Facts and Developments

The Impact of Policy Driven Electrification In Canada

by
Issue 2, 2019

In Canada today, there has been growing discussion around electrification, but little analysis of the overall costs, system requirements, benefits and implications of such policies. To shed light on the implications of electrification, the Canadian Gas Association (CGA) commissioned ICF to undertake a study that would help us understand the requirements and impacts of such a policy-driven strategy on the Canadian natural gas industry, and on Canadian consumers.

Beginning with assumptions biased towards electrification (that advanced technology will be available, that the move to such technology can be quick, that cost increases will be low, that system reliability will not suffer, etc.), the study assesses four scenarios. Highlights can be found in Figure 1.

Policy-driven electrification could increase the total energy cost by between $580 billion to $1.4 trillion over the 30 year period between 2020 and 2050.

Figure 1 - ICF Study Examining the Implications of Policy Driven Electrification

Natural Gas Facts:

Over 570,000 kilometres of underground transmission and distribution infrastructure and storage facilities to bring natural gas across the country to over 7.1 million customer locations serving over two-thirds of Canadians.

Households that use natural gas for space and water heating save in the order of $2,000 per year compared to homes using propane, electricity, and heating oil for the same applications.

Natural gas is an important partner for intermittent renewable electricity by providing quick ramping power generation services. In addition, renewable gases are a growing part of the supply mix.

Natural gas use is growing faster than the use of any other energy in our country.

The National Energy Board projects that natural gas will be meeting close to 40 per cent of our energy needs within 20 years.

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