Government-Established Energy Targets
| In November, 2010, the ECO released volume 2 of its Annual Report on the progress of activities in Ontario to reduce or make more efficient use of electricity, natural gas, propane, oil and transportation fuels. Click here for more information on this report, including videos and communications materials. | |||||
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Definitions
The ECO’s mandate requires us to report on Ontario’s progress in meeting government-established targets to reduce or make more efficient use of energy. The interpretation of the term “target” by government ministries varies. It ranges from targets that are considered to be aspirational or visionary goals to targets that are considered to be serious commitments requiring achievement of the quantitative metric set out in the targets. The ECO believes this is an unproductive debate and has taken a broad approach in evaluating government commitments: in our view, all government-established targets represent a metric (standard of measurement or point of reference) usually expressed against a baseline for the purpose of evaluating performance. Whether the term target, commitment, vision, goal, challenge or benchmark is used, these are all measurable objectives that should be treated as serious commitments.
The debate over definitions is especially pernicious if it undermines efforts to achieve the stated metric. Described below are several objectives which the ECO considers to be the targets currently guiding the activities of government and utilities. We include them and report on progress to meet them because they inform energy conservation in Ontario. There are also embedded energy conservation targets contained in government policies like the Growth Plan for the Greater Golden Horseshoe and the Climate Change Action Plan. Although they implicitly affect energy consumption, these are not addressed in our report.
Tables 1 and 2 provide a summary of each target. Following the tables is a more detailed explanation of each commitment and a discussion of results achieved against the target.
Table 1: Summary of Government-Established Energy Targets
| Report Section | Initiative | Reponsibility to Address | Announced | Completion Date | Description | Progress on Target |
|---|---|---|---|---|---|---|
| 3.1 | Premiers’ agreement at the 2008 Council of the Federation | Ministry of Energy (ENG) | July 2008 | 2020 | 20 per cent energy efficiency improvement in Ontario by 2020. | Little identified progress. With no methodology to measure progress established, progress is undetermined. |
| 3.2 | Province-wide electricity conservation targets contained in June 2006 Supply Mix Directive (requesting an Integrated Power System Plan [IPSP]) | Ontario Power Authority (OPA) | June 2006 | 2010 | 2,700 MW reduction in peak demand by 2010 (a cumulative target that includes the 2007 electricity conservation target of 1,350 MW) | Although the proposed IPSP which contains the target is no longer valid, it is assumed this target remains in effect. ECO is awatiing final verified results, due September 2011, but the OPA advises that the target will liekly not be met |
| 2025 | A 6,300 MW reduction in peak demand by 2025 (cumulative includes 2010 target of 2,700 MW) | Date likely to be revised landed possibly the savings quantity). No longer considered a valid target | ||||
| 3.3 | Installation of smart meters | Local Distribution Companies (LDCs) with oversight by the Ontario Energy Board (OEB) | 2004 | 2007 and 2010 | A two-step target: 800,000 smart meters installed in homes and small businesses by the end of 2007 and all homes and small businesses by the end of 2010 (estimated 4.5 million meters). | The 2007 target was achieved. The 2010 target is likely to be met. |
| 3.3 | Activation of time-of-use (TOU) prices | LDCs with oversight by the OEB | May 2009 | Summer 2010 and June 2011 | A two-step target: 1 million customers to receive TOU pricing by summer 2010, and 3.6 million by June 2011. | Summer 2010 target was achieved in September 2010 |
| 3.4 | Electricity conservation in Ontario government operations | Ministry of Infrastructure (MOI) with assistance from Ontario Realty Corporation (ORC) | April 2004 and August 2007 | 2007 and 2012 | A two-step target measured against a baseline of 2002/2003 electricity use: reduction in government’s own electricity use by 10 per cent by 2007, and an additional 10 per cent by 2012. | Achievement of 2007 target and progress on 2012 target is undetermined as MOI is verifying baseline consumption.. |
| 3.5 | Low Carbon Fuel Standard | Ministry of Energy | May 2007 | 2020 | 10 per cent reduction in carbon emissions from transportation fuels by 2020. | Little identified progress. Climate Change Secretariat will report on the target in its next annual report. |
| 3.5 | Ethanol in gasoline (Ontario requirement) | Ministry of the Environment (MOE) | October 2005 | January 1, 2007 | 5 per cent ethanol in gasoline by volume. | Achieved. |
| 3.5 | Ethanol in gasoline (federal requirement) Federal renewable standard for biodiesel and heating oil |
Environment Canada | December 2006 | December 15, 2010, and 2011 | 5 per cent ethanol in gasoline nationwide by December 15, 2010. 2 per cent biodiesel content in distillates pool by 2011. |
Ethanol standard likely to be achieved. Achievement of biodiesel standard may be delayed depending on results of cold weather testing. |
| 3.6 | Electric vehicle (EV) purchases | Ministries of : Transportation (MTO), Economic Development and Trade (MEDT), Infrastructure, and Energy. | July 2009 | 2020 | 1 in 20 vehicles driven in Ontario by 2020 to be an EV. | Little identified progress beyond a plan developed by MTO and limited work on fuelling infrastructure by MEDT, MOI and ENG. |
| 3.7 | Education sector energy consumption reduction | School boards assisted by the Ministry of Education (EDU) | 2008 | Not applicable | Establishment of a database to gather energy consumption data and set benchmarks. | No results are yet available. Database launched in August 2009 to be rolled out over two years. |
| 4.7 | Ontario Public Service energy consumption reduction | Ministry of Government Services (MGS) | April 2009 | March 31, 2014 | Annual reduction of 5 per cent for the period 2009-14 in each of vehicle fuel consumption, air travel, and energy used in government buildings. | No results are yet available. The target period began April 1, 2009. |
Table 2: Summary of Natural Gas Utility Conservation Targets
| Report Section | Initiative | Responsibility to Address | Announced | Completion Date | Description | Progress on Target |
|---|---|---|---|---|---|---|
| 4.2 | Enbridge Gas Distribution Ltd. demand-side management target | Enbridge with oversight by the OEB | August 2006 through an OEB decision. Targets updated annually based on regulatory formula and past performance. |
2007–2009 (separate targets for each year) | 2007: $150.0 million net benefits* 2008: $168.3 million net benefits 2009: $210.4 million net benefits |
Exceeded forecast targets in all three years: 2007: $199.8 million net benefits (133% of target) 2008: $182.7 million net benefits (109% of target) 2009: $213.4 million net benefits (101% of target) |
| 4.2 | Union Gas Ltd. demand-side management target | Union Gas with oversight by the OEB | August 2006 through an OEB decision. Targets updated annually based on regulatory formula and past performance. |
2007–2009 (separate targets for each year) | 2007: $188.0 million net benefits 2008: $180.2 million net benefits 2009: $220.2 million net benefits |
Exceeded forecast targets in all three years: 2007: $215.9 million net benefits (115% of target) 2008: $262.8 million net benefits (146% of target) 2009: $308.3 million net benefits (140% of target) |
| Note: Natural gas conservation targets are not considered government-established targets. *Net benefits are the excess of benefits over costs due to the utility’s conservation programs, as measured by the Total Resource Cost test (see section 2.0 for more information). |
