Evidence of meeting #40 for Natural Resources in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was quebec.
A recording is available from Parliament.
Liberal
The Chair Liberal Terry Duguid
Thank you, Mr. Calzado.
Mr. Tremblay, you have the floor for five minutes.
Martin Tremblay Business Development Manager, IDEA Contrôle Inc.
Thank you, Mr. Chair.
Committee members, thank you for this opportunity to appear before you today and to explain our vision for optimal electrical energy management.
IDEA Contrôle is a Canadian manufacturer. We've been working on supporting industrial electrical power management since 2009. We're equipment manufacturers. We help the industrial market with its peak power management needs and with its decarbonization projects. We're also managing its strategy to support the distribution grid during winter periods. In Quebec, we call this power demand management, or PDM. We manufacture electrical energy storage and control systems with artificial intelligence strategies and algorithms to maximize energy management.
My remarks today will focus on three points.
The first point concerns the trend in available grid capacity since our creation in 2009. Clearly, the electrical power demand on the grids of every province is constantly growing. The drive to decarbonize and electrify transportation is significantly affecting grid capacity and adding a great deal of pressure during peak power demand periods. We're even hearing about a shortage of available electrical power for new industrial projects. Technical innovations since 2009 to help the grid have often boiled down to purchasing power from our neighbours during peak periods. Even so, there have been few technical innovations when it comes to managing peak demand on the grid.
The second point that I want to discuss is the need to help the industry manage its daily power demand and to participate in network events. Our networks have ideas for solutions that focus heavily on energy generation. Electricity producers are talking about adding electrical energy generation to solve the power shortage problem. We're talking about adding wind power, solar panels and even batteries.
As you know, the energy storage strategy is a logical solution for grids. For example, in Ontario, a 250‑megawatt facility was recently installed to handle the grid's daily peaks. We're convinced that the solution doesn't need to be designed for the grid alone. We need to solve the problem at the source, on the client's side and on the industrial side. The problem really arises on the consumer's side. We need to help consumers get equipped to control electrical power.
In an industry where the recorded power demand results in a consequence billable on a monthly basis, few managers know the mechanics of this billing. This makes it even harder for managers to find solutions to mitigate this effect. An industrial manager has a hard time controlling power demand manually. We must make use of the technology needed to help these industries. This approach to energy storage isn't just for the grid, but also for the industrial client.
Remember that we aren't against adding sources of energy generation to strengthen grids. Quite the contrary. However, in this equation, businesses are being left out in the cold. Another solution is needed. We need to help businesses get equipped for power management. We're convinced that, by strengthening the industrial client's side of the equation, we're also strengthening the grid during daily peak periods.
Third, the electrical energy storage solution together with artificial intelligence in our industries form a strong alliance. Energy storage and management controlled by artificial intelligence create optimum synergy between the grid and its client. Every month, storage helps industrial clients lower their bills. During critical grid peak periods, this alliance must be leveraged within the grid. Instead of purchasing power from neighbours, we need to buy this load shedding or storage power from clients. There's a synergy between the financial aspect and the power.
Our mission at IDEA Contrôle is to speed up the profitability of decarbonization projects for the industry and to secure the electrical grid by using our flexible capacities during periods of peak grid demand.
Liberal
The Chair Liberal Terry Duguid
Thank you, Mr. Tremblay.
Colleagues, we're now going to start our rounds of questions and comments.
Thank you to both our witnesses for those presentations.
We're going to start again with you, Mr. Malette, for six minutes.
Conservative
Gaétan Malette Conservative Kapuskasing—Timmins—Mushkegowuk, ON
Thank you.
My first question is for Mr. Calzado.
First, I want to make sure that the interpretation is working properly.
Chief Executive Officer, Association québécoise de la production d'énergie renouvelable
It's okay. I understand English.
Conservative
Gaétan Malette Conservative Kapuskasing—Timmins—Mushkegowuk, ON
Mr. Calzado, you said that renewable energies are underused.
What should we focus on and how could the government help?
Chief Executive Officer, Association québécoise de la production d'énergie renouvelable
First, I would like to talk a bit about the development of the wind energy sector. It took us around 20 years to obtain the 4,000 megawatts in use in Quebec. We'll be deploying another 4,000 megawatts between 2025 and 2029. As you can see, we're in the process of doubling the number of megawatts. So, yes, there's a start.
On the solar side, the goal is to reach 3,000 megawatts of solar power by 2035. We just launched a call for bids for 300 megawatts of solar power. It's a start, as you can see. However, we need to become more proactive in deploying solar energy in Quebec in order to ensure that these technologies can contribute to the energy transition and to our economy. This also means that jobs can be created and that other sectors can use the energy generated by these technologies.
Conservative
Gaétan Malette Conservative Kapuskasing—Timmins—Mushkegowuk, ON
Thank you.
I gather that solar energy costs have fallen by 90% in recent years.
Is that what you said?
Chief Executive Officer, Association québécoise de la production d'énergie renouvelable
Yes. That's what I said.
Conservative
Gaétan Malette Conservative Kapuskasing—Timmins—Mushkegowuk, ON
Where do we start?
Costs have fallen by 90%, but how does this compare with hydroelectricity costs?
Chief Executive Officer, Association québécoise de la production d'énergie renouvelable
Bear in mind that it takes an average of 20 years to deploy a hydroelectric project. Moreover, the prices currently displayed for hydroelectric projects reflect projects built 20 years ago.
Solar technology is currently the most widely deployed technology in the world. I'm talking about huge projects of over 50 megawatts. If we look at the current call for bids, the projects are less than 20 megawatts. So we can't yet achieve economies of scale.
Solar technology hasn't yet been used to its full potential. The idea in Quebec is to take this technology and deploy it on a larger scale.
Conservative
Gaétan Malette Conservative Kapuskasing—Timmins—Mushkegowuk, ON
Thank you.
We hear a great deal about increasing production. As part of this strategy, how do you see the transportation of this production?
Chief Executive Officer, Association québécoise de la production d'énergie renouvelable
This is essential for deploying renewable energy. As you know, the areas where our association and the members we represent can deploy projects are areas where there is potential for interconnecting these projects.
For years, there has been a challenge in interconnecting these projects. That is why, in my speech, I said that Hydro-Québec's decision to strengthen its transmission grid and build an additional 5,000 kilometres of transmission lines could help with the deployment of renewable energy in Quebec.
When I speak of renewable energy, I mean, of course, wind and solar power.
Conservative
Gaétan Malette Conservative Kapuskasing—Timmins—Mushkegowuk, ON
Thank you.
Mr. Tremblay, you are a specialist in smart energy management solutions, particularly when it comes to optimizing electricity consumption. What is also important is optimizing electricity production. It is certainly necessary to increase production.
Regarding the industries you assist, can you tell us, without revealing any trade secrets, how much certain factories can save using your products and the solutions you provide them?
Business Development Manager, IDEA Contrôle Inc.
As I said, kilowatt management is something that few people know about. We often monitor kilowatt-hours, but rarely the kilowatt—the instantaneous power calculated by our producers over a 15-minute period. Billing is based on the worst 15 minutes of the month. This billed kilowatt amount represents, on average, 50% of an industrial sector's bill.
With installed storage capacity and the use of artificial intelligence for equipment control, I would say we can reduce this billed kilowatt portion by up to 30%. That is the case when we effectively integrate process control and storage into kilowatt management.
Liberal
Jennifer McKelvie Liberal Ajax, ON
Thank you, Mr. Chair.
Mr. Calzado, is doubling the capacity of Canada's energy grid by 2050 an ambitious goal?
Chief Executive Officer, Association québécoise de la production d'énergie renouvelable
It is ambitious, but at the same time, it is necessary. It will allow us to develop more renewable energy projects. As I said in my speech, we are not yet utilizing the full potential of renewable energy in Quebec, whether it be wind or solar energy. We need Quebec's and Canada's transmission and distribution networks to ensure the deployment of these renewable energy sources.
Liberal
Jennifer McKelvie Liberal Ajax, ON
In your opinion, which renewable energy source has the greatest potential for ensuring energy sovereignty in Quebec?
Chief Executive Officer, Association québécoise de la production d'énergie renouvelable
In Quebec, we have started developing wind energy. It's a renewable energy source that has, as I indicated, 4,000 megawatts already in operation. We're going to double that by 2029. We're starting solar energy. Again, we would like it to be at a faster pace, because it can be deployed faster than wind energy. With wind energy, the average time to deploy it is six years. For solar energy, it is three years, and for hydro it is 20 years. When we look at energy transition, solar energy could be a way to help us deploy renewable energy in Quebec and also to bring new sectors here.
As Mr. Tremblay indicated, there is a lot of demand for energy here in Quebec. The idea is for the members I represent to bring this renewable energy to Quebec.
Liberal
Jennifer McKelvie Liberal Ajax, ON
What investments are needed around training and workforce development to really ensure that we're ready for the transition to clean energy? Are there any real shortages in personnel that are out there that we should be actively working on?
Chief Executive Officer, Association québécoise de la production d'énergie renouvelable
Of course. As I indicated in my speech, deploying renewable energies will create jobs during the deployment of the technology. We have a study, which we can submit to the committee, where we have listed the number of jobs that will be created, not just for the deployment of renewable energy but also on how this energy will be able to bring in new sectors that will create new jobs here in the province.
Liberal
Jennifer McKelvie Liberal Ajax, ON
Thank you.
Mr. Tremblay, what are the obstacles to energy storage, and how can we overcome them?
Business Development Manager, IDEA Contrôle Inc.
Of course, this is a new technology. Among the obstacles to energy storage are regulations regarding coordination with the grid. Naturally, this technology is considered self-generation, both for wind and solar energy. Even if we draw our energy from the grid, it is considered self-generation. Of course, grid regulations are very strict, and they may still be poorly understood. They are also ill prepared for the arrival of behind-the-metre energy storage for industry.
The fact remains that installing energy storage on the industrial side is a very complicated process. These regulations could be relaxed to ensure that the implementation of energy storage on the industrial side is made easier and faster.
Liberal
The Chair Liberal Terry Duguid
Thank you, Ms. McKelvie.
Mr. Simard, you have the floor for six minutes.