Improving environmental management and performance across the industry and nurturing a healthy environment are the main ideas behind the Environmental Commitment and Responsibility (ECR) Program, established in 1997 by the members of the Canadian Electricity Association, and a condition of CEA membership. Through a Public Advisory Panel, an independent verification process and annual reporting, the Program aims to enhance environmental consciousness and responsibility into the daily activities of each member company.
A New Business Environment
The Canadian electricity industry today looks very different than it did when the ECR Program was established nine years ago. Deregulation has introduced competition in some regions of the country. Segregation of operations has led to the establishment of new companies and a complex matrix of electricity generation, distribution, transmission and service entities. Aging infrastructure coupled with increasing demand for electricity will lead to a crisis of supply in some areas of the country. Regulatory uncertainties cloud the picture further by creating uncertainty and making it difficult to attract the investment necessary to meet this rising demand. Although the context has changed, the industry’s main goal remains the same: to ensure Canada enjoys an affordable reliable, source of energy with minimal environmental impacts.
The electricity industry is largely achieving this goal. The Canadian electricity supply is reliable, and industry is working with governments and regulators to ensure it remains this way. Canadians enjoy some of the best electricity prices in the world, along with tools to manage their own energy consumption, and fuel choice options. To ensure rigorous pursuit of its environmental objectives, CEA is the only industry organization in Canada to require all its members to implement an ISO 14001 compliant Environmental Management System.
In this context, environmental stewardship is a greater priority than ever before. Environmental priorities do not conflict with our business priorities, but rather they line up together to provide common solutions to meeting the industry’s challenges.
A Balanced Generation Mix
An efficient, reliable electricity supply is dependent on a variety of fuel sources. Traditional sources such as coal, natural gas and hydro, as well as newer alternative sources such as biodiesel and wind are all key ingredients in balancing the generation mix. The use of alternative energy sources continues to grow thanks to investments made by Canadian utilities. CEA’s members are the largest and most active developers of alternative generation technologies, such as wind, small hydro, ocean energy, biomass and landfill gas.
Although alternative generation sources account for a small percentage of overall generation, the amount of alternative energy has been increasing steadily and dramatically since 1997. In 2004, an additional 287 GWh came online, representing a 30% increase over 2003.
The impacts associated with traditional generation are also being reduced though the use of new technologies and partnerships such as the Clean Coal Coalition.Both industry and governments continue to evaluate the technical potential of electricity production from coal, oil, gas, hydro, nuclear and emerging sources, such as wind to determine the role each will play in Canada’s electricity future.
Reducing Emissions
Reducing harmful air emissions from electricity generation remains one of the industry’s top environmental priorities.We continue strive to reduce greenhouse by pursuing technology solutions and diversifying the generation mix, while continuing to work with governments and stakeholders to outline practical strategies for meeting greenhouse gas reduction targets.
All companies are working to effectively manage emissions of air contaminants such as nitrogen oxides (NOx), sulphur dioxides (SO2) and particulate matter – common pollutants that lead to air quality issues such as acid rain and urban smog.
The sector has also been working to more effectively manage emissions of hazardous air pollutants such as mercury.The federal government is planning to develop a Canada Wide Standard for mercury in the next year, and in preparation utilities have been working to establish valid mechanisms for mercury measurement through the CEA Mercury Program: www.ceamercuryprogram.ca.
The strategy for improving overall air quality is complex, as the reduction of each individual contaminant has implications for the broader emissions framework.For example, several mercury capture technologies already in development actually increase CO2 emissions.However, utilities are striving to find a balance and develop an integrated approach to emissions reductions.A measure of success is being achieved as in 2004 gross emissions of NOx and SO2 have both been reduced.
Managing Energy Use
Energy efficiency is a two way street in the electricity sector, as companies are both consumers and producers of electricity.The sector strives to set an example by using resources efficiently, while also providing customers with the tools necessary to manage their own electricity use.
Canadian utilities offer a wide range of programs to consumers to help them manage their own electricity use more effectively. CEA members have allocated over $1 billion dollars for the development and implementation of Demand Side Management (DSM) programs over the next several years. CEA has been working with Natural Resources Canada (NRCan) to determine the how to increase this figure and remove market barriers to DSM where they exist.
The industry is also working to improve its own energy efficiency and make the most of its own resource use. The ECR Program is currently examining the development of an energy efficiency target for the industry, in conjunction with NRCan’s Canadian Industry Program for Energy Conservation.
New technology development, such as Smart Meters, help manage energy use and in the long run reduce costs for both companies and consumers. Strengthening relationships with stakeholders improves understanding of issues on both sides, and improves policy development and project planning. The development of training programs entrenches environmental policies into business practices and results in fewer accidents, improved employee health, and reduced costs.
Working Towards Effective Legislation
Agreements, such as the Memorandum of Understanding with the Department of Fisheries and Oceans, are paving the way for smart, effective legislation that both reduces investment uncertainty and protects the environment. Proactive environmental policies, programs and targets in areas such as greenhouse gas emissions reductions also provide a measure of confidence in the industry’s environmental commitment, while reducing our impacts. Energy efficiency programs reduce greenhouse gas emissions while also managing electricity demand and mitigating the need for new generation capacity.
A Continued Commitment
This is why CEA members remain committed to the ECR Program. By providing a forum for discussion, the ECR Program allows utilities to share solutions across the industry, and increase transparency for our stakeholders by reporting on these activities. n
For more information on the ECR Program or to receive a copy of the most recent report, please contact Valerie Snow at snow@canelect.ca.
(Sidebar) ECR Program Principles
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A New Business Environment
The Canadian electricity industry today looks very different than it did when the ECR Program was established nine years ago. Deregulation has introduced competition in some regions of the country. Segregation of operations has led to the establishment of new companies and a complex matrix of electricity generation, distribution, transmission and service entities. Aging infrastructure coupled with increasing demand for electricity will lead to a crisis of supply in some areas of the country. Regulatory uncertainties cloud the picture further by creating uncertainty and making it difficult to attract the investment necessary to meet this rising demand. Although the context has changed, the industry’s main goal remains the same: to ensure Canada enjoys an affordable reliable, source of energy with minimal environmental impacts.
The electricity industry is largely achieving this goal. The Canadian electricity supply is reliable, and industry is working with governments and regulators to ensure it remains this way. Canadians enjoy some of the best electricity prices in the world, along with tools to manage their own energy consumption, and fuel choice options. To ensure rigorous pursuit of its environmental objectives, CEA is the only industry organization in Canada to require all its members to implement an ISO 14001 compliant Environmental Management System.
In this context, environmental stewardship is a greater priority than ever before. Environmental priorities do not conflict with our business priorities, but rather they line up together to provide common solutions to meeting the industry’s challenges.
A Balanced Generation Mix
An efficient, reliable electricity supply is dependent on a variety of fuel sources. Traditional sources such as coal, natural gas and hydro, as well as newer alternative sources such as biodiesel and wind are all key ingredients in balancing the generation mix. The use of alternative energy sources continues to grow thanks to investments made by Canadian utilities. CEA’s members are the largest and most active developers of alternative generation technologies, such as wind, small hydro, ocean energy, biomass and landfill gas.
Although alternative generation sources account for a small percentage of overall generation, the amount of alternative energy has been increasing steadily and dramatically since 1997. In 2004, an additional 287 GWh came online, representing a 30% increase over 2003.
The impacts associated with traditional generation are also being reduced though the use of new technologies and partnerships such as the Clean Coal Coalition.Both industry and governments continue to evaluate the technical potential of electricity production from coal, oil, gas, hydro, nuclear and emerging sources, such as wind to determine the role each will play in Canada’s electricity future.
Reducing Emissions
Reducing harmful air emissions from electricity generation remains one of the industry’s top environmental priorities.We continue strive to reduce greenhouse by pursuing technology solutions and diversifying the generation mix, while continuing to work with governments and stakeholders to outline practical strategies for meeting greenhouse gas reduction targets.
All companies are working to effectively manage emissions of air contaminants such as nitrogen oxides (NOx), sulphur dioxides (SO2) and particulate matter – common pollutants that lead to air quality issues such as acid rain and urban smog.
The sector has also been working to more effectively manage emissions of hazardous air pollutants such as mercury.The federal government is planning to develop a Canada Wide Standard for mercury in the next year, and in preparation utilities have been working to establish valid mechanisms for mercury measurement through the CEA Mercury Program: www.ceamercuryprogram.ca.
(Sidebar) ECR Annual Report Highlights
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The strategy for improving overall air quality is complex, as the reduction of each individual contaminant has implications for the broader emissions framework.For example, several mercury capture technologies already in development actually increase CO2 emissions.However, utilities are striving to find a balance and develop an integrated approach to emissions reductions.A measure of success is being achieved as in 2004 gross emissions of NOx and SO2 have both been reduced.
Managing Energy Use
Energy efficiency is a two way street in the electricity sector, as companies are both consumers and producers of electricity.The sector strives to set an example by using resources efficiently, while also providing customers with the tools necessary to manage their own electricity use.
Canadian utilities offer a wide range of programs to consumers to help them manage their own electricity use more effectively. CEA members have allocated over $1 billion dollars for the development and implementation of Demand Side Management (DSM) programs over the next several years. CEA has been working with Natural Resources Canada (NRCan) to determine the how to increase this figure and remove market barriers to DSM where they exist.
The industry is also working to improve its own energy efficiency and make the most of its own resource use. The ECR Program is currently examining the development of an energy efficiency target for the industry, in conjunction with NRCan’s Canadian Industry Program for Energy Conservation.
New technology development, such as Smart Meters, help manage energy use and in the long run reduce costs for both companies and consumers. Strengthening relationships with stakeholders improves understanding of issues on both sides, and improves policy development and project planning. The development of training programs entrenches environmental policies into business practices and results in fewer accidents, improved employee health, and reduced costs.
Working Towards Effective Legislation
Agreements, such as the Memorandum of Understanding with the Department of Fisheries and Oceans, are paving the way for smart, effective legislation that both reduces investment uncertainty and protects the environment. Proactive environmental policies, programs and targets in areas such as greenhouse gas emissions reductions also provide a measure of confidence in the industry’s environmental commitment, while reducing our impacts. Energy efficiency programs reduce greenhouse gas emissions while also managing electricity demand and mitigating the need for new generation capacity.
A Continued Commitment
This is why CEA members remain committed to the ECR Program. By providing a forum for discussion, the ECR Program allows utilities to share solutions across the industry, and increase transparency for our stakeholders by reporting on these activities. n
For more information on the ECR Program or to receive a copy of the most recent report, please contact Valerie Snow at snow@canelect.ca.
