Blog report on the APPrO 2021 Conference
By Sean Mallen
Sean Mallen Communications
December 10, 2021
Power industry professionals attending the APPrO 2021 virtual conference face a scenario that has never been seen since the birth of electrical generation. Climate change is an existential challenge for the world and the power industry is playing a crucial role in finding solutions. At a conference with the theme “The Electric Future,” the word decarbonization was invoked in virtually every session. As Lisa DeMarco, an expert in climate change law who had attended the COP 26 summit in Glasgow just a few weeks earlier and Senior Partner and CEO at Resilient LLP noted, “it’s a nut to crack.”
In a presentation titled “The Planning Outlook,” Chuck Farmer, the Vice President of Planning for the IESO, explained that after years of static demand we are entering a period of growth, potentially much higher growth in the longer term, partly the result of an anticipated upsurge in manufacturing in southwestern Ontario, partly because of the imperative for decarbonization which is fuelling a spike in electric vehicle sales.
“Economic growth and electrification are reshaping the landscape,” said Farmer.
Lesley Gallinger, the new IESO President and CEO, told the conference that Ontario’s electricity sector is already leading the way in the fight against climate change, as one of the cleanest systems in North America, producing only 3 % of the province’s greenhouse gas emissions.
But there are big decisions ahead with the upcoming retirement of the Pickering Nuclear Plant’s reactors, a large, emission-free contributor to the grid. The result will likely be a greater reliance on gas-fired generators over the next decade.
“Here lies the challenge for us all,” said Gallinger. “Our system is changing…and it’s up to all of us to respond to this change.”
At the request of the provincial government, the IESO conducted a study into the implications of phasing out gas by 2030. The conclusion was that it was not feasible, that an abrupt weaning from such an important contributor would lead to blackouts on high demand days and skyrocketing power bills.
“That’s completely unacceptable to our government,” said Ontario Energy Minister Todd Smith in an interview at the conference. Having rejected a 2030 phase-out, he has asked the IESO to explore possibilities for a moratorium on new construction of gas plants. While the government has made a commitment to support the development of electric vehicles in the province, Smith said that the cost of power has to be reasonable.
“We understand the transition to electrification isn’t going to happen unless the system is affordable and reliable. When people plug in their vehicle, they have to know the energy is going to flow,” said Smith.
In a session shared with power producers from New England, Alberta and British Columbia, APPrO President and CEO Dave Butters hailed what he calls Ontario’s “Clean Energy Advantage”—an electricity system that is 94% carbon free and produces only a small fraction of the province’s GHG emissions and that is well-positioned to support electrification.
“Ontario is North America’s climate success story,” said Butters, citing the slogan of a digital campaign APPrO launched in the fall to spread the message.
He added that while the grid must continue to drive towards even lower emissions in the long run, the more immediate challenge is to focus on the big emitters outside the electricity sector, led by transportation and buildings.
The conference heard about a variety of innovations designed to drive decarbonization.
Atura Power, a subsidiary of OPG which operates four combined cycle plants, started a hydrogen business this year, exploring possibilities for a series of demonstration projects around the province.
“We can be a key player and be a leader in a key energy source for tomorrow,” said Chris Fralick, the President of Atura Power.
Small Modular Reactors (SMRs) were the subject of much discussion, particularly OPG’s plan to build one on the site of the Darlington plant by 2028.
Ken Hartwick, OPG President and CEO spoke glowingly of the project.
“Everyone tells me don’t go first. But I’m confident,” he said. “We decided: let’s lead.
We’ll have smart partners and we’ll be successful. We’re excited and hope to be able to announce something soon on that front.”
In fact, just a couple of days after the close of APPrO 2021, OPG announced that it had selected GE Hitachi Nuclear Energy to deploy an SMR at the Darlington new nuclear site, the only site in Canada currently licensed for a new nuclear build. The fight against climate change has given a new life to nuclear power as an emissions free, reliable source of electricity.
Carol Gregoris, OPG’s Project Director for the Darlington New Nuclear project, said SMRs have the potential to be deployed much more quickly than a full sized nuclear plant.
“By having the first of a kind here in Canada, it’s more likely others will reach out to us for solutions. SMRs promise to be the next, more accessible way to add more nuclear to our systems,” she said.
In a virtual round table discussion among power industry CEOs, John Kousinioris of TransAlta Corp spoke hopefully about the promise of technological innovation to help meet the twin demands of delivering more electricity while reducing emissions.
“You can’t help but be optimistic. There will be big breakthroughs,” he said.
Along with decarbonization, a related and complementary theme running through APPrO 2021 was ESG, with a heavy focus on the power industry’s relations with Indigenous people.
Ken Hartwick highlighted OPG’s release this fall of its Reconciliation Action plan, which commits to “growing economic impact for Indigenous communities and businesses to $1 billion over the next 10 years, through ongoing operations, projects and initiatives.”
Hartwick noted that OPG has already partnered with First Nations on several projects.
Brian Vaasjo, President and CEO of Capital Power added: “They often have much greater knowledge of the land and environment. Participation is the right thing to do.”
Vaasjo said that while some progress has been made, and he is pleased with Capital Power’s collaboration with a First Nation just west of Edmonton, the industry still has substantial work to do.
Sean Willy, President and CEO of Des Nedhe Developments brought the message home with his personal story as an Indigenous person born in the Northwest Territories who is now working with consortiums to help make major power developments happen.
“It’s now a reality that you can’t deploy these big projects without Indigenous partnerships and inclusion,” he said.
Heather Campbell of Alberta Innovates added that gender equity should be part of the conversation, calling for more women in STEM (science, technology, engineering and math), particularly engineering.
“Women are drawn to clean tech, but are still significantly under-represented,” said Campbell. “Clean energy is our opportunity to build back better and, in my world, better means inclusive.”
APPrO’s Dave Butters felt that the discussions about equity were a powerful and important theme of the conference, calling meaningful Indigenous participation in power projects “a moral imperative.”
“And it produces a better project. When we talk about inclusivity, it’s about more than gender or race it’s about all the people who live in this country. It’s hard to get there if some people are economically disadvantaged. That’s equity and justice,” said Butters.