The Pembina Institute Proposes a Comprehensive Energy-Efficiency Strategy for Ontario

April 11, 2006

Toronto — Despite the repeated commitments to create "a conservation culture" the Ontario government's energy efficiency initiatives lack the coordination, funding, and direction needed to achieve major reductions in electricity consumption. That is the conclusion of a major study released today by the Pembina Institute.

At the same time, A Quick-Start Energy-Efficiency Strategy for Ontario outlines in detail how Ontario can apply proven approaches from leading US states, such as California, Vermont and New York, to dramatically reduce the province's need for new electricity supplies.

"The Pembina Institute and other researchers have identified a potential for energy efficiency, cogeneration and fuel-switching to reduce future electricity demand by more than 40 per by 2020. The province's current initiatives will come nowhere near realizing that potential. The Quick Start strategy outlines the key first steps that Ontario needs to take to make serious progress on energy efficiency," said Dr. Mark Winfield, director of the Quick Start project.

The Quick Start strategy comprises three cross-cutting enabling measures and nine specific programs. The cross-cutting measures are as follows:

  • Improvement of provincial coordination and management, including the establishment of the Conservation Bureau as an independent agency with its own funding mechanism;
  • Establishment of a secure funding base for energy-efficiency programs through the base budgets of key provincial ministries, the use of the Bill 100 funding mechanisms for conservation purposes, and rate-based incentives to the Province's many local energy distribution companies (LDCs); and
  • Building of training resources and infrastructure, such as energy-efficiency training and certification for retrofit and new-building contractors, efficiency program managers and outreach "circuit riders".

The proposed programs are as follows

  • Residential high-efficiency new-homes
  • Commercial new green buildings
  • An aggressive cycle of regular reviews and upgrades of the energy-efficiency provisions of the Ontario Building Code
  • Existing-housing audits, retrofits and rebates
  • Small-business high-efficiency lighting
  • Larger-business lighting, heating ventilation and air conditioning (HVAC) and shell retrofits.
  • Combined heat and power (cogeneration) standard offer contracts
  • An aggressive cycle of regular reviews and upgrades of appliance and equipment performance standards under the Ontario Energy Efficiency Act
  • A special unit within the Conservation Bureau that would provide support to LDCs and coordinate conservation and demand-management programs across Ontario

"Experience in California and other US states demonstrates that major, cost-effective reductions in electricity consumption can be achieved with the right combination of clear mandates; stable, long-term funding; and the proactive face-to-face delivery of programs in which solutions are taken directly to residential, commercial, industrial and institutional customers rather than waiting for their response," said Stephen Hall, co-author of the report and an expert on California's energy-efficiency strategies.

The Quick-Start strategy aims at savings in grid-electricity consumption of 23,000 GWh/yr, with an implied reduction in required generating capacity of 4500MW, by 2012. These savings, equivalent to more than the output of a Darlington-sized nuclear power plant, would be over and above those achieved by existing provincial initiatives.

"The government has the policy tools at its disposal to secure a clean energy future; it needs to demonstrate the political will to use them effectively," concluded Dr. Winfield."

The Pembina Institute is a national, not-for-profit independent energy and environmental policy research and education organization with offices in Toronto, Ottawa-Gatineau, Calgary, Edmonton, Vancouver, and Drayton Valley, Alberta.

A Quick-Start Energy-Efficiency Strategy for Ontario is available online at www.pembina.org.

For more information contact:

Mark Winfield, Director, Environmental Governance: Tel: 416-978-5656 Cell: 416-434-8130 Fax: 416-978-3884 e-mail: markw@pembina.org

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