ELECTRICITY · members, ensuring they remain at the forefront of customer service, sustainability , and technological innovation. Mission: CEA is the national voice for safe, secure

2

ELECTRICITY

101The following slide deck contains data and

information about CEA and the Canadian Electricity

Industry. The data is derived from 3rd party sources

(i.e., World Bank, StatsCan, IEA, Environment

Canada) and has been visualized by CEA.

Table of Contents

Canadian Electricity Association

L E A R N M O R E A B O U T T H E N A T I O N A L V O I C E O F

C A N A D I A N E L E C T R I C I T Y .

• Vision and Mission

• Strategic Goals

• CEA Councils

• Energy Efficiency

• Smart Grid

• Human Resources

• Sustainable Electricity

• Vision 2050

4

Canadian Electricity Association (CEA)

Founded in 1891, the Canadian Electricity

Association is the national forum and voice of the

evolving electricity business sector in Canada.

Vision: CEA will be the leading energy association, indispensable to the regional, national, and international success of its

members, ensuring they remain at the forefront of customer service, sustainability , and technological innovation.

Mission: CEA is the national voice for safe, secure and sustainable electricity for all Canadians, and provides its members with

value-added products and services to advance the strategic interests of Canada’s electricity industry.

5

Scenarios and Issues CEA and the

Industry

EffectivenessMember Services

Canadian Electricity

Association

Through scenarios identify emerging trends and issues, and promote the interests of members accordingly.

Business Scenarios and Emerging Issues

Ensure the appropriate positioning of electricity, CEA and the industry.

CEA and the Industry

Create and share knowledge to mitigate members business risk, and provide the services and support that members need.

Member Services

Ensure the efficiency and effectiveness of the organization.

Association Effectiveness

Canadian Electricity Association Strategic Goals

6

CEA CouncilsThe story of our industry is told through our councils and committees

Seeks to increase the value of electricity service to Canadians.

Customer

Promotes competitive and efficient electricity markets in Canada and the United States.

Power Marketers

Focuses on technological and regulatory developments associated with smart grid development and deployment, advanced meter performance, power quality issues, and national trends in provincial distribution utility regulation.

DistributionFormulates positions on transmission, including cross border reliability, electric and magnetic fields and utility properties.

Transmission

Develops and Influences policy associated with investment in electricity generation infrastructure as well as manages environmental and health impacts related to generation.

Generation

7

• A suite of information-based applications through increased automation of the electricity grid and the underlying

automation and communication infrastructure itself

• Smart grid is posed to deliver grid resilience, environmental performance, and/or operational efficiencies

• Design and implementation of the smart grid integrated system aims to achieve desired customer priorities,

interoperability with legacy infrastructure, and be appropriate for use with respect to geographical location and

other needs

• Key characteristics or capabilities:

• Demand response, facilitation of distributed generation, facilitation of electric vehicles, optimization of asset

use, and problem detection and mitigation

• Capabilities supported by development of hard infrastructure, soft infrastructure through stakeholder

engagement

• Expected results in new service offerings, reduced delivery charges, and faster response time

• Security, privacy, implementation cost, and stakeholder engagement requires collaborationamong vendors, policy-makers, regulators and utilities

Smart Grid

8

• Providing safe environment for general public as well as ensuring health and safety of employees and contractors in the workplace,

• Support a fair, respectful and diverse workplace for our employees and contractors, and investing in human resources

• Partnering with communities and stakeholders, communicating and engaging in a transparent and timely manner

• Engaging Aboriginal Communities while respecting their culture and traditions

Human Resources

9

Commitment by CEA Member Utilities

Sustainable Electricity Program

10

LOW-CARBON FUTURE

Climate change management and mitigation

Internal energy efficiency and customer conservation programs

Electrification of transportation, buildings and processes

INFRASTRUCTURE RENEWAL AND MODERNIZATION

Investments in new and refurbished infrastructure

Integration of renewable energy

System reliability and resiliency against severe weather impacts

BUILDING RELATIONSHIPS

Early engagement and consultation with local communities, stakeholders and Aboriginal Peoples

Enhancement of the customer experience

Support for low-income customers

RISK-MANAGEMENT SYSTEMS

Environmental stewardship

Employee, contractor and public health and safety

Security management systems and standards

BUSINESSINNOVATION

Investments in innovation and technology advancement

Engagement of regulators, supply chain partners and other stakeholders

Employee recruitment, training and retention

In 2016, the CEA Sustainable Electricity Program adopted a new set of strategic

pillars and performance indicators to better communicate the electricity sector’s

sustainability goals and commitments:

Vision for Canada’s Electricity Sector

The four key recommendations of Vision 2050 include:

• Accelerating customer innovation and management of energy;

• Implementing financial instruments for carbon reduction,

including a North American carbon price that is implemented

across the economy;

• Enabling electric vehicles; and,

• Expanding collaboration with the U.S. to optimize electricity

assets while expanding opportunities for electricity storage and

the export of low-carbon electricity.

Vision 2050

11

Regulatory

C A N A D A H A S A S T R O N G R E G U L A T O R Y E N V I R O N M E N T .

• Canada’s Multi-Jurisdictional

Environment

• Electricity Structures Market in

Canada

• Canada’s Regulatory Regime

• The Integrated North-American Grid

• NERC Regions

• Regulations to Address GHG

12

Jurisdictional Division of Responsibility

Provincial/Territorial Governments Federal Government

• Resource management within provincial

boundaries

• Intra-provincial trade and commerce

• Intra-provincial environmental impacts

• Generation and transmission of electrical

energy

• Conservation and demand response policies

• Resource management on frontier lands

• Nuclear safety

• Inter-provincial and international trade

• Trans-boundary environmental impacts

• Environmental impacts where federal lands,

investment or powers apply

• Codes, standards and labeling relating to conservation

and demand

• Other policies of national interest

Canada’s Multi-Jurisdictional Environment

13

• Vertically-integrated Crown Corporation.

Nunavut

NWT

Yukon

BC

Alberta

Saskatchewan

Newfoundland

Nova Scotia

PEI


• Investor-owned distribution utility provides service in several communities.

• Vertically-integrated Crown Corporation and investor-owned distribution utility.

• Procures electricity from New England market and long-term contracts with New Brunswick.

• Wholesale open access• Investor-owned utility regulated

on cost-of-service

New Brunswick• Wholesale open access• Vertically-integrated Crown

corporation

Québec• Wholesale open access• Vertically-integrated Crown

corporation• Expanding IPP development

Ontario• Industry unbundling (1998)• Wholesale & retail open • access (2002)• Hybrid regulation and competition model

Manitoba• Wholesale open access• Vertically-integrated Crown

corporation

• Wholesale open access• Vertically-integrated Crown corporation


• Investor-owned distribution utility provides service in several communities.

• Wholesale and industrial open access

• Vertically-integrated Crown Corporation serves 94% of customers

• Mandatory Power Pool• Wholesale & retail open access (2001)• Fully competitive wholesale market

Electricity Market Structure in Canada

14

Canada’s Regulatory Regime for Large Energy Projects

Environmental Assessment Process PermittingPlanning Follow-up

Species at Risk Act - EC/DFO

Canadian Environmental Assessment Act - CEA Agency*

Explosives Act - NRCan

Fisheries Act - DFO

NWPA - TC

Metal Mining Effluent Regulations - EC/DFO

National Energy Board Act - NEB*

Nuclear Safety and Control Act - CNSC*

Impact reviews (YESAA, MVRMA Land Claim / CEAA)Innuvialuit Final Agreement - INAC* Management Boards

Territorial Lands / Water ActLand use plans

Others: MBCA / IBWTA / CPRA / Offshore Accords / CEPA

* Permits required under other Acts trigger CEAA OGD participants | Illustrative – some components would not apply to same project NWPA – Navigable Waters Protection Act / YESAA – Yukon Environmental and Socio-Economic Assessment ActMVRMA – Mackenzie Valley Resource Management Act / MBCA - Migratory Birds Convention Act / IBWTA – International Boundary Waters Treaty Act / CPRA – Canadian Petroleum Resource Act / Offshore Accords – Canada - NS and NFLD Offshore Accords / CEPA – Canadian Environmental Protection Act15

16

The Integrated North American Grid

Details: Lines shown are 345kV and

above. Transmission Lines under

345KV do not appear on this map.

17

North American Electric Reliability Corporation Regions (NERC)

Source: NERC

18

Regulations to Address GHG emissions from Coal-fired Electricity (2012)

Source: Environment Canada

• Establish an emissions performance standard of 420 tonnes of CO2 per gigawatt hour of electricity produced for new coal-fired electricity generation units (those commissioned after July 1,2015), and units that have reached the end of their life.

• The proposed Regulations are to be promulgated under the Canadian Environmental Protection Act (CEPA) and are set to come into effect on July 1, 2015.

• Existing and new units may apply for a deferral in meeting the performance standard until January 1, 2025, if the technology for Carbon Capture and Storage (CCS) is incorporated.

• The regulation will be effective only if compliance is achievable.

• Compliance will contribute to clarity and stability for industry that will enable investment in electricity infrastructure to flow.

• Cumulative reduction in GHG emissions of approximately 214 megatonnes and cumulative health benefits of $4.2 billion expected in the first 21 years.

• Some jurisdictions will be more heavily impacted than others.

Industry

T H I S I N D U S T R Y E M P L O Y S O V E R 8 0 , 0 0 0 P E O P L E .

• Industry Overview

• Labour Statistics

• Customer Reliability

• Electricity Consumption with

Human Development Index

19

63.8 TW.hNet Exports

640 TW.hGeneration

99.95% Customer Reliability

81,665 Employed

$29 Billion GDP

Electricity supports quality of life, economic well-being, and a clean environment.

Electricity

CANADIAN ELECTRICITY

INDUSTRY2.7 Billion Trade Revenue

38.05% CO2 Eq. Reduction Since 2000

Over 79% Non-Emitting

CO2

Industry Overview

20

21

Industry Labour Statistics in Canada

Source: StatsCan, CANSIM Table 383-0031 | Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Peop

le

Electric Power (Generation, Transmission and Distribution)

Excludes contractors, consultants, vendors and related manufacturers dedicated to the industry.

2016: 81,665

22

Customer Reliability in Canada

99.84%

99.86%

99.88%

99.90%

99.92%

99.94%

99.96%

99.98%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Canadian Index of Reliability (IoR)

IOR (All Events) IoR (Sig events removed)

2013 Ice Storm, 2013 Alberta and Toronto Floods,

2010 Hurricane Igor and Earl

2015 BC Windstorm

Source: Canadian Electricity Association, Service Continuity CommitteeData Retrieved: July 2017; Visual Created by the Canadian Electricity Association

23

Electricity Consumption Benefit

Data Source: HDI data, HDI Definition: United Nations; and Energy Consumption: Open Data Portal, World BankData Retrieved: August 2017; Visual Created by the Canadian Electricity Association

24

TradeE L E C T R I C I T Y T R A D I N G B E T W E E N C A N A D A A N D T H E U S A

B E G A N I N 1 9 0 1 .

• Major Canada-US Transmission

Interconnections

• Canadian Electricity Exports/Imports

by Province

• National Trade Volume Trends

• Trade Prices Trends

• Trade Revenue Trends

25

Major Canada-U.S. Transmission Interconnections

Source: National Energy BoardData Retrieved: July 2016; Visual Created by the Canadian Electricity Association

26

Canadian Electricity Imports and Exports by Region (2016)

Data displayed are in gigawatt-hours. Numbers may not sum due to rounding.Source: National Energy Board, Electricity Exports and Imports, 2016.

27

Trade Volume

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Terr

awat

t.hou

rs (T

W.h

)

Canada-U.S. Electricity Trade Volume (1990-2016)

Exports (TW.h) Imports (TW.h) Net Exports (TW.h)

Data Source: National Energy Board (NEB) and Statistics Canada, CANSIM Table 176-0064Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

28

Trade Prices

Data Source: National Energy Board (NEB).Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

0

20

40

60

80

100

120

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CDN

$/M

W.h

Canada - U.S. Electricity Trade Prices (1997-2016)

Exports (CDN$/MW.h) Imports (CDN$/MW.h)

29

Trade Revenue

Data Source: National Energy Board (NEB).Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Billi

on C

DN$

Canada - U.S. Trade Revenue (1990 -2016)

Exports Imports Net

California Energy Crisis (2000 – 2001)

Global Financial Crisis(2009)

30

Supply & Demand

A R E S U M E O F A N A L Y T I C S F R O M M A Y 2 0 1 4 T O M A Y 2 0 1 5

• Generation Capacity (US and Canada)

• Electricity Demand in Canada (1 year)

• Electricity Demand in Canada (1990-2015)

• Electricity Generation by technology

(1990-2015)

• Electricity Generation by Fuel (1995-

2015)

• Electricity Generation Breakdown

Comparison (2015)

• Generation by Province (2016)

• Canada’s Wind Capacity (2016)

31 Data Source: U.S. Data from Energy Information Administration, 2015; Canada Data from StastCan,CANSIM Table 127-0009Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

Conventional Steam Turbine15.11%

Combustion Turbine9.21%

Internal Combustion Turbine0.89%

Nuclear10.36%

Hydro58.50%

Wind5.64%

Solar/Tidal0.29%

Coal26.11%

Petroleum3.63%

Natural Gas43.17%

Nuclear8.90%

Hydro8.61%

Wind6.29%

Solar1.18%

Biomass1.38%

Geothermal0.33%

Other0.42%

Generating Capacity135.45 GW

Generating Capacity 1,167.37 GW

Canada United States

Generating Capacity (US. & Canada, 2015)

32

Electricity Demand

Data Source: StatsCan CANSIM Table 128-0016Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

Industrial40%

Transportation1%

Residential34%

Public Administration3%

Agriculture2%

Commercial and Institutional

20%

Electricity Demand By Sector In Canada (2015)

Total Electricity Demand in Canada for 2015 = 499.61 TWh

33

Electricity Demand by Sector (Trend)


0

100

200

300

400

500

600

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

TWh

Electricity Consumption by Sector (1990-2015)

Industrial Transportation Residential Public Administration Agriculture Commercial & Institutional

Total Electricity Demand in Canada for 2015 = 499.61 TWh

34

Electricity Generation by Tech.


0

100

200

300

400

500

600

700

TWh

Electricity Generation by Generation Technology (1990-2015)

Hydro* Conventional Steam Nuclear Internal Combustion Combustion Turbine Tidal Wind Solar Heat Waste

Total Electricity Generation by Utilities & Industry in Canada, 2015 = 640.43 TWh

35

Electricity Generation by Fuel

Data Source: StatsCan CANSIM Table 127-0001, 128-0014Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Twh

Generation by Fuel (1995-2015)

Hydro Nuclear Coal and Coke Natural Gas Oil and Diesel Biomass Solar Wind Tidal Steam from Waste Heat

Total Electricity Generation by Utilities & Industry in Canada, 2015 = 640.43 TWh

36Data Source: StatsCan CANSIM Table 127-0001, 128-0014Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

Hydro, 60.22% Nuclear, 16.64%

Coal and Coke, 11.09%

Natural Gas, 6.81%

Oil and Diesel, 0.60%

Biomass, , 0.35%

Solar, 0.06% Wind, 2.91%

Tidal, 0.00%

Steam from Waste Heat, 1.31%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Generation by Fuel - Utilities Only (2015)

Hydro, 58.37%

Nuclear, 14.94% Coal and Coke, 10.26%

Natural Gas, 10.22%

Oil and Diesel, 0.70%

Biomass, 1.59%

Solar, 0.05%

Wind, 2.67%

Tidal, 0.00%

Steam from Waste Heat, 1.17%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Generation by Fuel Industry and Electric Utilities (2015)

Generated574.88 TWh

Generated640.43 TWh

Electricity Generation Breakdown

37

Supply Industries and Utilities

Data Source: StatsCan CANSIM Table 127-0001, 128-0014, 127-0007Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

38

Canada’s Wind Capacity (2016)

Data Source: CANWEA (as of December 2016) Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

Province/Territory Capacity (MW)

Yukon 0.9

NWT 9.2

Nunavut 0

British Columbia 489

Alberta 1,479

Saskatchewan 221

Manitoba 258

Ontario 4,781

Québec 3,510

New Brunswick 294

PEI 204

Nova Scotia 597

Newfoundland 55

11,898 MW

39

Environmental Sustainability

T H E E N V I R O N M E N T I S E V E R Y T H I N G T H A T I S N ’ T M E . A L B E R T E I N S T E I N

• Low Emissions and Sustainable

Technologies

• Emissions - Sulphur Oxide

• Emissions - Nitrogen Oxide

• Emissions – Mercury

• Emissions – Particulate Matter

• Emissions Trends (previous 4 trends)

• Emissions – Carbon Dioxide Equivalent

• CO2 source by Economic Sector Trend

• CO2 Reduction 2020 forecast

• Factors on the Change in GHG Emissions

• Coal Fleet Profile

• NOx and SOx reductions

from CO2 regulation

• GHG Emissions in the US (1990-2015)

• GHG Emissions by Sector

Canada with US

Low Emission and Sustainable Technologies Usedfor Electricity Generation in Canada

Resource Advantages Challenges

Wind Power No fuel cost, no emissions or waste, renewable source of energy, commercially viable source of power

Less cost competitive than conventional energy source, variable energy resource, transmission issues, environmental concerns with regards to noise and interaction with birds, land use issues

Small Hydro Low capital costs, many potential sites in Canada, well established technology, able to meet small incremental capacity needs, reduction in GHG emissions

Regulatory approval can be costly and time consuming, access to grid, local opposition to new development

BiomassUses landfill gas, wood pellets, and waste products to create electricity, reduces greenhouse gas, high availability of sites

High capital equipment and fuel costs; produces some emissions; access to transmission, competition for biomass materials use

Geothermal Energy

Reliable source of power, low fuel and operating costs, clean and renewable source of energy

High capital costs, connecting to the grid can be difficult, few potential sites in Canada

Solar PV

Reliable, renewable energy source with zero emissions and silent operation, fuel is free, suitable for areas where fossil fuels are expensive or where there is no connection to the grid

Restrictive and lack of grid connection for remote areas, not cost competitive, sun does not always shine and potential varies across regions

Ocean Energy Costs are expected to decline as technology develops, intermittent, but predictable source of green energy

Potentially intrusive to marine life, investment is needed to promote research and development

Clean Coal Highly efficient, potential for reduced greenhouse gas emissions

High capital costs, lengthy start-up period

40

41

Sulphur Oxides Emissions

Source: Environment and Climate Change Canada, Air Pollutant Emissions DatabaseData Retrieved: July 2017; Visual Created by the Canadian Electricity Association

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Kilo

tonn

e(Kt

)

Electricity Sector in Canada Sulphur Oxide (SOx) Emissions (1990-2015)

Since 2000, the Canadian electricity sector has reduced its SOxEmissions by 59.37%

42Source: Environment and Climate Change Canada, Air Pollutant Emissions DatabaseData Retrieved: July 2017; Visual Created by the Canadian Electricity Association

Total Ores and Mineral Industries

46%

Total Oil and Gas Industry22%

Total Electric Power Generation

24%

Total Manufacturing4%

Total Transportation2% Total Agriculture

1%

Total Commercial/Residential/Institutional

1%

2015 Sulphur Oxide Emissions in Canada by Sources

In 2015, in Canada Sulphur Oxide emissions were measured at 1,054.40 kilotonnes

Sulphur Oxides Emissions

43

Nitrogen Oxides Emissions

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Kilo

tonn

e (k

t)

Electricity Sector in Canada Nitrogen Oxide (NOx) Emissions (1990-2015)

Since 2000, The Canadian electricity sector has reduced its NOx Emissions by 50.62%




4%

Total Oil and Gas Industry

25%


8%

Total Manufacturing4%

Total Transportation54%

Total Commercial/Residential

/Institutional5%

2015 Nitrogen Oxide Emissions in Canada by Source

In 2015, in Canada Nitrogen Oxide emissions were measured at 1,893.78 kilotons

Nitrogen Oxides Emissions

45

Mercury Emissions


Since 2000, the Canadian electricity sector has reduced its Hg Emissions by 62.9%

0

500

1000

1500

2000

2500

3000

Kilo

gram

s (k

g)

Electricity Sector in Canada Mercury Emissions (1990-2015)


In 2015, in Canada Mercury emissions were measured at 4,386.8 kg


31%

Total Oil and Gas Industry

2%


18%Total Manufacturing3%

Total Transportation2%

Total Commercial/Residential/Institutional

13%

Total Incineration and Waste31%

2015 Mercury Emissions in Canada by Source

Mercury Emissions


0.00

10.00

20.00

30.00

40.00

50.00

60.00

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Kilo

tonn

es (k

t)

Electricity Sector in Canada PM2.5 Emissions (kt)

Since 2000, the Canadian electricity sector has reduced its PM2.5 emissions by 82.98%

Particulate Matter Emissions


In 2015, in Canada PM2.5 emissions were measured at 1,620.87 kilotonnes

Ores and Mineral Industries2.03%

Oil and Gas Industry0.64%

Electric Power Generation0.24%

Manufacturing1.14%

Transportation2.49%

Agriculture19.64%

Commercial/Residential/Institutional11.36%

Incineration and Waste0.17%

Dust61.65% Fires

0.64%

2015 Particulate Matter Emissions by Source in Canada

Particulate Matter Emissions

49

Emissions Trends


0.00100.00200.00300.00400.00500.00600.00700.00

1990199219941996199820002002200420062008201020122014

Kilo

tonn

e(Kt

)

Electricity Sector in Canada Sulphur Oxide (SOx) Emissions (1990-2015)

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Kilo

tonn

e (k

t)

Electricity Sector in Canada Nitrogen Oxide (NOx) Emissions (1990-2015)

0

500

1000

1500

2000

2500

3000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Kilo

gram

s (k

g)

Electricity Sector in Canada Mercury Emissions (1990-2015)

0.00

10.00

20.00

30.00

40.00

50.00

60.00

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Kilo

tonn

es (k

t)

Electricity Sector in Canada PM2.5 Emissions (1990-2015)


Since 2000, the Canadian electricity sector has reduced its CO2 Eq. Emissions by 38.05%

0

20

40

60

80

100

120

140

Meg

aton

nes o

f C02

Eq.

Electricity Sector Greenhouse Gas Emissions in Canada (1990 - 2015)

Coal Natural gas Other

Carbon Dioxide (CO2) Emissions


In 2015, in Canada CO2Eq. emissions were measured at 723 Megatonnes

Oil and Gas 26%

Electricity 11%

Transportation24%

Heavy Industry10%

Buildings12%

Agriculture10%

Waste & Others7%

2015 CO2 Equivalent Emissions by Economic Sector in Canada


52



0

20

40

60

80

100

120

140

160

180

200

19901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012201320142015

1990 - 2015 Trend of CO2 Eq. Emissions by Economic Sector

Oil and gas

Transportation

Buildings

Electricity

Heavy industry

Agriculture

Waste and others

53

Electricity Sector Leads In CO2 Eq. Reduction

Source: Environment and Climate Change Canada, Canada‘s Emissions Trends 2014Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

Electricity Transportation Oil & Gas BuildingsEmissions-

intensive & Tradeexposed

Agriculture Waste and Others

2005 121 168 159 84 89 68 472012 86 165 173 80 78 69 472020 71 167 204 98 90 70 46Change 2005 to 2020 -50 -1 45 14 1 2 -1

-100

-50

0

50

100

150

200

250

Mt C

O2

Eq

Forecasted Change in Emissions by Sector 2005-2020

54

117 111 116108

95 9689 85 82 80 79

71 66 62 58 54

210.46 205.23204.01

190.46

174.70 178.12

157.29151.76

141.98 139.11 137.42122.94

115.06107.25

99.5091.81

0.00

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200.00

250.00

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40

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140

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

kt/T

Wh

MT

CO2

Eq. E

miss

ions

CO2 Electricity (Economic Sector) CO2 Eq. Emissions Intensity Forecast to 2020

MT CO2 Eq. Emissions CO2 Eq. Emissions kt/TWh

Electricity Sector Leads Reduction Forecast

2016-2020 projections performed with linear regression

Source: Environment and Climate Change Canada, Canada‘s Emissions Trends 2015, StasCan Table 127-001 – Utilities OnlyData Retrieved: July 2017; Visual Created by the Canadian Electricity Association

55

Factors on the Change in GHG Emissions

Source: UNFCCC, National Inventory Report for Canada, for 1990-2015Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

1990 - 2015 2005 - 2015

Notes:

Demand – the level of electricity generation activity in the sector and consists of generation from combustion and non-combustion sources. Generation mix – the relative share of combustion and non-combustion sources in generation activity.Fuel mix (combustion generation) – the relative share of each fuel used to generate electricity. Energy efficiency – the efficiency of the equipment used in combustion related generation of electricity. Emission factors – The emission factor effect reflects changes to fuel energy content over time.

56

Coal Fleet Profile (MW)

Source: NPRI dataData Retrieved: July 2017; Visual Created by the Canadian Electricity Association

0

2000

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8000

10000

12000

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18000

Capa

city

(MW

)

Coal Capacity Reduction - Retirement as per the Coal Regulation*

* Retirement age 45-50 years as per the 2012 Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations. Includes Ontario coal shutdown by 2014.

57

NOx and SO2 Reductions from CO2 Regulation

Source and assumptions: NPRI data was used for existing unit emissions, forecast based on 2009-2011 operation, coal unit retirement from 45-50 years as outlined in the 2012 Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations

Source: NPRI dataData Retrieved: July 2017; Visual Created by the Canadian Electricity Association

Reduction in NOx emissions from 2002 levels:

• 50% reduction by 2020


Reduction in SO2 emission from 2002 levels:



58

U.S. Greenhouse Gas Emissions Trends (1990-2015)

Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks (1990-2015), Figure ES-14Data Retrieved: August 2017; Visual Created by the U.S. Environmental Protection Agency

59

U.S./Canada Greenhouse Gas Emissions (2015)

Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks (1990-2015), Figure ES-14; Environment Canada, National Inventory Report (1990-2015) Table S-3,Data Retrieved: August 2017; Visual Created by the U.S. Environmental Protection Agency

Oil and Gas , 26.14%Electricity , 10.93% Transportation, 23.93%

Heavy Industry, 10.37%

Buildings, 11.89%

Agriculture, 10.10%

Waste & Others, 6.64%

2015

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

GHG Emissions in Canada by Sector (2015)

Electricity Generation, 29.47% Transportation, 27.43% Industry, 21.43%

Agriculture, 8.66%

Commercial, 6.64%

Residential, 5.66%

U.S. Territories, 0.71%

2015

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

U.S. GHG Emissions by Economic Sector (2015)

Emission Total –Canada: 723 Mt CO2 Eq.

Emission Total –United States: 6,587 Mt CO2 Eq.

60

• Canada’s Future Residential

Electricity Needs

• Population Growth and Residential

Needs (BAU)

• Population Growth and Residential

Needs (Economic)

• Household Spending

(1999-2015: Cumulative Change)

• Household Spending 1999 vs. 2015

• Household Spending 2010 vs. 2015

• Multinational Comparisons

Residential Pricing (Bar chart)


Residential Pricing (Bubble Chart)

• Pricing Canadian Urban Centres

– Residential


Industrial Pricing (Bar chart)


Industrial Pricing (Bubble Chart)

• Electric Vehicle Penetration (Canada)

• Electric Vehicle Penetration (World)

Price & Customers

T H E R E I S A F U N D A M E N T A L C O S T I N P R O V I S I O N I N G

E L E C T R I C I T Y F O R A N A T I O N .

61

Canada’s Future Residential Electricity Needs

Data Source: StatsCan, CANSIM Table 052-0005; Moderate Growth from Canada’s Energy Future 2016, Open Data PortalData Retrieved: July 2017; Visual Created by the Canadian Electricity Association

RESIDENTIAL USAGE129,831 GWh/yr

POPULATION27.79 Million

2015



2040


2050



B U S I N E S S A S U S U A L S C E N A R I O

Demand with Moderate Economic Growth Residential Usage350,660 GWh/yr

Residential Usage373,092 GWh/yr

1990


Population Growth and Residential Needs

Data Source: StatsCan, CANSIM Table 052-0005 Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

0

50000

100000

150000

200000

250000

0

10000

20000

30000

40000

50000

60000

70000

Elec

tric

ity N

eeds

(GW

.h/y

r)

Pers

ons (

x1,0

00)

Forecasted Population Growth in Canada (2025 - 2055)

Electricity Needs Low Growth Moderate Growth High Growth

Business as usual scenario. Electricity Needs based on Moderate Population Growth.

62

63Data Source: StatsCan, CANSIM Table 052-0005 , Moderate Growth from Canada’s Energy Future 2016, Open Data PortalData Retrieved: July 2017; Visual Created by the Canadian Electricity Association

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

0

10000

20000

30000

40000

50000

60000

70000

Elec

tric

ity N

eeds

(GW

.h/y

r)

Pers

ons (

x1,0

00)

Forecasted Population Growth in Canada (2025 - 2055)

Electricity Needs With Moderate Economic Growth Electricity Needs (BAU) Low Growth Moderate Growth High Growth

Moderate Economic and Population Growth and Energy prices. Electricity needs are far superior.

Population Growth and Residential Needs

64Data Source: StatsCan, CANSIM Table 203-0021Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

Electricity43.70%

Cumulative changes per Household from 1999-2015.

Internet Services229.34%

Household Spending (1999 - 2015)

72.4%

708.7%

53.5% 67.1%

711.6%

131.7%

Percentage increase in 2015 comparing against 1999 household spending levels.

Data Description

Property Taxes

Internet Services

Electricity Public Transit

Cell Phone Services

Waterand Sewage

133.489 TW.hResidential Demand in 1999

169.016 TW.hResidential Demand in 2015

Data Source: StatsCan, CANSIM Table 203-0021Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association65

Household Spending (1999 vs. 2015)

66Data Source: StatsCan, CANSIM Table 203-0021Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

Spending Increases Per Household Comparing 2015 to 2010.

Property Taxes17.15%

Electricity14.39%

Internet Services43.81%

Cell Phone Services43.23%

Public Transit4.86%

Water and Sewage23.92%

Household Spending (2010 vs. 2015)

67

Multinational Comparison (Residential Pricing)

Data Source: World Energy Statistics 2016, IEA Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

68Data Source: World Energy Statistics 2016, IEA, and Open Data Portal, World BankData Retrieved: July 2017; Visual Created by the Canadian Electricity Association

Multinational Comparison (Residential Pricing)

69

Canadian Urban Centres Comparison (Residential Pricing)

Data Source: Comparison of Electricity Prices in North America in Major North American Cities, Hydro-QuébecData Retrieved: July 2017; Visual Created by the Canadian Electricity Association

Pricing is impacted by time-of-use rates, consumption patterns, adjustment clauses. This data is taken from Hydro-Québec price comparison study and is calculated according to base rates.

70

Multinational Comparison (Industrial Pricing)

Data Source: World Energy Statistics 2016, IEAData Retrieved: July 2017; Visual Created by the Canadian Electricity Association

71Data Source: World Energy Statistics 2016, IEA, and Open Data Portal, World BankData Retrieved: July 2017; Visual Created by the Canadian Electricity Association

Multinational Comparison (Industrial Pricing)

72

Electric Vehicle Penetration (Canada)

Data Source: World EV Outlook 2016, IEA, Data Retrieved: July 2017; Visual Created by the Canadian Electricity Association

In 2016 Canada sold a total of 11.58 Thousand EV’s

73

Electric Vehicle Penetration (World)

Data Source: World EV Outlook 2016, IEA, and Wikipedia for Roadways, and World Bank for PopulationData Retrieved: August 2017; Visual Created by the Canadian Electricity Association

In 2016, Canada had over 4,200 publicly available charging stations. That is 404 for 100,000 km of roadways or less than 0.5 per 100km of roadways.

74

FinancialsI N 2 0 1 6 T H E E L E C T R I C I T Y I N D U S T R Y R E P R E S E N T E D 1 . 7 %

O F T H E N A T I O N A L G D P .

• GDP Contribution • Utility Investments • Utility Investments (with

Conference Board of Canada

reference)

0

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Billi

ons

Electric Power (Generation, Transmission, Distribution) to Canada's GDP (2000-2016)

Electricity GDP (2007 Chained Dollars)

75

GDP Contribution

Data Source: StatsCan CANSIM Table 379-0031Data Retrieved: August 2017; Visual Created by the Canadian Electricity Association

30.556 Billion CDN$ 29.261 Billion CDN$

76

Utility Investments

Data Source: StatsCan CANSIM Table 029-0050, Annual Capital and Repair Expenditures SurveyData Retrieved: August 2017; Visual Created by the Canadian Electricity Association

0

5,000

10,000

15,000

20,000

25,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CDN

dol

lars

(x 1

,000

,000

)

Annual Capital and Repair Expenditures

Power distribution networks Electric power infrastructure

77Data Source: StatsCan CANSIM Table 029-0050, Annual Capital and Repair Expenditures Survey; Conference Board of Canada, Shedding Light on the Economic Impact of Investing in Electricity Infrastructure, 2012Data Retrieved: August 2017; Visual Created by the Canadian Electricity Association

0

5,000

10,000

15,000

20,000

25,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CDN

dol

lars

(x 1

,000

,000

)

Annual Capital and Repair Expenditures

Power distribution networks Electric power infrastructure Annual Spending Requirements

Or 17.38 Billion CDN$ annually from 2010 to 2030

Conference Board of Canada: Total Investment Required by 2030 = 347.5 Billion CDN$

Utility Investments

78

Infrastructure Projects

I N F R A S T R U C T U R E I S C R I T I C A L T O N A T I O N A L

S E C U R I T Y A N D L O N G E V I T Y .

• MPMO Sector Projects – Active Projects

• MPMO Sector Projects – Indirect Relevance

• Manitoba-Minnesota Transmission Project

• MPMO Sector Projects – New Proposals

79

Major Projects Management Office (MPMO) Sector Projects

Data Source: MPMO TrackerData Retrieved: July 2016; Visual Created by the Canadian Electricity Association

MPMO Project Name Description Proponent Project Type Location

Labrador - Island Transmission Link 1,100 km line Nalcor Energy Transmission NL

Maritime Link Transmission 500-MW, +/- 200 to 250-kV HVDC & HVAC ENL Maritime Link Inc. Transmission NL/NS

Keeyask Hydroelectric Generation 695 MW Keeyask Hydropower Limited Partnership Hydro MB

Lower Churchill Hydroelectric Generation 3,074 MW Nalcor Energy Hydro NL

Site C Clean Energy Hydroelectric Generation 1,100 MW BC Hydro Hydro BC

Darlington New Nuclear Power Plant Up to 4,800 MW OPG Nuclear ON

NaiKun Offshore Wind Energy 320 MW (off-shore) NaiKun Wind Development Wind BC

Tazi Twe Hydroelectric Generation 50 MW Saskatchewan Power Corp. Hydro SK

Active Projects

80Data Source: MPMO TrackerData Retrieved: April 2016; Visual Created by the Canadian Electricity Association


Bow City Coal Mine and Power 2x 500 MW Bow City Power Ltd. Coal AB

Deep Geological Depository Waste Management Ontario Power Generation Nuclear ON

Active Projects: Indirect Relevance

Note: indirect relevance refers to projects that are indirectly related to electricity generation and include infrastructure related activities,

such as mining (of coal for power generation), waste management (of radioactive waste) and dam (re)construction

Major Projects Management Office (MPMO) Sector Projects

81

Non-MPMO – Sector Projects

Data Source: MPMO TrackerData Retrieved: June 2015, Visual Created by the Canadian Electricity Association


Bipole III Transmission Line 1,475 km Manitoba Hydro Transmission MB

Chamouchouane - Bout-de-l'Île Transmission Line 735 kV Quebec Hydro Transmission QC

Green Electron Natural Gas Power Generation Project 300 MW Greenfield South Power Corporation Generation ON

Hawkeye Green Energy Hydroelectric Generation 175 MW Hawkeye Energy Corporation Hydro BC

Mica 5 and 6 1000 MW BC Hydro Hydro BC

Rocky Creek Wind Power 500 MW Rupert Peace Power Corporation Wind BC

Trillium Offshore Wind Farm 414 MW Trillium Power Wind Corporation Wind ON

New Proposals

Note: indirect relevance refers to projects that are indirectly related to electricity generation and include infrastructure related

activities, such as mining (of coal for power generation), waste management (of radioactive waste) and dam (re)construction

82

Manitoba-Minnesota Transmission Project


Winnipeg

HVDC Line +/- 500kV(600 miles)

HVDC Line +/- 500kV(850 miles)

Manitoba Hydro

Minnesota Power

• Manitoba Hydro (MH): 500 kV line to U.S. border.

• Minnesota Power (MP): 500 kV line from border to Duluth.

• “Hydro by wire” from Manitoba enables “wind by wire” from NorthDakota.

• Overall project enhances regional reliability and provides energy market benefits.

• 2020 expected in-service date.

New Line

Existing Line

83

FOR MORE INFORMATIONCONTACT US

Canadian Electricity Association

275 Slater Street, Suite 1500

Ottawa, Ontario, K1P 5H9

613.230.9263

Twitter: @CDNElectricity

LinkedIn: https://www.linkedin.com/company-beta/370763/

Facebook: canadianelectricityassociation

https://www.linkedin.com/company-beta/370763/

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