Using energy more efficiently

Energy efficiency means less fuel use to achieve the same electricity output. By using energy more efficiently, Canadians reduce environmental impacts caused by producing and distributing energy, especially the impacts of burning fossil fuels. Energy efficiency is also good for the economy, helping consumers to save on their energy bills and Canadian companies to reduce operating costs.

In Canada, the push toward increased energy efficiency is the result of many actions.

Governments pass laws or regulations that encourage people and businesses to use energy more efficiently. Building codes, for example, set out insulation standards to prevent energy loss from homes. Governments also work with industry to support research and development on emerging energy efficiency technologies.

Industry pursues energy efficiency in its own operations. It also carries out demand-side management programs that encourage energy efficiency improvements by consumers in different ways, including:

• rebates for companies that buy energy-saving equipment
• education programs
• home improvement programs
• energy audits for industrial facilities
• recommendations for energy-saving retrofits

Between 1990 and 2000, these and other initiatives resulted in some key achievements:

• Canada experienced a steady decline in electricity intensity (energy required for each unit of economic growth), lowering the growth rate for electricity demand from earlier decades.
• The industrial sector, which represents almost have half of Canadian electricity demand, achieved an 8.7 per cent improvement in energy efficiency. This occurred through the use of energy-saving equipment (such as high efficiency motors), energy management systems and changes in operating practices.
• Energy efficiency in the residential and commercial sectors improved by 15.1 per cent and 2.7 per cent.
• Energy use in Canada increased by 16 per cent, rather than the 26 per cent that would have occurred without increases in energy efficiency.

Many believe that there remains a huge potential in energy conservation and energy efficiency measures to further decrease demand for electricity. But there are ongoing challenges in managing Canadians’ demand for electricity.

Canadians use electricity more efficiently than ever before, but every year there are more people using it. New appliances are more efficient but more consumers are using them. Homes are more thermally efficient but they are larger. Industry is using electricity more efficiently, but economic growth is creating more businesses and industrial facilities, all of which need electricity.

Electricity demand is predicted to continue to grow about 1 per cent to 1.5 per cent yearly through to 2010 and beyond. Our challenge as a society will continue to be to invest in energy efficiency initiatives with the goal of slowing and managing our growing electricity demand.

In the electricity industry, power companies face various challenges to advancing energy efficiency in their operations. For example:

• The historically low price of electricity in Canada reduces the incentive to invest in energy efficiency programs.
• The restructuring and deregulation of the electricity industry makes it difficult to introduce demand side energy efficiency programs.
• Convincing large numbers of consumers to adopt energy efficient technology will take time and require a significant investment in educating, training and delivery processes and the effective use of incentives.

Industry is developing partnerships with government, other businesses and stakeholders to help overcome these barriers. Options being considered are tax incentives for energy-saving equipment and new energy efficiency education programs.