Conservation: Does cutting back really work?

There's a lot of hype around using renewable energy sources to supply Canada's growing electricity needs and reduce greenhouse gas emissions. But rather than finding better ways to generate more power, one of the most cost-effective ways to ensure there's enough to go around is to improve efficiency and conservation.

"Studies show time and again that for every dollar spent on conservation there will be a $2 or $3 return," says Ben Chin, formerly vice-president of communications at the Ontario Power Authority. "Since 2006, we have spent $1.7 billion on conservation programs and that has saved $3.8 billion in generation costs and has saved 1,700 megawatts."

Chin says the energy saved equates to powering 500,000 homes almost the same capacity as the energy generated in Ontario from Niagara Falls.

Conservation is important, because electricity doesn't have a shelf life.

"Electricity is one of the few manufactured products that has to be consumed the instant it is produced," explains Pierre Guimond, president and CEO of Canadian Electricity Association (CEA).

Ontario isn't the only province trying to conserve electricity. Across the country, governments and energy organizations have launchedprograms to plug into the potential savings. These include:

• British Columbias LiveSmart BC: Efficiency Incentive Program, which offers financial incentives for home energy assessments and in-home efficiency improvements;
• Ontarios Smart Meter program, which offers lower rates to customers who use energy during off-peak hours;
• Saskatchewans Christmas tree light trade-in program that offered a discount coupon for more efficient LED lights in return for incandescent lights.

These are just a few of the myriad conservation efforts across the country. Each year various levels of Canadian government and utilities spend more than $400 million on energy efficiency programs, according to the CEA. One of the main motivators for governments is that it means they don't have to build as much generating capacity to meet peak demand periods, orbuy power at a premium from third party suppliers.

"Managing demand is cheaper than procuring more energy and significantly cheaper than building another generator," says Garry Tollefson, manager of demand-side management at SaskPower, which has been managing energy demand since 2007. SaskPower's programs, including the Christmas light trade-in, have saved 28 megawatts (MW) over the past three years, and the utility expects to save at least 100 MW by 2017.

Increasing demand

Most Canadian regions are growing and need to develop new electrical generating capacity and distribution infrastructure quickly, concluded a recent CEA briefing paper. And while electricity conservation cant meet this growing need entirely, it is integral to keeping demand from outstripping supply.

"There is a large untapped reservoir of energy efficiency potential in Canada which could make a significant contribution to meeting future energy demand," the report said.

BCs Energy Plan, for example, estimates that conservation investments cost between $32 and $76 per megawatt hour saved, while generating a megawatt hour of electricity with natural gas costs between $48 and $100 and with wind between $71 and $74.

It seems obvious, then, that energy conservation and efficiency programs should be an ongoing focus of governments and other agencies that supply power. But that hasnt necessarily been the case.

"There was a decade where Ontario abandoned its conservation and energy efficiency programs," says Chin. "Between 1995 and 2003, nothing was done. It wasnt until 2005 and 2006 that Ontario started to unveil new programs."

'The potential that energy efficiency has for the provinces is enormous.' Mark Winfield, environmental studies professor

Even so, on a province-by-province basis Ontario has been considered a leader inenergy conservation and efficiency, says Mark Winfield, York University environmental studies professor. Ontario has been a promoter partly because it needs to legitimize itsexpansion into nuclear energy by showing it has done all it can to decrease energy demand, he says, but also because it makes financial sense.

"Some provinces have been aggressive and others less so," says Winfield. "Its really been a function of the relative energy security in each province thats affected their energy politics when it comes to energy conservation and efficiency."

Alberta and Quebec, for example, have only recently started to focus on energy efficiency, says Winfield, in part because they have such an abundance of energy resources to draw on. Manitoba, which also has an abundant supply, has been pushing energy efficiency and conservation because it can sell excess energy.

"The potential that energy efficiency has for the provinces is enormous," says Winfield. "It could mean a difference of thousands of megawatts."

Managing growth

Electricity use is growing. By 2050, the CEA expects it will hit 1,700 terawatt hours, almost triple the amount generated in 2007.

Two of the main culprits areplug-in hybrid vehiclesand an increase in the useelectronic gadgets such as computers and big-screen TVs.

Chin says overall energy use in households has been rising since the energy crisis of the 1970s temporarily forced consumers to become more energy conscious. The major demand centre for electricity has now moved from the kitchen to the living room as computers and electrical gadgets became mainstream.

These days,phantom load the amount of power drawn by devices such as televisions and stereos that are "off" but still in standby mode constitutes up to 15 per cent of the energy used in a home and continues to push average usage up, according to National Resources Canada.

So how can the demand for electricity be curbed?

The most common factor that motivates Canadians to become more energy efficient is saving money, according to CEA research. The OPA has found that green champions and cost-conscious consumers make up more than 50 per cent of those who participate in its efficiency and conservation programs.

"You have to compel users to purchase the most efficient products," says Winfield. "And thats a question of putting in place the right incentives and regulatory tools."

California is a leader in promoting the efficiency of new products, says Winfield. To regulate phantom loads, for example, TVs sold in California arent permitted to have a stand-by mode.

"Theres a pattern where California does the heavy lifting and others follow," says Winfield. "Ontarios unofficial policy is to follow California."

"People need to become more aware of the benefits of conserving energy and using it more efficiently," says Chin. "Awareness can be built through campaigns. If you buy a hybrid car, for example, but drive it 10 times as far, it wont save any energy. Unless people understand that, energy cant be saved."