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In today's post, I'll continue looking at the policy priorities of the Canadian Electricity Industry, as explained to the Energy and Mines Ministers' Conference held earlier this week in St. John's Newfoundland, Canada. If you missed the first post in this series, here’s the link.
In order to make the infrastructure investments needed to transform Canada’s electricity system, the sector requires increased regulatory certainty and streamlining. In the last decade, electricity infrastructure projects have faced significant legislative and regulatory constraints, and have been characterized by lengthy and often duplicative regulatory processes. In some cases, regulatory approval processes and construction periods can take more than 10 years from decision to construct to grid connection.
Examples of this regulatory burden include the Fisheries Act, which is 100 year old legislation originally intended to promote the development of Canada’s fisheries, but which directly impacts the construction and operation of many power plants. Permits issued under the Species At Risk Act (SARA) expire after only three to five years – a very short amount of time in the context of a power plant, which might operate for many decades.
The federal government has begun taking steps to address these issues. The establishment of the Major Projects Management Office (MPMO) in 2007 and its goal of reducing the current average regulatory review for major resources projects from four to two years holds promise, as does the recognition in this year’s Federal Budget of the need to streamline federal approval processes for infrastructure projects, including applications of the Fisheries Act and the Canadian Environmental Assessment Act (CEAA). However, industry requires concrete changes to legislation and implementing regulations in order to see real improvements.
President and CEO
Canadian Electricity Association
