Issue 73 - January 2025
A look ahead for 2025
| Electricity Canada is jumping right back into the swing of things after the holiday season! Current Affairs sits down with our President and CEO Francis Bradley to discuss upcoming projects, upcoming issues, and some new year’s resolutions for the electricity industry. Hi Francis, thanks for joining us. If the Canadian electricity industry had a new year’s resolution, what would it be? That's a tough one! How about to have the courage of our convictions? Or how about being steadfast in seeking the changes that are going to be required to build the future system? In short, some kind of new year’s resolution that will help us get things done, and will help us get things built. The challenge that the industry faces as we move to the future is this very rapid growth in demand. We need the kind of resolutions that are going to help us meet that very significant challenge. What are the big challenges and opportunities for the electricity sector in 2025? Well, the first challenge would be political change. We're facing a period of significant political change both here at home, where we're expecting an election in the coming year, and with our major trading partner in the North American grid, the United States with an incoming new administration. Navigating that uncertainty is not an insignificant challenge. There always the potential for political whiplash which is when due to change in government to any jurisdiction, if the policy orientation changes by 180 degrees, decisions are going back and forth. This is a concern in a sector like ours where investments are made for generations. The other challenge would be meeting that growing demand, sometimes referred to as resource adequacy. We're seeing demand coming at a much faster clip than anybody had anticipated. A couple of years ago when we were looking to the future, we expected to be in a period of growth right now, driven by the adoption of electric vehicles, and the slow but steady uptake of heat pumps in homes. But it's population growth and the growth of generative A.I. data centres that have suddenly significantly increased. Things are changing fast! I joke that I don't know anybody that six months ago had restarting Three Mile Island nuclear power plant to supply data centres on their bingo card for 2024. Nobody saw that coming. But that's a result of such a rapid change in terms of that demand curve. When you do a chat GPT search instead of a regular Google search, it takes about then times more electricity. That is the new reality. Electricity Canada recently devised a new three-year strategic plan that starts in 2025. What are we hoping to accomplish with this plan? The new strategic plan talks about transition, security and resilience. So as an association, we are seeking to help our members ensure the affordability, the security and the resilience of the electricity system for their customers-which is already their main goal. It is up to us to ensure that we're delivering value to our members in these three areas, that we're developing policy and regulatory solutions, that we're advocating for the adoption of those solutions, and we're communicating about the innovation and the success of the sector so that we can help members deliver on that promise. How would you fill in the blank in this sentence, "In 2025, the electricity sector needs more _____________________"? In 2025, the electricity sector needs more…O
What do the first couple of months look like for you as CEO in 2025? First, I know I’ll be spending more time in Washington. Part of it is due to the uncertainty, but it is part of the four-year cycle when there is a new administration. We need to be there on the ground to be able to build relationships, to be able to ensure that we're able to work with people who will be in the administration, that they understand our sector and know that they can reach out to us to be able to address cross-border issues. I'll also be spending a fair amount of time in Ottawa on a similar tack, talking about potential political change here! Every ten years roughly in Canada, there's been a change in government that tends to last roughly a decade. We're at the tail end of a decade of the Trudeau government. When we’re in periods of political change, it's really an opportunity to make sure that the potential new players understand our sector, and it’s also an opportunity to be able to address some of the challenges and the things that we're concerned about. In our case, whether it's the Fisheries Act or the Impact Assessment Act there's a range of federal regulatory instruments whose cumulative effect and the way they're being implemented, slow down our ability to get moving forward with good and clean energy projects that are going to help us as we continue to decarbonize the economy. In early 2025, myself and a lot of members of the team are going to be focused on if there's going to be political change happening in Canada, what can we do to shape that political change. Or at the minimum, ensure that the people who will be at the centre of that political change have a really good understanding of the importance of the electricity sector, the criticality of ensuring reliability and affordability for customers, and the importance that the electricity sector plays in in terms of being the cornerstone of the of the economy as a whole. |
Other Stories:
- Prime Minister resigns, House of Commons prorogued
- Federal government publishes final Clean Electricity Regulations
- Electricity Canada brings back the Faces of the Industry award
- National Committee to the International Electrotechnical Commission (CANC/IEC) Advisory Forum