Wednesday, January 14, 2009

Energy conservation becomes sexy

Energy independence How Nova Scotia could lead the way to a greener Canada.
By Joe Castaldo

Nova Scotia may not be among the worst Canadian offenders when it comes to greenhouse gas emissions on an absolute basis, but the province is taking a unique step toward improving its performance.
Last year Nova Scotia commissioned David Wheeler, dean of the Dalhousie University’s faculty of management, to determine the most appropriate way to promote and implement energy efficiency measures in the province. Mainly, Wheeler focused on “demand side management,” which involves helping customers use less electricity.
Wheeler consulted with some 40-odd stakeholders — consumers, government, and industry representatives — and concluded the best approach would be to create an independent agency at arm’s length from the government, as opposed to having an entirely government- or utility-led initiative, as is typically done in the rest of Canada and the U.S. The provincial government announced this month it would move ahead with Wheeler’s recommendation and set up the agency by the end of next year.
The proposed model in Nova Scotia carries a number of advantages, such as increased flexibility and accountability. The agency will have performance standards, and the administrators can be removed if those goals are not met. Governments, on the other hand, may lack the technical expertise, while utilities have historically done a poor job when it comes to encouraging customers to consume less energy, according to Wheeler’s report. (Utilities are in the business of selling electricity, of course.) One potential downside, however, is Wheeler believes the new organization could have high startup costs, however, and that those costs will be covered by the ratepayers themselves.
Wheeler recommends leaving open the option of transforming the organization into a “one-stop-shop” for all energy efficiency measures, not just demand-side management. Such an organization can have spin-off benefits, too, he told Nova Scotia’s Chronicle Herald, such as motivating engineering firms to develop new energy efficient processes and products.

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