Canada Can Cut Energy Demand 10% By 2025

A study released by the Canadian Gas Association (CGA, www.cga.ca) and the Canadian Electricity Association (CEA, www.canelect.ca) confirms that reducing energy demand growth through energy efficiency and demand side management (DSM) shows considerable potential to help ensure a sustainable energy future in Canada. The study, titled Demand Side Management Potential in Canada: Energy Efficiency Study, concludes that depending on the policy instruments in place across residential, commercial and industrial sectors, a 3 percent to 10 percent reduction in total energy demand by 2025 is possible.

The first of its kind in Canada, the study is national in scope with regional and sectoral breakdowns, and considers energy management for all fuels in all economic sectors except for transportation. The study reports on the results of energy consumption modeled over a 25-year period from 2000 to 2025 under three different scenarios based on a reference (baseline) case. The scenarios were modeled using a bundle of energy management policy instruments ranging from
conventional to very aggressive measures that, according to CGA and CEA, will be a challenge to implement.

Among the policy instruments considered by the research consultants were marginal cost pricing, higher-density land use policies, enhanced energy performance codes and standards, carbon liability, and greater market penetration of energy technologies for onsite application and generation.

"The results of the study confirm the need for greater coordination on energy efficiency policy and program development between governments, utilities, regulators, and other stakeholders", said CGA President and CGA Mike Cleland, in a prepared statement. "This coordination will help identify both barriers to achieving the demand reduction potential and policy instruments that governments are realistically willing to implement".

"This study further illustrates the importance of ensuring that DSM and energy efficiency potential are included in future discussions on Canada’s sustainable energy future," stated CEA President, Hans Konow, in a prepared statement. "In an era of rising energy costs it is vital that consumers be provided options for better managing their energy consumption and consequently their energy bills."

CGA served as project manager on behalf of a working group comprised of federal and provincial governments, the energy utility industry, energy users, and nongovernmental organizations. Funding was provided by Natural Resources Canada (NRCan), CGA and CEA. Founded in 1907, the Canadian Gas Association (CGA) is made up of over 128 companies, organizations and individuals who are involved in the delivery of natural gas in Canada and the United States.

To view Demand Side Management Potential in Canada: Energy Efficiency Study in its entirety, visit www.cga.ca/publications/documents/SummaryReportFinal.pdf.