Good afternoon, Chair Benoit and members of the committee. Thank you for inviting the Power Workers' Union to present our views on the state of the nuclear industry in Canada and abroad.
For over 63 years, the Power Workers' Union has been representing the interests of more than 15,000 women and men who help operate Ontario's generation, transmission, distribution, system control, and telecommunications facilities. Our goal is to ensure that Ontarians receive clean, affordable, reliable, environmentally responsible, and secure electricity. We believe that securing Canada's role as a nuclear technology leader is one of the best ways to achieve this goal for all Canadians.
My remarks are going to touch on three issues. First I'll talk about the significant economic and environmental benefits Canada's nuclear industry creates for all Canadians and about the incredible potential for additional benefits in the future. Second, I'll outline why building CANDU 6 reactor units in Ontario is critical right now and is a necessary first step to help secure these benefits for future generations. Finally, I'll outline other actions the power workers believe are necessary to ensure Canada's continued nuclear technology leadership and the move towards generation III and generation IV technology, such as the ACR-1000.
With regard to the benefits of Canada's nuclear industry, all Canadians should be proud of what Canada has accomplished. It's one of only five countries to have pioneered a reactor technology. Our technology has successfully secured about 10% of the global marketplace. The numerous and significant economic and environmental benefits achieved by this relatively small crown corporation are listed on a Natural Resources Canada website, so I won't repeat those. However, there are benefits not mentioned on the NRCan site that deserve the attention of this committee.
Most of the tens of thousands of jobs created by Canada's nuclear industry are high-skilled, high-paying jobs. According to the Canadian Nuclear Association, nuclear supplies and services in the aerospace sector are the only advanced technologies for which Canada is a net exporter. Keeping a manufacturing sector in which we have a competitive advantage is particularly important at a time when Canada is losing manufacturing jobs to low-wage jurisdictions. We need to build on our industrial and technological successes.
Global concerns about climate change and the United States' reliance on coal-fuelled generation present a concern that we all share. But it's an opportunity for Canada. Exporting clean, nuclear-generated electricity to the United States reduces its reliance on coal generation, which means that we can all breathe a little easier. These exports also mean additional revenues and a better bottom line for Canadian generators.
Energy security is another benefit arising from Canada's nuclear prowess. Both Canada's vast uranium supplies and made-at-home nuclear technology provide enhanced energy security. In a world that is becoming increasingly dependent on finite fossil fuel supplies from unstable political jurisdictions, Canada's nuclear independence is important to Canadians.
Industry leaders and the media talk about a nuclear renaissance, driven by the need for reliable baseload generation, to help tackle greenhouse gas emissions. The World Nuclear Association projects a fivefold increase in today's global nuclear capacity by 2100.
Currently, 53 reactor projects are under construction. Another 133 are planned, and another 282 are in the proposal stage, as you heard from the previous presenter. Even in Sweden, a world leader in the development of renewable energy, they're considering new nuclear capacity.
As you know, four provinces--Ontario, New Brunswick, Alberta, and Saskatchewan--are considering new nuclear reactors. Ontario's integrated power system plan projects $27 billion of investment in the province's nuclear fleet between 2008 and 2027. New nuclear build decisions by New Brunswick, Alberta, and Saskatchewan would be another $30 billion investment.
Canadian and global electricity needs for clean, reliable electricity present an extraordinary economic opportunity for Canada's CANDU technology. Building either enhanced CANDU 6 reactors or the new twin ACR-1000 means hundreds of thousands of jobs and billions of dollars in economic benefits. For example, recent economic modelling by the Conference Board of Canada estimates that building four new twin ACR-1000 reactors in Canada and eight twin reactors internationally would create 500,000 person-years of employment and add $80 billion to Canada's gross domestic product. It also means lots of affordable, reliable, greenhouse-gas-emission-free electricity to run Canada’s industries, businesses, and homes.
On building CANDU 6 reactors in Ontario now, earlier this year Ontario deferred its decision to build new reactors using the latest technology designs. Although Atomic Energy of Canada Limited’s ACR-1000 design was the preferred technology, Ontario cited concerns about costs and the uncertainty surrounding the future of AECL. While we understand Ontario's unwillingness to commit to the next generation of the ACR-1000, we think Ontario must move forward with AECL's enhanced CANDU 6 immediately.
The current recession and the related temporary decline in electricity consumption presents Ontario with an ideal opportunity to move forward with CANDU 6. The failure to act means exposing Ontario consumers to unnecessary reliability risks. Ontario's temporary generation surplus will quickly disappear as Canada's economy rebounds, the population of Ontario continues to grow, and the electrification of the economy expands with the introduction of new technologies like electric vehicles.
Without new nuclear units, Ontario will not have enough supply to meet future electricity needs. Wind and solar generation only provide electricity intermittently and not necessarily when needed. The people of Ontario are already facing higher electricity prices even though the province's temporary generation surplus should be driving prices down. These price increases are driven by the government's long-term contracts with high-price incentives for new wind and new solar installations. Ontario's new feed-in tariff will pay even more. The reliability problems and higher costs of renewables should come as no surprise to us.
As other jurisdictions are discovering, wind and solar power generate more media hype than electricity to meet baseload demand. This year, three reports from Spain, Denmark, and Germany demonstrate that wind and solar generation come with very high costs, compromise reliability, and do not deliver the anticipated environmental and job creation benefits.
On the other hand, nuclear power provides clean, low-cost, reliable electricity 24 hours a day, 7 days a week, year in, year out, while creating real economic benefits. CANDU 6s have an enhanced design and a proven track record. In the last decade, AECL has been a leader in the construction of new reactors, building more than any competitor in export markets and leading the industry in on-time and on-budget construction. Examples include reactors in Romania, South Korea, and China.
About 75% of Ontario's electricity comes from nuclear and hydroelectric generation, giving the province one of the lowest-cost and lowest-carbon power systems in the world. By building CANDU 6s now in Ontario, we'd be assured of clean electricity for the future. As well, in an era when Canada's manufacturing sector is in decline and the old Canadian stalwarts are being picked apart, Canada's manufacturing sector would get a much-needed boost.
A decision by Ontario to build CANDU 6s would provide additional time for AECL to finalize the ACR-1000 reactor and for the federal government to complete its restructuring of AECL. It would also support similar decisions in New Brunswick, Alberta, and Saskatchewan. The current review of AECL's corporate structure should not be used as an excuse for inaction.
A national vision for Canada's nuclear industry is needed. We should be building on our proven expertise and successes as global nuclear technology leaders. Don't let what happened to Nortel be the precedent for AECL. We need a Canadian approach that involves the governments of Canada, Ontario, New Brunswick, Quebec, Alberta, and Saskatchewan; the domestic utilities operating CANDU plants; the manufacturers and service providers; universities and research institutes; the regulators; and labour.
The substantial economic and environmental benefits provided by Canada’s nuclear industry are evident. However, securing these benefits for future generations means that Canada's nuclear vision must focus on developing innovative federal-provincial-private sector financing mechanisms to address project investment needs, including how to address cost overruns; determining how to put our nuclear industry on a more competitive footing in the international marketplace; creating programs that will ensure we have a skilled workforce in place to design, build, and operate new domestic nuclear reactors and support international sales; allocating appropriate resources to research and development to keep our industry on the leading edge; and communicating with Canadians to increase their awareness about our nuclear industry and the benefits it generates.
CANDU reactors produce clean, reliable, safe, low-cost baseload electricity without smog-causing or greenhouse gas emissions. Critics are quick to say that nuclear power plants are capital intensive, too complex, and subject to cost overruns. Some of this is due to long timelines for approvals in construction, necessary stringent regulations and standards, and the unwavering commitment to worker and public safety. However, CANDU's track record shows that the benefits, both economic and environmental, far outweigh such costs.
Canada's global reputation as an energy powerhouse is built on the willingness of both government and the private sector to make major investments in groundbreaking technology. Harnessing the Niagara River in Ontario, James Bay in Quebec, the oil sands in Alberta, and nuclear power in Ontario and New Brunswick are examples of these successes. “Made in Canada” nuclear technology should continue to be a part of that story.
We have a huge energy-hungry economic power south of our border and emerging economies around the world that are looking for clean and reliable electric power. CANDU technology offers the answer.
AECL's recent global success stories, while competing with stiff competition from global giants, demonstrates that our “made in Canada” technology can succeed. Now is the time for all players in Canada's nuclear industry to come together, row in the same direction, and make CANDU technology an even greater success story.
Those are my comments.