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Conservation
Conservation is Ontario’s most environmentally friendly and cost- effective resource. Conservation initiatives save money and reduce greenhouse gas emissions. Reducing consumption reduces bills for consumers and reduces demand on the system, avoiding the need to build new generation. For every dollar that is invested in conservation, two to three dollars of net savings are realized over the life of the investment. Conservation can also create local jobs in energy audits and energy services.
Accomplishments
From 1995 to 2003, there were no provincial conservation programs - it was not a priority. Since 2003, Ontario has had goals for conservation and as a result, this province has become a North American leader. The goal to reduce peak demand by 6,300 MW by 2025 was included in the 2007 Plan. Ontario is on target to meet this goal.
To improve the quality of the province’s air and the efficiency of the system, Ontario invested about $1.7 billion in conservation programs from 2006 to 2010. This will save ratepayers $3.8 billion in avoided costs.
Conservation programs also give customers the tools to help them manage costs, and balance demand in peak periods in winter and summer. Conservation programs also create jobs in the clean energy sector.
Ontario has helped to create a culture of conservation since 2003 by:
- Updating Ontario’s building code to make energy efficiency a core purpose.
- Delivering the Home Energy Savings Program which has helped over 393,000 homeowners with energy audits and helped nearly 250,000 homeowners with energy savings and retrofits. Despite the federal government’s early withdrawal from funding this conservation program in March 2010, Ontario will continue to support the Home Energy Savings Program until March 31, 2011. This program helped save annual greenhouse gas emissions equivalent to taking over 83,000 cars off the road.
- Initiating the OPA's Great Refrigerator Round Up which has removed more than 230,000 old appliances since 2007. It will result in lifetime savings of more than one million megawatt hours over the life of the program.
- Providing $550 million over two years for energy retrofits in schools.
- Launching the Ontario Solar Thermal Heating Initiative for solar water and air heating projects for institutional, commercial or industrial organizations. The program continues until March 31, 2011. Almost 600 projects have been launched or completed to date.
- Moving forward with Smart Meters and Time of Use billing to encourage consumers to shift electricity consumption away from peak periods of demand; Avoided system expenditures help keep costs down for Ontarians.
- Reducing electricity consumption in government buildings through initiatives such as deep lake water cooling - a reliable, efficient and sustainable way to cool buildings while reducing demand on the grid.
Over the past five years, Ontario’s conservation programs have generated over 1,700 MW of peak demand savings - the equivalent of over 500,000 homes being taken off the grid. Local Distribution Companies have been partners in helping Ontario achieve its conservation targets.
Conservation efforts are measured by looking at the results of conservation programs. The impacts of the global economic recession are not counted as part of conservation efforts, although they did result in a significant reduction in electricity demand. The recession also affected the level of participation in conservation programs which, although successful, are not expected to allow Ontario to meets its 2010 interim target. Confirmation of this will occur late in 2011, after program results undergo rigorous verification by independent third-parties. Had the global recession not had a significant impact on Ontario’s economy, 2010 conservation achievements would have been significantly higher.
The Plan
Working together to reduce electricity use at peak times makes sound economic and environmental sense. Providing consumers with the benefit of up-to-date and accurate electricity consumption readings is also critical to the creation of a culture of conservation. The government is committed to moving forward with implementation of a Time-of-Use pricing structure that balances benefits for both the consumer and the electricity system as a whole.
To help families, Ontario will move the off-peak period for electricity users to 7 p.m. which will provide customers with an additional two hours in the lowest cost period. This change will be in effect for the May 2011 Regulated Price Plan update.
Time-of-Use
On average, most farmers will pay slightly less on time-of-use billing than they currently pay. Advantages for farmers will be modest with a savings in the range of one to five per cent. However, the advantages for the power supply system will be substantial…
Don McCabe, Ontario Federation of Agriculture
Ontario is already a North American leader in conservation (the province conserved over 1,700 MW since 2005). The government’s target is 7,100 MW and 28 TWh by 2030. This would mean the equivalent of taking 2.4 million homes off the grid. This level of conservation will reduce Ontario’s greenhouse gas emissions by up to 11 megatonnes annually by 2030. These targets are among the most aggressive in North America.
As part of the Green Energy and Green Economy Act, 2009, Local Distribution Companies (LDCs) will become a more recognizable "face of conservation" and have been assigned conservation targets which they must meet as a condition of their licence. LDCs will meet their targets through a combination of province-wide and local conservation programs.
Ontario proposes to provide support for homeowners to have energy audits to become better informed of the opportunities to improve the energy efficiency of their homes.
| Date | 2015 | 2020 | 2025 | 2030 |
|---|---|---|---|---|
| Capacity | 4,550 MW | 5,840 MW | 6,700 MW | 7,100 MW |
| Generation | 13 TWh | 21 TWh | 25 TWh | 28 TWh |
These targets will be met through a combination of programs and initiatives:
- Innovative energy efficiency programs for residential, commercial and industrial sectors
- Next-generation building code updates and standards for appliances and products
- Demand response programs to help reduce peak demand
- Time-Of-Use rates
The government anticipates that the commercial sector will contribute 50 per cent of the conservation target; residential sector will contribute 30 per cent; and industrial sector 20 per cent.
Over the next 20 years, Ontario’s conservation targets and initiatives are projected to save about $27 billion in ratepayer costs on the basis of a $12 billion investment. Conservation will also do more than that by helping to ensure that Ontario’s air is cleaner and the electricity sector reduces its impact on the environment.
Ontario will continue to provide broad support for achieving these targets through policy initiatives such as bringing forward a proposed regulation to require the broader public sector (municipalities, universities, schools and hospitals) to develop energy conservation plans.
In early 2011, together with LDCs, Ontario will launch a number of new programs, which will allow the province to meet its conservation targets over the next few years and make up for the slower period between 2009 and 2010. The programs will target all sectors, be better coordinated and have greater customer focus than previous programs.
Ontario is designing, implementing and funding a province-wide electricity conservation and demand management program for low-income residential consumers. Ontario is also developing a low-income energy program comprised of natural gas conservation, customer service standards and emergency financial assistance.
These new conservation programs, together with programs for very large industrial customers, will require an investment of about $3 billion over the next five years. The results will be significant: an avoided lifetime supply cost of $10 billion and a net benefit to Ontario ratepayers of about $7 billion over the life of the conservation measures.