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Canada’s Energy Efficiency Roadmap

IEA Energy Efficiency in Emerging Economies Training Week

June 6, 2016

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Crude oil • 5th largest producer • 3rd largest proved reserves • Fastest growing source of

GHG emissions

Renewables (e.g.

wind, solar) • 7th in wind power capacity • 555% growth in solar capacity

since 2010

Hydro • 2nd largest hydro producer • 59% of Canadian electricity

Energy efficiency • $37.6B in energy costs saved in 2013

since 1990 • GHG reductions equivalent to

emissions of more than 27M cars over one year

Energy technology

innovation • $3.3B invested in energy RD&D • 55,000 employed in clean tech sector

Nuclear • 2nd largest uranium

producer • Own nuclear reactor

technology (CANDU) Natural gas • 4th largest producer • $10.6B net exports

Canada has a diverse energy portfolio

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80% of Canada’s electricity is from non-GHG emitting sources, principally hydro

and nuclear

Nearly 65% comes from renewable energy sources, highest in the G7 and 2nd highest in the

G20

Wind and solar are fastest growing electricity sources

Canada’s electricity system is highly integrated

with the US ($2.8 billion in net export revenue)

Domestically, the sector is expected to invest $350

billion in electricity infrastructure between 2011

and 2030 creating demand for deployment of many

energy technologies

US demand for clean electricity is increasing to

meet new regulatory requirements

Canadian exports to the US could increase

significantly

Electricity generation in Canada

(by Source)

Source: Statistics Canada, NRCan (2014)

Canada is a leader in the production of electricity from clean and renewable sources

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Canada’s energy sector has a significant role in addressing climate change and environmental issues

Canada’s GHG emissions by economic sector, 2014 Energy production and use is responsible for about 80% of Canada’s GHG emissions

Energy development poses potential regional/local environmental risks

marine and land-based spills, accidents and malfunctions

contamination of freshwater and groundwater resources

land use changes and impacts to species/biodiversity (e.g. caribou, fish)

New technologies reducing environmental footprint of energy across the economy

Environmental impacts driving growth of global clean technology markets

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Reduces greenhouse gas

emissions in the near term,

and essential to long-term

decarbonisation of the

economy

The “first fuel” – avoided

energy demand exceeds

other energy sources

Energy efficiency is a key pillar of climate

change policy

Supports economic growth

o Canada has the most energy-intensive economy per capita among IEA member countries

Complements carbon pricing and lowers the cost of mitigation

(IEA, 2015)

49% Energy Efficiency Less than 2oC increase in

global temperature

Current INDC commitments

Globally, energy efficiency can provide 49% of GHG reductions needed by 2030

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Energy efficiency policies drive clean

growth through technology deployment

Policies support increased market adoption and affordability of clean

technologies, products and services

Global market for energy efficiency is worth over $300 billion, expected to

grow to $550 billion by 2035

More than 100,000

Canadians are employed

in energy efficiency-

related jobs

Basic Research Research and Development

Demonstration Deployment Commercialization

Innovation Chain

Product/technology push

Market pull

Energy Efficiency Policies

Example energy efficient technologies:

Advanced LED lighting

Extreme climate building components (e.g.,

heating/cooling equipment)

High-efficiency industrial motors and boilers

Electric and other alternative fuel vehicles

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Energy innovation is necessary to improve competitiveness and environmental performance

Science and technology underpins the competitiveness and environmental

performance of Canada’s energy production and use

Government and private sector investment in energy technology has enabled the growth of

Canada’s unconventional oil and gas, renewable, and nuclear energy industries

Federal government laboratories conduct a range of energy-related research and

development activities

$3.3 billion invested in energy research, development and demonstration in 2013

Canada’s clean technology sector – including energy – is growing

Canada’s clean technology sector includes power generation, biofuels, smart grid and energy

storage technologies

Sector is growing 4 times faster than Canada’s economy, and employs 50,000 people

Significant opportunities for Canadian companies to grow and contribute to improved

environmental outcomes, domestically and abroad

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The Canadian Government’s Role

The Energy Efficiency Act (1992) mandates Natural

Resources Canada (NRCan) to promote energy

efficiency, regulate products that use energy, and collect

data on energy use

NRCan’s Office of Energy Efficiency (OEE)

Provides national mandatory and voluntary standards

Fosters collaboration with subnational governments

and industry

Aligns actions with the U.S. and internationally

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NRCan sets national minimum & premium

standards and rates performance

Federal Buildings Initiative

Minimum standards

•Products under the Energy Efficiency Act regulations

•Building – model codes for regulation by provinces and territories

Premium standards (voluntary)

•ENERGY STAR product certification

•ENERGY STAR for New Homes

•R-2000

Labels & Benchmarking

• EnerGuide for Equipment

• ENERGY STAR Portfolio Manager

• EnerGuide for Vehicles

• SmartWay Transport Partnership

• ISO 50001

* ENERGY STAR and SmartWay are implemented with the U.S.

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Energy efficiency in Canada improved by 24%

between 1990 and 2013

Energy efficiency helps Canadians reduce energy use and emissions through energy-saving products and practices in homes, businesses, factories and vehicles

Without energy efficiency improvements since 1990, Canadians

Canada is among the highest

per-capita users of energy in

the world

Factors:

Climate

Energy intensive industry

Vast distances

Low business investment in

machinery and equipment

would be spending $37.6 billion more on energy and producing 85.4 Mt more in emissions

• Canada is exploring near-term, low-cost opportunities to further increase energy efficiency

E.g., net-zero buildings and homes, smart buildings, low-carbon and electric transportation and connected devices

6000

7000

8000

9000

10000

11000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Peta

jou

les

Energy use with energy efficiency improvements Energy use without energy efficiency improvements

$37.6 billion savings

Secondary Energy Use, Actual and Without Energy Efficiency Improvements

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Contact Information

Office of Energy Efficiency:

http://www.nrcan.gc.ca/energy/offices-labs/office-energy-efficiency

Energy Sector, Natural Resources Canada

580 Booth Street, 18th Floor

Ottawa, Ontario K1A 0E4

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