Canada Energy efficiency report

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1 Canada Energy efficiency report Objective: the country does not have quantitative targets for energy efficiency Overview - (%/year) Primary intensity (EU=1)¹ % + CO 2 intensity (EU=1) % - CO 2 emissions per capita (in tco /cap) % - Power generation - (%/year) Efficiency of thermal power plants (in %) % - Rate of electricity T&D losses (in %) 9 -.1% - CO 2 emissions per kwh generated (in gco /kwh) % - Industry - (%/year) Energy intensity (EU=1) % - Share of industrial CHP in industrial consumption (in %) % -- Unit consumption of steel (in toe/t) % Among best countries + Better than the EU average 1 - Below the EU average 1 --Among countries with the lowest performances Latest update: January The European Union, as the best performing region, is used as the benchmark.

2 1. Overview 1.1. Policies: energy efficiency labels and standards Canada has energy efficiency labels and minimum energy performance standards for a large range of appliances and equipment (more than 4 products are presently concerned). Minimum performance standards for standby power use were implemented in. More stringent standards will follow in 212. A program called the ecoenergy Efficiency Initiative involves the investment of more than $1 billion (US$97 million) between and 211 to promote smarter energy use in dwellings, public buildings, transport and industries. The largest part is dedicated to the retrofitting of buildings. As part of the program over $78 million (US$76 million) should be invested between 211 and 213. Under the ecoenergy Retrofit Homes program $4 million (US$388 million) is earmarked in to help homeowners make their homes more energyefficient Energy consumption trends: high energy consumption per capita Canada s energy consumption per capita is very high (7.6 toe in ); it is about 6 percent higher than in the US and 72 percent higher than the OECD average. Over the period - total energy consumption increased by.8 percent/year. However, in it decreased by 5 percent, to just above its level; in it only slightly recovered, growing by 1.2 percent. Oil products represent the main source of energy for consumers, at 36 percent, followed by natural gas (3 percent) and electricity, the contribution of which is particularly high (21 percent). The structure of consumption is relatively stable. The industrial sector is the main energy-consuming sector (28 percent, including 8 percent for non-energy uses), and power generation represents around 13 percent. The distribution by sector is rather stable. Figure 1: Energy consumption trends by sector 3 25 Other Industry Power generation 2 Mtoe The country s electricity consumption per capita is among the highest in the world, at around 15, kwh in, ie more than twice as high as the OECD average and about 2 percent higher than in the US. Electricity represents 22 percent of final energy consumption. Electricity consumption is dominated by industry and households (32 percent each), followed by services (29 percent). Electricity consumption increased on a regular basis between and (+1.5 percent per year) when it reached 539 TWh, and since then has decreased by an average of 1.7 percent per year, to 5 TWh in. Canada Country reports 2

3 Figure 2: Electricity consumption trends by sector 6 5 Industry Others 4 TWh Energy efficiency trends Primary energy intensity (total energy consumption per unit of GDP), measured at purchasing power parity, is 4 percent higher than the OECD average and 24 percent higher than in the US. Primary energy intensity decreased by 1.7 percent/year between and. Industry accounted for 37 percent of that decrease, through a sharp drop in its energy consumption, and the power sector for 13 percent. Figure 3: Energy intensity trends,% - - -,2% -,4% %/year -,6% -,8% -1,% -1,2% -1,4% -1,6% -1,8% Other Industry Power generation Canada Country reports 3

4 2. Power generation: efficiency close to the OECD average The efficiency of the power sector remained steady between and, at 58 percent. It has recently increased and in reached around 6 percent thanks to the closure of certain oil power plants and the spread of more efficient technologies like gas power plants. On average, the efficiency of power generation is close to the OECD average. That high ratio is driven by the major role played by hydroelectricity, the efficiency of which is considered to be equal to 1 percent. Figure 4: Efficiency of power generation and thermal power plants Figure 5: Thermal electricity capacity, by technology % Total power generation Thermal power plants 24 GW 45 4 Steam Gas turbines Combined cycles The rate of transmission and distribution losses (T&D) in the Canadian grid is above 8 percent of the distributed volumes, ie higher than in the US and above the OECD average (6 percent). Those losses are irregular but tend to increase Figure 6: Electric T&D losses % Canada Country reports 4

5 3. Industry 3.1. Policies: ecoenergy for Industry program The program ecoenergy for Industry is designed to improve industrial energy efficiency and decrease energyrelated industrial greenhouse gases. It is expected to achieve energy savings equivalent to the energy used by between 65, and 146, households. In, Canada implemented the accelerated Capital Cost Allowance (CCA), under Class 43.1 and 43.2 of Schedule II to the Income Tax Regulations, which entitles investors to an accelerated write-off of certain equipments used to produce energy in a more efficient way or to produce energy from alternative renewable sources. In 211 CCA was expanded to include equipment that generates electricity using waste heat from industrial processes. The Cross-cutting Measures for Industry Program involves different measures implemented in, including the expansion of the Canadian Industry Program for Energy Conservation (CIPEC); emissions benchmarking studies; improved tracking and reporting of energy efficiency and emission trends; the industrial energy innovators initiative; and support for energy audits Energy consumption trends: no post-crisis recovery in industrial consumption Industrial energy consumption increased at a moderate pace between and (1.1 percent/year). Between and consumption dropped by over 7 percent, with a further drop of 2 percent in. Consumption has failed to recover to pre-crisis levels and remains 12 percent below its peak. Figure 7: Trends in industrial energy consumption Mtoe The share of fossil fuels in the sector s energy consumption has remained stable over time, and stood at around 58 percent in. The use of gas has increased slightly, from 35 percent of the total to around 45 percent in. The use of electricity to meet industrial energy needs has been stable since, at around 3 percent. Biomass is quite developed and accounted for 13 percent of the total in. The share of energy-intensive industries has fallen since, from 54 percent of the sector s consumption to 37 percent in, since the industrial structure evolved over that period. Consumption by the paper industry in particular decreased from 31 percent in to 22 percent in, in line with a lower share in the industrial value added. Canada Country reports 5

6 Figure 8: Energy consumption of industry, by source Figure 9: Energy consumption of industry, by branch 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Biomass Heat Electricity Gas Oil Coal/Lignite 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Other Paper Non metallic minerals Chemical Steel 3.3. Energy intensity trends: noticeable energy efficiency improvements Between and energy consumption per unit of industrial value added decreased by 2 percent/year, on average. That trend continues, although it slowed down dramatically between and, to just.1 percent/year, on average. Energy consumption per unit of production decreased significantly in the steel, cement and chemical industries (around -2 percent/year, -2 percent/year and -3.5 percent/year, respectively, over the period -). Figure 1: Trends in the energy intensity of industrial branches %/year 2.% 1.%.% -1.% -2.% -3.% -4.% -5.% -** -** Total* Steel Chemical Cement -6.% Paper *Including construction and mining **- and - for steel as data are not representative due to the economic crisis Canada Country reports 6