THUNDER BAY, ON — A new partnership has been created between the Center for Research and Innovation in the Bio-Economy (CRIBE) and FPInnovations, to facilitate the transformation of the Ontario forest sector through the adoption of innovative technologies related to the forest bio-economy.

The new Partnership will promote the development of innovative technologies which use renewable resources such as trees and forest bio-residuals. It will employ existing infrastructure and engage industrial partners in developing bio-refinery pilot plants to evaluate promising technologies and new concepts and validate ideas relevant to the bio-economy. It supports the pre-commercial demonstration of bio-economy technologies with a view at attracting new entrants related to the emerging forest-based bio-economy to Northern Ontario. The new partnership will also engage universities and colleges more systematically in the pursuit and delivery of an innovation agenda for the forest sector including the creation of a skilled workforce to support bio-economy initiatives.

CRIBE's Chairman Frank Dottori stated: "This shared funding agreement will allow proponents to move research findings and innovative business ideas quickly into commercial products and processes to assist in the generation of wealth and jobs to the economy of Northern Ontario".

"The Government of Ontario has recognized the need to move the Province to the forefront of the commercialization of chemicals, fuels, fibres and energy that can be produced from forests," added Lorne Morrow, Chief Executive Officer for CRIBE. "There is a significant opportunity to move products derived from the forest up the product value chain, using our forest fibre to produce higher value, novel products while reducing costs of manufacture for the more traditional forest products."

In partnership with Natural Resources Canada (NRCan), FPInnovations will contribute equally with CRIBE, to the funding required to establish new scientific and technical capacity to support the pre-commercial demonstration of promising technologies related to the forest bio-economy in Northern Ontario. Under this new agreement, each of the parties will contribute up to $1 million per year for the next four years to establish this capacity.

In addition, the parties in conjunction with their respective government partners, NRCan and the Ontario Ministry of Research and Innovation, will provide up to $20 million in funding over the next four years towards pre-commercial demonstration projects of promising technologies for Northern Ontario.

Pierre Lapointe, President and CEO for FPInnovations stated: "This innovative approach is geared toward developing new scientific and technical capacity using forest biomass, pilot plant capabilities and pre-commercial demonstration projects in Northern Ontario. The engineering and technical studies are focussed on three alternatives: lignin, methanol, and hemicellulose. Our aim is to identify technical and business challenges around extracting and reusing these products. I have great hope for this partnership and the new possibilities it represents for the Ontario Forest Industry."

The new Forest Bio-Economy Program builds on FPInnovations' Transformative Technology Program which is funded by NRCan over the past two and half years. The latter establishes the technical base of several new technologies and in turn will support knowledge transfer and timely adaptation of bio-products for the benefit of Northern Ontario.

For more information, visit: www.fpinnovations.ca

TORONTO — Seven hundred Ontarians from Ottawa to Windsor to Thunder Bay will be celebrating a green holiday season after being the first to receive offers to generate renewable electricity under the province's new feed-in tariff program.

The new microFIT program encourages the development of small-scale renewable energy (10 kilowatts or less) from a diverse range of producers, including homeowners, schools, farmers and small businesses. It is part of a broader Ontario feed-in tariff program (FIT), the most comprehensive program of its kind in North America. FIT is also aimed at encouraging community-owned and aboriginal-led projects.

The FIT program, one of the cornerstones of the Green Energy Act, provides stable, guaranteed pricing to renewable energy producers of all sizes. It supports the province's commitment to eliminate dirty coal-fired generation by the end of 2014 — the single largest climate change initiative in Canada. FIT and other initiatives under the Green Energy Act will support the creation of 50,000 "green collar" jobs.

"The new microFIT program literally brings power to the people," said Gerry Phillips, Minister of Energy and Infrastructure. "It allows homeowners, farmers, schools and Mom and Pop businesses to help power our future and get paid for it, while investing in a new era of 'green collar' jobs and expertise."

"The tremendous initial response to the feed-in tariff signals a strong future for renewable energy in Ontario," said Ontario Power Authority CEO Colin Andersen. "We've cut the red tape and made it simpler for ordinary Ontarians to become electricity producers and they've raced to embrace green energy."

The Ontario Power Authority has received nearly 1,200 microFIT applications since the program began accepting applications on October 1, mostly for residential roof-top solar power systems. These proposed projects have a combined capacity of about 8.6 megawatts (MW), enough to power about 1,000 average homes.

Between October 1 when the program launched and December 1, the Ontario Power Authority also received about 1,000 applications for projects over 10 kilowatts (kW). This large number of applications ensures there will be more than enough high-quality projects to deliver the 2,500 MW of renewable energy earmarked for the first round of the FIT program. These larger scale FIT applications are still being assessed.

The Ontario Power Authority estimates that the first FIT projects will generate in excess of $5 billion in investments in manufacturing, design, construction and engineering and lead to the creation of thousands of new jobs.

The Ontario Power Authority is responsible for ensuring a reliable, sustainable supply of electricity for Ontario. Its four key areas of focus are: planning the power system for the long term, leading and co-ordinating conservation initiatives across the province, ensuring development of needed generation resources, and supporting the continued evolution of the electricity sector.

LONGUEUIL, QC — Innergex Renewable Energy Inc. announced yesterday that the Ashlu Creek run-of-river hydroelectric power generating plant, with a net installed capacity of 49.9 MW, is now in commercial operation. As the required performance tests were carried out successfully, BC Hydro has retroactively set the official commercial operation start date at November 29, 2009. With Ashlu Creek now in operation, the net installed capacity of Innergex's portfolio of run-of-river hydroelectric power generating facilities and wind farms grows from 95 MW to 145 MW, representing a 53% increase when taking into account the Corporation's 16.1% ownership of Innergex Power Income Fund.

According to Michel Letellier, President and Chief Executive Officer of Innergex, "Ashlu Creek's yearly energy output, estimated at 265,000 MW-hr, represents a significant contribution to our total power generation capacity. The start of commercial operation at Ashlu Creek is good news for our investors, as it will translate into concrete additional annual revenues estimated at $18 million, and a contribution of $15.1 million to the annual operating profits (EBITDA)."

As explained by Letellier, "The support of British Columbia's Liberal government for clean and renewable energy projects, such as Ashlu Creek, certainly contributes to the fight against climate change. The new facility will supply enough electricity for 24,000 homes each year. By comparison, an equivalent-sized coal-fired power plant releases approximately 219,000 tons of carbon dioxide (CO2) gas, while Ashlu Creek is emission-free."

The Ashlu Creek facility is located on Ashlu Creek, a tributary of the Squamish River, approximately 35 kilometers northwest of Squamish, British Columbia. Wholly-owned by Innergex, the power plant was built at a cost of $138 million. Its production is covered by a 30-year power purchasing agreement signed with BC Hydro. The project will also benefit from the federal government's ecoENERGY initiative, which offers a $10/MW-hr incentive for the first ten years of operations.

Innergex Renewable Energy Inc. is a developer, owner and operator of run-of-river hydroelectric facilities and wind energy projects in North America. For more information visit www.innergex.com.

OTTAWA — Wind Works Power Corp. announced today it has acquired a 50% interest in six wind energy projects totaling 80 megawatts (MW) located in Ontario, with an option to increase its interests to 100%. All six projects submitted power contract applications on November 30th under the new Feed-in Tariff program as part of the Ontario Power Authority initial launch period.

"With these six new projects, we now have a total of 15 wind energy projects in Ontario totaling 190 MW," commented Dr. Ingo Stuckmann, CEO and director of Wind Works. "All 15 projects submitted power contract applications to the OPA, which offers the highest power rate in North America. Power contracts in Ontario will be awarded in the January to March 2010 time frame, and we are now targeting to commence construction on a minimum of 70MW in Ontario in 2011."

In consideration for the 50% interest in the six wind projects, Wind Works will make a one-time cash payment of $300,000 on April 30, 2010, and issue 1,200,000 restricted common shares.

Power contract applications have now been submitted for the following Ontario projects:

1. Ganaraska Wind Park: 50% interest (option to increase to 100%) in a 20 MW project north of Oshawa

2. Stonetown Wind Park: 50% interest (option to increase to 100%) in a 10 MW project near St. Mary

3. Pioneer Wind Park: 50% interest (option to increase to 100%) in a 10 MW project near St. Thomas

4. Field Breezes Wind Park: 50% interest (option to increase to 100%) in a 10 MW project east of London

5. Northern Lights Wind Park: 50% interest (option to increase to 100%) in a 10 MW project near Markdale

6. Lakeside Breezes: 50% interest (option to increase to 100%) in a 20 MW project south of London

7. Grey Highlands Wind Park: 100% interest in a 10 MW project 25kms south of Georgian Bay, Ontario, Canada;

8. Snowy Ridge Wind Park: 100% interest in a 10 MW project in the vicinity west of the village of Bethany, Ontario, Canada;

9. Settlers Landing Wind Park: 50% interest (option to increase to 100%) in a 10MW project located near Pontypool, Ontario, Canada;

10. Skyway 126 Wind Park: 70% interest in a 10 MW project located in Grey-Highlands Township, Ontario, Canada on the north east side of the Garafraxa Plateau, the highest land mass in Ontario;

11. Polar Bear Wind Park: 50% interest (option to increase to 100%) in a 20MW project located in Ontario, Canada;

12. Pleasant Bay Wind Park: 50% interest (option to increase to 100%) in a 20MW project located in an area just north of the shores of Lake Ontario that has one of the best wind regimes in Ontario;

13. Zorra Wind Park: 50% interest (option to increase to 100%) in a 10MW project located northwest of Woodstock, Ontario, Canada;

14. Whispering Woods Wind Park: 50% interest (option to increase to 100%) in a 10MW project located near Millbrook, Ontario, Canada; and

15. Clean Breeze Wind Park: 50% interest (option to increase to 100%) in a 10MW project located in Ontario, Canada.

The Feed-in Tariff (FIT) contract program is part of the new Green Energy Act in Ontario and offers a power contract with a guaranteed rate of C$135.00/MWh over a 20-year term to qualified wind energy projects. The Ontario Power Authority (OPA) initial launch period deadline for FIT applications was November 30, 2009. This first launch period is designed for projects that were being developed under the Renewable Energy Standard Offer Program (RESOP) and are therefore further advanced. Criteria of earlier commercial operation dates is one such factor in obtaining priority access to transmission availability. To be awarded a Power Purchase Agreement (PPA) under the FIT rules, the application has to be submitted in accordance with strict regulations which can be accessed in details via the OPA website at www.powerauthority.on.ca/

For more information about Wind Works visit www.windworkspower.com

STAMFORD, CT and VANCOUVER, BC — GE Energy Financial Services, a unit of GE, and Plutonic Power Corporation have completed their purchase and will resume construction of the 300-megawatt Dokie Wind Project, British Columbia's largest wind farm. The announcement was made on Friday.

GE and Plutonic jointly contributed $52.5 million to purchase the fully permitted project located 1,100 kms northeast of Vancouver from EarthFirst Canada Inc. The companies have formed a partnership through which they will construct and operate the project's first phase, which will have the capacity to generate 144 MW and is expected to reach commercial operation by early 2011. Construction is scheduled to ramp up next month, with most of the work commencing in the spring.

The Manufacturers Life Insurance Company (Manulife) led a syndicate that provided C$175 million in fixed-rate nonrecourse project debt for a 20-year term. Energy from the project will be sold to BC Hydro, the third largest electric utility in Canada, under a 25-year energy purchase agreement. The lending syndicate consists of Manulife, Sun Life Assurance Company of Canada, The Canada Life Assurance Company and Industrial Alliance Insurance and Financial Services Inc.

The Dokie Wind project is GE Energy Financial Services' and Plutonic's first wind energy investment in Canada and expands their relationship beyond hydroelectric power development. With this investment, GE and Plutonic are jointly developing what will be British Columbia's largest wind project and largest run-of-river hydro project — the 196-megawatt East Toba River and Montrose Creek run-of-river hydroelectric project — helping the province meet its goal of electricity self-sufficiency by 2016 by using 90 percent clean domestic generation sources. GE and Plutonic also have proposed to build two other run-of-river hydroelectric power projects: the 166-megawatt Upper Toba Valley and 1,027-megawatt Bute Inlet Project.

"Reviving phase one, and working toward expanding the Dokie Wind Project and completing our East Toba River and Montrose Creek run-of-river hydroelectric project not only grows our business and supports GE's ecomagination program but reinforces the British Columbia government's strong agenda to promote renewable energy," said Alex Urquhart, President and CEO of GE Energy Financial Services.

"Our relationship with GE Energy Financial Services enabled a joint purchase of the Dokie Wind Project, which provides Plutonic with a second near-term operating asset and a new growth platform in wind energy," said Plutonic Power Vice-Chairman and CEO Donald McInnes.

EarthFirst obtained court-ordered protection from its creditors under Canada's Companies' Creditors Arrangement Act, and on November 30, the Dokie partners informed the Court of Queens Bench of Alberta, Judicial Centre of Calgary of their waiver of all remaining due diligence conditions to purchase the wind farm. The GE-Plutonic partnership has worked diligently and successfully with the West Moberly First Nations, Halfway River First Nations, Saulteau First Nations and McLeod Lake Indian Band involved in the Dokie Wind project to conclude comprehensive project consent and support agreements. The partnership has also developed an effective working relationship with these First Nations and looks forward to working with them to complete the first phase of the Dokie Wind Project.

The partnership has entered into an agreement with the Canadian government to receive renewable energy incentives for the project under Canada's ecoENERGY program. The program provides renewable energy projects C$0.01 (before tax) per kilowatt-hour for the first 10 years of power production.

"Renewable energy projects, such as the Dokie Wind Project, and the Canadian economy overall have benefited greatly from the ecoENERGY for Renewable Power program," said Mark Tonner, Managing Director of Canada at GE Energy Financial Services. "We support this initiative and look forward to continuing to access this program to help Canada reach its renewable energy targets."

GE Energy Financial Services is based in Stamford, Connecticut. For more information, visit www.geenergyfinancialservices.com. For more information about GE, visit the company's Web site at www.ge.com.

TORONTO — Electrovaya Inc. announced last week that Electrovaya and HEROElectric are partnering for the electrification of two-wheeler vehicles using Electrovaya's Lithium Ion SuperPolymer battery technology.

Electrovaya and HEROElectric have signed a Memorandum of Understanding (MOU) that sets out the general principals of a joint venture for zero-emission battery electric scooters and motorcycles. HEROElectric is a wholly-owned subsidiary of HEROGroup, the world's largest 2-wheeler manufacturer. The MOU was signed in New Delhi with the Ontario Premier Dalton McGuinty in attendance.

"We have signed an MOU with Electrovaya for what will ultimately become a joint venture once all the details of the new company are finalized," noted Naveen Munjal, Managing Director of HEROElectric. "The HEROGroup has created history in the past, and is now all set to create the future with an advanced battery electric scooter. The lead acid batteries have limitations such as the need for frequent re-charging, shorter lifespan and so on. In contrast, lithium ion batteries have the potential to revolutionize the electric vehicle market."

Dr. Sankar Das Gupta, Chief Executive Officer of Electrovaya added, "Electrovaya's mission is to accelerate clean transportation as a commercial reality with its advanced power systems for all classes of zero-emission electric vehicles. The joint venture with HEROElectric will certainly boost this effort in India as well as in HERO's markets across the globe."

To learn more about Electrovaya, visit www.electrovaya.com. For more information on HERO Electric visit www.heroelectric.in.

OTTAWA — Energate said earlier last week that it will collaborate with a number of India's large energy utilities with its Consumer Connected Demand Response (CCDR) solution, to help close the widening gap between supply and demand of energy resources. Energate CEO Niraj Bhargava was part of the clean technology trade delegation in India last week, led by Ontario Premier Dalton McGuinty.

India energy industry is characterized by a large and growing unmet demand. In 2007-08 demand outstripped supply by 16.6 percent and the gap continues to widen. Rolling blackouts and hours of power outages on many days are necessitating the use of backup diesel generators, which introduces another set of environmental issues.

"India recently introduced a national plan to fight climate change, focusing on clean, renewable energy sources and increased energy efficiency," said Premier Dalton McGuinty. "Ontario's leading Cleantech companies like Energate have the knowhow to implement sustainable solutions in North America, and in fast-growing regions like India."

Energate is a provider of demand response and home energy management solutions for utilities and their consumers. Its products are being used in several smart grid and energy management programs throughout North America.

"India's economy is one of the fastest growing in the world. But with its growth comes a widening deficit of energy," said Bhargava. "In North America, Energate is helping utilities and consumers find a balance between demand and supply. Now through this trade mission we are able to extend our reach. India's challenges are significant and our technology can assist on their goals of energy accessibility and environmental responsibility."

For more information about Energate, visit www.energateinc.com.

Copenhagen, Denmark – The Business Council for Sustainable Energy (BCSE), an industry coalition of energy efficiency, renewable energy and natural gas businesses and trade associations, released today "The Post-2012 Opportunity: Clean Energy and the Low-Carbon Economy," a working paper developed to communicate clean energy business perspectives and recommendations for the Conference of the Parties to the United Nations Framework on Climate Change (COP-15)/Meeting of the Parties to the Kyoto Protocol (MOP-5), which began this week.

Developed with the active participation of the Council's member companies and associations, the paper demonstrates through case examples how existing clean energy technologies — such as renewable energy, supply-side and demand-side energy efficiency, and natural gas — are today offering proven and effective solutions to meet the world’s energy and GHG emissions reduction challenges.  The paper explains how these clean energy resources, as they are fully deployed, will help diversify the portfolio of the world’s energy supply, reduce dependence on high-carbon and finite sources of fossil fuels, and create jobs and wealth worldwide.

Seizing on COP-15 as a critical opportunity for world leaders to signal to the private sector that the transition to a clean energy and low-carbon future begins now, the BCSE offers "The Post-2012 Opportunity" to highlight what the clean energy technology industries need from an international agreement and what they can contribute in terms of energy savings, GHG emissions reductions and economic growth. The Council, active in the international negotiations since its founding in 1992, calls for a strong outcome in Copenhagen that sets the stage for a post-2012 international agreement that includes:

Mid-term investment signals, in the form of targets, timetables and national actions or commitments by the year 2020; there must be common structures for emissions targets and common accounting practices for registries and inventories;

• Market-based approaches, such as the Clean Development Mechanism, cap and trade systems and carbon offsets;
• Continuity and a commitment to maintaining and reforming existing market mechanisms to assure businesses that their investments will be honored;
• An international financing framework that stimulates technology transfer and transformational investment in clean energy technologies and projects worldwide;
• Capacity-building initiatives that foster enabling environments attractive to clean energy investments;
• Strong intellectual property rights that reward innovation and spur investment in clean technology; and
• A private sector role in the design and implementation of post-2012 system.
•  

A copy of the paper is available on the BCSE website. 

The Council is an industry coalition that includes businesses and trade associations representing the energy efficiency, renewable energy and natural gas industries. For more information about the Council visit www.bcse.org.

Glen Ellyn, IL — Responding to the mounting commitment of business and consumers to sustainable technologies, the Bearing Specialists Association (BSA) has released a new addition to its growing body of single-topic Bearing Briefs, The Best-Kept Secret in “Green” Technology. Developed by BSA’s Educational Services Committee, The Best-Kept Secret in “Green” Technology details the many ways in which bearings contribute to a greener planet.

The Best Kept Secret in “Green” Technology points out the bearing industry is constantly developing bearings that operate at higher speeds, generate less friction (and therefore less energy consumption), support heavier loads, last longer, use environmentally friendly lubricants, and cost less throughout their service life. In short, the bearing industry is making the most of existing machines while reducing their impact on the environment. Equally important, the bearing industry also helps users and engineers balance bearing features to achieve optimum machine performance.

The latest Bearing Brief is available for free download from Tools You Can Use on the BSA website www.bsahome.org. It’s the latest in a series of more than 20 free, single-topic user bulletins designed to deliver expertise to meet the needs of the end user as well as bearing industry professionals.

Toronto, ON — The power and utilities sector is faced with a significant looming capital requirement and the numbers are mind-boggling. Research conducted by the International Energy Agency has shown that the global cumulative infrastructure investment needed between 2007 and 2030 amounts to US$26.3 trillion (in year-2007 dollars). While this urgent need for capital predates the global financial crisis, the current economic climate, uncertainty over government climate change policies and immaturity of some competing energy technologies have exacerbated the situation. In addition both the power and utilities sectors must compete with all other sectors of the economy for access to equity and debt markets.
 
According to a new Deloitte report, Empowering ideas: A look at the top emerging issues in the power and utilities sector, organizations are faced with constantly shifting environmental, regulatory and consumer demands and many traditional utilities are having trouble finding, and getting regulatory approvals, for investments that provide a rate of return commensurate with all the risks facing the industry. Similarly, where organizations have access to capital there is the challenge of choosing where to invest.
 
“Given this ambiguity, Canadian executives may be tempted to take a wait-and-see approach, but giving into this temptation may be a tactical error,” says Jane Allen, leader of Deloitte Canada’s Utilities practice. “Organizations are more likely to succeed by taking diverse positions that account for different possible futures, instead of placing one big bet.  In short, this will be about learning how to manage in uncertainty.”
 
According to the Deloitte report, funding for the replacement of aging infrastructure is only one aspect of the financial challenge. In the near term, the International Energy Agency says power and utilities organizations will need to double their base load generation (from both traditional and renewable sources) to address the growing energy demands of our global economy over the next 30 years.  They will also need to invest in new carbon-reducing technologies for carbon capture and storage, smart metering and demand side management, in the absence of universal benchmarks or global standards.  In addition, the electric power industry will need to work with provincial, state and national regulatory authorities to reconfigure, enhance and expand existing transmission and distribution systems to successfully integrate new sources of energy.
 
“And they must do all this amid the resource constraints caused by competition for capital, and a looming talent shortage across the industry,” added Allen.
 
Succeeding amidst challenges
According to Deloitte, the top overarching issue remains the need for additional investment in energy infrastructure.  “To succeed in the current landscape, it will be important for organizations in the power and utilities sector to carefully assess the investment opportunities and requirements in view of emerging technologies and regulations, and set priorities based on a thorough analysis of risks,” explains Allen.
 
“Whatever organizations decide to do—whether they’re investing in renewables, implementing a first wave of smart grid technologies or deciding on the next 100 megawatts of generation—it is critical that they have a full understanding of the costs and risks, and communicate the rationale for their investment to all their shareholders and stakeholders.”
 
Top ten emerging sector issues
To help organizations navigate investments and strategic planning in this complex sector, Deloitte’s Power & Utilities practitioners from around the world have identified ten of the top emerging issues in the global power and utilities sector.
 
1. The carbon conundrum – The race to reduce is on. A rising concern over emissions from fossil fuel energy conversion has spurred governments around the world to action.  By 2020, the Canadian government plans to reduce emissions to 20% below 2006 levels, the U.S. Waxman Markey Bill is targeting a 17% reduction in greenhouse gas emissions below 2005 levels, the European Union has targeted a 20% reduction below 2005 levels, and the U.K. aims to cut emissions by 34% below 1990 levels.  In order to reduce greenhouse gas emissions and mitigate the possibility of climate change effects, organizations must transition to non-greenhouse gas emission technologies. This will have an impact on power companies with large fossil fuel portfolios.
 
2. Betting on renewables – Organizations unclear where to turn. Given the need for power generators to reduce greenhouse gas emissions, investing in renewable energies will become an increasingly important area of focus. On the government front, Canada has a goal of having 90% of its power from non-emitting sources by 2020.  Yet in this evolving environment, identifying profitable renewable energy projects is no easy task.  Recent Ontario legislation provides some attractive financial incentives, and it remains to be seen if other jurisdictions will follow suit.
 
3. A nuclear renaissance – Regulatory and political risks remain. While there is a great deal of expectation regarding nuclear generation, the progress towards the pouring of concrete is slower than desired.  However, international trends suggest that a nuclear renaissance is imminent, and power and utilities organizations in many jurisdictions are grappling with the challenges this presents.  In the immediate term, the current economic climate, combined with extensive capital investment requirements, is making it imperative for governments and power companies to carefully weigh this option and prioritize their investments. In Canada, the Provinces of Ontario and New Brunswick, and their utilities, are currently facing important decisions around the further development of nuclear power.
 
4. Turning power into profit – Plant efficiency improvements pay off. The issue comes down to improving commercial performance by minimizing the costs of production.  By putting the right foundations in place, power and utilities organizations can more easily respond to market shifts by simply fine-tuning their existing processes. The advantages delivered by improving efficiency are enormous.
 
5. The generation gap – Will electricity demand outstrip supply? Though the recession has resulted in reduced electricity consumption in many jurisdictions, worldwide demand is forecast to continue to increase.  Determining what type of plant to build is complicating the effort, but ignoring the problem will lead to potentially serious supply constraints.
 
6. Public and private – Divergent ownership models abound. For the foreseeable future, it appears that capital costs related to electricity, gas and water utilities are on the rise. This trend requires both government and privately-owned utilities to display innovative management. In both cases, long-term success depends on an organization’s ability to manage public expectations and its own governance process. As the power and utilities sector trends towards selective re-regulation, organizations must hone their abilities to effectively manage the regulatory process.
 
7. Technological transformation – The digital revolution presents no clear path. To make informed smart grid investments, power and utilities companies must do more than identify the low and high risk technologies. They must also learn new ways to manage their data, procure and source their equipment, and integrate disparate systems into a seamless solution, that benefits both the utilities and their customers. Smart grid pilot projects are underway in several parts of Ontario, which sees itself as being on the forefront of this transformation.
 
8. Labour shortages – Workforce planning enters a new era. In countries with static or declining birth rates and aging populations approaching retirement, talent shortages loom in virtually every sector—a threat which is particularly acute in the power and utilities industry. Employers in this sector need to think about how to attract and retain specialized skill sets or they will be caught unprepared when the economy corrects itself.
 
9. Tackling infrastructure obsolescence – Trillions needed to finance future growth. Recent research shows that the U.S. alone would require US$1 trillion in additional capital over the next five years to refinance existing generation and network assets and invest in both existing and new assets. To complicate matters, power and utilities organizations and their governments are being asked to commit existing funds in an environment of serious regulatory and technological uncertainty. Without a clear understanding of the most economically viable power sources and technologies, organizations will need to build strategic flexibility into their generation planning.
 
10. Managing demand – Keeping an energy crisis at bay. As the power and utilities industry grapples to secure power supply, it is essential to remember that there is a flip side to this coin. In essence, organizations are being challenged both to curtail demand and to find ways to meet demand beyond increasing generation. Effective demand management can be achieved only if all industry participants come to recognize that power supply security is about more than increasing installed capacity—it is also about balancing demand by improving energy efficiency and encouraging multinational system integration.
 
For a more detailed discussion of the top emerging issues in the power and utilities sector and suggested courses of action, the full report Empowering ideas: A look at the top emerging issues in the power and utilities sector is available at www.deloitte.com/ca/empoweringideas.