Now is a time of innovation in the electric industry, like no other since Thomas Edison.

Now is the time when wealth can be created as we use our resources and our brains to ensure a resilient and sustainable energy future for all.

Potential wealth creation stems from the fundamental changes occurring in the electricity sector:

• Globally, electricity and heat production are the largest contributors to greenhouse gas (GHG) emissions. Canada is blessed with abundant carbon-free hydroelectric generation, but our energy sector as a whole is a major emitter of climate-changing GHG.
• In response, major investments have been made across the world in designing and implementing renewable sources and energy storage, including wind and solar. The price of those sources is decreasing at double-digit rates per year and they are getting increasingly competitive with traditional sources.
• Wind and solar generation are not only becoming cost effective, but doing so at a much smaller scale than traditional generation. Distributed generation is being installed deep in the electrical grid, at its edges or even behind the meters. The traditional and centralized grid designed by Edison is being transformed into a digital grid of microgrids integrated to local energy resources.
• The new, distributed and digital-enabled electrical grid is more resilient because it relies on multiple and alternate energy sources and paths. The electrical grid then becomes more resilient to extreme weather events that, unfortunately, become more frequent with climate change.
• Residential and industrial customers benefit from improved reliability as they are increasingly dependent on electricity to power our modern life in smart communities and with the advent of electrical transportation.

Innovation and wealth creation opportunities are everywhere in this context. Technical innovation is what drives the decreasing costs of renewable sources for energy users. Vendors need to invent new commercial solutions to balance the new distributed grid and ensure that customers stay powered up. Increasing energy efficiency means that we can do more with less. Utilities and entrepreneurs adopt new business models to better serve customer segments. In particular, utilities, previously defined by their geographic territories, are morphing into energy service providers, often competing with offerings from new entrants, or even competing with each other like never before, driving cost down for Canadian consumers and businesses. The digitalization of the electrical grid creates large quantities of data that new software applications can leverage to increase efficiency and create commercial opportunities. Canadian customers, now with the power of choice, can no longer be taken for granted and demand more.

What is even more dramatic is that the changes affecting the electric industry are shaking a pillar of the Canadian economy. The electric industry touches every home and business in Canada and reliable power is an essential ingredient for the competitiveness of our economy. Electric power generation, transmission and distribution utilities contribute almost $30 billion to the Canadian economy, with electrical equipment manufacturers contributing another $4 billion. This industry employs over 100,000 Canadians, but the Conference Board has estimated that 156,000 workers will be needed to carry out the renewal of Canada’s electricity infrastructure. Canada’s net exports of electricity and electrical products amount to billions of dollars every year. The Canadian electricity system is in need of massive infrastructure renewal. The Conference Board of Canada estimates that by 2030, close to $350 billion in new investment will be required just to maintain existing electricity capacity, with most of Canada’s non-hydro assets needing renewal or replacement by 2050. The importance of the electric industry scales up the potential of wealth creation, but also underlines the perils that we are facing: should the Canadian electric industry fail to renew itself for the challenges of the 21st century, the entire economy of Canada would suffer, with foreign service providers taking control and energy exports dwindling.

In conclusion, accelerating the transformation of the Canadian electric industry is essential. In an industry traditionally defined by centralized generation and rigid geographic boundaries between utilities, new linkages need to occur: utilities and customers, vendors and entrepreneurs, cities and businesses, ensuring that all see the opportunities that didn’t exist before and have the support they need to get their ideas to market quickly. The transformation of the electric industry will ensure that Canadians benefit from the billions of dollars to be invested in the electricity system. The structure of the industry will emerge transformed, with Canadian-owned service providers offering novel energy solutions, backed by a web of hardware, software, and professional service vendors. This will increase the opportunities for Canadians to export their energy, their expertise, and the fruit of their labor.