Industry calls for new investments in energy technologies

A consortium of energy industry associations is urging governments and the private sector to invest in the development and deployment of new technologies to help Canada meet its future energy needs.

The recommendation was contained in a submission to the Council of Energy Ministers by the Energy Dialogue Group (EDG). EDG is a group of 14 industry associations lobbying for a new federal/ provincial energy framework that emphasizes the importance of research and innovation to overcome barriers to market adoption and gaps in commercialization.

The EDG argues that a framework including new investments in R&D and technology acquisition is essential to counter the rising costs of developing new energy supplies, aging infrastructure, higher energy prices and threats to air, water and land. It’s estimated that $1.7 trillion is required over the next 30 years for new production, transmission and distribution infrastructure. Globally, the pricetag is $10 trillion.

“As a priority, governments should work together and with industry to ensure that Canada is investing in and supporting new energy technologies and in the next generation of skills needed to deploy and manage those technologies,” states the EDG in its submission document, Time for a new focus for energy in Canada (www.centreforenergy.com). The sub-mission was made to the July 19 meeting of the Council of Energy Ministers in Iqaluit NU.

The EDG also emphasizes the need for changes to make Canada a preferred destination for new investment capital. The cost of developing remote and offshore energy sources is increasing investment risk, making it essential that government energy policies are stable and sensitive to investor needs. That means harmonizing regulatory requirements and ensuring a competitive fiscal environment by “continued fine-tuning of both tax and non-tax arrangements”.

The submission cautions, however, that “step reductions in demand” and the rapid adoption of new technologies are unlikely in the near term, making efficiency improvements in traditional energy sources (oil, gas, coal) essential.

R$