Thank you, Mr. Chair. Thank you for allowing me to speak from a distance. My name is François Vitez. I will be speaking today on behalf of Energy Storage Canada. I'm the chair of the federal initiatives committee at the association.
Energy Storage Canada is an association that groups 50 organizations across the country. These include technology-providing investors, operators, local electricity grid companies, and even NGOs. Our members cover all types of technologies related to energy storage, going from more of the distributed, behind-the-meter type of storage and smaller-scale battery type of equipment, to flywheels, compressed air energy storage, and pump hydro, which are at the other end of the spectrum, more on the transmission side of storage.
The focus of the organization is to advance opportunities and build the market for energy storage in Canada. Most of what I will say right now is in tune with what Mr. Marcoux just mentioned. I'm one of the members of the association so it will echo for sure. In my day job, I'm a VP of project development for hydro and power delivery within a company called SNC-Lavalin, which is not the same S&C as Mr. Marcoux's. I am based out of Vancouver and my role is to develop opportunities in the field of hydro power, transmission, and distribution, as well as renewable solar and wind.
Through that experience I get to travel and develop different projects in different jurisdictions, so that's also the perspective I'll try to bring today. One message that I and the association would like to leave you with today is that in supporting the provinces and the federal government to further reduce the carbon footprint of our energy system and build resiliency, flexibility, and control cost, Energy Storage is a key partner in that endeavour. That's the seed we want to plant within your committee.
Storage has a unique capacity to provide multi-service benefits, and they're sometimes very complex. These include flexibility, peak capacity, ancillary services, optimization of current generation assets, and it also includes driving more value out of existing zero carbon assets: nuclear, solar, wind, and hydro. A good example is that sometimes we curtail some of those wind and solar resources, as well as spilling some on the hydro side, and sometimes we give energy away to other jurisdictions. Energy Storage allows us to capitalize on that renewable, green, zero-emission energy and release it later in the form of clean and renewable energy when the demand is ready for it.
Storage also helps to defer investments in generation transmission line and distribution assets. An example of this is a storage within the distribution level. A smaller community within a microgrid, for example, would allow us to shape the demand. From the system side, a much more stable demand would be required, which is much easier to manage. Therefore, we could optimize the use of the existing transmission system.
Storage can also be very useful for remote communities. Now these communities can consider combining those zero-carbon technologies like solar, wind, and hydro with storage and remain with a very reliable service. Diesel could be kept as a backup, but it would be used very few times.
As our economy and the community grows to have a greater reliance on the electricity grid, the impact of extreme weather events also becomes a growing concern. We have seen a lot of events now in the States, for example with the hurricanes, but we've had our own ice storms, which were very significant in Ontario and Quebec as well.
Resilience is really going to be an important conversation as we move forward, which is an element to which storage really contributes significantly. The reliable supply of cost-effective and clean energy will be key to a thriving sustainable Canadian economy. Historically, Canadian supply of renewable energy has come from large generation facilities delivering power to the load centre through long and very robust transmission lines. As the system expands and the demand for renewable grows, it is expected that much of this growth will come from distributed generating assets, as Mr. Marcoux mentioned earlier on. We're moving towards a decentralized grid system.
Again, as Mr. Marcoux mentioned, cost is coming down both on the renewable generation side but also on the storage technologies whether they be battery storage or other forms of innovative storage technologies. The benefits to the Canadian economy of this new grid are important. Energy will be produced much closer to where it will be consumed in the future, reducing transmission and transportation losses. As each smaller region becomes more self-sufficient, the resiliency of the system will improve and reliance on a single, large, and potentially vulnerable system will be reduced.
Additionally, the already large and growing Canadian clean-tech industry will benefit from an expansion of the grid through next generation assets, including energy storage microgrids and smart energy network controls. I won't go through the figures, as Mr. Marcoux provided you with good insight on that, but they are significant.
With these perspectives, the Energy Storage Canada association would like to propose some recommendations for the federal government in general and to your committee.
First, we are fully committed and encourage non-carbon emitting sources of electricity production.
Second, we recommend enabling each province to implement electrification strategies according to the historical system evolution and availability of local resources. This is to really take a holistic approach to the future planning of policies relating to our energy system.
Third, we encourage policy tools that allow modern grid investment in concert with traditional investment where cost, reliability, and resiliency can be improved. What we're saying here is that the existing assets are key. We're not saying that we're going to completely throw them away and create a new grid, the grid 2.0. We're going to base it on the existing grid but make sure that it is optimized and all the existing assets are being used to their full potential.
Fourth, we encourage investment and deployment of energy storage assets connected at the transmission grid, embedded in the local distribution network, and behind the customer meter.
Finally, the fifth, we encourage the electrification of transportation through infrastructure to support electric vehicles and hydrogen-powered fuel cell electric vehicles. These are the five recommendations that we have as an association and I'd be more than happy to answer questions in either French or English as necessary.