagine our electricity system and how Canadians relate to it. Innovators in the electricity sector are stepping up to the plate but are presented with a dilemma.
Although Canada enjoys one of the cleanest and most reliable electricity systems in the world, we have seen a sharp spike in its politicization. Electricity rates are persistently a top-of-mind issue for many Canadians. This heightened attention places pressure on provincial governments and rate regulators, for whom the overwhelming and almost exclusive objective becomes keeping costs down. Consequently, innovative pilot applications are far too routinely rejected.
Without constant innovation, reliability will suffer, especially as we battle more extreme weather events and cyber-attacks. In addition, we will not meet future clean energy targets set by governments.
To promote and celebrate what happens when we empower innovators, the Canadian Electricity Association (CEA) has launched Canada’s first Centre of Excellence on electricity. It showcases cutting-edge development in how electricity is produced, delivered and consumed. The projects positively impact the lives of Canadians, transform our industry, and illustrate the economic, social and environmental benefits for Canadians.
Political leaders must respond to the emotions and needs of their electors. But they must also lead. Long-term strategic investments in innovation, coupled with creative regulatory reform, must be embedded in the policies of federal, provincial, and territorial governments, and their respective regulatory systems. Canada’s private sector must also deliver, by incorporating meaningful innovation strategies into their corporate cultures and vision.
“ It is incumbent upon the full electricity ecosystem to foster a sustained culture of innovation.”
If we get electricity sector innovation right - if governments, regulators and electricity companies align on innovation for the benefit of the customer – we will build a better, greener, smarter energy future. That’s something that every customer – and every voter – can get behind.