By: Tilo McAlister

The energy-focused event, held annually, explored the latest in energy cost reduction and conservation strategies.


This past February 26th, over 200 Ontario manufacturing leaders including our T&T Power Group attended the Canadian Manufacturers & Exporters’ Energy 2019 Powering the Future of Manufacturing Conference in Mississauga.

A handful of guest speakers attended the event, including:

  • The Government of Ontario’s MPP Paul Calandra
  • Managing Director of Pollara Strategic Insights, Craig Worden
  • Sr. Industry Officer of Natural Resources Canada, Donna Arts
  • Managing Director of Blackstone Energy Services, Ryan Duffy
  • President of ASW Steel, Tim Clutterbuck
  • Vice President of Consumer Protection & Industry Performance of OEB, Brian Hewson

The speakers discussed many strategies for decreasing energy costs while increasing efficiencies, and helped to put a necessary focus on the importance of energy policies and management.

Below are some key takeaways from the abovementioned guest speakers

Paul Candra provided attendees with a Greeting from the Government of Ontario, and informed us of the upcoming review of the Industrial Conservation Initiative (ICI). Paul also assured us personally that business owners who had invested in Global Adjustment mitigation assets would continue to see returns, which we certainly appreciated.

Craig Worden, who presented on Insights on Electricity Pricing in Ontario, helped us to realize just how serious the demand for more cost-efficient power production is among manufacturers in Ontario. He explained that, on average, electrical costs account for 20% of expenses for Ontario manufacturers – and that nine out of ten manufacturers feel that their company’s electricity costs are too high

Craig Worden, who presented on Insights on Electricity Pricing in Ontario, helped us to realize just how serious the demand for more cost-efficient power production is among manufacturers in Ontario.

Craig also explained that Ontario manufacturers also believe they pay higher rates than most other states and provinces, raising concerns about competitiveness. And without a doubt, these high energy costs have contributed to the 24% increase in layoffs/terminations in the Ontario Manufacturing sector.

But not all is bad news for Ontario manufacturers. Because of the prevailing issue at hand, there’s been a 65% increase in companies’ efforts to manage or conserve energy use, according to the IESO.

Donna Arts, on the other hand, presented on Energy Management – speaking about the range of financial or other incentives through NRCan programs for both commercial and institutional buildings including Energy Star, ISO 50001 and BLD Project initiatives. (She also mentioned that she is eager to work directly with industry stakeholders – so please contact donna.arts@Canada.ca if this is of interest to you).

Ryan Duffy gave an interesting Energy 101 presentation that emphasized the importance of competitive energy costs and certainty for SMEs (Small and Medium Enterprises). He also made a point that resonated with many of us: to not think of renewables as a commodity, but as a technology. He used Moore’s Law to support the idea – demonstrating that the cost of technology comes down while the price of a commodity tends to increase with time.

Tim Clutterbuck told a cost reduction success story that was a sure highlight of the event. He explained how $0.02/kWh was saved by load shifting to off-peak hours, and how the impact of missing one peak was $0.04/kWh. $15+ Million were saved with the mitigation of Global Adjustment costs, which spoke to just how beneficial and effective this means of energy cost reduction is.

Lastly, Brian Hewson provided attendees with a valuable Update from the Ontario Energy Board (OEB). In his presentation, he explained how the OEB recommends changes to Ontario’s commercial and industrial electricity rates, including the addition of a ‘Capacity Reserve Charge’ for large customers with on-site generation assets. This would replace and standardize irregular standby charges, and take into account the benefit that distributed generation equipment has for the electrical system.


Missed Energy 2019? There’s always next year.

CM&E’s annual Energy conference is a highly informative event for manufacturers all over Ontario who are interested in energy conservation and cost reduction strategies. We’re glad we could provide those who missed this year’s conference with key takeaways.

 

Generator Service

On average, electrical costs account for 20% of expenses for Ontario manufacturers – and nine out of ten manufacturers feel that their company’s electricity costs are too high.


CME 2019 takeaways, T&T Power Group.

Download the PDF featuring our Key Takeaways from the CM&E Energy 2019: Powering the Future Conference.