CALGARY, AB — Demand-side management (DSM) is a tool most utilities in North America use to partner with their customers to improve energy use — a proven way to cut costs, improve service reliability and grow quality, local jobs. Alberta is missing out. Beyond the Meter: Harnessing demand-side management to power Alberta's energy future — a new Pembina Institute report produced in partnership with the Alberta Ecotrust Retrofit Accelerator program — shows how DSM reduces energy costs, lowers peak demand, and strengthens local economies while delivering lasting social and economic benefits.
North American utilities and governments are making record investments in DSM to boost efficiency, grid resilience and economic growth. In 2023, DSM programs received $1.59 billion nationwide. Ontario committed $10.9 billion over 12 years to a new DSM framework, while Hydro-Québec launched a $10 billion, 10-year plan, including $2 billion upfront for smart thermostats and building retrofits. Nova Scotia has invested $173 million over 3 years. These long-term investments cut energy waste, extend grid life, and create skilled jobs — cementing DSM as a key strategy for affordability and resilience. But Alberta currently has no DSM policy or regulatory framework in place. Today’s report draws lessons from other DSM-adopter jurisdictions and outlines what Alberta can do to begin building DSM capacity.
DSM gives people more choice and control over their energy use and optimizes grid assets, reducing the need for expensive infrastructure investments — a savings that benefits all utility customers. It can also help Alberta’s economy. If DSM was implemented in Alberta, these programs are projected to deliver a total resource cost-benefit ratio of 2.3 between 2019 and 2038, generating an estimated $11.1 billion in net economic benefits.
The report also highlights the benefits of DSM when aligned with building retrofit needs. Together, they can unlock affordable and reliable energy for Albertans while fostering long-term retrofit market growth. With supportive policy and regulatory structures, DSM can deliver long-term benefits for building owners, households, utilities and the economy.
Recommendations in a nutshell:
1. Policy direction: Unlock DSM as a resource tool
2. Regulatory framework: Reward utilities beyond infrastructure
3. Retrofit-aligned DSM: Drive energy savings and market stability
Quotes
“Alberta is falling behind other provinces and North American jurisdictions in its approach to utility-led DSM programs, which lower costs and create quality jobs. Investing in energy efficiency and DSM programs gives utilities a cost-effective way to avoid unnecessary demand and free up capacity. Retrofit-aligned DSM programs are a no-regrets solution that benefits Albertans while strengthening the province’s energy system. This reduces blackout risks, lowers system costs and helps customers and utilities save money.”
— Kari Hyde, Manager, Utility Integration and Demand-Side Management, Pembina Institute
"The release of this report is timely and aligns closely with Alberta Ecotrust’s work on deep retrofits. Deep retrofits directly align with DSM goals by decreasing overall energy consumption, and improving building efficiency, and generating local economic activity — key steps toward a more flexible, resilient, and low-carbon electricity grid, and reliable jobs for skilled trades and suppliers."
— Garrett Clark, Senior Program Manager with Alberta Ecotrust
“Across North America, governments are investing billions in DSM to extend grid life and reduce energy waste. Ontario and Québec alone have committed over $20 billion to long-term DSM strategies. DSM helps utilities and customers improve energy use — cutting costs, boosting reliability, and creating skilled jobs in HVAC, electrical, mechanical and automation trades. This report shows how DSM reduces energy costs, lowers peak demand, and strengthens local economies.”
— Faisal Ali, National Business Development, Energy Services, Ainsworth
“Alberta is missing out on a proven strategy to lower energy costs, improve grid reliability, and create local jobs. We welcome this report’s findings, which show that with the right policy and regulatory framework, demand-side management can unlock affordable, reliable energy for Albertans while supporting retrofit market growth and long-term economic resilience.”
— Timothy Wilson, Executive Director, Retrofit Canada
Quick facts
- 90% of Canadians’ time is spent indoors.
- 70% of the buildings that will exist in 2050 have already been built.
- In Calgary, buildings are responsible for approximately 60% of greenhouse gas emissions, while in Edmonton, they account for about 40%.
- 20% of households in Canada experience energy poverty, and about half of those are also considered low-income.
- 40% of the carbon emissions abatement required by 2040 can be achieved through energy efficiency measures alone.
- $7 in GDP growth is generated for every $1 Canada invests in energy efficiency.
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Visit the Pembina Institute’s website to download a copy of Beyond the Meter: Harnessing demand-side management to power Alberta's energy future
Background
Blog: From Efficiency to Empowerment
Blog: Building jobs in Alberta
Blog: Alberta faces retrofit roadblocks
Op-ed: Putting power back in communities
Media release: A call for smarter, fairer electricity distribution
Blog: How utilities can reach customers who need energy savings the most
Blog: Unlocking a clean, affordable energy future starts at the local level
Contact
Sarah Snowdon
Senior Comms Lead, Pembina Institute
647-797-9329 ext. 121
