Canada’s electricity sector needs to face up more strongly to environmental challenges such as increasing carbon emissions, says an advisory panel to the Canadian Electricity Association.
And the independent panel, headed by former B.C. premier Mike Harcourt, also warns that the industry’s thirst for capital to renew its aging equipment may bring it into conflict with cities raising money to rebuild crumbling roads and sewers.
Meanwhile, the association itself says that it needs some help from governments and regulators to align their policies more closely. The association represents utilities, marketers and suppliers for the electricity industry.
In its annual sustainability report, the association notes that carbon emissions rose 0.9 per cent in 2010.
In a letter published with the report, Harcourt’s panel called the increase “troubling,” given that electricity production had actually decreased 3 per cent during the year.
“Panel members are concerned about the slow progress of the electricity sector on greenhouse gas emission reductions,” the letter said.
“ In this respect, we urge the electricity industry to more aggressively engage its customers about the new approaches and technologies that will be needed to mitigate investment risk and enhance industry sustainability.”
The association notes in its report that since electricity facilities have long life cycles, change take time. But it says investment in new technology will have a “profound” impact on the environment in the future.
Ontario has pledged to close its last coal-burning plants, which emit large amounts of carbon dioxide, by 2014.
They’re being replaced in part by renewable sources like wind and solar power, which don’t in themselves produce emissions, but are backed up by natural gas-fired generators.
Energy minister Brad Duguid announced 25 new solar and wind projects Monday, to be built in western Ontario. The projects will be connected to markets by a new transmission line that won’t be in service until the end of 2012.
Harcourt’s panel also drew attention to the power sector’s need for massive amounts of capital.
The association figures $220 billion should be invested in the system over the next 20 years to ensure a safe and reliable grid; the Conference Board of Canada has estimated the need at $290 billion.
Meanwhile, the Federation of Canadian Municipalities says its members need $120 billion over a similar timeframe to renew roads, bridges, sewers and water lines.
Investment is also needed in highways and ports, the panel notes.
“These enormous cost projections suggest to Panel members that Canadian governments, industry and society must re-examine status quo approaches to future infrastructure development and investment needs,” the panel says.
Pierre Guimond, president of the electricity association, said in an interview that the industry sometimes get caught between the wishes of politicians and regulators.
“The vendors go to the politicians and say: See this wonderful equipment we have,” he said.
Politicians then pressure utilities to buy that equipment, he said. It then turns out that all future purchases have to be made from the same supplier, he said, and that leads to long term operating issues for the system.
“You have to take a longer term view, and sometimes the longer term view doesn’t necessarily match up with the political short term.”
Guimond wouldn’t give any examples.
* Retrieved from http://www.thestar.com/business/companies/article/1019349--power-industry-urged-to-curb-emissions
* Color and emphasis added by the blogger
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