At a recent event CEA held in Toronto, to discuss our Action Plan for electricity in Canada with members of the industry’s supply chain, we spoke a bit about the next megawatt. In one question I received from the audience, the concern raised by this individual was that we (the industry) seemed to be focused more on supply options than on managing demand.

In Canada, some of our utilities are this year celebrating the 20th anniversaries of successful demand side management programs. And electricity customers tell us that their electric utilities are their preferred providers of energy efficiency information and programs. We also know from our annual public attitudes research that the public preference for the next MW of electricity comes from energy conservation.

Indeed, there is a lot more efficiency remaining to be extracted from the market, yet most of the policy emphasis and incentives are focused on supply options. What would happen if incentives equal to those provided to wind and solar were applied on the demand side to encourage energy use reduction?  We know that people want to save energy and reduce their bill and look to their electric utility to help them. Electric utilities are clearly geared up to provide the support the consumer needs, from call centers to handle customer queries on energy efficiency, web sites which provide savings tips and program information to efficiency programs, events, rebates and incentives. Electric utility efforts in 2008 resulted in over 1B kilowatt hours of electricity savings.

No doubt about it: energy efficiency is a part of the makeup of the Canadian electricity consumer, and will continue to be an important part of how we address demand here in Canada. But that demand? It’s growing like never before.

In a recent New York Times article concerning electronic devices, I learned that Americans now have about 25 consumer electronic products in every household, compared with just three in 1980. From heated towel racks to chilled medicine cabinets to under floor radiant heat to the ubiquitous iPod and game console, Canadians are using ever more devices and conveniences for the home, all of which require electricity. In fact, worldwide, consumer electronics now represent 15 percent of household power demand, and that is expected to triple over the next two decades, according to the International Energy Agency. Naturally, this has ongoing implications for electricity demand here in Canada.

Beyond our country’s population growth and beyond the fact that electricity demand in what is bound to one day return to being a growing and vibrant manufacturing and industrial sector -  both of which mean an upward demand curve of considerable proportions - our own individual electricity needs are growing on a daily basis. Add to this the policy makers’ desire to offset carbon use by diverting traditionally carbon consuming industries (like automotive or public transportation) to electric or hybrid electric options, and you can see where this is all going.  
 
Energy Efficiency is a cost effective and complementary alternative to addressing future generation and transmission constraints. It is a vital and essential part of the spectrum of a complementary set of solutions that will assist Canadian electric utilities in providing their customers with the electric future they want and need. And as we set about upgrading and modernizing our electricity system in Canada, I have no doubt that our customers’ energy efficiency desires will also be supported by a Smart digital grid that will serve as a key tool in their ability to monitor, regulate, and ultimately change the way we use electricity, for the better.

Pierre Guimond

President and CEO

Canadian Electricity Association