Conservation: The Greenest path out of Energy Poverty A presentation to the Low Income Energy Network Conference by Peter Love, Chief Energy Conservation Officer June 10, 2008

Overview Key messages The OPA’s mandate Integrated Power System Plan (IPSP) Ontario’s Conservation Targets –benefits of conservation –types of conservation –importance of codes and standards OPA Conservation programs –Programs in market –Programs in development Past Recommendations

Key Messages Ontario’s conservation goals are among the most ambitious in North America Ensuring low income Ontarians use conservation as a tool to manage rising energy costs is critical Codes and standards are essential for long-term success

Ontario Power Authority Mandate Ensure reliable, sustainable, long-term electricity supply for Ontario. Accomplished in four ways: 1.Leading and coordinating conservation 2.Ensuring investment in needed new supply occurs 3.Preparing a comprehensive, long-term power system plan 4.Evaluating ways to make Ontario’s electricity system more self-sustaining and consumer-focused over the long term

Integrated Power System Plan - IPSP Details the conservation, supply and transmission enhancements needed to ensure a reliable, sustainable electricity system for Ontario for the next 20 years Integrated approach towards meeting future demand –Conservation targets represent 6300 MW (¼ of current capacity) IPSP meant to be updated on a three-year schedule –next filing in 2010 IPSP expected to cost $60 Billion over twenty years

6,300 MW reduction in peak demand by 2025 Achieved interim target of 1350 MW reduction by 2007 Next Interim targets of 1,350 MW by 2010 OPA to lead, coordinate, facilitate and build conservation capability Meeting targets is everyone’s responsibility Ontario’s Conservation Targets

Why conservation - Rising Price of Oil Oil surges more than $10 to record over $138 (Reuters, June 6, 2008)

Why Conservation - Rising Price of Natural Gas

Why Conservation – Ontario electricity prices Source: IESO 2007 Ontario Market Outlook

Benefits of Conservation The Three Es:  Employment benefits: labour- intensive, local jobs  Economic benefits:  efficiency is cost-effective for households  protects against energy price increases  makes private sector more competitive  Environmental /health benefits: reduced GHGs, acid rain, smog

Ontario’s Electricity System, CO 2 e and Climate Change Ontario targets are to reduce CO 2 e to 6 percent below 1990 levels by 2014, 15 percent below these levels by 2020, 80 percent below by Ontario recently appointed a new Climate Change Secretariat. Canada’s targets are to reduce CO 2 e by 20 percent from 2006 levels by 2020 and by percent below 2006 levels by In Canada, 82 percent of man- made greenhouse gas emissions come from the production and use of energy. In Ontario, 13 percent of CO 2 e came from the production of electricity mainly from coal-fired plants in Implementation of the IPSP will reduce emissions from electricity sector from 25 Mt CO 2 e in 2006 to 7 Mt in Source: IPCC Fourth Assessment Report, Climate Change 2007 (AR4)

GHG Emissions from Electricity Generation in Ontario Greenhouse Gas Emissions (Megatonnes) Range of Results for ScenariosCase 1ACase 1B

1.Conservation/Demand Management - Using less/using less during peak hours - Deferring usage to off-peak hours 2.Energy Efficiency - Using energy more efficiently 3.Fuel Switching - Switching from electricity to another fuel 4.Self-generation/Co-generation - Displacing load off the power grid Four Types of Conservation

Source: IESO The Importance of Demand Management

today ACTIVITY FOCUS SHORT TERMLONG TERM today CAPABILITY BUILDING RESOURCE ACQUISITION MARKET TRANSFORMATION Conceptual Approach to Delivering Conservation

Codes and Standards

OPA Conservation Programs: In Market Multi-program approach in support of low income directive through existing delivery partners In Market Programs: In Toronto: –City of Toronto Better Buildings Partnership Incentives for retrofits = reductions in kW demand and kWh consumption Incentives for New Construction (affordable housing / MURB / MUSH) Outside Toronto: –Electricity Retrofit Incentive Program Incentives for prescriptive and custom measures; delivered through LDC –High Performance New Construction Tiered incentives for new buildings which exceed MNBC including incentives for architects (affordable housing / MURB / MUSH) Delivered by Enbridge Gas Distribution More Info:

OPA Conservation Programs: In development Pilots completed in late 2007 will inform program design Programs will include: –Low Income Single Family Homes Direct Install Program –Multi Family Building Program Variety of elements for Assisted and Social Housing –Aboriginal Pilot – retrofits to housing units on reserves –Fuel Switching – electric heat conversion Conservation Fund supporting pilot looking at different conservation measures including: lighting, refrigerators and sub-metering

2007 CECO Report – Recommended Actions Recommended actions include: Government Government evaluate options to assist low-income households with economic burden associated with upgrading to energy efficient equipment Government develop educational programs and tools needed to enable customers to learn about and benefit from smart meters. Reconfigure role of Chief Energy Conservation Officer to advocate conservation for other forms of energy Develop a comprehensive and cohesive energy conservation policy - facilitated by CAT Require government departments to consider this policy in their decision-making processes –I.e. Develop minimum energy performance standards for new affordable housing units

Take the Conservation Challenge Take action! Respond to the challenge and the opportunity of energy conservation Contact us: Chief Energy Conservation Officer Conservation Bureau 120 Adelaide Street West Suite 1600 Toronto, Ontario M5H 1T1 T (416) F (416)

Questions?

2007 CECO Report – Recommended Actions Codes and Standards Prepare a plan for orderly consideration of energy efficiency in all renovations and retrofits Raise minimum energy performance standards for six consumer products now PST-exempt Introduce voluntary labelling for energy performance of buildings, and thereafter issue a regulation for mandatory labels Innovation and Education Issue regulations to overcome restrictions that prohibit use of energy-efficient products or practices, e.g., CHP projects, clotheslines and solar collectors Develop educational tools to enable customers to benefit from technologies such as smart meters

Conservation Results: Highlights Total peak demand reduction by Ontario electricity consumers by end of 2007: ~ 1,400 MW Reported results from OPA-funded conservation programs since 2005: ~ 600 MW LDCs report their (non-OPA-funded) conservation activities contributed: ~ 260 MW Other players reported contribution from activities: ~ 100 MW Recommend that organizations delivering conservation should place more emphasis and resources on measuring and tracking results using standardized and transparent methods.