Thanks to you, Madam Chair, and the members of your committee for inviting CEA to testify before your very timely mandate. I am Sergio Marchi, president and CEO. I am accompanied by Doug Tenney, who was vice-president of northern development with ATCO.
Together with the remarks that you heard from Bruno and Jay, I think the committee will get a good perspective on the northern infrastructure needs as it relates to power.
Unfortunately, Madam Chair, our submission did not get back from the translators in time. You have a copy of my remarks, but we will have that submission to you ASAP in both official languages.
We offer five strategic recommendations for the government. Together, they outline ways to address the unique challenges and opportunities facing Canada's north, to ensure no one is left behind in Canada's energy transition to a low-carbon future.
First, a few quick words about the association. CEA, as you may know, is the national voice for the Canadian electricity sector. Our membership is comprised of generation, transmission and distribution companies right across Canada, as well as manufacturers, technology companies and consulting firms, representing the full spectrum of electricity suppliers.
The sector is uniquely positioned to contribute to a cleaner and greener energy era; however, Canada's remote and northern communities suffer from a significant level of energy inequality, where the cost of electricity in many communities is about 10 times higher than the Canadian average. This lack of affordable power has limited economic potential, and stifles the region's economic development and prosperity. It also impacts their social fabric; the three previous speakers spoke to this.
Simply put, this must change because the federal government has to recognize that this is demanded by the region's uniqueness. It has small and scattered populations, is isolated from power grids, and has limited economic development and harsh winter conditions.
This past June, CEA brought a rich variety of leaders to Carcross, Yukon, for an energy symposium entitled “Powering the Future: Partnering in Energy Development”. It was a for-the-north, by-the-north session. We had a very engaging discussion, and we produced the report of those proceedings. Our submission today is an extract of that report to keep within the stated rules of length of submissions, as specified by your committee.
As I mentioned, we offer five recommendations. First, the federal government must support transformative renewable energy infrastructure projects in Canada's north, in terms of financial capital, as well as research, development and deployment. Access to capital must be improved, and technical barriers and operational constraints must be alleviated.
Second, the government must work to accelerate research under way to find innovate efficiencies in diesel generation, while concurrently promoting non-diesel alternatives. Diesel, as we heard from Bruno, will continue to play a significant role in the foreseeable future, as many northern communities have no option but to rely on diesel generation.
Third, the federal government should work to facilitate transmission interconnections within the territories and between the north and south in an effort to end its energy isolation. The three northern territories have isolated electricity grids, and in many cases, as we heard this afternoon already, the local communities within these territories themselves are further isolated from the main power grid.
Fourth, the federal government must find and implement flexible funding mechanisms for the territorial governments to achieve their climate objectives and targets. A flexible approach will help make transformative changes to the energy systems and chart a long-term path to energy sustainability in these regions.
Finally, the federal government must continue to build new and dynamic partnerships with indigenous communities, if those communities are to be economically prosperous and sustainable.
In good part, economic development and a sustainable future for these indigenous communities will indeed depend on such relationships.
Madam Chair, I would like to now invite Doug to share his thoughts on this topic from where the so-called rubber hits the road.
Thank you.