Power in Canada

An Expert's View about Energy in Canada

Posted on: 28 Sep 2010

Energy is Canada's second largest industry. There is considerable synergy between the UK and Canada in all facets of energy, and it is a market that welcomes British innovation.

Power Sector - Canada Sector Report Power Canada Produced by: Helen Hemmingsen, Toronto BCG, Trade Office Last revised: April 2009 Whereas every effort has been made to ensure that the information given herein is accurate, UK Trade & Investment nor its sponsoring Departments (the Department for Business, Enterprise & Regulatory Reform and the Foreign and Commonwealth Office), accept liability for an errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisational mentioned. Published 2007 by UK Trade & Investment. Crown Copyright© www.uktradeinvest.gov.uk Power ? Canada Table of Contents OVERVIEW 3  CHARACTERISTICS OF MARKET 4  OPPORTUNITIES 5  KEY METHODS OF DOING BUSINESS 7  MORE DETAILED SECTOR REPORTS   PUBLICATIONS 7  EVENTS 8  CONTACT LISTS   www.uktradeinvest.gov.uk Page 2 of 9 Power ? Canada OVERVIEW Canada is the world's fifth largest energy producer and energy is Canada's second largest industry. In 2005, Canada produced 19.1 quadrillion British Thermal Units (Btu) of total energy. Since 1908, Canada?s total energy production has increased by 86%, while its total energy consumption has increased by only 48% during that period. Almost all of Canada?s energy exports go to the United States, making it the largest foreign source of US energy imports. Canada is the largest source of electricity imports. Canada had 120 gigawatts of installed electricity generating capacity in 2006. The country produced 610 billion kilowatt hours (Bkwh) of electric power in 2006, while consuming 540 Bkwh. Hydroelectricity represents the largest share of Canada?s electricity generation, followed by conventional thermal and nuclear. Total Per Capita Energy Consumption (2005 estimate) is 436 million Btus. Since 1990, the largest structural change in the production mix has been a decline in hydro power's share of total production (from 63% in 1990 to 60% in 2007). Nuclear power's share has increased recently, as facilities in Ontario returned to service following refurbishment. There have been important increases in combustion turbine generation since 1990 (from <1% in 1990 to 4% today). However, the overall mix masks very considerable regional variations. In most provinces, generation is either dominated by hydro or by fossil fired thermal although in some such as Ontario there is a more diverse mix. Nuclear plays a key role in Ontario, Quebec, New Brunswick, and potentially Saskatchewan. Hydroelectricity is predominant in British Columbia, Manitoba, Ontario, Quebec, and Newfoundland/Labrador. www.uktradeinvest.gov.uk Page 3 of 9 Power ? Canada Areas of best opportunity for the UK are: ? Nuclear (Ontario, Quebec, New Brunswick, Saskatchewan) ? Renewables o Wind ? Canada-wide, but provinces with largest installed wind capacity are Ontario, Quebec, and Alberta o Wave/tidal ? West Coast and East Coasts (Bay of Fundy has strong potential for tidal energy.) Some potential in Northern Ontario. o Solar ? Canada wide o Sustainable/renewable housing ? Canada-wide o Conservation initiatives (e.g. smart meters) ? Canada wide o Emissions trading ? Canada-wide, but centred in Alberta, Quebec and Ontario (as areas of intense manufacturing and energy production). Toronto is the financial capital of Canada. o Distributed energy ? Canada-wide. o Biomass ? Canada-wide. o Hydroelectricity ? large and small scale. There is considerable synergy between the UK and Canada in all facets of energy, and it is a market that welcomes British innovation. CHARACTERISTICS OF MARKET Electricity ? Integration with the United States The electricity networks of Canada and the United States are heavily integrated. In 2006, Canada exported 41.5 Bkwh of electricity to the United States while importing 23.4 Bkwh. Over the past ten years, Canadian imports of electricity from the U.S. have increased ten-fold, while exports have remained relatively constant. Due to the increasing interdependence of the networks in both countries, a dependency made clear during the 2003 Northeast blackout, there have been greater efforts to increase co-operation and coordination between the two countries. Hydroelectricity Canada is one of the world?s largest producers of hydroelectricity, generating 352 Bkwh from the source in 2006. Canada was once the world?s largest hydroelectric producer, but China has overtaken that position in the last few years. Quebec?s La Grade plant is one of the world?s largest hydroelectric facilities, with an installed capacity of 15,000 MW. Quebec has the largest share of Canada?s hydroelectric production, followed by British Columbia. Structure and Privatisation Canada?s individual provinces hold most responsibility for regulating the electricity industry. Province-owned utility companies dominate generation, transmission, and distribution activities, with the three largest being Ontario Power Generation, Hydro-Quebec, and B.C. Hydro. There are some privately owned firms, and most provinces allow open access to the electricity grid, but they are marginal to the overall market. There have been efforts to restructure the Canadian energy sector, with an eventual aim to privatise the industry. Alberta began deregulation in 2001, followed by Ontario in 2002. However, in both places, electricity prices surged following initial deregulation efforts, causing the provinces to initiate price caps on residential utility rates; both provinces have plans to remove these caps in the near future. www.uktradeinvest.gov.uk Page 4 of 9 Power ? Canada Privatisation of province-owned utility companies has also stalled, facing pressure from organised labour and consumer groups. Environmental Overview Energy-Related Carbon Dioxide Emissions (2005E): 631 million metric tons Per-Capital, Energy-Related Carbon Dioxide Emissions (2005E): 19.2 metric tons Carbon Dioxide Intensity (2005E): 0.6 metric tons per thousand $2000-PPP** **GDP figures from Global insight estimates based on purchasing power parity (PPP) exchange rates. Environmental Issues Air pollution and resulting acid rain severely affecting lakes and damaging forests; metal smelting; coal-burning utilities, and vehicle emissions impacting on agricultural and forest productivity; ocean waters becoming contaminated due to agricultural, industrial, mining and forestry activities. Major environmental agreements Party to Air Pollution; Air Pollution-Nitrogen Oxides; Air Pollution-Persistent Organic Pollutants; Air Pollution-SUlfur 85; Air Pollution-Sulfur 94; Antarctic-Environmental Protocol; Antarctic-Marine Living Resources; Antarctic Seals; Antarctic Treaty; Biodiversity; Climate Change; Climate Change-Kyoto Protocol; Desertification; Endangered Species; Environmental Modification; Hazardous Wastes; Law of the Sea; Marine Dumping; Ozone Layer Protection; Ship Pollution; Tropical Timber 83; Tropical Timber 94, Wetlands. OPPORTUNITIES When considering market entry into Canada, opportunities should be considered on a sectoral and/or individual provincial basis. Provinces are responsible for their own generation, transmission and distribution. They also have their own climate change plans, with varying degrees of commitments to renewable energy. Below is a brief overview of each province?s generation mix. British Columbia BC is primarily hydroelectric, with opportunities in wave/tidal and offshore/onshore wind. Alberta Alberta generates electricity from fossil-fired stations, with significant investments into wind energy. Saskatchewan Saskatchewan generates most of their electricity from fossil-fired stations. It is the home to the largest uranium producer, Cameco, and is seriously considering the introduction of nuclear power into its mix. Manitoba Primarily hydroelectric (95%+) production and generation, with some wind energy. www.uktradeinvest.gov.uk Page 5 of 9 Power ? Canada Ontario Nuclear power will continue to provide about half of the province's power to 2025. This will be achieved by refurbishment of existing units at Pickering and Darlington and the building of new units at an existing nuclear sites (Bruce Power and Darlington). Future use of nuclear power will be limited to today's capacity of 14,000MW (2005 peak demand of 25,200 MW is expected to rise to between 30,000 MW to 36,000 MW by 2025). The government aims to double the amount of electricity drawn from renewables, up to 15,700MW by 2025. Hydroelectric power currently provides about 7500MW, and an additional 1350MW will come from small scale hydro projects. The province also intends to import hydro power from large scale projects in other provinces. Wind is expected to provide 5000MW and solar power and biomass are expected to increase from negligible levels today to 40MW and 500MW respectively in 2025. Quebec Generation consists of mostly hydroelectric, with nuclear at the Gentilly Station (with potential future refurbishment). Quebec is a large producer of wind power. New Brunswick Electricity is generated at 16 facilities and delivered via power lines, substations and terminals to more than 370,000 direct and indirect New Brunswick homes, businesses and facilities. New Brunswick Power also exports electricity to New England, Quebec, Nova Scotia and Prince Edward Island. NB Power operates and maintains a CANDU 6 - 635 MW reactor at the Point Lepreau Generating Station www.uktradeinvest.gov.uk Page 6 of 9 Power ? Canada (which was just refurbished). The station provides approximately 25 per cent of New Brunswick 's electrical energy requirements. It also sells five per cent of its energy production to Maritime Electric Company, Limited. NB Power has made a commitment to have 400 MW of wind energy in place by 2010 and they are ahead of schedule. NW Power will have 75% of New Brunswick's renewable source commitment in place through wind energy commitments by November 2009. Newfoundland and Labrador Electricity is generated primarily through hydroelectric means. Newfoundland is a large offshore oil producing province, so renewables play less of a role in that province. Nova Scotia Primarily fossil?fired production, with significant opportunities in wave and tidal (in the Bay of Fundy). KEY METHODS OF DOING BUSINESS ? Direct to end-user/customer. ? Partnership with Canadian company in form of distributorship or agency/manufacturers representative or joint venture. MORE DETAILED SECTOR REPORTS When considering doing business in Canada, it is essential to obtain legal, financial and taxation advice. A useful contact list of lawyers and other relevant professional bodies as well as further information on the power sector in Canada is available from the Consulate General. For further details, please contact: Helen Hemmingsen British Consulate General, Toronto Tel: 001 416 593 1290 x2242 Fax: 001 416 593 1229 Email: helen.hemmingsen@fco.gov.uk www.uktradeinvestcanada.org PUBLICATIONS ELECTRICAL LINE MAGAZINE www.electricalline.com ELECTRIC ENERGY T&D www.electricenergyonline.com ELECTRICITY TODAY www.electricity-today.com RENEW CANADA www.renewcanada.net WINDLINK www.canwea.ca/media/windlink_e.php www.uktradeinvest.gov.uk Page 7 of 9 Power ? Canada EVENTS ENERCOM www.enercom.to March 2009, Toronto, Ontario CANADIAN DISTRICT ENERGY ASSOCIATION CONFERENCE & EXHIBITION www.cdea.ca June 2009, Halifax, Nova Scotia ONTARIO ENERGY ASSOCIATION CONFERENCE & TRADESHOW www.energyontario.ca September 2009 (TBC), Ontario CANADIAN WIND ENERGY ASSOCIATION CONFERENCE & TRADESHOW www.canwea.ca September 2009, Toronto, Ontario CANADIAN BROWNFIELDS CONFERENCE & EXHIBITION www.canurb.com October 2009, Vancouver, British Columbia CONTACT LISTS BC HYDRO AND POWER AUTHORITY www.bchydro.com CANADIAN ASSOCIATION FOR RENEWABLE ENERGIES www.renewables.ca CANADIAN ELECTRICITY ASSOCIATION www.canelect.ca CANADIAN DISTRICT ENERGY ASSOCIATION www.cdea.ca CANADIAN HYDROPOWER ASSOCIATION www.canhydropower.org CANADIAN NUCLEAR ASSOCIATION www.cna.ca CANADIAN RENEWABLE FUELS ASSOCIATION www.greenfuels.org CANADIAN SOLAR INDUSTRIES ASSOCIATION www.cansia.ca CANADIAN WIND ENERGY ASSOCIATION www.canwea.ca www.uktradeinvest.gov.uk Page 8 of 9 Power ? Canada MANITOBA HYDRO www.hydro.mb.ca NEW BRUNSWICK POWER www.nbpower.com NEWFOUNDLAND AND LABRADOR HYDRO www.nlh.nl.ca NOVA SCOTIA POWER INC www.canelect.ca ONTARIO POWER GENERATION www.opg.com SASKATOON LIGHT AND POWER www.saskatoon.ca www.uktradeinvest.gov.uk Page 9 of 9
Posted: 28 September 2010

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