Energy conservation is at the center of global sustainable development efforts. To be successful, studies suggested that energy conservation should be a self-driven action. However, demand side management strategies recommend purchasing of third party products, behaviour change and careful monitoring of energy consumption in homes and workplaces (Berkout, 2015). Apart from renewable energy sources such as wind and solar, studies indicated that power consumption appliances such as smart meters also play important role in energy conservation and development. In British Columbia (BC), Canada, two organisations, BC Hydro and FortisBC have been at the forefront in designing and implementing demand side management (DSM) programs to reduce energy consumption, minimise greenhouse (GHG) emissions and attain climate action goals (Gaede et al., 2021). These organisations invest in policies that promote a socio-economic balance in energy conservation and economic status of the users. BC Hydro and FortisBC pushes for inexpensive, sustainable DSM measures that would enhance Canada’s ability to respond to climate change challenges by conserving energy and reducing GHG emissions (Envint Consulting, 2022). In relation to this argument, this paper critically explores how the DSM programs of BC Hydro and FortisBC advance climate action in Canada.
A critical analysis of how the DSM programs of BC Hydro and FortisBC will advance climate action
Introduction
Energy conservation is at the center of global sustainable development efforts. To be successful, studies suggested that energy conservation should be a self-driven action. However, demand side management strategies recommend purchasing of third party products, behaviour change and careful monitoring of energy consumption in homes and workplaces (Berkout, 2015). Apart from renewable energy sources such as wind and solar, studies indicated that power consumption appliances such as smart meters also play important role in energy conservation and development. In British Columbia (BC), Canada, two organisations, BC Hydro and FortisBC have been at the forefront in designing and implementing demand side management (DSM) programs to reduce energy consumption, minimise greenhouse (GHG) emissions and attain climate action goals (Gaede et al., 2021). These organisations invest in policies that promote a socio-economic balance in energy conservation and economic status of the users. BC Hydro and FortisBC pushes for inexpensive, sustainable DSM measures that would enhance Canada’s ability to respond to climate change challenges by conserving energy and reducing GHG emissions (Envint Consulting, 2022). In relation to this argument, this paper critically explores how the DSM programs of BC Hydro and FortisBC advance climate action in Canada .
Discussion
Climate change is a global emergency that needs urgent and sustainable solutions. The goal of these solutions should to minimise the long-term impacts of climate change. For example, studies have shown that GHG emissions from anthropogenic activities are major contributors of climate change (Macarthur, 2016). International Energy Agency (IEA) explained that the building sector contributes considerable share of global GHG emissions accounting for more than 30 per cent of total emissions. As such, DSM measures should make buildings more energy efficient. To respond to buildings’ energy conservation needs, governments and utility companies around the world introduced financial incentives as part of the policy instruments to reduce their energy use and GHG emissions. These financial incentives may include tax credits, rebates, loans, and grants. They assist in enhancing energy efficiency of buildings through removal financial barriers and improve penetration of low-carbon technologies into the energy market (Berkout, 2015). Financial incentives also help in actualisation of other DSM climate action strategies.
Success cost minimisation strategies for climate action should include simultaneous application of energy efficiency measures and DSM alternatives. Low cost energy conservation measures encompass investments in supply of alternative or renewable energy sources, technological products and research and development. According to Berkout (2015), successful DSM strategies should include multiple energy generation options. In line with this suggestion, Berkout (2015) explained that cost effective DSM scenarios include integrated processes assisting in ensuring that the least cost options are considered and the economic and environmental benefits are included within the planning process. DSM helps in meeting energy and capacity needs depending on the targeted end-use and technologies. To achieve optimal energy use targets and minimise emissions, consumers should invest in specific measures in relation to different activities. For example, DSM measures targeting electric heating may include improving thermal envelope of the building, using advanced thermostats, switching to natural gas and so on (Macarthur, 2016). The user may also save energy by using strategies such as interruptible rates and direct load control initiatives. Specific, BC Hydro and FortisBC are taking multiple DSM actions to supplement climate change initiatives in Canada.
DSM programs of BC Hydro
BC Hydro is the largest electricity utility provider in British Columbia province. The company generates over 95% of the total energy used in BC serving around 4 million people (BC Hydro, 2013). BC Hydro has an integrated electricity generation and distribution that include thirty hydroelectric stations, one thermal generator, and more than 80,000 kilometers of transmission and distribution lines. The system is critical to the province’s economy and quality of life among its people. In October 2020, BC Hydro entered 123 electricity purchase agreements with independent power producers (BC Hydro, 2020). These power producers were largely using renewable sources such as solar, natural gas, biomass, wind and hydro. Following these agreements, BC Hydro has achieved more than 98 per cent clean electricity generation. As such, the company is a leader in climate actions and DSM measures to address climate change (Envint Consulting, 2022). While the BC Hydro contributes lower greenhouse gas (GHG) emissions than other energy utilities, there is still need to invest in energy conservation and sustainability programs. As such, BC Hydro is a regional leader in designing and implementation of DSM programs which are advancing climate action in Canada.
Specifically, BC Hydro designed its 2021 Integrated Resource Plan (IRP) to promote energy sustainability and promote climate action goals in Canada. The company identified multiple DSM strategies that it intended to implement towards achieving decarbonized energy mission. Therefore, the 2021 IRP is a guidebook explaining what, when and how BC Hydro will fulfill the evolving energy needs of its customers (Envint Consulting, 2022). The plan is designed to be implemented within a 20-year time frame and will guide decision-making on customers’ energy needs. The IRP is also consistent with the government climate change goals including provincial GHG emission reduction targets and the Utilities Commission Act. The IRP is also a follow-up plan to the BC Hydro’s 1989 power smart program which is one of the earliest energy conservation plans in Canada (BC Hydro Power Smart, 2021). Between 2010 and 2020, BC Hydro Power Smart (2021) indicated that BC Hydro saved 5,400 gigawatt hours per year from their various DSM activities under the power smart program.
Consistent with the climate action mission of Canada which puts the country on course to achieve a near-zero carbon emissions by 2050, BC Hydro’s 2021 IRP is emphasizing clean heating and other renewable energy sources in buildings and industries (Envint Consulting, 2022). The company is investing in technological solutions such as improvements in energy storage capacity to improve accommodation of renewable power. These DSM interventions serve as the main pillar to Canada’s climate action plan. For instance, Canada recognizes that demand side management in distributed energy results in better balance in power supply dynamics and demand on the consumption side (Gaede et al., 2021). Therefore, BC Hydro’s interventions such as early heating and scheduling strategies could accommodate solar power. According to Envint Consulting (2022) such interventions considerably reduce power consumption from thermal power. As such, DSM does not only contribute to climate action through energy savings but also allow more efficient use of the available energy resources.
While the BC Hydro’s power smart program was relatively successful, the company acknowledged that as climate change worsens its energy conservation and emission minimisation plans need to evolve. The company does not only need to continue encouraging conservation measures and smart use of electricity, it should also encourage customers to adopt clean energy alternatives. The BC Hydro’s strategic evolution, Electrification Plan, is consistent with the new CleanBC strategy (Gaede et al., 2021). The new strategy provided a good foundation for the development of infrastructure to supply clean and renewable energy. The energy from these renewable sources was utilized in three key sectors of buildings, industry and transportation. Furthermore, the strategy supported shifting energy heavy daily activities such as heating of homes, production of industrial goods and driving which often utilize fossil fuels to clean electricity. These shifts have been consequential in reducing the level of pollution in the province. In relation to commercial buildings, CleanBC strategy has ensured that 40 per cent of space heating and 30 per cent of water heating comes from natural gas (BC Hydro Power Smart, 2021).
Financial incentives are vital for the energy conservation in buildings. In the CleanBC strategy, the provincial government targeted collaboration with companies such as BC Hydro to support customers with financial incentives for the development of energy efficient electrification measures, energy research and training programs. It also availed funds for commercial renovations and new construction designs. According to Envint Consulting (2022), these measures considerably reduced energy needs in buildings. Furthermore, the financial incentives motivated the customers to shift towards other low energy consuming technological devices. In this regard, Envint Consulting (2022) suggested that the collaboration between the government of BC and BC Hydro on financial incentives for DSM alternatives was greatly successful.
Financial incentives are crucial in purchasing and adoption of energy efficient technologies which are important in advancing climate action. While acknowledging the economic challenges of many consumers in adopting the technological solutions, BC Hydro noted that the transition to new technologies was inevitable if it was to achieve its climate action goals (BC Hydro, 2017). Therefore, the company availed financial incentives to their customers to adopt DSM options such as efficient electric water heaters and heat pumps. However, due to costly nature of these technological suggestions, BC Hydro partners with other levels of governments to finance measures to reduce emissions and support fuel switching initiatives for businesses and commercial buildings (Gaede et al., 2021). Through these partnerships, BC Hydro can be able to easily assist businesses in shifting from fossil fuels to electricity. These incentives enabled many electricity customers to acquire appropriate knowledge on renewable alternatives and designs for buildings. Moreover, BC Hydro incentivized customers to adopt measures such as retrofit in new constructions thus reducing the aggregate energy consumption. In line with this argument, Envint Consulting (2022) showed that CleanBC strategy had helped large commercial customers to hire the BC Hydro’s Energy Manager for their organisations thus helping them identify and implement energy savings and GHG emissions’ minimisation programs.
Customers’ behaviour change is another important objective of successful DSM programs for climate action. BC Hydro invested in various initiatives broadly targeting behaviour change among customers. Rana et al. (2021) explained that these initiatives developed and strengthened understanding of energy consumption and energy-saving behaviours in communities, improved access and implementation of energy-efficient technologies and products at home. According to BC Hydro (2020), the goals of the DSM behaviour change activities included supporting and developing staff resources and capacities in advancing DSM in communities. One of the main components of behaviour change strategies was messaging (Winfield et al., 2020). Specifically, BC Hydro partnered with the indigenous communities in the province by identifying their needs and interests so as to define appropriate activities to implement. BC Hydro Power Smart (2021) highlighted that BC Hydro succeed in messaging by positioning community leaders and administrators as important partners to the projects. The approach helped in addressing the mistrust issues and garnered support and greater participation from the community members.
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- Citation du texte
- Mourine Atsien (Auteur), 2022, Demand-side management solutions in tackling climate change, Munich, GRIN Verlag, https://www.grin.com/document/1326028
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