BRIEF FROM QUALITY URBAN ENERGY
SYSTEMS OF TOMORROW (QUEST)
Executive Summary
QUEST ‐ Quality Urban Energy Systems of Tomorrow ‐ is actively leading seminal research, policy analysis, outreach, and capacity
building to assist communities, utilities, and the broader community‐building sector
improve the efficiency and effectiveness of energy delivery through an approach
called “integrated community energy solutions” (ICES). This approach has been
endorsed by the Council of Energy Ministers through the Integrated Community
Energy Solutions: A Roadmap for Action (2009) and the Council of the Federation
(2010).
QUEST is mobilizing communities across Canada to manage their
energy use through better planning and investment. QUEST’s vision is to have
every community in Canada operating as an integrated energy system by 2035.
For the 5,400 urban, rural and remote communities in Canada, energy
is an increasingly valuable commodity. These communities account for nearly 60
per cent of all energy end‐uses
and about 50 per cent of all Canadian greenhouse gas emissions.
For communities and utilities to meet continuing population and
employment growth, a significant financial challenge exists. Canada faces major
costs for infrastructure renewal and expansion. Municipal infrastructure
replacement costs are estimated at more than $125 billion, and electricity
infrastructure replacement and expansion costs are estimated at more than $295
billion. Many more billions of dollars will be required for transportation
infrastructure to keep freight and people moving efficiently. ICES considers
how energy is supplied and consumed in community‐based
land‐use
planning, industry and commerce, transportation, water management, waste
management, and other areas of energy production and end‐use.
QUEST commissioned research by MKJA Jaccard and Associates Inc.,
University of Toronto City Centre, and The University of British Columbia
School of Architecture and Landscape Architecture to estimate the economic
value of integrated energy solutions. The study found that substantial savings
can be achieved: $14 to $29 billion total by 2050 in capital spending; $3 to $6
billion total in energy expenditures in the service and construction sectors;
and, $12.9 to $31 billion annually in costs to households.
ICES can help meet the Government of Canada’s 2012 budget
objectives of achieving sustained economic recovery; creating quality
sustainable jobs; ensuring relatively low rates of taxation; and, achieving a
balanced budget in every urban, rural, remote and Aboriginal community in
Canada.
QUEST proposes three actions
that the Government of Canada could take to meet its objectives:
1. Address Remote Urban, Rural, First Nations, Inuit and Métis
Community Energy Needs with ICES
2. Strengthen National
Competitiveness and International Trade by Investing in ICES
3. Close Known National Information Gaps and Remove Policy Barriers
to ICES
Significant federal investment is being directed towards ensuring a
cleaner energy economy and strengthening Canada’s public infrastructure. QUEST
recommends that $8 million in federal government funding be dedicated to
support ICES initiatives that can lead to substantial cost savings while
achieving these goals.
By supporting ICES initiatives, the federal government can help
businesses and people save billions of dollars, create new jobs, grow the
economy, move towards meeting the federal greenhouse gas emissions reduction
objective of 60 per cent or more by 2050, and reduce energy use in communities
of all sizes.
Context
QUEST - Quality Urban Energy Systems of Tomorrow ‐ www.questcanada.org ‐ is a collaborative
network of organizations - from energy, technology and infrastructure
industries, gas and electric utilities, all levels of government, the civil
society groups and community leaders, researchers and the consulting community
- actively working to make Canada a world leader in the design, development and
application of integrated community energy solutions (ICES). QUEST is working
to mobilize community builders across Canada, including the federal government,
to effectively and efficiently manage energy use in Canada through better energy
planning and investment.[i]
In accordance with the Council of Energy Ministers endorsement of
the Integrated Community Energy Solutions: A Roadmap for Action; the House of
Commons Standing Committee on Natural Resources report, Combining Our Energies:
Integrated Energy Systems for Canadian Communities; the August 2010 Council of
the Federation meeting where the Premiers support the development of Integrated
Community Energy Solutions (ICES); and, based on Canada’s Economic Action Plan
that encourages investment in clean technology, energy efficiency, and public
infrastructure - QUEST is calling on the federal government to continue its
actions that save money, create jobs, grow the economy and reduce energy use in
communities of all sizes and types across Canada by applying an ICES approach.
Maintaining Competitive Communities: Addressing the Affordable Energy Challenge
Across Canada, communities account for nearly 60 per cent of all
energy end‐use
and about 50 per cent of all greenhouse gas emissions. To meet expected
population and employment growth, new investments in energy infrastructure are
needed.
As investments in new and replacement energy infrastructure are
made, the costs of the supply and final consumer cost for energy are expected
to increase and price volatility. Increased energy prices and price volatility
can place financial strain on businesses and manufacturers to maintain a
competitive operating environment and on homeowners and residents in providing
a comfortable and healthy living space and good quality of life. This impact
will be experienced in every urban, rural and remote community across the
country.
Another challenge to meeting the energy needs of Canadians in a
cost‐effective
manner is that energy planning and investment occurs in silos: natural gas is
separate from electricity, distribution separate from transmission, and all
separate from land‐use,
water, waste and transportation.
Integrated Community Energy Solutions: A Way Forward for Sustained Economic Recovery
QUEST is actively leading seminal research, policy analysis,
outreach and capacity building to assist communities, utilities and the broader
community building sector to improve the efficiency and effectiveness of energy
delivery through an ICES approach.
QUEST is responding to this energy infrastructure and investment
challenge by advancing ICES. ICES involves taking advantage of opportunities to
improve energy efficiency beyond individual buildings and houses to encompass
whole communities. ICES considers how energy is supplied and consumed in all
sectors including transportation, land‐use
planning, industry, water management, waste management and others.
QUEST commissioned a national study by leading Canadian energy,
land use, economic and transportation experts about the value of integrated
energy solutions. The study identified: substantial savings ‐ Canadians could save
from
$14 to nearly $29 billion by 2050 from reductions in overall direct
capital spending, as well as spending on labour and energy; reduced energy
expenditures in the service and construction sectors ‐ savings of $3 to $6 billion; and,
substantial savings for families ‐ Canadian households could save anywhere from $12.9 to $31 billion annually in
overall costs and, indirect effects—increased GDP, more jobs, shift toward a
service economy.
Additional work across Canada by QUEST and its partners is
identifying that Canadian products, technologies and expertise related to ICES
are attracting international interest to address a wide range of energy
challenges faced by developed and developing countries. Investing in community‐level integrated
energy solutions can simultaneously free up more of Canada’s energy resources
for export, while reducing the environmental impact of the energy system,
creating local jobs, reduce exposure to rapidly changing market prices for
energy, keep energy dollars invested locally, and improve the resiliency and
capacity of communities to meet local energy needs.
QUEST herein offers three recommendations through which the
Government of Canada could take specific action:
1. Address Remote Urban, Rural, First Nations, Inuit and Métis
Community Energy Needs with ICES
2. Strengthen National
Competitiveness and International Trade by Investing in ICES
3. Close Known National
Information Gaps and Remove Policy Barriers to ICES development
Recommendations:
1. Address Remote Urban, Rural, First Nations, Inuit and Métis
Community Energy Needs with ICES
Initiate integrated energy demand management partnerships for
wealth and job creation in remote urban, rural and First Nation, Inuit and
Métis communities in Canada.
Energy planning in remote urban, rural and First Nation, Inuit and
Métis communities requires special consideration, largely due to the lack of
regional infrastructure, historical management practices, cultural traditions,
smaller populations, and lack of community capacity. Most power and heat
production in Canada’s remote communities is managed by federal or
provincial/territorial agencies. Long‐term
integrated energy planning and demand side management programs (designed to
reduce energy‐use
for power and heat) have not been extensively implemented in remote urban,
rural and First Nation, Inuit and Métis communities in Canada.
The Government of Canada is committed to ensuring the
sustainability of remote communities across Canada. An integrated energy demand
management partnership for wealth and job creation in remote urban, rural and
First Nation, Inuit and Métis communities in Canada should:
· Support federal cross‐departmental
initiatives to establish capacity required for the planning, design and
implementation of integrated energy solutions;
· Showcase the use of diverse energy supply sources and
technologies in communities and military bases;
· Encourage the use of innovative financing models that rely less
on government support and encourage access to new sources of private equity -
particularly from the utility and technology sector; and,
· Provide the needed training and support tools to encourage
communities to undertake integrated energy solutions planning and
implementation.
Budget allocation:
· $5 million over 3 years directed to the establishment of the
initiative.
Rationale/Benefit:
The level of energy used within a community largely determines the
cost to live within that community (from travel to the purchase of food to the
heating and cooling of a home). Remote urban, rural and First Nation, Inuit and
Métis communities depend on expensive, energy intensive sources and systems.
An initiative focused on assisting remote communities would:
· improve reliability and resiliency of energy systems essential to residents
· reduce local environmental impacts and community safety risks
· address challenges in delivering
clean water and critical community services
· provide local jobs, technical capacity and local economic
development opportunities.
Investment in Canadian remote communities, particularly along coastal
areas and arctic locations would further enhance the capacity of Canada to uphold
its access to natural resources and further define and assert sovereignty.
2. Strengthen National Competitiveness and International Trade by
Investing in ICES
Accelerate market uptake through targeted innovation, research and
investment for ICES.
Among the keys to long‐term
economic competitiveness for communities and wealth creation for Canada is
addressing investment gaps in new technology and infrastructure that have the
potential to improve the cost‐effectiveness
of the delivery of energy and other community services. Much of the energy
systems infrastructure and technology in place results in significant wasted
heat and energy lost through out‐dated
and disconnected systems - leaky water pipes are one example ‐ resulting in
increased power consumption and lost energy for pumping and delivering water.
These inefficiencies result in hidden energy costs to Canadians and are a tax
on economic growth and productivity.
A number of federal programs and initiatives already exist that are
encouraging investment in clean energy, energy efficiency and expanding export
market opportunities. QUEST and its partners believe there is an opportunity to
work with government to better deliver these initiatives.
Direction should be given to:
· Federal departments and crown corporations to work cooperatively
with QUEST and national sector agencies and associations to advance common
approaches for the planning and delivery of ICES as it relates to land‐use, water, air,
waste, transportation and energy systems.
· Natural Resources Canada to evaluate the business case for
consumer and market investors for investing in ICES initiatives as a viable
option to conventional practices in association with QUEST and its research
network.
· Ensure that federal financing support is directed to Canadian exporters
of ICES technology, products and services.
· Ensure that dedicated federal funds are available for research,
innovation and showcasing clean technologies and ICES activities.
· Expand accelerated capital cost allowance to cover all ICES‐related activities.
Budget allocation:
· $1 million over 2 years directed to establish common approaches
for the planning and delivery of ICES and to validate the business case for
ICES.
Rationale/Benefit:
The government of Canada has demonstrated leadership in working
with the provinces on the development of the Council of Energy Ministers
Integrated Community Energy Solutions: A Roadmap for Action. Implementation of
the roadmap will require coordination of valuable and limited public resources
and initiatives.
Better integration of federal priorities and programs would:
· facilitate the application of
new technologies and approaches for effectively delivering and managing
energy delivery
· improve regional economic competitiveness
· attract venture capital
· capitalize on cross‐cutting
opportunities with various sectors, including transportation, waste services, building efficiency and water services
· contribute to achieving the federal government greenhouse gas emissions reduction objectives.
3. Close Known National Information Gaps and Remove Policy Barriers
to ICES
Support the development of congruent codes, standards, regulations
and data needs for ICES.
Interest in the application of ICES has grown steadily over the
past few years across Canada, but there remain information gaps that create
challenges for the evaluation of supportive policies and opportunities,
technology standards and industry initiatives. Prevalent is providing relevant
Canadian data to address questions on the application of ICES and informative
practices to bridge public and private sector knowledge. One documented example
concerns energy use and associated greenhouse gas emissions information for
goods movement (freight) at the community level. Goods movement accounts for
nearly 38 per cent of Canada‘s total greenhouse gas emissions for all modes of
transportation.[ii]
To help government departments, research institutes, energy
practitioners, investors, entrepreneurs and industry associates share and
strengthen knowledge about ICES to resolve today’s community energy challenges,
we propose that:
· A common set of tools be established to enable utilities and
communities to better plan and implement ICES;
· Federal departments and crown
corporations work with QUEST, national sector agencies, associations and other
levels of government to resolve conflicting codes, standards, regulations and
guidelines that limit the application of
ICES; and,
· Federal departments (Natural
Resources Canada, Industry Canada and Infrastructure Canada) work with QUEST and
national sector agencies and organizations to confirm an approach for the
modeling, collecting, measurement and reporting of energy data at the community
level.
Budget allocation:
· $2 million over 2 years directed to resolve conflicting codes,
standards, regulations and guidelines that limit the application of ICES and to
confirm an approach for the modeling, collecting, measurement and reporting of
energy data at the community level.
Rationale/Benefit:
Technology is moving fast - codes, standards and regulatory
barriers need to be identified and addressed in a coordinated fashion to
unleash innovation and application of new technology. Having congruent policies
would:
· promote energy literacy
· remove market barriers to investment in ICES concepts, technologies
and planning
· expand the value chain through value‐added job opportunities for ICES.
Locating and assembling information needed to identify, evaluate
and select and implement ICES can be costly and time‐consuming. Relevant national and
community data is often not available, and information that is collected is not
standardized in a way that can be easily replicated. Standardizing the
collection and measurement of energy data would:
· allow for benchmarking among communities across Canada
· allow for informed investment and decision‐ making; contribute to better decisions
for the establishment of incentive and investment programs
· bolster existing federal government programs, such as financing
and tax credit packages.
About QUEST:
The QUEST mission is to foster a community‐based integrated approach to land‐use, energy, transportation, buildings, waste and
water and to reduce related greenhouse gas and air pollutant emissions
and waste. The QUEST vision is that by 2035
every community in Canada is operating as an integrated energy system, and accordingly, all community development and
redevelopment incorporates an integrated energy system.
QUEST is achieving its mission
and vision by working with community builders to:
· Encourage a balanced and informative conversation about energy.
· Support the development of expertise and capacity across Canada
for ICES.
· Prepare inclusive and
independent applied research for the broader public interest.
· Advance improvements in energy systems and how people think about
and use energy.
· Create a collaborative framework for communities to understand and work on their energy futures.