The Ontario Power Authority (OPA) has developed a portfolio of conservation and demand management (CDM)1 programs for the period 2008–2010 based on an analysis of conservation potential, application of program evaluation criteria, and a recent gap analysis based on recommendations by the ICF Consulting Group, Inc. At the same time the OPA’s Conservation Bureau plans to continue to promote adoption of more stringent energy efficiency standards and energy codes.
The proposed program portfolio fills many of the gaps identified by ICF, and has resulted in a number of lauded and successful initiatives, such as updated and widely promoted home energy efficiency programs.
However, a number of shortcomings impede OPA from reaching its objective to reduce energy demand and generate “new supply” via conservation and efficiency.
Recommendations to OPA
The Pembina Institutes recommends the following actions be taken:
- Raise the targets for the 2008–2010 CDM portfolio to at least the cost effective potential identified by ICF — particularly for those programs that include energy efficiency and fuel switching and that reduce base load demand. The current pilot program approach is unnecessary and should be abandoned.
- Develop a long-range plan (based on ICF’s recommendations) that sets out a strategy, timelines, targets and key programs over the next 20 years for achieving permanent base load reduction. This plan should iteratively inform the 2008–2010 program. We further recommend that the CDM 2025 target be raised to 10,000 MW — the effective long-range potential identified by ICF.
- Make explicit linkages between lighting CDM programs and the new National Lighting Initiative and standards aimed at phasing out inefficient lighting. Further, implement similar coordination between programs and regulations for other key end uses such as new building and home construction, air conditioning and industrial drive-power.
- Resolve the confusion over support for self generation as soon as possible.
- In the interest of facilitating a bolder portfolio that serves to transform all electricity using markets and maximizes cost effective CDM,
- immediately establish a process to develop implementation plans or “road maps”
- for market transformation in each sector and end use so that CDM programs and regulatory actions can be designed with a specified role and target within this road map
- retain experienced staff from jurisdictions that have implemented comprehensive CDM programming.
6. Expand the terms of reference of the OPA CDM Business Advisory Group to include
- ongoing guidance to the OPA on the design of the overall CDM strategy, including CDM programs to be delivered by all third parties
- review and approval of priority sector and end-use implementation plans
- working with the OPA on CDM implementation plans or “road maps” for each sector and end use so that a complementary suite of programs is designed for each market segment
- working with the OPA on a long-range base load reduction plan and strategy.
