Retrofits aren’t just a tool to ensure that homes are affordable, resilient and energy efficient – they can also be a key driver of economic growth. In Alberta, retrofitting residential and commercial buildings at scale will create 24,000 jobs per year, which will grow the economy and support local businesses. Creating good jobs for Albertans requires consistent investment. Today, the retrofit landscape across Alberta is fragmented and investment is inconsistent, which means that the provincial retrofit industry is subject to boom-bust cycles. Under these conditions, the job security of workers along the retrofit supply chain is threatened when programs end or lapse.
Across North America, utility-led retrofit programs are a proven tool to enhance affordable retrofits at scale and stabilize these boom-bust cycles. Renewable, multi-year demand-side management (DSM) programs provide stable investment for retrofits and enhance job security for workers in the construction, manufacturing and trade allied industries. This consistent funding also supports the expansion of retrofits at a sustainable level to accelerate cost savings for families and utilities across the province. In Ontario, $1 invested in IESO’s commercial retrofit program returns $1.81 in savings to the program administrator through gross and peak demand reductions. Similarly, $1 of DSM investment in Nova Scotia returns $3.12 to homeowners through utility bill savings. Consistent investment in retrofits through utility-led retrofit programs increases these returns and reduces energy costs for households and utilities over the long run.
Investing in Alberta’s retrofit supply chain through utility-led retrofit programs is a clear win-win: households save on energy bills, utilities reduce peak demand, and workers across the province see stable investment in key industries. Today, Alberta is the only province in Canada without utility-led DSM, which means that utilities cannot implement these programs without regulatory changes. To unlock the bill savings and workforce benefits offered by utility-led retrofit programs, Alberta must implement a regulatory framework to enable DSM and unleash the jobs, cost savings and economic growth.
To understand how Alberta should implement DSM, we reviewed leading jurisdictions across North America to identify the regulatory changes required for implementation. We also explored best practices for utility-led retrofit programs to determine how program delivery can maximize cost savings and job creation. In our upcoming report we leverage these findings to provide a blueprint for how Alberta can undertake regulatory changes to implement DSM and utility-led retrofit programs in a cost-effective manner to provide affordable, no-regrets energy solutions to families, businesses and workers across Alberta.
The Pembina Institute acknowledges the generous support of the Alberta Ecotrust Foundation.
