Decarbonizing and

electrification:

a federal perspective

Clean Energy BC

June 14, 2018

Broad Policy Frame

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• Critical service for Canadians• Competitive input for industry• Deeply connected to the environment

Electricity Sector:

Desired state:

• Provincial and territorial: responsible for most aspects of the electricity system

• Federal: national environmental regulations, international power lines, targeted programs

Jurisdiction:

Reliable

AffordableClean

The Pan-Canadian Framework (PCF) is our collective

plan to grow the economy while reducing emissions

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Implement GHG mitigation policies in support of meeting or exceeding Canada's 2030 target of a 30% reduction below 2005 levels of emissions

• Pricing carbon pollution• Complementary climate actions to reduce

emissions (including in electricity sector)• Adaptation and resilience• Clean technology, innovation, and jobs

Vancouver Declaration PCF on Clean Growth and Climate Change

The PCF situates electricity sector as a cornerstone of

modern, clean growth economy

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Complementary climate actions to reduce emissions

1. increase the amount of electricity generated from renewable and low-emitting sources

2. connect clean power with places that need it;

3. modernize electricity systems4. reduce reliance on diesel working with

Indigenous Peoples and northern and remote communities

1. Transportation - shift from higher to lower-emitting types of transportation including electricity

2. Industrial – switching to clean electricity and lower-carbon fuels

3. Built environment – fuel switching to clean electricity

Decarbonization ofElectricity System

Electrification ofKey Sectors

At a national level, decarbonization and electrification

must be pursued in tandemSimplified Canadian Energy Flow Diagram

FOSSIL FUELS

NON-EMITTING ELECTRICITY(e.g., hydro)

IMPORTS EXPORTS

BUILT ENVIRONMENT

INDUSTRIAL

TRANSPORTATION

OTHER

FOSSIL FUELS

ELECTRICITY

DO

MES

TIC

P

RO

DU

CTI

ON

TRA

NSM

ISSI

ON

DO

MES

TIC

C

ON

SUM

PTI

ON

END

USE

DEMANDSUPPLY

1. Decarbonization: Increase the proportion of non-emitting electricity generation

2. Electrification: Shift end-use energy consumption to electricity

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3. Energy efficiency and conservation

3

2

0

20

40

60

80

100

120

140

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

Canada's Electricity Sector Greenhouse Gas EmissionsMegatonnes of carbon dioxide equivalent

Coal Natural gas Other

Decarbonization: Canada has been

heading in the right direction …

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Peaked in 2001 at 130 Mt (18% of emissions in Canada)

Responsible for 11% of emissions in Canada (79/704 Mt

in 2016)

Source Share Emissions

Hydro 59% Canada’s electricity

mix is81% non-emitting

Nuclear 15%

Other renewables

7%

Other 1% 6 Mt(8%)

Natural Gas 9% 14 Mt (17%)

Coal 9% 59 Mt (75%)

Canada's Electricity Supply Mix (2016)

Down 39% (2001-2016)

… but provinces reliant on

fossil fuels are facing a

significant transition

ProvinceElectricity

Sector Emissions

Share of Total

Sector Emissions

Alberta 45 Mt 58%

Saskatchewan 15 Mt 19%

Nova Scotia 7 Mt 8%

New Brunswick 5 Mt 6%

4-province total 72 Mt 92%

Canada's Coal-reliant Provinces (2016)

A range of instruments are being used to further

decarbonize the electricity sector …

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Action Targeted Implementation Measures Cross-cutting

Increased renewable and low-emitting sources

• Regulations for coal-fired power plants• Regulations for natural gas • $200M Emerging Renewable Power Program• Framework for marine renewables

$9.2B for green infrastructure under IntegratedBilateral Agreements

Canada Infrastructure Bank (at least $5B available for green infrastructure projects)

Connections • Regional Electricity Cooperation and Strategic Infrastructure initiative

Modernize electricity systems

• $100M Smart Grid Program

Reduce reliance on diesel

• $220M Clean Energy for Rural and Remote Communities Program

• Northern REACHE Program• Arctic Energy Fund

Bear Mountain

Wind Park(Dawson Creek, BC)

… while complementary instruments are helping to

electrify other key sectors

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Action Targeted Implementation Measures Cross-cutting

Transportation • Develop a zero-emissions vehicle strategy• $120M to deploy infrastructure for electric

vehicle charging g stations, as well support commercial-scale demonstration of next generation charging infrastructure

$9.2B for green infrastructure under IntegratedBilateral Agreements

Industrial • Support for provincial priorities

Built Environment

• Develop and adopt increasingly stringent model building codes

• Labelling of building energy use • $182M to develop and implement new building

codes to retrofit existing buildings and build new net-zero energy consumption buildings

EV Tech Park at

Powertech Labs (Surrey, BC)

• Canada has announced that it intends to join the International Renewable Energy Agency (process expected to be complete by early 2019). Opportunity for Canadians to:– contribute to IRENA key activities

– engage IRENA members

– share Canadian lessons learned and best practices

– promote Canadian clean tech industry in global markets.

• 9th Clean Energy Ministerial (CEM9) held in Denmark/Sweden, May 22-24– Canada participates in the Advanced Power Plant Flexibility

– New campaign on Power System Flexibility launched

– Canada leads on Nuclear Innovation Clean Energy for the Future

– CEM10 will be hoste by Canada, in Vancouver (May 2019)

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International Developments

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The Challenge: policy-making is occurring in an

evolving environment

• Cost of renewables

• Cheap, abundant natural gas

• Market participation

• Storage• Digitalization

• Operational• Utilities’ business

model• Regulatory/

innovation• Affordability• Security (cyber)

Sample ofgrowing trends

Sample ofemerging pressures

Generation Energy

• April 2017: Minister Jim Carr at the launch of Generation Energy, a cross-country dialogue on Canada’s energy future

• Two-day Generation Energy Forum held in October 2017

• 14-member Generation Energy Councilestablished in December 107 to provide recommendations on how Canada can transition to a reliable, affordable, low-carbon economy in the future

• Final report coming soon

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1. Wasting Less Energy2. Switching to Clean Power3. Using Cleaner Fuels4. Producing Cleaner Oil and Gas5. Engaging Indigenous Peoples

Key themes