Embracing the incredible opportunities in the green economy
In recent remarks to a legislative committee, Saint John Energy’s Ryan Mitchell outlined the challenges and rewards of transitioning New Brunswick to an era of clean energy
By Ryan Mitchell, October 6, 2023
Commentary
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At Saint John Energy, we believe the green economy is presenting incredible economic growth opportunities for not only the city we serve but the entire province.
Our commitment to environmental and financial sustainability by providing low-cost and reliable energy solutions for our customers is complemented by our growth mindset.
Before I speak to some of the opportunities, I think it is important to recognize, and be sensitive to, the many challenges facing New Brunswick on the energy and climate change fronts. This includes:
the difficult decisions that lie ahead over the fate of the coal-fired generation plant at Belledune;
that currently, about half of the installed electrical generation capacity in the province is fossil fuel-based and aging;
that producing power to meet peak energy demand in the province is extremely expensive and, according to numbers published by Natural Resources Canada, emits twice the greenhouse gases than off-peak electricity generation does;
that, while 40 per cent of New Brunswick’s energy comes from renewable sources, there remains a significant reliance on imported renewable energy to reach that mark. Imported renewable energy is, and should continue to be, an important component of our province reaching net zero but we should look to further develop renewables here at home;
that this province is seeing an increase in the severity and frequency of storms and floods;
the fact that consumers’ expectations are shifting – not only are they more aware and concerned about where their energy is coming from but they also have the ability to become producers of electricity themselves.
We believe that there are tremendous opportunities by embracing the energy transition.
All of these are challenging the business model of the traditional electrical utility. Despite these and then some, we believe that there are tremendous opportunities by embracing the energy transition.
In July of this year, we joined with partners to cut the ribbon on the Burchill wind project. This 10-turbine, 42-megawatt project within the city limits of Saint John underscores the importance of partnerships. Partnerships forged with Natural Forces and Tobique First Nation. Low-cost renewable energy from a project like Burchill is an example of what can happen when we all work together toward climate change action.
Also in July, we announced an initiative that we refer to as Zero30 with $4 million in funding from Natural Resources Canada. This initiative will establish a comprehensive roadmap to take Saint John Energy to net zero by 2030 in our own operations and help customers come along with us should they choose.
Art of the possible
There are three pillars to Zero30:
A cleaner supply: This will be accomplished with a particular focus on renewable energy, by embracing energy storage as well as various forms of credits, and by collaborating with NB Power, First Nations and other partners.
Innovating with our customers: this will involve seeking to understand what role our customers want us to play in helping them with the energy transition.
Planning for a future with escalating demand: we will be looking at our system under various growth scenarios to understand where we need to make strategic investments. We are expecting considerable load growth out into the future as the city and its citizens increasingly move to electricity to power their lives.
So Zero30 is very much an exercise in the art of the possible – how might we get there?
Recommendations
Successful implementation of a clean energy strategy in New Brunswick, in the context of electricity, would include:
fostering a competitive renewable energy supply at the wholesale level. Saint John Energy would like to develop more renewable energy projects in the future. But today we can only purchase renewable energy if it is developed inside or adjacent to the city limits of Saint John. Legislative, market and regulatory barriers impact the other large electricity customers in advancing on their energy transition goals too.
enabling Saint John Energy and others to provide grid support services. Saint John Energy will have seven megawatts of battery storage later this year. And we already have other controllable resources that could have a significant benefit to the provincial system. Current legislative, market and regulatory barriers prevent this.
allowing electricity system planning across Atlantic Canada – and the sharing of renewable energy resources in the region. There are tremendous efficiencies that can be realized if we are allowed to look beyond provincial borders to the strategic procurement of wind energy, for example, and how we can pool the balancing of renewables as a region.
establishing a long-term provincial electrification strategy for transportation. We need a comprehensive strategy that will support the proliferation of EV and EV charging infrastructure.
maximizing energy efficiency measures and programs for space heat and water heat. New Brunswick already has a majority of homes leveraging electricity to heat their homes and provide hot water, so the focus needs to transition to energy efficiency.
redesigning the utility tax to incent investment in grid modernization and decarbonization measures. To the best of our knowledge, New Brunswick is the only province that levies a form of property tax on distribution utility infrastructure. This tax could be eliminated to further support investment in the energy transition.
supporting and growing the clean technology sector through additional funding and grant programs. There is an incredible entrepreneurial, academic and innovation ecosystem around electricity here in New Brunswick that can continue to be leveraged.
improving electricity system transparency by allowing for real-time access to data on the demand for electricity, including emissions and costs for each generation facility so that consumers and utilities can join in finding solutions. Based on our experience, when we have shared data such as when it will be our peak and the costs and GHG impact, people will respond and help. The more we understand, the better we can collectively respond. Let’s invite the best and brightest to participate in solving our problems – and I believe we will be amazed by what results.
I would recommend that the province seek to establish a clean electricity strategy prior to 2025
In addition, I would recommend that the province seek to establish a clean electricity strategy prior to 2025, which is the current target date in the provincial climate change action plan.
As New Brunswick develops a clean energy strategy, it will be important that it has bi-partisan support. This will provide certainty for the investments that businesses, utilities and residents need to make in support of the energy transition.
Although the challenge is great, New Brunswick has all the ingredients to do something transformative. An aggressive yet thoughtful clean energy strategy supported by the three provincial parties can deliver meaningful climate change action, ensure no one is left behind and firmly position New Brunswick as a leader in the new green economy.
Ryan Mitchell is President and CEO of Saint John Energy. This text is adapted from remarks he delivered to the legislative Standing Committee on Climate Change and Environmental Stewardship in New Brunswick on Oct. 4, 2023.
