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While electricity demand has continued to grow, investments into upgrading the infrastructure have not kept pace. As a result, there is significant electricity transmission congestion in a number of regions in North America. Over the longer term, there will also be requirements to build new generation to meet increasing electricity demand and replace aging plants. It is estimated that over 20,000 megawatts of new generation per decade will be needed in Canada to the year 2020.
“The electricity blackout last week highlighted to all stakeholders the critical need to put in place policies and regulatory conditions which will support the industry in making the crucial investments required to upgrade the North American electricity system. In addition to the immediate need to address transmission congestion, demand forecasts clearly indicate that significant new investment will be required for new and replacement generation” said Konow.
“Looking forward at electricity supply and demand over the next 20 years, already tight supply/demand balances in several regions will be exacerbated. More comfortable margins elsewhere will disappear unless there is significant new investment in generation, transmission and distribution” according to Mr. Konow.
The five-point CEA plan calls for an electricity policy framework which would include:
Establishing an investment climate to ensure future electricity supply;
Moving government and industry towards smart and effective regulation;
Working to ensure a sustainable future for the next generation;
Fostering innovation and accelerating skills development;
Building a strong Canadian electricity system while strengthening our North American institutional arrangements.
The electricity system is an economic engine that underpins and enables economic growth in all sectors of the economy. Ensuring a robust and reliable Canadian electricity system is of critical importance to all Canadians.
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