Canada is in the midst of change when it comes to its electricity infrastructure. Many electricity assets are reaching their expiration dates and need to be replaced, but with the concerns associated with global warming, the impact of our critical electrical infrastructure is certainly being considered. 2016 is the year when the power, transmission, and distribution industry will make viable changes to modernize our electricity system for the future generations. Although electricity in Canada is largely provided from hydro, a non-emission source that is also the most efficient renewable technology, more non-hydro renewables will inevitably come into play. These will directly affect the power, transmission, and distribution industry in a variety of ways.
The Industry’s Trend of Increasing Growth of Renewable Technologies
The 21st century marks the beginning of environmental sustainability, with a new electricity system being of high demand. This sparked an increase in growth of renewable technologies, such as solar, biomass, tidal and wind, and quickly changed the long-established hydroelectricity Canada has relied on for more than a century.
Today, it’s the country’s goal to reduce its carbon footprint by operating in the most environmentally friendly way possible. As a result, the electricity system has experienced significant changes, which are expected to extend and increase in 2016 and for many years after. For example:
- More non-hydro renewables will be utilized
- A search for new ways to reduce the impact gas and coal have on the environment
- An emphasis placed on energy conservation
Contributing Factors for Canada’s Energy Future
Canada National Energy Board Chair and CEO, C. Peter Watson released a statement addressing the country’s energy future. He mentions that it will “not be determined by a single force, but rather the interaction of many.” Watson continued, “It is our goal to help Canadians understand these complex interactions through our analysis, reports, and statistics.” He also went on to explain how the climate and energy demands are quickly evolving, which has stemmed the need to readjust (evolve) Canada’s electric system as well. Some of the leading factors that will be considered when determining Canada’s energy future include:
- Energy prices
- Economic growth
- Policies and regulations
- Market access
- Infrastructure development
- Development and use of new technologies
Important Statistics that Contribute to the Future Power, Transmission and Distribution Industry
The government of Canada released a report called, Canada’s Energy Future 2016: Energy Supply and Demand Projections to 2040. It provides valuable information and statistics that examine the industry outlook, many of which pertain to the climate policy developments many countries are putting into place. Some important statistics to pay attention to as we continue through 2016 and into the future include:
- Canada’s total electricity generation capacity is estimated to increase by 1% each year
- The majority of this capacity will come in the forms of natural gas, wind, and hydroelectric power
- It’s estimated that hydroelectric will remain a dominant source of electricity as a result of its lack of Co2 emissions, flexibility, and cost-stability
- Wind, biomass and solar generation capacity is expected to double by the year 2040
- Approximately 20% of power generation is expected to have a greater role in 2040
Reviewing the industry outlook for the power, transmission, and distribution can help you successfully create business plans for the future. Doing so also allows you to thoroughly understand the macro and micro industry trends so you can make important decisions based on analytics and facts.
The importance of utilizing natural resources is certainly a trend that will prevail well throughout 2016 and into the future generations. However, the use of hydroelectricity will not be eliminated completely, and it will continue to be the dominant source of electricity.