Pooling Our Energies To Act Effectively

Transcription

1 Pooling Our Energies To Act Effectively Triennial energy efficiency targets, provisional timetable, and priorities for the Comprehensive Energy Efficiency and New Technologies Plan December

2 The tet of this publication is available on the website of the Agence de l efficacité énergétique du Québec: Gouvernement du Québec Agence de l efficacité énergétique Legal deposit Bibliothèque et Archives nationales du Québec, 2008 ISBN: Publication code : AEE

3 Triennial energy efficiency targets, provisional timetable, and priorities for the Comprehensive Energy Efficiency and New Technologies Plan 3

4 Summary In May 2006, the Government of Québec released the Energy Strategy, which looks to energy to build the Québec of tomorrow. With the initiatives it is undertaking, the government intends to make energy efficiency the heart of the Energy Strategy. Ambitious energy savings targets have been adopted for all forms of energy, including petroleum products. On December 13, 2006, the National Assembly assented to the Act respecting the implementation of the Québec Energy Strategy and amending various legislative provisions (S.Q. 2006, c. 46), which stipulates that the Agence de l efficacité énergétique (the Agency) must draw up a comprehensive energy efficiency and new technologies plan (comprehensive plan). The Agency hereby presents the government with the triennial energy efficiency targets and the priorities and provisional timetable for achieving these targets, in accordance with section 22.2 of the Act respecting the Agence de l efficacité énergétique (R.S.Q., c. A-7.001). II

5 This document, entitled Pooling Our Energies To Act Effectively, was approved by the Agency board of directors on December 7, It is based in part on information provided to the Agency by electricity and natural gas distributors. The Agency completed the document with information on fuels and combustibles, new energy technologies, and technologies involving more than one form of energy. The document provides a foundation for the comprehensive plan, which will be central to energy efficiency and new energy technology initiatives implemented in Québec. The comprehensive plan will build on eisting measures and provide added value by: Making a wider range of services and information available to consumers to help them save more energy Putting in place programs and measures applicable to fuels and combustibles Improving access to programs for consumers using more than one type of energy Proposing a research, development, and technological innovation program and related activities in the area of energy efficiency and emerging energies The Québec Energy Strategy sets an overall target of 140,224 terajoules (TJ) (or 3,350,000 tonnes of petroleum equivalent [tpe]) for For the first comprehensive plan, the target is 25,655 TJ (or 612,898 TOE), or 18.3% of the 2015 target. Taking into account the new 11 TWh target for electricity, 17.0% of the overall target of 151,055 TJ (3,608,756 TOE) will be achieved. To achieve the targets set by the government in its Energy Strategy, priorities have been set by the Agency and by energy distributors. They have been developed by taking into account the following: The Agency and energy distributors will analyze 77 initiatives over the net three years. Special effort will be made to reduce consumption of fuels and combustibles, with over half (45 out of 77) the new measures targeting transportation (9 in development) as well as fuel oil, propane, and more than one form of energy (36 in development). It is important to note that this is the first year in which action will be taken with respect to fuels and combustibles. The Agency is confident it will attain the target for these sources of energy by 2015 because identified potential eceeds 17,394 TJ, or 20.7% of the target amount. By combining the actions planned under the CCAP which total 71,267 TJ and the potential identified by the Agency, the overall energy savings currently envisaged for fuels and combustibles slightly eceeds the 2015 target. By 2010, projected energy savings from current and future efforts will reach 42.7% of the new 2015 target of 11 TWh for electricity, 56.5% for natural gas, and 15.1% of the target for fuels and combustibles. Over the same period, these savings will represent about 2.6% of electricity sales by Hydro-Québec Distribution (HQD) and about 3.2% of natural gas sales by Gaz Métro and Gazifère in Québec. As for energy savings related to petroleum products, they should account for about 0.7% of consumption by Lastly, in the years ahead, the Agency will report annually to the Régie de l energie (Régie) on the progress of the comprehensive plan and use of allocated funding. Given that the Régie s mission is to reconcile the public interest, consumer protection, and fair treatment of regulated businesses, energy consumers are sure to be the main beneficiaries of the comprehensive plan. The energy efficiency plans (EEPs) of energy distributors and the Energy Efficiency Fund (EEF) The addition of a fuel oil and propane component to eisting Agency programs, and new initiatives for these forms of energy New activities in the transportation sector, both at the Agency and the Ministère des Transports du Québec Measures to be implemented as part of the Climate Change Action Plan (CCAP) and measures initiated by the federal government New technology development initiatives, including those related to emerging energy sources III

6 IV Table of contents

7 1. Background 2. Results of recent energy efficiency initiatives in Québec 3. Comprehensive Energy Efficiency and New Technologies Plan benefits for consumers 4. Triennial energy efficiency targets, provisional timetable, and priorities 4.1. Review of Québec Energy Strategy targets 4.2. Targets of the first comprehensive plan Other initiatives Regulating buildings and appliances Setting an eample Promotion, awareness, and education Interactions with other sustainable development initiatives Climate Change Action Plan Federal government programs and initiatives Triennial priorities and provisional timetable List of Tables Glossary Residential sector Low-income households New and eisting Business sector Large industry sector Transportation sector New energy technologies sector V

8 1. Background The Québec Energy Strategy released on May 4, 2006, looks to energy to build the Québec of tomorrow. It is one of the components of the government s position on sustainable development ( Climate Change Action Plan [CCAP], the Québec Public Transit Policy, and the government economic development strategy). The Energy Strategy has si objectives, two of which relate directly to the Agence de l efficacité énergétique (the Agency): Use energy more efficiently Innovate with respect to energy To meet these objectives, the government tasked the Agency to prepare a comprehensive energy efficiency and new technology plan (comprehensive plan). The role of the plan is to promote energy efficiency and the development of new energy technologies in all sectors of activity and for the benefit of citizens in all regions of Québec. Subsequent to the release of the Energy Strategy, the Agency launched preliminary consultations on July 5, 2006, on a draft outline for the first comprehensive plan. Some 100 groups with an interest in energy efficiency were contacted, and 26 of them submitted comments. In parallel with the consultation, the Agency set up a working committee in September 2006 with Québec energy distributors Hydro-Québec Distribution (HQD), Gaz Métro, Gazifère, the Energy Efficiency Fund (EEF), Association québécoise du chauffage au mazout, Association québécoise des indépendants du pétrole, and Association québécoise du propane. The Agency works in consultation with these distributors to develop measures for achieving government targets. It also works with the Canadian Petroleum Products Institute. In addition to these measures, other government initiatives, notably under the CCAP, will have an impact on the consumption of fuels and combustibles.. 1

9 1. Background Targets, timetable, and priorities The Act respecting the implementation of the Québec Energy Strategy and amending various legislative provisions (S.Q. 2006, c.46) (the Act) assented to in December 2006 was introduced to support the implementation of the Energy Strategy. Under the act, electricity and natural gas distributors are required to provide the Agency with triennial energy efficiency targets during the first phase of comprehensive plan preparation, as well as a provisional timetable for achieving these targets and triennial priorities. Distributors provided this information to the Agency in April For its part, the Agency is required to prepare the same information with respect to its responsibilities regarding fuels and combustibles, initiatives related to more than one form of energy, and new energy technologies. The Agency was assisted in this task by the Ministère des Transports as well as by the Ministère des Ressources naturelles et de la Faune, which for the past several years has administered an energy technology development assistance program. The Agency then had to collate data from distributors and its own sources in order to present the government with an overview of the targets, timetable, and priorities for energy efficiency and new technologies. This document marks the completion of this first stage. Consultation The Agency will hold a consultation on the comprehensive plan with a wide range of stakeholders, including: Energy distributors Representatives of energy consumers from the residential, commercial, institutional, industrial, and transportation sectors Groups interested in promoting energy efficiency and new energy technologies Tabling, approval, and funding of the comprehensive plan Once the consultation is complete, the Agency will finalize the comprehensive plan by taking into account the comments received and integrating the full range of its energy efficiency and new energy technology programs and initiatives as well as those developed by electricity and natural gas distributors. The measures proposed in the plan will help foster more efficient use of energy and the development and deployment of new energy technologies. By the time the comprehensive plan is tabled (normally in 2008 for the first comprehensive plan), Gaz Métro, the EEF, Gazifère, and HQD will have already submitted proof of energy efficiency for 2008 with their respective rate applications. The Agency will use the data provided in each distributor s Energy Efficiency Plan (EEP) as inputs and will refer stakeholders directly to proof filed in rate cases for questions on topics already dealt with by the Régie. The Agency and the distributors will eamine other possible avenues for the future in order to streamline and harmonize the comprehensive plan approval process. Public hearings will be held on the content of the comprehensive plan. At the end of this process, the Régie will be responsible for approving the annual budget allocations it deems necessary to fund the plan. It will also determine the annual amount each energy distributor must allocate to programs and measures promoting energy efficiency and new energy technologies, including those targeting more than one form of energy administered by the Agency. Once funding for energy efficiency and new energy technology programs and measures is approved, the Régie must ensure that their objectives are met and take into account their impact on the rates charged by energy distributors. Stakeholders will contribute to the development of the comprehensive plan with their comments and suggestions for improvements, notably with respect to measures targeting electricity and natural gas, and for the first time in Canada, fuels and combustibles Lastly, a consultation report will be drafted and incorporated into the comprehensive plan tabled with the Régie de l énergie (the Régie). 1 Additional details are available in a complementary document, primarily on the priorities of each distributor. 2

10 2. Results of recent efforts in energy efficiency in Québec From its inception in December 1997 through to March 31, 2007, the Agency 2 has been the instigator of numerous initiatives for energy consumers in various categories. These initiatives have resulted in total energy savings of 3,959 terajoules (TJ) (or the equivalent of 1.1 terawatt hours [TWh]) directly linked to: Agency actions in the institutional sector Agency support for projects in the industrial sector, notably paper plants Personalized advice to low-income families (through the Éconologis program) Development of a new energy efficient housing concept known as the Novoclimat program The residential energy assessment program and EnerGuide score, now known as Rénoclimat. Gazifère was the first Québec distributor to submit an EEP to the Régie in To date, Gazifère s residential and commercial energy efficiency programs have generated energy savings estimated at slightly over 282 TJ (or 7.4 million m 3 [Mm 3 ]). Gaz Métro launched its EEP in 2000 with programs for its entire residential, commercial and industrial clientele. In 2002, a number of Gaz Métro s energy efficiency programs were transferred to the EEF, including those promoting specific measures for low-income families and programs related to building envelopes and new technologies. Since then, the Gaz Métro EEP has focused on appliance programs and energy efficiency study and implementation assistance programs for business and large industrial customers. Gaz Métro and EEF energy efficiency programs have generated energy savings in the range of 3,808 TJ (100 Mm 3 ) since their inception. HQD submitted its first EEP to the Régie in January The plan targeted all HQD markets for Encouraged by the positive customer response to its programs, HQD has twice revised its initial EEP energy savings target for 2010, increasing it from 10,798 TJ (or 3 TWh) in 2004 to 14,752 TJ (4.1 TWh) in 2005, and then to 16,919 TJ (4.7 TWh) in As of March 31, 2007, HQD energy savings had reached 5,397 TJ (or 1.5 TWh). In light of the positive results generated by the Hydro-Québec EEP and customer enthusiasm for energy efficiency programs, it its realistic to envisage an increase in the Energy Strategy s 8 TWh electricity target. The government would like to achieve an 11 TWh reduction by In partnership with the federal government and electricty and natural gas distributors.

11 2. Results of recent efforts in energy efficiency in Québec Table 1 Recent results, targets, and 2015 targets 85,000 80,000 83,716 75,000 70,000 65,000 60,000 55,000 TJ 50,000 45,000 40,000 39,713 35,000 30,000 25,000 20,000 15,000 10,000 5, ,089 5, ,643 9,768 3, ,976 14,650 Gas Electricity Petroleum Other* Gas Electricity Petroleum Other* Gas Electricity Petroleum Other* 2000 to targets 2015 targets * Other forms of energy include wood and wood materials. table 1 shows recent energy savings from energy efficiency measures in Québec, as well as the targets and projections for 2015, all in terajoules. 4

12 3. Comprehensive Energy Efficiency and New Technologies Plan benefits for consumers Energy consumers, be they individuals who use energy at home or for transportation, or business and industrial interests, do not use energy for energy s sake. They use energy to benefit from the services it provides: heat, light, mobility, driving force, etc. Energy efficiency is all about increasing energy productivity, i.e., using the least energy possible to obtain the desired energy services. Making citizens more energy conscious is the key to strategies for improving energy productivity. When people grow aware of their energy consumption, they tend to ask themselves whether they can obtain their energy services using less energy, and therefore at lower cost. Through its initiatives and programs, the comprehensive plan will make citizens more aware of how much energy they use and its impact in their workplace and on their purchases, travel, and home. The comprehensive plan also aims to round out and provide a framework for the sectoral EEPs developed by electricity and natural gas distributors while at the same time intensifying stepping up efforts in the fuels and combustibles sector. Consequently, in addition to the anticipated energy savings, the comprehensive plan will also help reduce greenhouse gas emissions and save consumers money. In short, the additional benefits of the comprehensive plan are fourfold: Make a wider range of services and information available to consumers to help them save more energy Put in place programs and measures applicable to fuels and combustibles Improve access to programs for consumers using more than one type of energy Propose a research, development, and technological innovation program and related activities in the area of energy efficiency and emerging energies Energy consumers: the main beneficiaries of the comprehensive plan As Québec energy sector players pool their strengths, Québec energy consumers stand to be the main winners. They will save more energy and benefit from access to integrated measures in cases where they use more than one form of energy. They will also enjoy better access to information on the various energy savings programs offered in Québec. Special effort will be devoted to enhancing and strengthening the services currently available to low-income households. Knowledge acquired by the Agency and energy distributors will be pooled to identify the best ways to meet their needs. Access to programs will also be facilitated and encouraged for consumers using more than one form of energy. In the residential sector, the energy assessment service is available to all customers and is the same no matter what type of energy they use. For the business and large industry sectors, the Agency is eamining a collaborative approach in conjunction with distributors to simplify access to analysis and feasibility study programs. Furthermore, streamlined access to financial assistance programs through use of a single form, for eample will help customers navigate more easily among the programs that may apply to them. Increased cooperation between energy distributors will ensure energy consumers come out ahead. 5

13 3. Comprehensive Energy Efficiency and New Technologies Plan benefits for consumers In addition, the Agency will now serve as an information gateway for energy consumers in all categories when they do not know who to turn to or which programs they have access to. Consumers also benefit from the fact that Agency advice is neutral, no matter what form of energy is involved. When necessary, it can refer them to the appropriate energy distributors or provincial or federal authorities. Under the comprehensive plan, it will soon be possible to consolidate all available information on energy efficiency and new technologies in Québec. Ultimately, the comprehensive plan aims to transform markets by introducing lasting changes in their structure and operation. It also seeks to influence consumer behaviour in order to encourage the adoption of energy efficient products, services, and practices. Under the plan, for eample, steps could be taken to have manufacturers adopt a particular product standard before the standard is made mandatory by regulation. It will therefore be necessary to ensure that the approach selected for each program dovetails with a perspective of long-term change and market transformation. Programs and measures for fuels and combustibles Petroleum products account for about 39% of Québec s total energy consumption, most of it 64.5% in the transportation sector. The government Energy Strategy set an energy savings target of 83,716 TJ, or 2 million tonnes of oil equivalent, which corresponds to 10% of current production. For the first time, an organization responsible for energy efficiency programs the Agency will play an active role in this sector. The comprehensive plan will therefore be directed in keeping with the government s desires. The overall target for petroleum products will be achieved through programs developed by the Agency and through government initiatives in the transportation sector, including those provided for in the Climate Change Action Plan and the Québec Public Transit Policy. Involvement by consumers, industry, transportation companies, product and service companies, and distributors of petroleum products will be required. A diverse array of measures will be implemented in various sectors of activity. Possibilities include: Improving the energy efficiency of residential, commercial, industrial, and institutional fuel oil and propane-fired heating units Targeting 5% ethanol content in gasoline Improving automobile and truck performance Promoting the use of public transit Reviewing and introducing new standards for buildings, appliances, and vehicles Some of these measures will be developed and implemented by the Agency, whereas others will be introduced by the Ministère des Transports, the Ministère du Développement Économique, de l Innovation et de l Eportation, and the Ministère du Développement Durable, de l Environnement et des Parcs. Certain measures will be implemented jointly with the Agency. The main initiatives presented for each sector in the first comprehensive plan to improve the energy efficiency of fuels and combustibles are as follows: Residential Approimately 15% of Québec households are heated wholly or in part by fuel oil or propane. For the first year of the comprehensive plan, the priority will be to make the eisting Novoclimat, Rénoclimat, and Éconologis programs available to residential customers using heating oil or propane, fulfilling a need that, by the same token, reaches low income households. Beginning in , the Agency plans to introduce a manpower-training program as well as a program to replace heating appliances with more efficient ones. The various technical, economic, and market studies are underway. Early estimates point to a target of 61 TJ for Business The Agency plans to implement an energy analysis service for small businesses modelled along the residential energy assessment program. For small and medium-sized industries, the Agency will look into providing rapid assistance for feasibility and implementation studies, which could lead to 602 TJ in savings by Moreover, the Agency plans to support municipalities and agrifood businesses that develop energy efficiency action plans, as provided for in the Energy Strategy. The Agency anticipates that program implementation in the business sector could lead to 100 TJ in savings by

14 3. Comprehensive Energy Efficiency and New Technologies Plan benefits for consumers Large industry Given the etensive use of petroleum products in this sector 15% the Agency will priorize initiatives specifically targeting large industry. An outside firm conducted a study of the technico-economic potential of energy efficiency measures for industries using petroleum products for heating and processes. The study estimated potential energy savings of 8,596 TJ (206 million litres of heavy fuel oil) in the large industry sector, especially through process integration. The Agency is involved in developing and implementing the government plan to reduce heavy fuel oil consumption. The plan should reduce consumption by 510 million litres in Québec, 28 million of them by energy efficiency measures, for a total energy savings of 1,168 TJ by Transportation The establishment of programs and measures in the transportation sector is a key element of the comprehensive plan. This part of the plan will encompass a broad array of measures, some of them inspired by initiatives in other provinces or countries. All possible avenues for fuel savings will be eamined by the Agency, which will then be able to implement the measures most beneficial for Québec consumers. The Agency is currently eamining the possibility of introducing financial assistance for the purchase of new fuel efficient vehicles. Preliminary analyses show potential energy savings of about 1,206 TJ (34 million litres). An additional measure to teach energysaving behaviour to light vehicle drivers could generate another 956 TJ in savings (27 million litres). As for vehicle repairs and inspections, they could result in savings of 5,674 TJ (161 million litres of fuel). The Agency anticipates that program implementation in the transportation sector will make it possible to reach a target of 477 TJ by New energy technologies As part of Energy Strategy implementation, the Agency has been mandated to promote new energy technologies. The Strategy indicates that the Agency should earmark about $10 million per year for this purpose. It is for this reason that the Agency is proposing to implement a new technology development support program as part of the first comprehensive plan, notably in the following areas: Energy efficiency, i.e., technologies to improve energy equipment, products, and processes in the building, transportation, and industrial sectors Emerging energy sources, i.e., wind, solar, geothermal, and hydrogen Development of fuels produced using renewable energy and raw materials (including waste materials), such as biodiesel, bio-fuel oil, and ethanol derived from cellulose or waste materials Electric vehicles, including engine and storage battery development The Agency will encourage distributors to pursue initiatives to foster R&D in electrical and natural gas technologies. In addition, it will work in conjunction with distributors of fuels and combustibles to evaluate potential R&D avenues to promote energy efficiency in this sector. While the development of energy technologies may result in the substitution of new forms of energy like geothermal or solar for conventional ones (electricity, natural gas, propane, or fuel oil) this makes it difficult to establish a direct connection between research and innovation activities and a particular form of energy or group of consumers. Emerging energy sources The use of emerging energy sources like geothermal and solar can significantly contribute to energy efficiency and the development of local industry. Technology already eists allowing consumers to use these energy sources to help meet their needs and reduce their consumption of conventional energy. However, one of the obstacles to their more widespread use is the cost of equipment and the time it takes to amortize the investment. The Agency wants to increase use of emerging energy sources. It will work with distributors to develop programs fostering increased use of the available technologies. For eample, a program to encourage installation of solar water heaters could be implemented in the short term. Innovation and technological development are powerful tools for improving energy systems. Efforts in this area make it possible to use both conventional and new energy resources more effectively. They help generate better energy performances for consumers in a contet of sustainable development. This is why it is important to support research & development (R&D), encourage demonstration projects, and facilitate the deployment of energy efficiency and emerging energy technologies. 7

15 4. Triennial energy efficiency targets, provisional timetable, and priorities 4.1. Review of Québec Energy Strategy targets Québec s Energy Strategy sets an overall energy savings target of 140,224 TJ (or 3,350,000 tonnes of petroleum equivalent [tpe]) for 2015: 2,000,000 tpe (83,716 TJ) in petroleum energy (fuels and combustibles) 690,000 tpe (28,882 TJ or 8 TWh) in electrical energy 310,000 tpe (12,976 TJ or 350 Mm 3 ) in natural gas energy 350,000 tpe (14,650 TJ) in other forms of energy (wood, wood residues, etc.) buildings and appliances, labelling, and energy performance certification of buildings during real estate transactions. As for petroleum products, this sector will be targeted for the first time in Québec by energy savings programs. Québec is aiming for a 10% decrease in the annual consumption of petroleum products by 2015, i.e., the equivalent of 13.5 million barrels of petroleum. The economy, the environment, and public health will be directly impacted if these targets are achieved. Attaining them will reduce Québec s total energy bill by $2.5 billion in 2015 and prevent the emission of 9.4 million tonnes of greenhouse gases. The government has set ambitious energy saving targets in order to create an energy saving culture in Québec. The cost-effective measures to achieve the new electrical target of 11 TWh set by the government will require more investment by Hydro-Québec, the Agency, and customers. Certain conditions may be required to help reach this target, including more stringent standards for 8

16 4. Triennial energy efficiency targets, provisional timetable, and priorities Table 2 Total energy savings of the comprehensive plan in natural energy units Sector / Year and period April 1 to March 31 April 1 to March 31 April 1 to March 31 Residential Sector Electricity (GWh) ,020 Natural gas (m 3 ) 2,704,724 5,198,187 7,715,097 Light fuel oil (litres) 451, ,025 1,549,306 Propane (litres) 10,567 21,670 33,309 Business Sector Electricity (GWh) Natural gas (m 3 ) 15,296,492 32,947,639 51,157,037 Light fuel oil (litres) 0 0 2,592,845 Large industry Sector Electricity (GWh) Natural gas (m 3 ) 6,688,880 16,439,005 26,214,130 Heavy fuel oil (litres) ,000,000 Transportation Sector Gasoline (litres) 0 4,748,855 13,464,073 Diesel (litres) 0 96, ,762 New energy technologies Sector Electricity (GWh) Regulations Electricity and hydrocarbons (GWh equivalents) Annual total of the comprehensive plan Electricity (GWh) 721 1,867 2,714 Natural gas (m 3 ) 24,690,096 54,584,831 85,086,264 Light fuel oil (litres) 451, ,025 4,142,151 Heavy fuel oil (litres) ,000,000 Propane (litres) 10,567 21,670 33,309 Gasoline (litres) 0 4,748,855 13,464,073 Diesel (litres) 0 96, ,762 Contribution of the Climate Change Action Plan (CCP) to attaining Energy Strategy targets (petroleum products) in natural energy units (litres) Type of petroleum product April 1 to March 31 April 1 to March 31 April 1 to March 31 Combustible (heavy fuel oil) ,658,998 Fuel (gasoline and diesel) 0 159,648, ,058, These savings are in addition to the target for combustibles (heavy fuel oil) set in the CCAP.

17 4. Triennial energy efficiency targets, provisional timetable, and priorities Table 3 Total energy savings target of the comprehensive plan in terajoules Sector / Year and period April 1 to March 31 April 1 to March 31 April 1 to March 31 Residential Sector Electricity 1,152 2,455 3,671 Natural gas Light fuel oil Propane Business Sector Electricity 810 1,692 2,703 Natural gas 583 1,256 1,950 Light fuel oil Large industry Sector Electricity 594 2,505 2,851 Natural gas Heavy fuel oil ,168 Transportation Sector Gasoline Diesel New energy technologies Sector Electricity Regulations Electricity and hydrocarbons Annual total of the comprehensive plan Electricity 2,595 6,720 9,768 Natural gas 941 2,081 3,244 Light fuel oil Heavy fuel oil 0 0 1,168 Propane Gasoline Diesel Grand total 3,554 9,007 14,818 Contribution of the Climate Change Action Plan (CCAP) to attaining Energy Strategy targets (petroleum products) in terajoules Type of petroleum product April 1 to March 31 April 1 to March 31 April 1 to March 31 Combustibles (heavy fuel oil) 0 0 2,114 Fuel (gasoline and diesel) 0 5,675 8,723 Total fuel and combustibles 0 5,675 10,837 4 These savings are in addition to the target for combustibles (heavy fuel oil) set in the CCAP. 10

18 4. Triennial energy efficiency targets, provisional timetable, and priorities 4.2. Targets of the first comprehensive plan The Agency and electricity and natural gas distributors are contributing to meeting the 2015 Energy Strategy target through their past and present-day initiatives. By pooling current and future efforts, including those under the CCAP, the Agency, energy distributors, companies, and other government bodies will achieve the following energy savings will be achieved in 2010: 42.7% of the 2015 target in the form of electrical energy 56.5% of the 2015 target in the form of natural gas energy 15.1% of the 2015 target in the form of fuel and combustibles energy Tables 2 and 3 on the previous pages show the annual targets for the various forms of energy and the main sectors of economic activity in their natural energy units and in terajoules. In light of the projections set out in the present document, we can see that progress toward achieving the 2015 target for electricity is right on track. However, we cannot solely depend on the good results obtained to date. The Agency and HQD must continue to develop new programs and improve eisting ones. For eample, special attention must be paid to the fact that marginal energy savings will grow increasingly difficult to achieve as the most cost-effective programs are put in place. In addition, people who have already been introduced to the concept of energy efficiency may feel that they have done their part by participating in a program when, in fact, they have not ehausted all the possibilities available to them. Ongoing education is thus required. This also applies to natural gas. The dynamic is completely different for fuels and combustibles. As was the case for energy distributors that were regulated in the past, the targets of Agency programs and initiatives will be relatively modest in the beginning and more ambitious as time goes by. The impacts of the programs and initiatives will start to be felt beginning in We will need to monitor progress and make changes as required. 4.3 Other initiatives Regulating buildings and appliances Québec must develop construction standards that reflect its leadership in energy efficiency and sustainable development. Standards similar or superior to those in force in jurisdictions considered to be leaders in the field such as Ontario, British Columbia, and the Scandinavian countries are essential if we are to meet the goals we have set for The Agency will propose an update of the regulatory provisions governing energy conservation in buildings. Studies on the technical and economic aspects are already underway. Consultations with the appropriate government agencies and industry stakeholders were recently begun to determine the best way to proceed and develop possible scenarios for amending the applicable standards. Once the Agency has determined the optimal scenario, the Régie du bâtiment will take charge. Energy savings will be calculated beginning in 2011 in order to provide sufficient time between applications for construction permits and the inauguration of the new buildings. According to preliminary estimates for residential buildings, annual recurrent savings, using 2011 as the base year, will be 647 TJ (or 185 GWh). However, energy savings will rise dramatically in subsequent years. As for appliances, changes to the Regulation respecting the Energy efficiency of electrical or hydrocarbon-fuelled appliances are being studied. The entry into force of an updated regulation is planned for Québec s main trading partners have tightened their regulatory standards concerning appliances manufactured or sold in their jurisdictions (or have announced their intention to do so), which is why it is in Québec s best interest to rapidly follow suit. Annual savings will total approimately 600 GWh of electricity by

19 4. Triennial energy efficiency targets, provisional timetable, and priorities Setting an eample As an energy consumer, the Government of Québec has set an eample by implementing an energy performance plan. To achieve its goals, the Agency has introduced a new energy efficiency initiative for government buildings, fleets of vehicles, and goods and services purchases: De l énergie pour demain Agissons maintenant! (Energy for tomorrow through action today!) This initiative is comprised of measures that will provide the government with substantial savings by They are aimed at reducing energy consumption by 10% in buildings operated by the Société immobilière du Québec and by school boards, by 14% in buildings in the higher education and health and social services networks, and by 12% in buildings used by other government departments and agencies. The measures will be funded in part by $20 million per year in government funding over the net ten years for buildings in the health and social services and education networks. On the transportation side, the government has targeted a 20% reduction in fleet fuel consumption and greenhouse gas emissions by 2010 with respect to 2003 levels Promotion, awareness, and education The mission of the Agency is to promote energy efficiency and new energy technologies for all forms of energy and in all sectors in order to benefit all the regions of Québec. The Agency hopes that this desire to use energy resources wisely becomes an integral part of the values and practices of all Quebecers. To achieve this goal, the Agency will launch a major public awareness campaign in the net few months complemented by sectoral initiatives aimed at specific groups. The campaign will place particular emphasis on youth education, targeting both teachers and students with a view to inculcating a culture of energy efficiency in Québec. The Agency intends to pursue its advisory role with the Government of Québec with respect to the promotion of better energy consumption practices. As such, it will continue to lend its support to government authorities when they negotiate and sign agreements with neighbouring provinces, American states, and other partners. The Agency will also lend its support to building relations with other countries, notably when Québec hosts foreign missions or sends missions abroad. Lastly, the Agency intends to contribute to the growth of a strong energy efficiency and new energy technology industry in Québec. Numerous initiatives will be introduced to further develop this sector and promote it here at home and abroad Interactions with other sustainable development initiatives Climate Change Action Plan In June 2006, the government unveiled its Climate Change Action Plan (Québec and Climate Change A Challenge for the Future), which includes a commitment to spend $200 million a year on climate change actions and to reduce greenhouse gas emissions by 10 million tonnes. The Agency is associated with five actions set out in the CCAP, three of which will be funded by the Green Fund. The first action will be the implementation of the government s plan to reduce the consumption of heavy fuel oil by 510 million litres through energy efficiency measures, equipment conversion, and other measures. The second action, which will be mainly implemented by the Ministère des Transports, targets the development and deployment of new technologies in the merchandise transportation sector. The third action will be implemented in partnership with the Ministère du Développement économique, de l Innovation et de l Eportation. It will provide tailor-made support for manufacturing enterprises to help them modernize their equipment through the use of new energy-efficient technologies. The fourth and fifth actions, i.e., regulations governing buildings and appliances as well as the eemplary behaviour required of the government, are presented in sections and It should be noted that the targets set out in the CCAP were increased on December 6, 2007, and that energy savings should be apparent by Energy savings targets will be adjusted as warranted. The energy efficiency and new energy technology actions being promoted by the Agency and other government departments under the CCAP are already incorporated in the present document Federal government programs and initiatives The federal government recently launched its ecoenergy initiatives, some of which apply specifically to energy efficiency. The Agency is eamining the opportunities and possibilities of linking its actions with federal initiatives. In the past, such linkages have benefited Québec energy consumers. In addition, if federal standards, regulations, or legislation have an influence on the programs of the Agency or energy distributors, discussions will be held to optimize the benefits for Québec consumers. 12

20 4. Triennial energy efficiency targets, provisional timetable, and priorities 4.4. Triennial action priorities and provisional timetable A variety of programs offered by the Agency, Hydro-Québec, Gaz Métro, Gazifère, and the Energy Efficiency Fund are already up and running. These programs, which contribute to achieving our targets, are presented in the following table. In addition to these eisting programs, the Agency and energy distributors intend to work toward offering various clienteles an even more diversified range of programs and initiatives. Current action priorities were selected based on a number of factors, including the basic principles recognized by the Régie, the time needed to implement the actions, and available resources. The basic principles that served as guidelines for selecting the action priorities were economic profitability, market transformation, fairness, simplicity for consumers, neutrality, and public/ private partnerships. These principles are defined at the end of the present document in the glossary. The following sections 5 give an overview of the action priorities of the Agency and energy distributors over the course of the net three years. 13 Residential Sector Multiple forms of energy Éconologis Novoclimat Single-family homes and multi-unit residential buildings Socio-community organizations and social housing Rénoclimat Energy renovations Low-income households (LIH) Social housing Socio-community organizations COOPs Electricity Home diagnostic Energy Wise residential Electronic thermostats Lighting Energy Star appliances Pool timers Energy Star windows and patio doors Autonomous systems Natural gas Financial assistance for the purchase of Energy Star windows Superior energy-efficiency boilers High-efficiency hot air furnaces Heat reflector panels Shower drain water heat recovery systems Energy-efficient renovation of buildings of socio-community organizations Energy-efficient renovation of social housing Addition of new technologies Programmable electronic thermostats Large Industry Sector Electricity Plant Retrofit Program Major Customers (PAMUGE) Industrial Analysis and Demonstration Program Major Customers (PADIGE) Industrial Initiatives Program Major Customers (PIIGE) Natural gas Energy efficiency feasibility studies and implementation incentives program Programs currently available Business Sector Electricity Initiatives Building Optimization Rate G and M buildings Commercial Institutional HQD buildings Initiatives Industrial Systems Energy-efficient products Building Initiatives Program Major customers (PIBGE) Commercial Institutional Autonomous systems Natural gas Energy-efficient buildings (new and eisting) Heat reflector panels Acquisition programs for more efficient equipment Feasibility study and implementation incentive for energy efficiency measures Air and water solar preheating systems Gray or drain water heat recovery systems New Energy Technologies Sector Multiple forms of energy Energy Efficiency Promotion Program (PPEE) Electricity Industrial Analysis and Demonstration Program Major Customers (PADIGE)- Demonstration Technology Demonstration and Eperimentation Initiatives (IDEA) Marketplace Testing for Energy-Efficient Technologies (AVENUE) Natural gas New technologies and pilot projects 5 In the following sections, all new programs mentioned for possible development must be approved by the Régie before they are introduced. Programs will only be introduced if the various studies and analyses are conclusive and if the Régie gives its approval.

21 4. Triennial energy efficiency targets, provisional timetable, and priorities Residential Sector Low-income Households Residential sector Year 1 Year 2 Year 3 Low-income households Multiple forms of energy Add more energy efficiency measures for low-income family housing based on an evaluation of programs and the recommendations of a working group that involves energy distributors and socio-community organizations. Social component Community component Private component Include fuel oil and propane in the COOP Efficaces program of the Mouvement de l habitation coopérative au Québec (in partnership with HQD, Gaz Métro, and FEÉ). Year Electricity For the Hydro-Québec energy renovation program for low-income households, continue developing measures to promote more efficient electricity use and changes of behaviour. Natural gas Social component Community component Private component Undertake a comprehensive market survey to characterize Gaz Métro s low-income customers in order to develop programs adapted to the real needs of these households. For customers in the Outaouais region, develop new initiatives based on the results of pilot projects conducted by Enbridge Distribution. Fuel oil and propane Etend the Éconologis program to customers using fuel oil and propane. 14

22 4. Triennial energy efficiency targets, provisional timetable, and priorities New and Eisting Residential Sector Year 1 Year 2 Year 3 New and Eisting Multiple forms of energy New residential Introduce tools for do-it-yourself builders to help them construct more energy-efficient homes. Promote the adoption of an integrated design approach among professionals (engineers and architects). Develop a new initiative in the residential construction sector after the new regulation comes into effect. Eisting residential Make the home diagnostic service permanent while, at the same time, consolidating the Rénoclimat approach and eamining the possibility of developing an analysis tool and report specific to Québec. Develop one or more building envelope improvement programs that could be based on the Rénoclimat approach. 2 to 3 units 4 to 20 units 21 units and more General residential Etend the Novoclimat et Rénoclimat programs to customers using fuel oil and propane, and study the possibility of harmonizing the financial assistance programs for all type of energy. Eamine, with HQD, the possibility of adapting the home diagnostic to other types of energy. Integrate and harmonize, if possible, certain initiatives currently available for a single type of energy (doors and windows, shower drain water heat recovery systems, heat reflector panels, green roofs) with other types of energy. Study the possibility of making the home diagnostic compulsory for real estate transactions. Year 15

23 4. Triennial energy efficiency targets, provisional timetable, and priorities Residential Sector Year 1 Year 2 Year 3 New and Eisting Electricity Epand the range of available energy-efficient products by adding new lighting and electronic products. Year Implement special geothermal energy promotions within the framework of the Novoclimat and Rénoclimat programs and contribute to the establishment of structuring initiatives for the industry and geothermal energy. Design and implement a program for Québec consumers to recover energy inefficient refrigerators and freezers. Natural gas Step up actions on geothermal energy and natural gas based on the results of R&D and demonstration projects. Introduce programs to develop more energy-efficient appliances (stoves, fireplaces, dryers, pool heaters, etc.). Promote the use of Energy Star-certified hot air furnaces with a view to transforming the market in the Outaouais region. Fuel oil and propane Develop a worker qualification program for the fuel oil and propane industries. Develop a program for the replace of heating equipment (furnaces, burners, water heaters, etc.). 16

24 4. Triennial energy efficiency targets, provisional timetable, and priorities Business Sector Business Sector Year 1 Year 2 Year Multiple forms of energy Develop an energy analysis and/or feasibility study program for all types of energy. Year Develop an ongoing optimization plan for mechanical systems (commissioning/recommissioning). Develop a program for the small business sector based on HGD s current pilot projects. Develop measures for the agri-food sector. Develop measures to improve refrigeration systems. Integrate and harmonize, if possible, certain initiatives currently available for a single type of energy (energy efficiency renovations, heat reflector panels, solar [air/water] preheating systems and recovery of grey and drain water) with other types of energy. Electricity Improve and step up commercialization of all programs targeting this sector by strengthening, among others, the special business relationship that HQD has with this clientele. Simplify and accelerate the processing applications for support (energy optimization of buildings and industrial systems component). Natural gas Step up actions with respect to the following equipment: Infrared heating apparatus Heat reflector panels - Comparative analysis of new products - Evaluate the current program and, if warranted, modify it More energy-efficient roof units Geothermal energy - Pilot project to develop proven technology - Develop a geothermal program 17

25 4. Triennial energy efficiency targets, provisional timetable, and priorities Business Sector Year 1 Year 2 Year Fuel oil and propane Develop a program to promote the introduction of more efficient technologies. Year Develop a work qualification program. Develop a heating equipment replacement program (furnaces, burners, water heaters, etc.). Other areas of action Develop a program to integrate renewable energies (geothermal, solar, biomass, wind). 18

26 4. Triennial energy efficiency targets, provisional timetable, and priorities Large Industry Sector Large Industry Sector Year 1 Year 2 Year Multiple forms of energy Develop a program to support studies and the implementation of measures, including a process integration component. For fuel oil and propane For all types of energy Year Develop measures for the agri-food sector, notably in the area of refrigeration (processing plants). Support the introduction of energy management processes. Pilot project Program Develop a program to fund energy efficiency investments. Electricity Strengthen the special business relationship with large industrial customers. Promote awareness of the EcoElectric network to increase its popularity. Natural gas Epand the feasibility study and implementation incentive program to the large industry sector. Step up actions targeting infrared heating by evaluating the current program and modifying it, as warranted. 19

27 4. Triennial energy efficiency targets, provisional timetable, and priorities Transportation Sector Transportation Sector Year 1 Year 2 Year Personal vehicles Develop an incentives program for people who buy new fuelefficient vehicles. Develop a driver training and education program to green the driving behaviours of light vehicle owners. Pilot project Program Year Develop a maintenance and repair incentives program for eisting vehicles. Develop a biofuels incentives program. Transportation of merchandise Develop a program to help disseminate energy-saving technologies (aerodynamics, multi-use trailers, etc.). Develop a driver training and education program to green the driving behaviours of heavy vehicle drivers. Develop measures to promote the adoption of optimal mechanical specifications for new heavy vehicle purchases. Pilot project Program Develop a program to evaluate intermodal and logistic potentials. Develop a biofuels incentives program. 20

28 4. Triennial energy efficiency targets, provisional timetable, and priorities New Energy Technologies Sector New Energy Technologies Sector Year 1 Year 2 Year Multiple forms of energy Develop a program to support: R&D and demonstration projects with a call for project proposals component and an unsolicited proposals component Dissemination and deployment of new energy technologies Develop solar and geothermal energy support programs. Pilot project Program Support the development of an R&D and demonstration project network, notably in the petroleum products sector. Electricity Continue eisting projects to demonstrate and test new technologies such as solar pool heaters and building electromechanical systems. Encourage new projects to demonstrate and test new technologies, including residential geothermal electricity and new marketing approaches. Natural gas Identify and develop more energy-efficient hot water heaters and tankless water heaters with a view to developing programs. Deploy proven natural gas/geothermal technology. Develop more energy-efficient roof units. Conduct strategic monitoring to identify and/or develop more energy-efficient household appliances (stoves, fireplaces, dryers, pool heaters, etc.). Conduct strategic monitoring of new hybrid technologies (e.g., hybrid water heaters, hybrid solar/natural gas technologies). Broaden the technology watch activities of EEF to ensure better support for the technologies encouraged by EEF. Fuels and combustibles Support biofuels R&D. Year 21

29 Tables Table 1 Recent results, targets and 2015 targets Table 2 Total energy savings targets of the comprehensive plan in natural energy units Table 3 Total energy savings targets of the comprehensive plan in terajoules 22

30 Glossary Forms of Energy Electricity Type of energy characterized by attractive and repulsive forces, involving the structure of matter, associated with electric charges in movement and at rest. Fuels and combustibles Gasoline, diesel, fuel oil, and propane, with the eception of aviation and marine fuels and the renewable portion of fuels and combustibles. More than one form of energy A program or action that involves more than one type of energy is a program or initiative that can generate savings of various types of energy, depending on the type(s) of energy used by the consumer, without replacing the programs of distributors specific to their form of energy. Natural gas Gaseous and liquid methane. Petroleum products All mitures of hydrocarbons used as fuel, fuel oil, or lubricant, including those from renewable sources. Sectors of Activity Business sector The business sector is made up of consumers from a number of economic sectors (commercial, institutional, municipal, and small industry) that use one or several types of energy for various economic purposes (heating, air conditioning, driving force, etc.). Large industry sector The large industry sector is mainly composed of industries that consume large quantities of energy and whose energy epenses make up a major share of their operating costs. Small and medium-sized industries are also included in this group. New energy technologies sector Innovation in the new technologies sector targets all energy consumers who stand to benefit from measures supporting R&D, demonstration projects, pre-commercialization, and the deployment of new energy technologies in the fields of energy efficiency and new energy production. Residential sector The residential sector is mainly made up of consumers who used one or more types of energy for domestic use (appliances, heating and hot water, etc.). Transportation sector The transportation sector is made up of consumers of fuel, mainly gasoline and diesel. They can take advantage of specific energy efficiency measures for the transportation of merchandise and people. Basic principals that guided that selection of action priorities Fairness Energy efficiency programs are available to all consumers of all types of energy, and must be funded by eligible consumers. Market transformation The principle of market transformation has two dimensions, i.e., a long-term perspective and ongoing efforts. Neutrality The goal of the energy efficiency programs is not to change the market share of the various types of energy. The information and advice provided to consumers must be neutral so as to allow them to make informed decisions in terms of the choice of equipment and measures independent of the type of energy. Profitability/Cost effectiveness According to the total resource cost test (TRCT), the cost of investments by all actors involved must be less than the present value of the energy savings. Programs targeting low-income households do not necessarily have to meet the requirements of this test. Public/private partnerships Insofar as possible, program implementation will be entrusted to the private sector, which should promote the development of its epertise. Simplicity for consumers Access to the programs must be easy and rewarding, that is, free of superfluous red tape and with as few intermediaries between needs identification and project results as possible. 23

31 Agence de l efficacité énergétique du Québec 5700, 4 e Avenue Ouest, B-405 Quebec, Quebec G1H 6R1 Phone: Toll free: Fa: aee@aee.gouv.qc.ca Web Site: