Category Archives: Best Practices

Plan de gestion intégrée des ressources énergétiques (PGIRE) : un cadre pour la transition énergétique du Québec

Résumé

Planification de la gestion intégrée des ressources énergétiques (PGIRE) : L’avenir de la transition énergétique du Québec

Le Québec est à un tournant décisif de son évolution énergétique. L’électrification s’accélère et nous devons moderniser notre réseau, intégrer les énergies renouvelables et assurer la sécurité énergétique. Notre Planification intégrée des systèmes énergétiques (PISE) propose une feuille de route pour optimiser les ressources, équilibrer l’offre et la demande et bâtir un avenir durable. Construisons ensemble un système énergétique résilient !

(LinkedIn : https://www.linkedin.com/pulse/plan-de-gestion-int%25C3%25A9gr%25C3%25A9e-des-ressources-%25C3%25A9nerg%25C3%25A9tiques-pgire-marcoux-lbx1e/)

(English Version : https://www.linkedin.com/pulse/integrated-energy-system-planning-iesp-framework-qu%25C3%25A9becs-marcoux-wc95e/)

#TransitionÉnergétique #Durabilité

Introduction : le Québec à la croisée des chemins de l’électrification

Alors que le virage mondial vers la décarbonisation s’accélère, le Québec se trouve à un moment charnière. La province fait face à plusieurs défis, notamment la nécessité de moderniser les infrastructures du réseau, d’améliorer la fiabilité, d’intégrer des sources d’énergie renouvelable croissantes et de répondre à une demande accrue d’électricité dans des secteurs comme les transports et l’industrie.

Les opportunités sont tout aussi nombreuses. En tant que territoire le plus électrifié en Amérique du Nord, le Québec dispose d’une base solide grâce à ses vastes ressources hydroélectriques et à sa grande industrie de fabrication d’équipements électriques. Cette expertise positionne la province comme un leader dans les exportations d’énergie propre. Cependant, les interconnexions limitées avec les états et provinces voisins constituent un obstacle majeur, limitant la capacité du Québec à optimiser le commerce énergétique.

Réaliser une économie durable et électrifiée nécessite une approche de planification robuste et flexible qui aligne l’offre d’énergie, les infrastructures et les besoins émergents. Conscient de ces dynamiques, le Ministère de l’Économie, de l’Innovation et de l’Énergie du Québec (MEIE) du Québec a entrepris l’élaboration d’un plan de gestion intégrée des ressources énergétiques (PGIRE). Ce plan intégré vise à relever ces défis et à saisir ces opportunités, tout en mobilisant un large éventail de parties prenantes pour en assurer le succès. L’acronyme PGIRE sera utilisé dans ce document, même si l’expression planification intégrée des systèmes énergétiques (en anglais: Integrated Energy System Planning, IESP) est plus souvent utilisée dans l’industrie.

Ce document présente ma perspective personnelle sur les PGIRE en général dans le but de contribuer aux discussions en cours et de fournir des perspectives sur les meilleures pratiques et stratégies pour son développement et sa mise en œuvre efficace. Je suis un expert indépendant et je ne suis pas rémunéré par le gouvernement ou Hydro Québec .

Qu’est-ce que la planification intégrée des systèmes énergétiques ?

La planification intégrée des systèmes énergétiques est un cadre stratégique qui coordonne le développement et l’exploitation de systèmes énergétiques interconnectés. En intégrant plusieurs vecteurs énergétiques, tels que l’électricité, le gaz naturel, l’hydrogène et l’énergie thermique dans des secteurs comme les transports, les bâtiments et l’industrie, le PGIRE permet une distribution d’énergie efficace, résiliente et durable. Par exemple, un PGIRE pourrait documenter les scénarios futurs de demande d’électricité dans une ville en pleine croissance, identifier des sources d’énergie renouvelable potentielles comme des parcs éoliens ou solaires pour répondre à cette demande, et planifier la sortie progressive du gaz naturel pour le chauffage, ainsi que les mises à niveau nécessaires des infrastructures de transmission et de distribution. Cela garantit un équilibre entre l’offre et la demande d’énergie, tout en minimisant les risques, les coûts et les impacts environnementaux, et en améliorant la fiabilité et la résilience.

La transition énergétique implique une électrification accrue, reflétant l’importance croissante de l’électricité dans le chauffage, les transports et les processus industriels. Cependant, d’autres sources d’énergie continueront d’être utilisées, telles que le gaz naturel renouvelable et la biomasse pour le chauffage. De plus, pendant les prochaines décennies, les combustibles fossiles continueront à être utilisés, bien que de manière réduite. En intégrant diverses sources d’énergie, technologies et secteurs, le PGIRE garantit que le système énergétique évolue pour répondre aux objectifs sociétaux, économiques et environnementaux.

Le PGIRE diffère de la planification intégrée des ressources (en anglais: Integrated Resource Planning, IRP), souvent utilisée par les services publics électriques pour prévoir et répondre à la demande d’électricité au sein du système électrique. Contrairement aux IRP des compagnies d’électricité, le PGIRE englobe plusieurs services publics et sources d’énergie, met l’accent sur l’efficacité énergétique et souligne une coordination systémique globale. Certains gouvernements, comme la Californie, mènent des « IRP » à l’échelle de l’État qui fonctionnent effectivement comme des PGIRE, ce qui peut prêter à confusion.

Meilleures pratiques dans le PGIRE

La planification intégrée des systèmes énergétiques implique une approche holistique et prospective pour aligner l’offre d’énergie, les infrastructures et les besoins. Pour garantir une mise en œuvre efficace, certaines meilleures pratiques doivent être adoptées :

1. Orientation stratégique

  • Mandat clair : Les décideurs définissent une vision stratégique soutenue par des politiques claires, visant des objectifs en matière d’énergie renouvelable, de réduction des émissions, de fiabilité, de résilience, d’accessibilité financière et d’efficacité des coûts.
  • Analyse de scénarios : Tester plusieurs scénarios prépare à un large éventail de développements potentiels.
  • Adaptabilité : Des mises à jour régulières garantissent que le plan reste pertinent face aux évolutions technologiques, politiques et conjoncturelles.

2. Collaboration inclusive

  • Engagement des parties prenantes : Une participation large reflète les priorités sociétales, favorise la confiance et assure la responsabilité.
  • Approche interdisciplinaire : Une collaboration intersectorielle évite une planification cloisonnée et favorise des solutions intégrées.

3. Fondations solides

  • Décisions basées sur les données : Des modèles de prévision précis garantissent des décisions informées et fiables, particulièrement pour ce qui est des impacts économiques des scénarios.
  • Financement et ressources : Des investissements financiers suffisants soutiennent le développement des infrastructures et l’innovation.
  • Exécution et supervision : Un suivi continu assure le respect du plan et permet de relever les défis émergents.

En suivant ces pratiques, le PGIRE peut créer un système énergétique durable, résilient et inclusif qui s’adapte aux besoins futurs. Par exemple, le Danemark a réussi à mettre en œuvre des éléments de planification intégrée en combinant l’énergie éolienne avec les systèmes de chauffage urbain, augmentant ainsi l’efficacité énergétique et réduisant les émissions. Alors que le Québec entame son parcours PGIRE, ces principes servent de lignes directrices essentielles pour naviguer dans les complexités de la transition énergétique et assurer un succès à long terme.

Parties prenantes clés dans le PGIRE

Le succès d’un PGIRE repose sur une collaboration efficace entre diverses parties prenantes. Les principaux contributeurs incluent les gouvernements et organismes de réglementation, les services publics, les opérateurs de réseau, les fabricants d’équipements, les leaders de l’innovation, les communautés locales et les groupes de défense. Cet effort collectif garantit que l’expertise issue de divers domaines façonne un système énergétique résilient et inclusif.

1. Gouvernements et organismes de réglementation :

  • Les ministères provinciaux, comme le MEIE au Québec, supervisent et régulent le processus de planification.
  • Les organismes de réglementation énergétique, tels que la Régie de l’énergie, assurent la conformité et la responsabilité.

2. Services publics et opérateurs de réseau :

  • Les services publics, comme Hydro-Québec et Énergir, gèrent la production, la transmission et la distribution d’énergie.
  • L’opérateur de systèmes indépendants (Independent System Operators, ISO), lorsqu’il existe, coordonnent la faisabilité technique et la gestion du réseau. Note: il n’y a pas d’opérateur indépendant au Québec.

3. Contributeurs à la connaissance et à l’innovation :

  • Les institutions académiques et de recherche offrent une expertise, des analyses de données et des solutions innovantes. Le centre de recherche d’Hydro-Québec (IREQ) pourrait contribuer, surtout s’il s’intègre mieux au tissu industriel du Québec.
  • Les experts du secteur privé, comme les cabinets d’ingénierie et de conseil, apportent des connaissances sur les énergies renouvelables, le stockage et les réglementations.
  • Les fabricants d’équipements assurent la conception et l’optimisation des composants nécessaires au fonctionnement des systèmes énergétiques.

4. Parties prenantes locales et communautaires :

  • Les gouvernements locaux et municipalités adressent les besoins énergétiques spécifiques des villes.
  • Les communautés autochtones défendent leurs priorités, leurs droits et leurs préoccupations.
  • Les groupes communautaires et le grand public assurent l’adhésion et reflètent les valeurs sociétales.
  • Les organisations non gouvernementales (ONG), y compris les associations industrielles et commerciales, enrichissent le processus par des perspectives variées, défendant souvent la durabilité, l’équité et des solutions innovantes qui peuvent aider à combler les fossés entre les communautés, les gouvernements et les industries.

Responsabilité pour le développement et le suivi du PGIRE

Le développement et la supervision d’un plan de gestion intégrée des ressources énergétiques doivent être confiés à une entité indépendante dotée d’une expertise technique, d’impartialité et de solides capacités d’engagement des parties prenantes.

Au Québec, ce rôle a été assumé par le MEIE. Généralement, les ministères gouvernementaux sont bien placés pour diriger les initiatives de PGIRE grâce à leur indépendance, leur représentation étendue des parties prenantes et leur autorité pour répondre aux besoins énergétiques à grande échelle. Cependant, ils nécessitent souvent un soutien technique et opérationnel de la part de cabinets d’ingénierie ou de conseil stratégique.

D’autres entités potentielles pour superviser le PGIRE incluent :

  • Organismes de réglementation énergétique : Ces organismes garantissent la conformité et la responsabilité grâce à une supervision indépendante. Toutefois, leur accent sur la régulation peut limiter leur capacité à diriger une planification stratégique.
  • Opérateurs de systèmes indépendants (Independent System Operators, ISO) ou organisations régionales de transmission (Regional Transmission Organizations, RTO) : Ces organisations possèdent une expertise technique et opérationnelle solide, mais leur champ d’action se limite souvent aux réseaux électriques, excluant d’autres sources d’énergie.
  • Services publics : Les services publics peuvent assumer la responsabilité de la planification à condition de couvrir un large éventail de domaines énergétiques. Au Québec, cependant, aucun service public unique ne domine à la fois les marchés de l’électricité et du gaz naturel, rendant essentiel une collaboration ou un soutien de la part d’entités gouvernementales. Assurer l’indépendance des services publics reste également un défi, particulièrement pour ceux détenus par des investisseurs.
  • Consortiums collaboratifs : Les partenariats incluant des gouvernements, des services publics, des institutions académiques et des experts du secteur privé peuvent équilibrer expertise et leadership, mais nécessitent une gouvernance claire pour maintenir le focus et l’autorité.

Résultats attendus et calendrier

Le principal résultat d’un PGIRE est une feuille de route complète pour le système énergétique. Cette feuille de route doit :

  • Tenir compte de diverses sources d’énergie : intégrer l’électricité, le gaz naturel renouvelable, l’hydrogène, la biomasse et les combustibles fossiles (en transition) tout en définissant des stratégies pour intégrer les nouvelles technologies énergétiques et éliminer progressivement les sources non durables.
  • Répondre aux besoins des communautés : aborder les besoins et priorités énergétiques uniques des différentes communautés, notamment en matière d’accessibilité financière, d’accessibilité physique et de considérations culturelles, particulièrement pour les communautés autochtones et les régions mal desservies.
  • Établir une vision à long terme : fournir des prévisions de la demande, des plans de ressources et des stratégies d’investissement alignées sur les objectifs climatiques, tels que la réduction des émissions de gaz à effet de serre et l’amélioration de l’efficacité énergétique.
  • Proposer des étapes détaillées de mise en œuvre : offrir des recommandations politiques, des stratégies de mise à niveau des infrastructures, des stratégies de financement et des étapes précises avec des échéanciers pour garantir une exécution fluide.

Cette approche garantit un système énergétique équilibré, inclusif et prêt pour l’avenir. Le processus de PGIRE s’étend généralement sur 18 à 36 mois, selon l’ampleur et la complexité du projet. Les feuilles de route des systèmes énergétiques sont périodiquement révisées pour rester pertinentes et s’adapter aux conditions changeantes. Les mises à jour intègrent les nouvelles technologies, les évolutions du marché, les changements de politiques et les défis imprévus. Les domaines en évolution rapide, tels que l’intégration des énergies renouvelables ou la résilience du réseau, peuvent nécessiter un suivi annuel. Des rapports transparents renforcent la confiance du public et la responsabilité.

Portée géographique

Le plan de gestion intégrée des ressources énergétiques peut être mis en œuvre à différents niveaux géographiques, chacun offrant des avantages et des défis uniques :

PGIRE au niveau de la ville

  • Intérêt : adapté pour répondre aux demandes locales en énergie et aux défis urbains, tels que l’électrification des transports ou le chauffage urbain.
  • Avantages : solutions personnalisées avec une forte implication communautaire et une gouvernance simplifiée.
  • Défis : impact limité sur les systèmes régionaux plus larges.
  • Exemple : La Renewable City Strategy (RCS) de Vancouver vise à transitionner la ville vers 100 % d’énergie renouvelable d’ici 2050 dans tous les secteurs, y compris les bâtiments, les transports et les systèmes énergétiques. Voir https://vancouver.ca/files/cov/renewable-city-strategy-booklet-2015.pdf.

PGIRE au niveau régional, provincial ou étatique

  • Intérêt : équilibre les ressources énergétiques entre les zones urbaines et rurales, soutenant à la fois les besoins industriels et communautaires.
  • Avantages : partage élargi des ressources et renforcement de la résilience grâce à une collaboration régionale.
  • Défis : nécessite une coordination entre les municipalités et l’alignement de priorités diverses.
  • Exemple 1 : Le plan Integrated Resource Plan (IRP) de la Californie harmonise l’énergie renouvelable et l’intégration urbaine-rurale. Il est mis à jour tous les deux ans pour tenir compte des nouvelles exigences politiques, des objectifs d’intégration des énergies renouvelables et des défis de fiabilité du réseau. Voir https://avaenergy.org/integrated-resource-plan/.
  • Exemple 2 : Le plan énergétique à long terme (LTEP) de l’Ontario, révisé en 2013 et 2017, est remplacé par un nouveau plan intégré des ressources énergétiques (IERP) mis à jour tous les cinq ans. Voir https://www.jdsupra.com/legalnews/ontario-charts-its-energy-planning-7798359/. En outre, l’opérateur indépendant du système d’électricité (IESO) publie chaque année une perspective (https://www.ieso.ca/en/Sector-Participants/Planning-and-Forecasting/Annual-Planning-Outlook).

PGIRE au niveau national

  • Intérêt : supervise les transitions énergétiques à grande échelle, alignant les politiques nationales sur les objectifs climatiques et la sécurité énergétique.
  • Avantages : assure la cohérence des politiques et tire parti des économies d’échelle.Défis : peut négliger les spécificités régionales et les besoins communautaires particuliers.
  • Exemple 1 : La stratégie énergétique du Danemark intègre l’énergie éolienne et le chauffage urbain à l’échelle nationale. Cette feuille de route a été révisée plusieurs fois depuis ses débuts dans les années 1970. Voir https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2013/GWEC/GWEC_Denmark.pdf.
  • Exemple 2 : Le programme Clean Power 2030 (CP2030) de la Grande-Bretagne vise à garantir que la puisse répondre à ses besoins énergétiques principalement grâce à des sources renouvelables d’ici 2030. Cela inclut l’expansion massive des capacités d’énergie éolienne en mer, solaire, et du stockage par batteries, ainsi que l’extension de la durée de vie des centrales nucléaires existantes. Le programme prévoit des investissements annuels estimés à 40 milliards de livres sterling, ainsi que la construction de 1?000 km de lignes électriques et de 4?500 km de câbles sous-marins. Notons que la production éolienne en Grande-Bretagne se fait principalement au Nord, tandis que la demande d’énergie est plus élevée au Sud, une situation similaire à celle du Québec. Voir https://www.neso.energy/publications/clean-power-2030.

PGIRE au niveau continental ou multinational

  • Intérêt : facilite le commerce énergétique transnational, le partage des ressources et le développement des infrastructures.
  • Avantages : soutient les projets à grande échelle et la stabilité énergétique régionale.
  • Défis : implique une gouvernance complexe et un alignement des politiques transfrontalières.
  • Exemple : Le plan de développement du réseau sur dix ans (TYNDP) de l’UE favorise le partage des énergies renouvelables et les réseaux interconnectés. Ce PGIRE transnational est mis à jour tous les deux ans pour refléter les progrès technologiques, les changements dans la demande énergétique et les développements géopolitiques. Voir https://tyndp.entsoe.eu/news/176-pan-european-electricity-transmission-projects-and-33-storage-projects-will-be-assessed-in-tyndp-2024 et https://www.entsog.eu/tyndp.

L’importance de l’exécution

Le succès d’un PGIRE repose largement sur son exécution. Un plan méticuleusement conçu ne peut aboutir sans un chemin clair vers sa mise en œuvre, une supervision robuste et une capacité d’adaptation continue. Les éléments clés d’une exécution réussie incluent :

  • Alignement avec les priorités : Les organismes de réglementation des services publics et les autres parties prenantes doivent s’assurer que les investissements sont alignés sur les priorités définies dans la feuille de route du PGIRE. Les actifs non rentabilisés et les projets mal alignés peuvent engendrer de l’opposition, gaspiller des ressources et retarder les objectifs.
  • Gestion flexible et adaptative : À mesure que les technologies, les marchés et les politiques évoluent, le système énergétique doit rester flexible. Des mises à jour régulières du PGIRE et l’intégration continue de nouvelles données permettront aux parties prenantes de répondre efficacement aux défis et opportunités émergents.
  • Intégration technologique : Exploiter les technologies émergentes qui favorisent la transition énergétique, telles que le stockage d’énergie, les véhicules électriques, l’éolien et le solaire, l’IA, les analyses avancées, la réponse à la demande et les systèmes de surveillance en temps réel, est essentiel. Pour les services publics et les producteurs d’énergie indépendants, ces outils permettent une prévision plus précise de la demande et de la production d’énergie renouvelable, optimisent les systèmes de production (comme l’hydroélectricité) et améliorent l’équilibrage des réseaux. Du point de vue des consommateurs, l’IA peut révolutionner la gestion de l’énergie en optimisant en temps réel le chauffage, la climatisation, la recharge des véhicules électriques, le stockage local et l’éclairage, en fonction des schémas d’occupation et d’utilisation. Ces innovations permettent une collaboration renforcée entre les services publics et les utilisateurs pour atteindre une durabilité accrue, une meilleure efficacité des coûts et une résilience énergétique.
  • Coordination des parties prenantes : Une exécution efficace nécessite une collaboration sans faille entre les gouvernements fédéraux et provinciaux, les municipalités, les services publics, les producteurs d’énergie indépendants, les utilisateurs commerciaux et industriels, la chaîne d’approvisionnement en électricité, les acteurs existants des combustibles fossiles et les groupes communautaires. Des canaux de communication clairs et des rôles bien définis sont essentiels pour assurer l’alignement et éviter les erreurs. Cette approche inclusive garantit que toutes les parties prenantes contribuent à une transition énergétique résiliente et efficace.
  • Confiance publique et transparence : Des rapports transparents sur les progrès renforcent la confiance du public et assurent un soutien à long terme. Par exemple, la communication transparente du Danemark sur ses projets éoliens a considérablement augmenté l’adhésion publique, accélérant l’adoption des énergies renouvelables et l’atteinte d’objectifs climatiques ambitieux. Les parties prenantes doivent s’engager activement auprès des communautés pour maintenir la responsabilité et garantir l’inclusivité.
  • Investissements dans les infrastructures : Des investissements adéquats et opportuns dans les infrastructures critiques, comme les mises à niveau des réseaux, l’intégration des énergies renouvelables et les systèmes de stockage d’énergie, sont essentiels. Ces investissements doivent être planifiés pour gérer la croissance future et les événements météorologiques extrêmes.

Risques d’échec

Les risques qui peuvent mener à une exécution inefficace du PGIRE incluent :

  • Défis de croissance : Les services publics nord-américains, qui ont connu une croissance limitée depuis 2000, doivent adapter et étendre leurs opérations par un facteur de 3 ou 4 d’ici 2050 (bien que ce besoin soit moins prononcé au Québec, étant donné son haut niveau d’électrification). Cette transformation exige que la chaîne d’approvisionnement électrique — englobant les fabricants, les prestataires de services professionnels et les développeurs d’infrastructures — se développe également. Cela nécessitera des stratégies innovantes, des investissements substantiels et une coordination complète des parties prenantes.
  • Fiabilité et résilience : À mesure que les services publics deviennent le principal système de fourniture d’énergie, ils doivent améliorer la fiabilité (minimiser les pannes). Ils doivent également renforcer la résilience (assurer une récupération rapide et une adaptabilité, particulièrement lors d’événements climatiques extrêmes).
  • Rigidité : Une adhésion rigide à des plans dépassés peut conduire à des inefficacités et à des opportunités manquées.
  • Sous-investissement : Un financement insuffisant des infrastructures risque de provoquer des pannes, des goulots d’étranglement et des réactions négatives du public.
  • Fragmentation des parties prenantes : Un manque de coordination entre les acteurs clés compromet les progrès et gaspille les ressources.
  • Inaction retardée : L’hésitation à s’adapter aux conditions changeantes exacerbe les défis existants, retardant les échéanciers pour atteindre les objectifs.

En abordant ces risques de manière proactive et en priorisant l’excellence dans l’exécution, le Québec peut s’assurer que son PGIRE tient sa promesse d’un avenir énergétique résilient et durable.

Recommandations pour le Québec

  1. Établir un organisme de planification indépendant : Envisager une agence de planification énergétique indépendante pour le Québec, inspirée par des entités comme l’Independent Electricity System Operator (IESO) de l’Ontario.
  2. Favoriser l’engagement des parties prenantes : Promouvoir l’implication des municipalités, des communautés autochtones et des acteurs du secteur privé peut enrichir le processus de planification en intégrant des perspectives et des expertises diverses.
  3. Exploiter les forces existantes : S’appuyer sur l’expertise d’Hydro-Québec dans l’hydroélectricité et la gestion des réseaux de transmission ainsi que sur la grande chaîne d’approvisionnement électrique du Québec.
  4. Se concentrer sur la résilience : Prioriser les mises à niveau des infrastructures pour s’adapter à l’électrification et aux événements météorologiques extrêmes.
  5. Définir des indicateurs clairs : Établir des indicateurs de performance pour suivre les progrès et adapter les plans si nécessaire.

Conclusion

Le plan de gestion intégrée des ressources énergétiques offre au Québec une feuille de route vers un avenir durable et électrifié, favorisant la résilience énergétique, la croissance économique et la protection de l’environnement. En adoptant les meilleures pratiques, en relevant les défis d’exécution et en alignant les efforts sur les forces provinciales, le Québec peut se positionner comme un leader mondial dans la transition énergétique.

Integrated Energy System Planning (IESP): A Framework for Québec’s Energy Transition

Summary

Integrated Energy System Planning (IESP): The Future of Québec’s Energy Transition

Québec stands at a pivotal moment in its energy evolution. With electrification accelerating, we must modernize our grid, integrate renewables, and ensure energy security. Our Integrated Energy System Planning (IESP) framework offers a roadmap to optimize resources, balance supply and demand, and build a sustainable future. Let’s shape an efficient and resilient energy system!

(LinkedIn : https://www.linkedin.com/pulse/integrated-energy-system-planning-iesp-framework-qu%25C3%25A9becs-marcoux-wc95e/)

Introduction: Québec at the Crossroads of Electrification

As the global shift toward decarbonization accelerates, Québec stands at a pivotal juncture. The province faces several challenges, including the need to modernize grid infrastructure, improve reliability, integrate growing renewable energy sources, and address increasing electricity demand in sectors such as transportation and industry.

Opportunities are equally abundant. As the most electrified jurisdiction in North America, Québec has a strong foundation in its vast hydroelectric resources and its large electrical equipment manufacturing industry. This expertise positions the province to lead in clean energy exports. However, limited interconnections with neighbouring states and provinces present a significant hurdle, constraining Québec’s ability to optimize energy trade.

Achieving a sustainable, electrified economy requires a robust and flexible planning approach that aligns energy supply, infrastructure, and emerging demands. Recognizing these dynamics, Québec’s Ministry of Economy, Innovation and Energy (Ministère de l’Économie, de l’Innovation et de l’Énergie du Québec (MEIE)) has initiated work on an Integrated Energy System Planning (IESP; in French: Plan intégré des ressources énergétiques, PGIRE). This integrated plan aims to navigate these challenges and opportunities effectively, engaging a diverse set of stakeholders to ensure its success.

This document outlines my own perspective on IESP, aiming to contribute to ongoing discussions and provide insights into best practices and strategies for its development and effective implementation. I am an independent consultant and I am not paid by the government or Hydro Québec .

What Is Integrated Energy System Planning?

Integrated Energy System Planning is a strategic framework that coordinates the development and operation of interconnected energy systems. By integrating multiple energy carriers such as electricity, natural gas, hydrogen, and thermal energy across sectors like transportation, buildings, and industry, IESP enables efficient, resilient, and sustainable energy delivery. For example, an IESP could document future electricity demand scenarios in a rapidly growing city, identify potential renewable energy sources like wind or solar farms to meet this demand, and plan the phase-out of natural gas for heating, along with the necessary transmission and distribution infrastructure upgrades. This ensures that energy supply and demand remain balanced while minimizing risks, costs, and environmental impacts, and improving reliability and resilience.

The energy transition entails greater electrification, reflecting the increasing importance of electricity in heating, transportation, and industrial processes. However, other energy sources will still be used, such as renewable natural gas and biomass for heat. Also, for the next few decades, fossil fuels will continue to be used, albeit in a diminishing way. By integrating various energy sources, technologies, and sectors, IESP ensures that the energy system evolves to meet societal, economic, and environmental goals.

IESP differs from Integrated Resource Planning (IRP), which electric utilities often use to forecast and meet electricity demand within the bulk power system. Unlike utility-focused IRPs, IESP encompasses multiple utilities and energy sources, prioritizes energy efficiency, and emphasizes comprehensive system-wide coordination. Some governments, like California, conduct statewide “IRPs” that effectively function as IESPs, which can cause confusion.

Best Practices in IESP

Integrated Energy System Planning involves a holistic and forward-looking approach to align energy supply, infrastructure, and demands. To ensure effective implementation, certain best practices must be embraced:

1. Strategic Direction

  • Clear Mandate: Policymakers outline a strategic vision supported by clear policies, targeting renewable energy goals, emission reductions, reliability, resilience, affordability, and cost efficiency.
  • Scenario Analysis: Testing multiple scenarios prepares for a range of potential developments.
  • Adaptability: Regular updates ensure the plan remains relevant amidst evolving technologies, policies, and conditions.

2. Inclusive Collaboration

  • Stakeholder Engagement: Broad participation reflects societal priorities, fosters trust, and ensures accountability.
  • Interdisciplinary Approach: Cross-sector collaboration prevents siloed planning and promotes integrated solutions.

3. Robust Foundations

  • Data-Driven Decisions: Accurate forecasting models ensure informed and reliable decision-making, particularly in terms of the economic impacts of the scenarios.
  • Funding and Resources: Adequate financial investments support infrastructure development and innovation.
  • Enforcement and Oversight: Continuous monitoring ensures adherence to the plan and addresses emerging challenges.

By following these practices, IESP can create a sustainable, resilient, and inclusive energy system that adapts to future needs. For instance, Denmark has successfully implemented elements of integrated planning by combining wind energy with district heating systems, resulting in increased energy efficiency and reduced emissions. As Québec embarks on its IESP journey, these principles serve as essential guidelines to navigate the complexities of the energy transition and achieve long-term success.

Key Stakeholders in IESP

Integrated Energy System Planning succeeds when diverse stakeholders collaborate effectively. Key contributors include government and regulatory bodies, utilities, grid operators, equipment manufacturers, knowledge and innovation leaders, local communities, and advocacy groups. This collective effort ensures that expertise from various domains shapes a resilient and inclusive energy system.

Government and Regulatory Bodies:

  • Provincial (state) departments, like the MEIE in Québec, oversee and regulate the planning process.
  • Energy regulators, such as utility commissions or energy boards (Régie de l’énergie in Québec), ensure compliance and accountability.

Utilities and Grid Operators:

  • Utilities, like Hydro-Québec and Energir, handle energy generation, transmission, and distribution.
  • Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs), when they exists, manage the grid and technical feasibility where applicable. Note: there is no independent operator in Québec.

Knowledge and Innovation Contributors:

  • Academic and research institutions offer expertise, data analysis, and innovative solutions. The Hydro-Québec research centre (IREQ) could contribute, especially if it integrates better into Quebec’s industrial fabric.
  • Private sector experts, such as engineering and business consulting firms, provide knowledge in renewable energy, energy storage, advanced technologies, regulations, and experiences from other jurisdictions.
  • Equipment manufacturers provide indispensable expertise in the design, production, and optimization of the components needed to build and maintain energy systems, ensuring a robust and adaptive supply chain.

Local and Community Stakeholders:

  • Local governments and municipalities address city-specific energy needs and integration efforts.
  • Indigenous communities advocate for rights, priorities, and land use considerations.
  • General public and community groups reflect societal values and secure buy-in for proposed changes.
  • Non-Governmental Organizations (NGOs), including industry and business associations, offer diverse perspectives, often championing sustainability, equity, and innovative solutions that can help bridge gaps between communities, governments, and industries.

Responsibility for IESP Development and Monitoring

The development and oversight of an IESP should be managed by an independent entity equipped with technical expertise, impartiality, and strong stakeholder engagement capabilities.

In Québec, this role has been taken on by the MEIE. Generally, government ministries are well suited to lead IESP initiatives due to their independence, broad stakeholder representation, and authority to address large-scale energy needs. However, they often require technical and operational support from engineering or strategy consulting firms.

Other potential entities to oversee IESP include:

  • Energy Regulators: These bodies ensure compliance and accountability through independent oversight. However, their focus on regulation might limit leadership in strategic planning.
  • Independent System Operators (ISOs) or Regional Transmission Organizations (RTOs): These organizations have strong technical knowledge and operational expertise but are limited by their focus on electricity grids, excluding other energy sources.
  • Utilities: Utilities may lead planning provided they have sufficient coverage across energy sectors. In Québec, however, no single utility dominates both electricity and natural gas markets, making collaborative leadership or support from government entities essential. Ensuring independence of utilities also remains a challenge, particularly for investor-owned utilities.
  • Collaborative Consortia: Partnerships that include government, utilities, academia, and private sector experts can balance expertise and leadership but require clear governance to maintain focus and authority.

Outputs and Timeline

The primary output of an IESP is a comprehensive energy system roadmap. This roadmap must:

  • Account for Diverse Energy Sources: Incorporate electricity, renewable natural gas, hydrogen, biomass, and fossil fuels (in transition) while outlining strategies for integrating new energy technologies and phasing out unsustainable sources.
  • Meet Community Needs: Address the unique energy demands and priorities of various communities, including affordability, accessibility, and cultural considerations, particularly for Indigenous communities and underserved regions.
  • Establish a Long-Term Vision: Provide demand forecasts, resource plans, and investment strategies that align with climate goals, such as reducing greenhouse gas emissions and increasing energy efficiency.
  • Detailed Implementation Steps: Offer policy recommendations, infrastructure upgrade strategies, funding strategies, and specific milestones with timelines to ensure smooth execution.

This approach ensures a balanced, inclusive, and future-ready energy system. The IESP process typically spans 18 to 36 months, depending on scope and complexity. Energy system roadmaps are periodically revised to stay relevant and adapt to changing conditions. Updates integrate new technologies, market shifts, policy changes, and unexpected challenges. Fast-evolving areas like renewable integration or grid resilience may need annual monitoring. Transparent reporting builds public trust and accountability.

Geographic Scope

Integrated Energy System Planning can be implemented at different geographic levels, each offering unique advantages and challenges:

City-Level IESP

  • Focus: Tailored to address local energy demands and urban challenges, such as electrifying transportation or district heating.
  • Advantages: Provides customized solutions with strong community engagement and simplified governance.
  • Challenges: Limited impact on broader regional systems.
  • Example: Vancouver’s Renewable City Strategy (RCS) is a comprehensive plan designed to transition the city to 100% renewable energy by 2050 across all sectors, including buildings, transportation, and energy systems. See https://vancouver.ca/files/cov/renewable-city-strategy-booklet-2015.pdf.

Regional, Provincial, or State-Level IESP

National-Level IESP

  • Focus: Oversees large-scale energy transitions, aligning national policy with climate goals and energy security.
  • Advantages: Ensures consistency in policies and leverages economies of scale.
  • Challenges: May miss regional nuances and specific community needs.
  • Example 1: Denmark’s energy strategy integrates wind energy and district heating on a national scale. This roadmap has been revised multiple times since its inception in the 1970s. See https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2013/GWEC/GWEC_Denmark.pdf.
  • Example 2: Great Britain’s Clean Power 2030 (CP2030) programme aims to ensure that the country can meet its energy needs primarily from renewable sources by 2030. This includes the massive expansion of offshore wind, solar, and battery storage capacity, as well as extending the life of existing nuclear power plants. The programme includes an estimated annual investment of £40 billion, as well as the construction of 1,000 km of power lines and 4,500 km of submarine cables. It should be noted that wind power production in Great Britain is mainly in the North, while energy demand is higher in the South, a situation like that of Québec. See https://www.neso.energy/publications/clean-power-2030.

Continental or Multi-Country IESP

The Importance of Execution

The success of an IESP depends heavily on its execution. A meticulously designed plan will fall short without a clear pathway to implementation, robust oversight, and ongoing adaptability. Key elements of successful execution include:

  • Alignment with Priorities: Energy regulators and other stakeholders must ensure the investments align with the priorities set forth in the IESP roadmap. Stranded assets and misaligned projects can cause opposition, waste resources, and delay goals.
  • Flexible and Adaptive Management: As technologies, markets, and policies evolve, the energy system must remain flexible. Regular updates to the IESP and the continuous incorporation of new data will allow stakeholders to respond effectively to emerging challenges and opportunities.
  • Technological Integration: Leveraging emerging technologies that drive the energy transition—such as energy storage, electric vehicles, wind and solar generation, AI, advanced analytics, demand response, and real-time monitoring systems—is essential. For utilities and independent power producers, these tools enable more accurate demand and renewable generation forecasting, optimize hydroelectric and other generation systems, improve grid balancing, and facilitate early identification of potential failures. From the perspective of energy users, AI can revolutionize energy management by optimizing heating, cooling, EV charging, local energy storage, and lighting in real time based on occupancy and usage patterns. For industrial plants, smart solutions can minimize energy costs and identify opportunities to shift toward cleaner energy resources like electricity as a heat source. These innovations empower both utilities and energy consumers to collaborate in achieving enhanced sustainability, cost effectiveness, and energy resilience.
  • Stakeholder Coordination: Effective execution requires seamless collaboration among federal and provincial (state) governments, cities, utilities and independent power producers, commercial and industrial energy users, the electricity supply chain, existing fossil fuel industry players, and community groups. Clear communication channels and well-defined roles are essential to ensure alignment and prevent missteps. This collaborative and inclusive approach ensures that all stakeholders contribute to a resilient and efficient energy transition.
  • Public Trust and Transparency: Transparent reporting on progress fosters public trust and secures long-term support. For instance, Denmark’s transparent communication regarding its wind energy projects has significantly increased public buy-in, helping to accelerate renewable energy adoption and achieve ambitious climate goals. Stakeholders must actively engage with communities to maintain accountability and ensure inclusivity.
  • Infrastructure Investments: Adequate and timely investment in critical infrastructure—such as grid upgrades, renewable energy integration, and energy storage systems—is essential. These investments must be planned to handle future growth and extreme weather events.

Risks of Failure

The risks that could lead to ineffective IESP execution include:

  • Growth Challenges: North American electric utilities, which have experienced limited growth since 2000, must adapt and scale operations by a factor of perhaps 3 or 4 by 2050 (but much less in Québec given its already high electrification level) to meet the demands of increasing electrification. This transformation demands the electricity supply chain—encompassing manufacturers, professional service providers, and infrastructure developers—to scale as well. Addressing this monumental operational, financial, and logistical challenge will require innovative strategies, substantial investments, and comprehensive stakeholder coordination.
  • Reliability and Resilience: As utilities transition into becoming the primary energy delivery system within the economy, they must enhance reliability (minimizing outages) and resilience (ensuring robust recovery and adaptability, particularly during extreme weather events).
  • Inflexibility: Rigid adherence to outdated plans can lead to inefficiency and missed opportunities.
  • Underinvestment: Insufficient funding for infrastructure development risks blackouts, bottlenecks, and public backlash.
  • Stakeholder Fragmentation: Lack of coordination among key players undermines progress and wastes resources.
  • Delayed Action: Hesitation in adapting to changing conditions exacerbates existing challenges, pushing back timelines for achieving goals.

By proactively addressing these risks and prioritizing execution excellence, Québec can ensure that its IESP delivers on its promise of a resilient and sustainable energy future.

Recommendations for Québec

  1. Establish an Independent Planning Body: Consider an independent energy planning agency for Québec, modelled after entities like Ontario’s Independent Electricity System Operator (IESO).
  2. Foster Stakeholder Engagement: Promoting the involvement of municipalities, Indigenous communities, and private sector actors can enrich the planning process by incorporating diverse perspectives and expertise.
  3. Leverage Existing Strengths: Build on Hydro-Québec’s expertise in hydroelectricity and transmission grid management and on the large electricity supply chain in Québec.
  4. Focus on Resilience: Prioritize infrastructure upgrades to accommodate electrification and extreme weather events.
  5. Set Clear Metrics: Define performance indicators to track progress and adapt plans as necessary.

Conclusion

Integrated Energy System Planning offers Québec a roadmap to a sustainable, electrified future, fostering energy resilience, economic growth, and environmental stewardship. By embracing best practices, addressing execution challenges, and aligning efforts with provincial strengths, Québec can position itself as a global leader in the energy transition.

Débloquer le potentiel des comportements verts : leçons pour le Québec et au-delà

Comment un comportement vert peut en influencer un autre

Les recherches montrent que s’engager dans une initiative verte, comme le recyclage ou l’achat d’un véhicule électrique (VE), peut entraîner des effets positifs ou négatifs :

  • Effet positif : Adopter une action écologique peut renforcer une identité environnementale, incitant les individus à adopter d’autres pratiques durables. Par exemple, quelqu’un qui a l’habitude de recycler pourrait être motivé à commencer à composter ou à réduire le gaspillage alimentaire.
  • Effet négatif : À l’inverse, adopter une action écologique peut entraîner une forme de «?relâchement moral?», où l’on se sent dispensé de poursuivre d’autres efforts. Une personne qui achète un VE pourrait, par exemple, justifier des actions moins durables, comme multiplier les vols longue distance.

Ce que cela signifie pour les gouvernements, les services publics et les entreprises

Pour promouvoir la durabilité, il est essentiel de comprendre la dynamique des effets d’entraînement. Bien que la volonté individuelle et les petites actions soient importantes, elles ne suffisent pas à elles seules pour provoquer les changements à grande échelle nécessaires pour relever les défis environnementaux. Des mesures réglementaires doivent jouer un rôle central pour limiter les actions non durables et instaurer une responsabilité systémique.

Stratégies clés pour un changement systémique :

  1. Établir des normes réglementaires complètes. Mettre en place des politiques strictes qui imposent des pratiques durables dans tous les secteurs, comme des normes d’efficacité énergétique, des protocoles de gestion des déchets et des exigences en matière de recyclage. Ces règlements garantissent que les actions individuelles contribuent de manière significative aux objectifs globaux.
  2. Intégrer des mécanismes de responsabilisation. Développer des cadres pour faire respecter les politiques environnementales, en tenant les individus et les industries responsables de leur impact. Par exemple, instaurer des sanctions pour non-respect du compostage ou interdire les plastiques à usage unique.
  3. Faciliter l’accessibilité systémique. Mettre en œuvre des mesures qui rendent les choix durables obligatoires, comme le compostage en bordure de rue et la responsabilité des producteurs en matière de déchets. Les subventions et les incitations devraient être liées à des résultats environnementaux mesurables.
  4. Exploiter les normes sociales et la fierté collective. S’appuyer sur la fierté communautaire et l’identité collective en fixant des objectifs ambitieux et applicables pour la réduction des déchets et la conservation de l’énergie. Mettre en avant le leadership local tout en assurant l’adhésion par un soutien structurel.

En mettant l’accent sur le changement systémique par le biais de la réglementation, les gouvernements, les services publics et les entreprises peuvent surmonter les limites des actions à petite échelle et des efforts individuels, réalisant ainsi des progrès significatifs vers la durabilité.


La position unique du Québec : opportunités et défis

Le réseau électrique vert d’Hydro-Québec, principalement alimenté par l’hydroélectricité, place la province parmi les leaders mondiaux de l’énergie propre. Cependant, ce succès s’accompagne de défis comportementaux, notamment des effets d’entraînement négatifs dans des domaines comme le recyclage et le compostage.

Voici des leçons adaptées au Québec :

  1. Encadrer l’hydroélectricité comme un point de départ, et non une finalité : Les campagnes devraient souligner que l’électricité propre n’est que le début de la durabilité. Par exemple, un message comme «?L’hydroélectricité combat les changements climatiques. Agissons maintenant sur les déchets et la biodiversité?» peut inspirer des actions complémentaires.
  2. Prévenir la surconsommation et le gaspillage par la réglementation. L’abondance d’énergie propre peut entraîner des comportements de gaspillage. Les politiques qui imposent l’efficacité énergétique (par exemple, la rénovation des bâtiments) et limitent la consommation inutile peuvent contrer cette tendance.
  3. Promouvoir des actions complémentaires grâce à des mandats. Mettre en place des programmes obligatoires de compostage, de recyclage avancé et de réduction des plastiques pour garantir que tous les résidents contribuent aux objectifs de durabilité.
  4. Exploiter la fierté locale avec un soutien politique : Les Québécois sont fiers de leur leadership environnemental. Les règlements qui renforcent ce leadership, comme des cibles strictes de réduction des déchets, peuvent transformer cette fierté en action.

Pour aller plus loin

  1. Positive and Negative Spillovers in Pro-Environmental Behaviours
    • Nature Sustainability: Méta-analyse des effets d’entraînement.Lire ici
  2. Moral Licensing and the Risks of Monetary Incentives
    • Frontiers in Psychology : Étude sur l’impact des motivations financières sur l’identité écologique.Lire ici
  3. Behavioural Consistency in Green Lifestyle and Investment
    • Analyse des liens entre habitudes écologiques et décisions financières.Lire ici

Unlocking the Power of Green Behaviour: Lessons for Québec and Beyond

How Green Behaviour in One Area Influences Others

Research has shown that engaging in one green initiative, such as recycling or switching to an electric vehicle (EV), can lead to positive spillovers or negative spillovers:

  • Positive Spillover: Taking a green action can reinforce an environmental self-identity, motivating individuals to adopt additional sustainable practices. For example, someone who regularly recycles might be inspired to compost or reduce food waste.
  • Negative Spillover: Conversely, engaging in one green action can lead to moral licensing, where individuals feel they’ve “done their part” and reduce efforts in other areas. A person who buys an EV, for instance, might justify less sustainable actions like taking frequent long-haul flights.

What This Means for Governments, Utilities, and Companies

For organizations promoting sustainability, understanding spillover dynamics is crucial. While individual willingness and small-scale actions are important, they alone are insufficient to drive the large-scale changes needed to tackle environmental challenges. Regulatory measures must play a central role in constraining unsustainable actions and creating systemic accountability.

Key Strategies for Systemic Change:

  1. Set Comprehensive Regulatory Standards: Establish strict policies that mandate sustainable practices across sectors, such as energy efficiency standards, waste management protocols, and recycling requirements. These regulations ensure individual actions contribute meaningfully to broader goals.
  2. Integrate Accountability Mechanisms: Develop frameworks to enforce compliance with environmental policies, holding individuals and industries responsible for their impact. Examples include penalties for non-compliance with composting or bans on single-use plastics.
  3. Support Systemic Accessibility: Implement measures that make sustainable choices the default, such as mandatory curbside composting and producer responsibility for waste. Subsidies and incentives should be tied to measurable environmental outcomes.
  4. Leverage Social Norms and Pride: Build on community pride and collective identity by setting ambitious and enforceable targets for waste diversion and energy conservation. Showcase local leadership while ensuring adherence through structural support.

By emphasizing systemic change through regulation, governments, utilities, and companies can overcome the limitations of small-scale actions and individual efforts, driving significant progress toward sustainability.


Québec’s Unique Position: Opportunities and Challenges

Hydro-Québec’s green electricity grid, powered predominantly by hydroelectricity, places it among the global leaders in clean energy. However, this success comes with its own behavioural challenges, including potential negative spillovers in areas like recycling and composting.

Here are tailored lessons for Québec:

  1. Frame Hydro as a Starting Point, Not the Endpoint: Campaigns should emphasize that clean electricity is just the beginning of sustainability. For example, messages like “Hydropower helps fight climate change—now let’s tackle waste and protect biodiversity” can inspire complementary actions.
  2. Prevent Overconsumption and Waste Through Regulation: Clean energy abundance can lead to wasteful behaviours. Policies that enforce energy efficiency (e.g. building retrofits) and limit unnecessary consumption can counteract this tendency.
  3. Promote Complementary Actions Through Mandates: Enforce mandatory composting, advanced recycling, and plastic reduction programs to ensure that all residents contribute to broader sustainability goals.
  4. Leverage Local Pride with Policy Support: Québecers take pride in their environmental leadership. Regulations that reinforce this leadership, such as stringent waste diversion targets, can turn pride into action.

For Further Reading

  1. Positive and Negative Spillovers in Pro-Environmental Behaviours
    • Nature Sustainability: Meta-analysis of spillover effects in pro-environmental behaviours.
      Read here
  2. Moral Licensing and the Risks of Monetary Incentives
    • Frontiers in Psychology: How financial framing of green actions can weaken environmental identity.
      Read here
  3. Behavioural Consistency in Green Lifestyle and Investment
    • Examines how sustainable habits align with financial behaviours.
      Read here

Critique of the Report: “Best Practices in Integrated Resource Planning” by Synapse Energy Economics and Berkeley Lab, 6 December 2024.

The report provides comprehensive guidelines for integrated resource planning (IRP) in the electricity sector. It serves as an excellent starting point for modernizing these processes, offering 50 best practices with concrete and applicable recommendations.

(French version: https://lnkd.in/eyRD5RNf)

Strengths


The report highlights the engagement of a diverse group of stakeholders, including regulators and consumer advocates, fostering transparency and inclusion. Additionally, its focus on scenario planning and adaptability is well-aligned with the evolving energy sector, characterized by the growth of renewables, electrification, and grid modernization.

Limitations and Concerns

The emphasis on scenario modeling and planning is considered excessive. While these tools are essential, the report does not address the risks of overcomplicating models or the challenges of translating results into concrete decisions. It also lacks guidance on the level of effort required or the timelines for preparing an IRP—an important omission as these processes become increasingly complex.

The report remains focused on electricity planning and does not adopt a broader integrated energy system planning (IESP) approach. However, electricity sector expansion must align with the transition away from fossil fuels. For example, implementing a district heating network involves coordinating the partial decommissioning of the gas grid, expanding the electrical system to power heat pumps, and establishing the heating network itself. The absence of this integrated approach complicates overall energy strategies.

Context and Key Insights

A map included in the report shows U.S. states adopting IRPs or similar processes. Notably, Texas, despite its rapid growth in renewable energy, does not require IRPs. The absence of an IRP may have played a role in the recent power outages. However, it is interesting to note that an IRP was not necessary to accelerate the deployment of renewables. This is a point worth considering.

Conclusion

Despite its strengths, the report would benefit from incorporating a broader energy perspective and clear guidance for practical implementation. A better consideration of interactions between energy sectors would enhance its utility in addressing the complex challenges of the energy industry.

Critique du rapport : «?Best Practices in Integrated Resources Planning?» par Synapse Energy Economics et Berkeley Lab, 6 décembre 2024.

Le rapport fournit des lignes directrices exhaustives pour la planification intégrée des ressources (PIR) dans le secteur de l’électricité. Il constitue un excellent point de départ pour moderniser ces processus, avec ses 50 pratiques exemplaires offrant des recommandations concrètes et applicables.

(English version: https://lnkd.in/e7XXCp4k)

Points forts

Le rapport met en avant la mobilisation d’un groupe diversifié d’intervenants, incluant régulateurs et défenseurs des droits des consommateurs, favorisant la transparence et l’inclusion. De plus, son accent sur la planification des scénarios et l’adaptabilité répond bien aux besoins d’un secteur énergétique en pleine évolution, marquée par l’expansion des énergies renouvelables, l’électrification et la modernisation des réseaux.

Limites et préoccupations

L’accent mis sur la modélisation et la planification des scénarios est jugé excessif. Bien que ces outils soient cruciaux, le rapport ne traite pas des risques liés à la complexification des modèles ni des difficultés à traduire les résultats en décisions concrètes. Il manque également de directives sur le niveau d’effort requis ou les échéanciers pour préparer un PIR, une lacune notable alors que ces processus deviennent de plus en plus complexes.

Le rapport reste axé sur la planification électrique et non sur une planification intégrée des ressources énergétiques (PGIRE). Or, l’expansion de l’électricité doit être alignée avec la transition des combustibles fossiles. Par exemple, la mise en œuvre d’un réseau de chauffage urbain nécessite une coordination entre le démantèlement partiel du réseau gazier, l’expansion du système électrique pour alimenter les pompes à chaleur, et l’établissement de ce réseau de chauffage. Ce manque d’intégration complique les stratégies globales.

Éléments contextuels et enseignements

Une carte incluse dans le rapport montre les États américains qui adoptent des PIR ou des processus similaires. Notamment, le Texas, malgré sa croissance rapide dans les énergies renouvelables, n’exige pas de PIR. L’absence d’un PIR a peut-être joué un rôle dans les récentes pannes de courant. Cependant, il est intéressant de noter qu’un PIR n’était pas nécessaire pour accélérer le déploiement des énergies renouvelables. C’est quelque chose à méditer.

Conclusion

Malgré ses qualités, le rapport gagnerait à intégrer une perspective énergétique plus large et des orientations claires pour l’application pratique. Une meilleure prise en compte des interactions entre secteurs énergétiques renforcerait son utilité face aux défis complexes du secteur de l’énergie.

Preconceptions on EVs Lead to Wrong Infrastructure Decisions

Drivers of internal combustion vehicles far outnumber drivers of electrical vehicles (EV). Meaning: they are often the ones deciding on EV matters.

Based on a few formal surveys and many ad hoc conversations with drivers and deciders, I unfortunately see that preconceptions on EVs too often drive decision-making on EV matters. I compiled the differences in thinking for combustion and electrical vehicle drivers in the table below. Warning: reality might shock combustion drivers.

What Combustion Drivers Think What EV Drivers Know
Full charge: “You need to charge to 100% before driving.”Charge enough: “I just need to have enough battery to get to where I need to go.”
Long charge time: “It takes much longer to charge your EV than to fuel an ordinary car.”Quick charge (1): “It takes seconds to plug my EV and then I usually go do whatever I need to do.”
Quick charge (2): “If I’m on a road trip, I try to charge at my destination (hotel, cottage…) so I don’t have to wait.”
Quick charge (3): “If I can’t charge home, I get my car to charge overnight at a curbside station, at my workplace, or while shopping.”
Don’t stand there! “Don’t you hate standing beside your car, sweeting, freezing or being rained on, while holding a filthy gas nozzle?”
Slower, but who cares? “Yah, it takes a bit longer to charge at a fast-charging station, but I only charge there as a last resort and very rarely, so it doesn’t matter much since I saved so much time rarely going to gas stations.”
Range anxiety: “Will you have enough charge in the battery to get where you want to go?”Mostly charge at home: “I mostly charge at home and most of my driving is within the 400 km (250 mi.) range of my vehicle.”
Charging anxiety: “Will I be able to charge when I get to the charging station? Will there be a problem such as a broken charger, blocked access, a long waiting line or a combustion vehicle in the stall? How long will it take to charge with this fast charger?”
No charging station: “I don’t see charging stations around where I live.”Easy to find: “Charging sites are easy to find using apps like ChargeHub or PlugShare.”
Good geographic coverage: “Fast charging geographic coverage outside cities is quite good, but there may not be enough charging stalls at peak times.”
Slow is best: “I rather charge at one of the many slow (level 2) destination chargers, often for free, instead of waiting at a fast charger.”
Poor layout: “Why are fast chargers in the remotest corner of the parking lot, or in the middle of nowhere, without a canopy, and requiring backing up? 
No amenities: Is there a restroom and a place to get coffee at this charging station?”
It’s complicated: “Why so many different price scheme? How do I pay? Why do I need to have so many apps on my phone? Don’t you want my business?”
Unreliable public chargers: “Public chargers, especially fast ones, are often broken.”

Messaging and actions to accelerate EV adoption by combustion drivers need to dispel these preconceptions. However, these are different than the messaging and the actions necessary to meet the needs of EV drivers. For example, increasing visibility of charging stations will help combustion drivers realize that there are, indeed, many charging stations around, but it won’t help EV drivers who know how to find them anyway. However, having drive-through layouts and canopies would be greatly appreciated by EV drivers. 

The dichotomy between combustion and EV drivers makes it difficult for government to promote EV adoption while ensuring that the right infrastructure is deployed. This contradiction also led to many charging operators and site owners to install chargers which ended up being lightly used, either because they are not well matched to the site, not well situated, poorly laid out or simply unattended and broken.

Better understanding what combustion drivers and EV drivers think will help us make informed investment decisions. 

Managing Residential Light-Duty EV Charging – An Overview

Big Idea

Through behavioral or direct control approaches, managed charging encourages customers to charge at times when grid and generation capacity is available. Likewise, it discourages charging during peak demand or low renewable generation periods. In doing so, it reduces the need to build additional grid and expensive or greenhouse gas emitting generators to meet the electric system load. Managed EV charging makes optimal use of existing infrastructure, lowers costs that would otherwise be incurred, and benefits ratepayers.

Analysis

Analysts show steep forecasts of the number of light-duty EVs, in parallel with increasing space and water heating electrification, adoption of electrified industrial processes and expansion of intermittent renewable generation. It’s a perfect storm of the less-know new EV loads, the highly coordinated new heating loads, and the unpredictability of new renewable supply. 

Many electric utilities are rightly concerned by the impact EV charging may have on their resource plans, both in terms of energy and capacity, but are also starting to see that managed — or “smart” — EV charging may be part of the solution to the disruption brought about by the electrification of the economy and the intermittency of renewables. So, although the grid impact of unmanaged light-duty EV charging may, by itself, be relatively modest or even beneficial, managed EV charging may become a new tool for utilities to provide grid services (such as peak shifting or even frequency regulations) or to help optimize customer charges. 

Light-duty managed charging aims to shift EV charging to times when generation and grid capacity is available, considering the load that needs to be served, the demand on the electrical system and its markets. To effect managed charging, utilities may rely on multiple approaches, sometimes simultaneously:

  • Residential unmetered incentives.
  • Residential dynamic rates.
  • Direct residential load control (V1G).
  • Residential Vehicle-to-Grid (V2G).

Rates and incentives are behavioral approaches, attempting to nudge customer conduct, while load control systems and V2G take action on the electrical equipment itself, without customers intervening. Managed charging programs often rely on more than one option. For instance, a utility can use unmetered incentives to get customers to opt in to time-of-use rates. 

However, utilities are not the only ones vying to influence the charging patterns of EV drivers. There are indeed many stakeholders vying for attention in the EV charging ecosystem: utilities, cities, charging operators, local businesses, real-estate developers, state/provincial governments, federal government, regulators, automakers, charger manufacturers, etc. For example, installation of chargers at commercial sites and the price charged to drivers (if any) is primarily driven by business considerations, such as attracting customers (a business owner objective), and not to benefit the grid (a utility objective) or to ensure sufficient charging coverage or capacity (which may be government objectives). Another example: utilities and their regulators may set electricity rates charged to public charging station owners but charging operators (which may not own the station) usually control end-user pricing and service conditions. 

Because EV charging market signals are still relatively weak and could even be in opposition, greater collaboration and alignment among EV stakeholders, with better understanding of driver behavior, will be important for the EV charging infrastructure to develop harmoniously over at least the next few years. 

IEEE Webinar: The Utility Business Case to Support Light Duty EV Charging

I presented this webinar on December 2nd. The link to the recording and the slides is here.

Let me know what you think!

Presentation at the EV Charging Infrastructure Summit

Today, I presented at this conference.

This presentation provided real-life insights into developing a sound EV strategy for utilities and cities. Using from data ChargeHub, I shared best practices to keep in mind as public charging infrastructure is developed. These suggestions are inspired by the actions of forward-thinking utilities and governments, which ChargeHub has had the privilege of assisting with data and strategic advice over the last few years.

Done right, EVs prove to be good for utilities, their ratepayers, and all citizens.

You can download the presentation and the speaker notes here:

How Not-to-Succeed in the Next Decade of Energy Transition

The 2020s promise to be a momentous time for the electricity industry, and I wanted to take some time to reflect on what businesses might need to succeed through the energy industry transition. I might have a privileged perspective on this, having worked with utilities, vendors and investors, first in the IT and telecom industries as they went through their transitions, and then mostly in the electricity industry for the last 20 years. This does not mean that I can’t be wrong (I know – I’ve been wrong many times), but perhaps my views will help others be right. 

I’ve structured this post as a series of “don’ts”, based in part on actual IT and telecom examples that I’ve lived through – I’ve put these examples in italic, but I left the names out to protect the innocents. I found that many businesses have short-term views that lead them down dead-end paths, and I might be more useful in showing known pitfalls than trying to predict the future. 

Don’t Fight a Declining Cost Curve

The IT, telecom and, now, electricity industries are all seeing declining cost curves. The best known one is Moore’s Law, the observation that the density of integrated circuits (and hence the cost of computing) halves every 2 years. Moore’s Law is nearly 60 years old and still strong. It gave us iPhones more powerful now than supercomputers of a generation ago, even though my iPhone ends up in my pocket most of the time, doing nothing. These days, the electricity industry sees the cost of wind and solar energy as well as that of electricity storage dropping at a rate of 10% to 20% per year, with no end in sight.[i]

In IT, telecom and, now, electricity, this also leads toward zero marginal cost, the situation where producing an additional unit (a Google search, a FaceTime call or a kWh) costs nothing (or almost nothing). 

During the IT and telecom transitions, many startups proposed solutions to optimize the use of (still) expensive information processing assets. Some sought to extend the life of previous generations of equipment (like a PBX) by adding some intelligence to it (a virtual attendant), while others were dependent on a price point (like dollars per minutes for overseas calls) that simply collapsed (calls are essentially free now). 

If your business case depends on the cost of energy or the cost of storage remaining where they are, ask yourself, what if the cost goes down 50%? That’s only 3 years of decline at 20%/year. After 10 years, costs will be only 10% of what they are now. Can you survive with near-zero marginal costs? If your solution aims to optimize capital costs, will it matter in a few years? Or, will people just do as they do now, with a do-nothing iPhone supercomputer in their pocket?

Don’t Think That Transition Will Go 2% a Year Over 50 Years

Phone companies were depreciating their copper wires and switches over decades. Phone utilities were highly regarded companies, imbued with a duty for public service and providing lifelong employment to their loyal employees. Service was considered inflexible, but everyone could afford a local line, which was cross subsidized by expensive long-distance calls and business lines. Things were simple and predictable.

In 1980, McKinsey & Company was commissioned by AT&T (whose Bell Labs had invented cellular telephony) to forecast cell phone penetration in the U.S. by 2000. The consultant predicted 900,000 cell phone subscribers in 2000 – the actual figure is 109,000,000. Based on this legendary mistake, AT&T decided there was not much future to these toys. A decade later, AT&T had to acquire McCaw Cellular for $12.6 Billion.[ii]

In 1998, I was operating the largest international IP telephony network in the world, although it was bleeding edge and tiny in comparison to AT&T and other large traditional carriers. Traditional carriers were waiting for IP telephony to fail, as the sound quality was poor, it was not efficiently using the available bandwidth, it was illegal in many countries, etc. The history did not play out as expected. In 2003, Skype was launched, the iPhone, in 2006. Today, you can’t make a phone call anymore that is not IP somewhere along its path. 

I’m seeing the same lack of vision in energy industry. For example, the International Energy Agency (IEA) is famous for being wrong, year after year, in lowballing the rise of solar and wind energy in its scenarios.[iii]

Another example is the rise of electric vehicles. There are about 77 million light-duty vehicles sold in the world, and this number is flat or slightly declining.[iv] Of these, about 2 million electric vehicles were sold in 2019, but the number of EVs sold in increasing 50% every year.[v] In other words, the number of internal combustion vehicles is clearly decreasing and the growth is only coming from EVs. Looking at their dashboards, car manufacturers are quickly reducing their investment in developing internal combustion vehicles, especially engines.[vi] Disinvestment in upstream activity means that internal combustion vehicles will fall behind newer EVs and become less and less appealing. It won’t take 50 years for most light-duty vehicles to be electric – a decade, perhaps.

Don’t Count on Regulatory Barriers for Protection

Telecom carriers fought deregulation and competition, teeth and nails. Back in the 1950s, AT&T went to the US supreme court to prevent customer from using a plastic attachment on the mouthpiece of telephones to increase call privacy – it was called Hush-A-Phone. AT&T owned the telephones and forbid customers from using Hush-A-Phone. However, AT&T lost the court battle, and Hush-A-Phone was sold legally from then on. This landmark decision is seen as the start of telecom deregulation in North America.

The IP telephony network that I mentioned earlier was indeed illegal in some of the countries we operated in. It didn’t matter. We had plenty of partners willing to bypass local monopolies, even if illegal in their countries, and customers willing to make cheaper international calls, even if the quality was not always so great. 

Regulatory barriers are only as strong as policy-makers make them. When constituents see an opportunity to save money or simply have choice, they pressure the policy-makers to change the rules – or elect new ones more attuned to moods of consumers. It’s just a matter of time. 

Don’t Take Customers Nor Suppliers for Granted

In 1997, at a time when cellular phones were still a luxury and the Internet was still a novelty, an Angus-Reid survey of the Canadian public put Bell Canada #2 among most admired corporations in Canada[vii], and it had been among the most trusted companies in Canada for decades. Yet, in 2017, Bell Canada ranked #291 in a University of Victoria brand trust survey[viii]. People love their Apple or Samsung phones, are addicted to Facebook to stay in touch with friends, naturally turn to Google for any question, and use Microsoft Skype to see remote family members, but they now mostly hate their phone company. 

Obviously, Bell is still around and making money, but one can only wonder how things could have been if Bell had played its hand differently. (In 1997, none of iPhones, Facebook, Google and Skype existed).

Suppliers to electric utilities should also listen to this lesson. Northern Telecom (Nortel), AT&T Bell Labs and Alcatel were among the large traditional equipment vendors to telephone utilities. However, a startup was founded in 1984, designing routing equipment for IT networks used in university networks. Over the years, it expanded into all sorts of datacom and telecom equipment – all telecom companies eventually standardized on this new vendor. Northern Telecom and the others went bankrupt or were merged and acquired to the point they could not be recognized. In the process, some telephone companies were left with unserviceable hardware. 

This startup company is called Cisco Systems and is now the largest telecom vendor in the world. 

The same pattern is playing out in electricity. On one hand, you have many utilities that do not understand that many customers want choice. On the other hand, you have vendors, like GE and ABB, that are in turmoil. 

Will you be the future Google or Cisco of electricity? Or the next Nortel?

Don’t Follow the Herd

Full disclosure: I’m a career business consultant. Caveat Emptor. 

The reason for this disclosure is that consultants are great at announcing bold trends that often do not pan out. There is a great herd mentality among consultants, and it carries over to their customers. 

Twenty years ago, one of my clients was one of the early Application Service Providers, a business concept where small businesses could access shared personal computer applications over the Internet. The idea was to reduce the cost of maintaining software installed in PCs and to reduce the hardware requirements of PCs. This client was unknowingly fighting the declining cost curve of computers. It went bankrupt (and my last invoices were not paid). 

The concept of application service providers was heavily promoted by consultancies like Gartner, who presented it as the future of business computing. I guess that Microsoft disagreed. 

I see similar fast-fashion concepts going through the electricity industry. Walking the floor at the Distributech Conference in 2018, it was all about microgrids. In 2019, it was distributed energy resources. We will see what will be fashionable in January 2020. 

My recommendation when you hear the same concept over and over again is asking yourself: is this a real trend or am I in an echo chamber? With many new consultants flocking to the electric utility industry – I call them tourists – , you can hear many concepts that are taken for truth but really too complex to be implemented or unlikely in the fragmented regulatory environment that we have. 

Closing Thoughts

In the end, keep cool: sound engineering, good economics and great customer service will always win.

Which leads me to offer you this quote:

If I’ve heard correctly, all of you can see ahead to what the future holds but your knowledge of the present is not clear.
—DANTE, Inferno, Canto X

All this being said, have a great Holiday season and see you soon in 2020!


[i]                 See this previous blog posts, https://benoit.marcoux.ca/blog/lower-and-lower-energy-prices-from-wind-and-solar-pv/, for an in-depth discussion of cost decline in wind and solar energy, accessed 20191220. 

[ii]                See https://skeptics.stackexchange.com/questions/38716/did-mckinsey-co-tell-att-there-was-no-market-for-mobile-phones, accessed 20191220. 

[iii]               See this previous blog post, https://benoit.marcoux.ca/blog/wind-and-solar-pv-defied-expectations/, for a chart of how wrong the IEA has been, accessed 20191220. 

[iv]                See https://www.statista.com/statistics/200002/international-car-sales-since-1990/, accessed 20191220. 

[v]                 See https://www.iea.org/reports/global-ev-outlook-2019 and http://www.ev-volumes.com/country/total-world-plug-in-vehicle-volumes/, accessed 20191220. 

[vi]                See https://www.linkedin.com/posts/bmarcoux_daimler-stops-developing-internal-combustion-activity-6580481304071065600-vRK8, accessed 20191220. 

[vii]               The Fourth Annual “Canada’s Most Respected Corporations” Survey, Angus Reid Group, Inc., 1998, page 5.

[viii]              The Gustavson Brand Trust Index, Peter B. Gustavson School of Business, University of Victoria, 2017. 

Customer Interviews: An Essential Step in Assessing Technology-Driven Companies

Insight

Over time, I had to interview the customers of many energy, telecom and IT companies in the context of due diligence reviews. I got to appreciate the usefulness of this process to really understand the prospects of a company, especially in emerging business-to-business markets. The managers of these companies were often engineers or scientists that did not always listen well to their customers. Often, interviewing just a few customers pointed to a hidden gem or uncovered a fundamental weakness.

Why Should You Interview Customers?

As a venture capital partner, a senior manager of an acquiring company, or an M&A specialist, assessing a target company in the context of an industry transition is daunting. This is especially true right now in the electricity industry, with its complex regulatory frameworks, its worldwide supply chain, dropping energy generation costs, and changing customer expectations. In many ways, customers are the key to understand the transition: they buy electricity, are looking at distributed generation systems, and elect politicians who legislate new regulations. Then, what better way to assess a company than speaking to the company’s customers? These interviews also shed new light on the company’s sales forecast and help identify key areas of improvement.

In this article, I would like to share my experience and to offer some suggestions to help you get the most of customer interviews. I do not simply want to provide you with a checklist of questions. There is a certain art in contacting people, putting them at ease, getting them to speak, using active listening techniques, and having a structured analysis of the results.

Decide on What You Want to Assess

The first step of a successful customer interview program is to decide on what needs to be accomplished. Customer interviews may cover many topics:

  • Relationships between the customer and the company.
  • How the customer identified and selected the company and the product.
  • Who are the main competitors.
  • Responsiveness of the company’s staff facing the customer. 
  • Strengths and weaknesses of the product or the service.
  • Potential enhancements.
  • Reliability and availability of the offering.
  • Current and forecast sales volume with the company.
  • Pricing level and structure of the price list.

Depending on the needs of the company or the investor’s concerns, the interviews may focus on a few specific points. For example, it may be required to assess whether the features of a new energy product meets the needs and buying habits of customers, which also requires that the interviewer have some technical and market knowledge.

Select Interviewees

The company normally provides a list of customer contacts. This list must include the name of the company, the name and title of the contact person, a telephone number and an email address. Obviously, the company will tend to give the names of “friendly” customers. A good question to ask is how many customers have been excluded from the list and why. It could be necessary to examine service or returned merchandise records and to ask to contact some problem customers or even former customers. In order to avoid excessive screening by the company and accounting for unavailability of some customers, it is required to ask for a contact list twice as long as the expected number interviews. It may also be that the number of possible interviews is limited merely by the number of customers. This is especially common for companies using an indirect distribution channel or for early-stage companies. Even interviewing just a handful of customers can bring interesting information, but a greater number is required for a large product portfolio or if the distribution channel is complex or reaches many countries.

Another essential step is to get information on the customers being contacted. This information is obtained from internal sources and external sources. In a due diligence, it is common to verify material transaction records or contracts. If the interview program aims at validating these documents, it is necessary to have them in hand during the interviews. External sources, such as the company’s Internet site and the associated LinkedIn, Facebook and Twitter profiles should also be read prior to an interview. 

Many startup technology companies accelerate market entry through an indirect sale channel of distributors and OEM agreements. For example, in a recent case, the channel is comprised of national distributors, local dealers, customer companies and end users. Interviewing representatives at each layer of the distribution channel leads to better data than only interviewing one set of intermediaries. Similarly, it is ideal to contact people from various business functions (operations, marketing, upper management, etc.).

When approached professionally, people are usually genuinely interested in helping a supplier. However, many interviews may fail because of customer time constraints and last-minute emergencies. Also, pay attention to the order of the interviews. Some customers will be recognized as more important and should be interviewed at the end of the process in order to first practice with other customers. Similarly, in the case of a distribution channel, it is preferable to start with the end users in order to validate the selection of the distributors.

Get the Logistics Out of the Way

High-tech companies are often exporting a large share of their products. Interviews must then be done by telephone to minimize costs. Although convenient and inexpensive, telephones raise communication barriers that must be minimized. For international interviews, language can also become an issue.

The telephone is a somewhat impersonal communication system, and the use of videoconferencing is too complex. Even for a phone interview, it is preferable to make an appointment. Appointments are especially important if interviews have to be at unusual hours because the customer is overseas. To make the communication more personal, I take advantage of the email confirming the call to send a picture of myself. It is a simple gesture, but a good way to begin breaking the ice. 

It is important not to be disturbed during the interview. Also, keep a pencil in hand to scribble notes to remember to raise some points later during the interview. Finally, a headset frees the hands and permits more natural and relaxed posture and voice.

Have an Interview Guide

We are talking here about general guidelines, and not a rigid script. To get the most from an interview and to keep its natural character, it is necessary to deviate from the expected course and to take advantage of twists and turns of the discussion. The interviewee must not feel interrogated, but in confidence to talk about points that could be sensitive. 

Some base rules in preparing an interview guide include:

  • Agreeing with the interviewee on objectives and duration at the start of the interview.
  • Establishing an atmosphere of trust by offering anonymity.
  • Starting with mundane topics (ex.: confirming the contact’s title) and progressing toward more sensitive issues (ex.: prices).
  • Going from general to specific topics.
  • At the end, asking for global assessments of the company and its products.

Make the Interview Dynamic

Active listening is a good way to get someone to speak more and to ensure that what has been said is well understood. Using open questions (ex.: “How would you qualify the technical knowledge of the customer support staff?”) is preferable to closed questions that are answered by yes or no (ex.: “Is the customer support staff qualified?”).

Lighten the atmosphere by offering tidbits of information, for example by sharing experiences or by giving information previously obtained (“While speaking to other customers, I heard that… Would you agree?”). This transforms the call from a one-way questioning session into a two-way discussion. Obviously, an interviewer with some knowledge of the industry can better get into bilateral exchanges, especially for technology products.

It is important to keep a polite and respectful tone. Appreciate the fact that interviewees are without pay and may be very busy. Thanking people with a small gift after the interview is a mark of appreciation and can help strengthen the future relations with a customer, but first make sure not to breach company policies. 

Analyze the Results

The interview logbook that I use regroups in a table the highlights of the interviews. The table, which spreads over several pages, presents the salient pieces of information gleaned of the interviews organized in columns according to the structure of the original interview guide. At a glance, it is then possible to do cross references on the main topics. The interview logbook is a convenient analysis tool that supports results presentation while permitting to drill down quickly to specific points and to compare what customers have said. For example, it becomes easy to see if end-user perceptions are the same as those of distributors. It is just as revealing to make comparisons between what people from different functional groups have said. 

The analysis can point at possible corrective actions and opportunities. It may also support revised sales forecast. A customer’s marketing staff does not see the same benefits as the end users? There could be an opportunity to better communicate features and functions, or perhaps to review product packaging. Are the dealers waiting for the next version of the product before promoting of it? It could be worth to pay close attention to the product development schedule. Do distributors, fearing technical problems, only want to introduce a new product gradually? Maybe the sales forecast should be pushed back one quarter. Obviously, an investor may judge the situation too uncertain and decide against proceeding.

Plan Enough Time

For a typical half-hour phone interview, an experienced person will have to prepare by making an appointment and reading information. One or two hours are required to write down notes and fill in the interview logbook for each interview. You should plan for at least 3 hours of sustained work for each interview. 

To this, add the preliminary work for selecting interviewees and adapting the interview guide. This can evidently take longer if the interviewer cannot rely on prior work. Analysis and presentation of the results can be formatted in a slide show or a formal report. Analysis and presentation can also be integrated to a global due diligence report. Regardless of the format, count on a minimum of one day of preparation and 2 or 3 days of analysis and writing for a 10-interview program. For a complete and professional result by an experienced interviewer, budget about 8 days of sustained work for a 10-interview program. The work will have to take place over 2 or 3 weeks assuming normal delays for reaching interviewees. 

To this point, one can appreciate why interviews are often outsourced to a third party. Some customers could be unwilling to speak directly to a supplier’s investor. Besides, experience shows that close to half of people interviewed ask for some anonymity – they are more willing to speak to a seemingly neutral party. Furthermore, a report prepared by an external firm will have greater weight when presented to other investors involved in a transaction. 

Closing Words

Making good interviews is an art that takes some practice. To take advantage of the experience, stop a moment, think about what could have been done better, and update the interview guides. The interview skills will also improve over time.

A Perspective on Canada’s Electricity Industry in 2030

I wrote this piece with my friend Denis Chartrand as a companion document for my CEA presentation back in February 2018 (See https://benoit.marcoux.ca/blog/cea-tigers-den-workshop/) but I now realize that I never published it. So, here it is!

Canada Electricity Industry 2030 20180221

CEA Tigers’ Den Workshop

On February 21, 2018, I presented at the annual T&D Corporate Sponsors meeting of the Canadian Electricity Association. This year, the formula what similar to the “dragons” TV program, with presenters facing “tigers” from utilities. They asked me to go first, so I didn’t know what to expect, but it went well. Or, at least, the tigers didn’t eat me alive.

The theme was a continuation of my 2017 presentation, this time focusing on what changes utilities need to effect at a time of low-cost renewable energy.

I’ve attached the presentation, which was again largely hand-drawn: CEA 20180221 BMarcoux.

Telecom as a Model, not a Service, to Electric Utilities

On September 27, 2017, I presented at the Utilities Technology Council of Canada. I have attached the presentation, and here is the abstract.

Abstract: The telecom industry has seen tremendous changes, replacing in just a few short years the Plain Old Telephone System that took over a century to build with the Internet and cellular networks. Since telecom and electric utilities have a lot in common, like linear assets, large customer base and territory, and technology-driven culture, what can we learn from the transformation of telecom to better manage the ongoing technological changes in electric utilities?

GTM Squared Report

I just finished reading the annual survey of utilities prepared by GTM Squared (http://www.greentechmedia.com/squared/read/annual-survey-report-2016-the-future-of-global-electricity-systems). I found it a useful reference to understand the challenges faced by utilities worldwide, and I thought of sharing some interesting highlights:

  • 3/4 of utilities say that regulatory hurdles are the greatest challenge they face today. Preference is to develop market-based reforms, as well as clear interconnection/net metering rules – in other words, mechanisms that deal with/assign value to Distributed Energy Resources. Note that DER (such as distributed generators and storage) will play an increasing role in utilities worldwide.
  • Half of respondents see the consumers at the forefront of the industry’s evolution. However, it is surprising that utilities in the same survey do not put a greater priority on customer engagement.
  • On storage, respondents see an increasing emphasis toward actual projects, and less on the physics and technology of storage. DER vendors now offer better systems intelligence and grid integration to companies focused on building a next-generation power grid (more sustainable and more resilient). Energy storage is now living up to the hype, having seen record installations in 2015.

Let’s Build a Smarter Planet: Energy and Utilities

I presented on the future of electric utilities at the “Les entretiens Jacques-Cartier” on October 3, 2011. The presentation itself is in English.

Here is the presentation, with notes: