TORONTO—May 11, 2004—A study released today by the Pembina Institute and the Canadian Environmental Law Association titled Power for the Future: Towards a Sustainable Electricity System for Ontario, suggests that Ontario could save approximately $14 billion between now and 2020 by choosing energy conservation over building new nuclear power plants.
The study also examines the potential contributions to electricity supply from low-impact renewable energy sources, such as wind, small-scale hydro and biomass. It outlines how Ontario’s future electricity needs can be met while phasing out both coal-fired and nuclear generation.
The 80-page study includes the findings of computer modelling using the Canadian Integrated Modeling System (CIMS), developed at Simon Fraser University. The computer model estimated that a 40% reduction in electricity consumption against business as usual projections could be achieved by 2020. This can be achieved by implementing “green” energy policies, such as minimum efficiency standards and incentives to adopt energy efficient appliances, promoting increased commercial and industrial co-generation and fuel switching from electricity to natural gas for water and space heating.
The study compares the cost of meeting Ontario’s electricity demands through efficiency investments vs. the construction of new nuclear power facilities. The study finds that:
- Meeting 40% of projected Ontario demand through conservation and energy efficiency measures would cost an estimated $18 billion in capital costs between now and 2020
- Meeting the same demand through new nuclear power will cost approximately $32 billion—an additional $14 billion
- Moving to energy efficiency will cost Ontario’s consumers money, but up to 96 per cent of this will be recovered by lower electricity bills from using less power.
- Other jurisdictions in North America have been pursuing conservation successfully. For example, California has reduced its peak electricity demand by 20 per cent over the last 20 years
“Ontario is now at a crossroads in its future energy path, and the decisions made about electricity policy over the next year will set the province’s course for the next 20 or 30 years. Our research shows that a more sustainable, reliable and affordable electricity system is possible without coal-fired or nuclear power if the province takes decisive action now” said Mark Winfield, report author and Director of Environmental Governance for the Pembina Institute.
“The choice faced by the province is clear,” said project team member Theresa McClenaghan, Counsel with CELA. “The province can take the path of making a massive investment in a generation technology, nuclear power, that is in large measure responsible for the environmental, reliability, and financial crises now facing Ontario’s electricity system. Or it can choose the alternative set out in our report by adopting proven energy efficient technologies and low-impact renewable energy sources that will reduce consumers’ energy bills and also improve air quality, protect the health and safety of Ontario residents, and result in a more, safe, secure, and reliable electricity system.”
The report is available for downloading at www.pembina.org and www.cela.ca.
For further information:
Mark Winfield, Ph.D.
Pembina Institute
Tel: 416-978-5656
Cell: 416-434-8130
Theresa McClenaghan
Canadian Environmental Law Association
Tel: 416-960-2284 ext. 218