Challenges and opportunities

New investments
Over the last 20 years, the development of North America’s transmission system has fallen behind the development of generation sources. The reasons for this are varied, including low rates of returns on investment, long lead times for the permitting of transmission projects and regulatory uncertainty. Because of this lack of transmission development, North America’s transmission systems are operating at close to peak capacity and, as a result, transmission line losses are increasing. Bottlenecks are also occurring in the power grids where there is not enough transmission capacity to meet demand or to allow electricity to be transmitted through the line to another area. The Canadian Electricity Association has estimated that about $150 billion will be needed in the industry over the next 20 years to replace or add to existing transmission capacity and infrastructure.

Planning and approvals
Many different federal, provincial and local governments and agencies have a role in planning and approvals for new transmission projects. At the same time, local interest groups are demanding an increased role in the planning and decision-making process for transmission projects. These factors are increasing the complexity of the planning process and potentially deterring investors. Industry groups say that clearer and more streamlined regulatory, siting and approval processes are needed to encourage investment dollars required to fund new transmission infrastructure. They also say that new government policies and strategies are required to promote long-term planning and necessary construction of transmission projects.

New standards for power reliability
The 2003 power blackout in Ontario and the United States and the challenges resulting from the unbundling of generation, transmission and distribution in restructured markets in Canada and the United States have prompted the enactment of the new U.S. Energy Policy. Canadian utilities, which are interconnected to U.S. power systems, and policy-makers actively participated in this policy development.

Need for east-west electricity trade
While electricity cross-border trade between Canada and the United States is significant, there has been less trade between provinces. Canadian utilities and government leaders are now exploring ways to strengthen east-west electricity flow, especially between Ontario and Manitoba and Ontario and Quebec, for better flow of electricity between provinces.

Electromagnetic fields
Health concerns have been sometimes raised when new transmission lines are proposed. Exposure to electromagnetic fields (EMFs) has been studied since the late 1970s. The magnetic field is created when electric current flows through any device including electric wiring in a home or automobile. To date scientific research has not found a causal link between EMF exposure and human diseases such as cancer. The industry continues to monitor worldwide research on EMFs and supports further studies to answer remaining questions on potential health effects.