Navigating Canada's Energy Transition
In January 2019, New Brunswick Power (NB Power), and Nova Scotia Power (NSP) and their partners including Siemens were awarded $35.66 M CAD in federal funding for a joint pilot project, called the Smart Grid Atlantic project. The project is aimed at analyzing challenges and opportunities posed by Canada’s energy transition. The partners will research, and test in real-time, how the grid of the future can optimize integration of renewables, ensure stability of the grid and manage decentralized distribution to better manage the provinces’ electricity. We believe the approach to be tested in this pilot could reduce future electricity costs for consumers and reduce greenhouse gas emissions.
Electricity markets around the world are in the midst of a major transition. The pace of technology advancement, changing customer expectations, emergence of new market entrants and increasing pressures from environmental policies, are leading to a paradigm shift in how future electricity needs are met. This is all set against a backdrop of a multitude of other challenges with which electricity utilities are currently grappling. The current market situation in Canada shows increasing electricity costs, aging infrastructure, constrained operating budgets, increasing security threats and concerns over rising incidents of extreme weather events impacting the electricity system.
The Conference Board of Canada estimates that some $350 billion must be invested in infrastructure by 2030, just to maintain the reliability of the Canadian1 electricity system.
The electrical industry is changing rapidly which has the potential to affect the electricity value chain and poses questions about the role of the traditional electrical utility. Many utilities and their partners are asking themselves what is required in order to become future-ready in this changing energy landscape.
Faced with different challenges, we all must become more agile to adapt to these challenges. As new technologies become available and customer demands evolve, new business models are needed to operationalize technology innovations and drive value for the utility and the electricity sector as a whole. This involves bringing technology together with business and the electricity system, including alignment on regulations and policies.
The complexity and scale of transformation requires collaboration between various players in the electricity system to overcome challenges and find opportunities amid this disruption. Forming mutually beneficial partnerships, aligned on common goals is the most efficient approach to navigate this changing landscape and create a future-ready electricity sector.
The path forward is not to independently navigate energy sector transformation, but to collaborate with other players to fulfill common sector interests. The changes happening in the electricity sector are complex, interdependent and occurring at an unprecedented rate. As such, true innovation cannot happen through the siloed actions of each player but will require coordination across the entire system – in policy, regulation, infrastructure, operations, customer relationships and business models. This level of collaboration will push energy players past their comfort zones, yielding different priorities and fresh perspectives.
Forward thinking utilities, NB Power and Nova Scotia Power, have partnered with Siemens Canada to develop a pilot, officially called the Smart Grid Atlantic project, for the electrical grid of the future. This project is funded in part by the Government of Canada’s Strategic Innovation Fund. The R&D of this project will focus on aspects of energy transition and reducing GHG emissions.
The partners have been awarded $35.66 million to research and test, in real-time, how the grid of the future can optimize integration of renewables, ensure stability of the grid and manage decentralized distribution. This will allow the provinces to better manage the its electricity, potentially reducing future electricity costs for consumers and reducing greenhouse gas emissions.
The government supports the pilot to bring cheaper energy and a more reliable power grid to New Brunswick and Nova Scotia, and create new jobs, reduce greenhouse gas emissions and cement Canada’s place as a world leader in clean technologies.
NB Power and NSP will provide the assets and customer engagement to demonstrate and test the made-in-Canada ESP software and platforms in real scenarios and real time. The project partners have also committed to increased collaboration with post-secondary institutions, driving greater gender diversity in the workforce, developing intellectual property (IP) produced in Canada, and driving more engagement with local indigenous communities in the clean energy sector.
We strongly believe this partnership will be truly ground-breaking. Together with NB Power and Nova Scotia Power, we will develop and implement a powerful cloud-based Energy System Platform (ESP), allowing everyone to participate in the energy market. The ESP will enable data analytics, ensure connectivity, and provide tools for developers to create customer-focused applications and services. The platform will also optimize the overall electrical grid to accelerate transitioning into a greener future not only in Canada but throughout the globe.
Karen Hutt, President and CEO, Nova Scotia Power noted that “Our customers count on us for reliable, affordable and clean energy. As we continue to be a Canadian leader in reducing carbon emissions, we need innovative solutions to add new energy sources to our grid. Contingent on approval by our regulator, investing in the Amherst Smartgrid Project will help us learn how to best incorporate new technologies to serve our customers, while showcasing Amherst as a progressive, smart-energy community”.
Gaëtan Thomas, President and CEO, NB Power noted that “Our goal is to gradually eliminate the remaining 20 to 25 per cent of our generation that is carbon producing while ensuring we protect our customers from the significant rate increases that have resulted from this transition elsewhere. The only way to have a fully renewable future is with smart grid technologies that ease the acceptance of small-scale renewables onto the grid. With these new federal investments, we’ll be able to accelerate our pilot projects and testing to ensure that customers get a greener New Brunswick grid without the disruptions we’re seeing in other parts of the world".
As the energy landscape evolves, awareness and recognition of each player’s perspective within current structures is critical to better understand how to adopt innovation at an accelerated pace. When dealing with a highly complex challenge, new perspectives and varied skillsets are essential to problem solving and taking full advantage of the opportunities that this transition presents. We look forward to seeing more collaborative projects like this in the industry to support the energy transition. We encourage the industry to tackle the challenges presented by the energy transition by taking a similar path. Partnerships and collaboration are key to helping organizations successfully navigate, thrive, and develop robust business models and strategies in this rapidly changing energy sector.
Footnote:
http://www.conferenceboard.ca/e-library/abstract.aspx?did=4673