The Movement Toward Sustainability of the Electricity Industry in Canada
The current state of the electricity industry in Canada, the movement towards sustainability as a sector, and a brief look at the future of electricity.
By Francis Bradley, May 13, 2021
Following is a transcription of Francis Bradley’s presentation at our Community Annual General Meeting held on May 13, 2021.
“The path to achieving net-zero emissions by the year 2050 will depend on how and when new technologies emerge and become available.”
I'm pleased to join Saint John Energy today to discuss some thoughts on the current state of the electricity industry in Canada, the movement towards sustainability as a sector, and finally, I want to briefly touch on the future of electricity.
The Canadian Electricity Association is the National voice of electricity with members in every province and territory representing companies that generate, transmit and distribute power to Canadians. Every year, the team at CEA reports on the state of the Canadian electricity sector. We assess specific events and government announcements and how they've impacted our current environment as well as the future.
Balancing Priorities in 2020
Our 2021 state of the industry focused on several challenges facing our sector, including COVID-19, the regulatory landscape in Canada, the government's net-zero by 2050 targets and some of the defining moments in 2020 that are leading to a more equitable, diverse and inclusive sector.
Because parts of the country are still in partial or full lockdown, I would be remiss to not open with a mention of the pandemic. COVID-19 will forever change the way we operate, how our member companies pivoted to a working from home environment, and how our operations teams took every precaution to implement new health and safety measures in an already risky sector.
In addition to keeping the electricity workforce safe, our members offered support to customers across Canada who required a continuous supply of electricity for a new work from home setup, who sometimes could not afford to pay a bill because of lost employment, and who shifted to an E-billing world to avoid physical contact and email. Our member companies balanced these priorities, their staff, and their customers with admiration.
I should note here that the CEA 2020 National customer survey shows again how Saint John Energy customers remain highly satisfied with their service.
Regulation Gap
Another challenge facing our sector is the current regulatory environment. For much of the past century, our system has served its purpose well. However, with growing importance now attached to broader societal considerations such as reducing carbon emissions and modernizing the grid, there is a gap between how the sector is currently regulated, and how it should be regulated.
Regulatory constructs that exist can prevent the electricity sector from moving past pilot projects and into a permanent, innovative environment. In this sector things move fast, and we need to have the ability to keep up and to think ahead. This regulatory environment will continue to prove challenging as our sector continues to evolve.
Also in 2021, our sector is focused on our net zero by 2050 government targets and the need to decarbonize. Current estimates note that Canada will need to generate upwards of three times the amount of electricity currently being generated in order to meet these targets.
Our electricity sector has already done more to decarbonize Canada's economy than any other sector. Our grid is one of the cleanest in the world, we're already starting strong with over 80% of Canada's electricity being non-emitting. As the economy and population grows, the actual path to achieving net-zero emissions by the year 2050 will depend on how and when new technologies emerge and become available.
Growing the electricity workforce
The Government of Canada has made it clear that while the economy reinvigorates post COVID, there will be investment opportunities as the country addresses looming issues like climate change. In 2020, the people within the electricity sector focused on addressing social inequality, gender gaps, indigenous reconciliation, and diversity in the workplace.
While the industry has made progress on creating programs to attract, retain and promote diverse employees, there is a long way to go. CEA members, including Saint John Energy, committed to an equity, diversity, and inclusion statement that demonstrates consensus across the sector on critical issues that affect the workforce. It's become a social imperative for companies to prioritize equity, inclusivity, and diversity and ensure all workers in the home office or in the field, feel safe, supported, and empowered.
By sharing best practices, establishing partnerships among organizations, and creating a digital community of practice, The sector will accelerate tackling systemic issues of race and gender while promoting diversity and inclusion in energy.
Earning social license
This year's state of the industry demonstrates our sector's willingness to pivot during a worldwide pandemic, to work with regulators to build resilient infrastructure, to work with government on ambitious targets, and to be introspective on issues of equity and diversity. Over time, as a result of our sectors' work to make improvements, we've earned a social licence to operate.
“The future of our sector depends on earning social license through corporate social responsibility.”
The social licence to operate refers to the level of acceptance or approval by local communities and stakeholders, and is tied to an organization's corporate social responsibility. The importance of earning a social licence is growing, and the future of our sector depends on it. As we explore the future of electricity and scenarios driven by policy and customer choice, ensuring electricity customers and companies are focused on the quality of service sustainability initiatives, adopting new technologies, and embracing renewables will continue to ensure continued permission by the public to operate.
Saint John Energy has worked hard to earn this social licence. One example is by being the first company in Eastern Canada to receive the sustainable electricity designation. Electricity companies and the communities they serve are increasingly aware of the need for responsible corporate behavior and sustainable development. This designation is based primarily on the ISO 26,000 guidance on social responsibility. Now while not a CEA designation, Saint John Energy has proven again its commitment to sustainability with a national recognition received last month.
VP Ryan Mitchell was named one of Canada's clean 50 leaders singled out for championing a strategy for growth driven by innovation and the pursuit of cleaner energy solutions. Our congratulations to Ryan and the whole Saint John Energy team. We were proud to include this achievement in our most recent communication to members as one of two senior executives in Canadian electricity to be awarded.
“This technology and more proves that the customer is at the centre of Saint John Energy’s leadership decision-making.”
Earning a social licence includes building trust, and showing innovative thinking. Each of our sustainable electricity designated companies have proven leadership in innovation, looking for ways to improve customer experience.
Saint John Energy has multiple Center of Excellence projects, meant to improve customer experience. In November 2021, their home heat saver program stood out among Center of Excellence recipients by using thermal images of customers’ rooftops home heat saver helps them identify the areas where their homes are losing the most heat. This technology and more proves that the customer is at the center of Saint John Energy’s leadership decision-making.
I briefly reviewed our state of the industry and the challenges facing our sector, I've addressed the growing need for ESG and sustainability commitments from our members, now I want to look to the future. Our Canadian electricity companies prepared for the changing Canadian customer. New technologies, including self-generation, are changing the way our members look at their business models.
The Future
“New technologies, including self-generation, are changing the way our members look at their business models.”
CEA has studied different scenarios for the future for our sector between now and 2040 and each scenario would greatly impact the way our companies operate. Whether our customers adopt new technologies that allow for microgeneration, which feeds back into the grid. Whether they move completely off-grid creating a perfect storm of stranded assets and unrecovered costs. Whether the green electricity system emerges in large-scale renewables and storage rapidly advances leading to falling emissions. Or whether a national integrated network emerges that supports all communities and local objectives.
The marketplace is shifting, and our sector needs to adapt to new and disruptive technologies, customer preferences and more. Saint John Energy is an example of a utility responding to and preparing for this change through their smart grid, renewable investment and partnerships. This company is preparing for the future of electricity, and carefully watching these trends and changes.
Thank you for your time today.
Francis Bradley is the President and Chief Executive Officer of the Canadian Electricity Association, the national voice for safe, secure, and sustainable electricity.