Thank you very much, Mr. Chair.
Thank you, Mr. Chairman.
I would like to thank Committee members for giving me this opportunity to express my views regarding Bill C-311.
The Canadian electricity sector is committed to reducing Canada's overall greenhouse gas emissions. The targets approach has been a useful contributor to developing understanding as to the size, cost and complexity of the challenge, but targets need to be set with a reasonable understanding of the strategies necessary to meet those targets.
The Canadian electricity sector is committed to reducing Canada's overall greenhouse gas emissions. The targets approach has been a useful contributor to developing understanding as to the size, cost, and complexity of the challenge, but targets need to be set with a reasonable understanding of the strategies necessary to meet those targets. Let me explain.
The central question for the electricity sector is how can we achieve a carbon-reduced future while ensuring that the electricity demand in Canada can be met? As you know, Canada's electricity system is the envy of the world. It is over 75% non-emitting, thanks to hydro and nuclear generation. Only 24% of Canada's electricity fleet is generated from fossil fuels like coal, oil, and gas.
CEA member utilities are already making substantial investments to reduce the carbon intensity of power generation. Hydroelectric projects are either in the planning or construction stages in Labrador, Quebec, Ontario, Manitoba, and in B.C. and Yukon. Electricity generated from wind continues to expand, with generation expected to exceed 3,000 megawatts this year. Wind and other forms of micro-generation will be key components of grid modernization and emerging smart grid technologies.
We were particularly pleased to see the Prime Minister's announcement in Calgary two weeks ago on the public-private partnership between the governments of Canada and Alberta on TransAlta's Project Pioneer. Successfully implementing carbon capture and storage is crucial if Canada and the world are to address CO2 emissions from coal-fired generation. Like many countries, Canada has a plentiful supply of coal in various parts of the country, and CCS has the potential to make coal a carbon-neutral fuel. Canada is leading the world on CCS technology. Once complete, Project Pioneer will be one of the largest CCS facilities in the world and the first to have an integrated underground storage system.
CEA members accept the eventuality of legal constraints on carbon that will change the way the world produces, transmits, and distributes electricity. In many ways, electricity is the energy of the future. Not only is the Canadian electricity sector expected to reduce its own emissions, but we are to help other sectors reduce their emissions. Electric plug-in cars, mass transit in our large urban communities, even gas pipelines, wish to power their compression stations with electricity.
There are uses for electricity in our future that we have never even thought about. To meet these new uses, we need to invest in our electricity infrastructure. We must build new generation that will be reliable and affordable, with either low or nil emissions. We need to look at hydro, nuclear, wind, solar, tidal, geothermal, and clean coal: we need them all. We must also look at a smart grid that will provide system flexibility to include more renewables.
We believe Parliament should consider changes to enable the transition to more non-emitting generation based on the economic reality of turning over our capital stock. Equipment in electricity generation, transmission, and distribution is long-lived and amortized over many decades. We take great care in keeping our equipment in top condition in order to keep electricity prices affordable.
It follows that the laws and regulations, as they apply to emitters in the electricity sector, need to be well thought out and fair, and take into consideration the interconnected nature of the electricity system. Also, laws and regulations must provide options for compliance, other than shutting down the plants producing the electricity.
For the electricity industry, any workable climate change policy must include the following. First, it must include an integrated and coordinated energy and environment framework. The climate issue has global, national and regional ramifications, and cooperation and alignment with the U.S. in terms of outcomes is essential. A fragmented approach by various governments is unworkable.
Second, competitiveness with the United States is a necessary consideration. The pace of change and any future investments in cleaner power generation and new technologies must align with our trading partners so that Canadian businesses can remain competitive. We are encouraged by the ongoing clean energy dialogue between Canada and the United States.
Third, we need adequate compliance mechanisms, including a technology fund that drives clean technology investment and deployment, and policies supportive of more electricity use in the economy, including the progressive conversion of the electricity industry from high-emission fuels to low-emission or nil-emission fuels.
Fourth, we need a holistic approach to legislative and regulatory clarity and coherence on energy and environmental issues. Regulatory processes that crosscut energy and environment would reduce delays that currently inhibit the expansion of clean energy infrastructure and stewardship activities.
Fifth, a fair and equitable burden must be allocated among all industries.
Finally, a recognition of the cycle of capital stock turnover in the electricity industry through a focus on retirement or refurbishment of existing plants at the end of their economic life is critical. We support changes that would enable the transition to less-emitting technology-based productions in an economically realistic manner.
In closing, Mr. Chairman, I'd like to remind members of the need to respect regional balance. The electricity industry is a microcosm of Canada, with varying interests and realities in different regions of the country. The provinces built the electricity system. A climate change plan that would prescribe strict reductions for coal-fired electricity generation would impact provinces like Alberta, Saskatchewan, New Brunswick, and Nova Scotia. Meanwhile, as I stated earlier, Newfoundland and Labrador, Quebec, Manitoba, and B.C. have hydroelectric potential that must be developed.
Clearly these realities of the generation mix in Canada are in many ways a result of geography. It is Canadians who ultimately will pay, and any plans that result in increased costs for some, but not others, will not be accepted by the public. It is perhaps this latter point that is one of the most important, not only for government, but for our industry as a whole. In order to build the electricity system our country will need in the decades to come--to support economic growth and our quality of life--we need broad support from both the public and government.
I thank you very much, Mr. Chairman.
I would also like to thank Committee members.
I look forward to having a good conversation.
Thank you.