Electrify your operations to reduce GHG emissions? Perhaps not that simple.

On Ontario's electricity grid, natural gas generating units are increasingly called on to provide power, even in off-peak hours. The trend has significant implications for those looking to reduce greenhouse gas emissions through electrification.

Generational change: Experienced senior staff are leaving

Many organizations face a growing challenge as senior employees leave the organization, taking with them significant knowledge and experience. Outsourcing expertise can be an effective way to fill the knowledge gap quickly, while lowering costs and reducing risks.

Electricity price behaviour in Ontario is changing

Increased reliance on gas-fired generation will lift hourly electricity prices in Ontario. Higher HOEP and greater demand will lower Global Adjustment costs. It's a dynamic Ontario consumers have not seen in a long time.

Energy transition: Success depends on interactions, dependencies, and contingencies

The value of an Energy Transition Plan is that it forces the organization to look at the many interacting parts, the dependencies and the contingencies that must be considered if success is to be achieved. It is unlikely the plan as first conceived will be implemented unchanged. But the process of planning equips the organization to anticipate possible challenges or obstacles that will arise, understand their impact and be confident in their ability to pivot to a new, more viable solution.

Choosing your energy transition pathway

An energy transition is underway. While this change is essential, it is fraught with challenges and uncertainties. The appropriate energy transition pathway is one that enables the organization to move confidently towards its goal, while remaining within its limits of operating cost impacts, capital availability and risk tolerance, and with key decisions staged to allow for mid-course corrections if necessary. To navigate the transition successfully, an organization must have strong alignment and embark on its transition pathway with its eyes open to the challenges and risks it faces.

Act now to reduce the impact of business disruption on energy costs and risks

The sudden shutdown of operations imposed on many organizations by COVID-19 is having profound impacts on organizations and the people within them.

With sudden and widespread change, it is hard to identify all the necessary actions and prioritize them. For many organizations, the change in operations will affect their need for energy.

Your Class A Decision: Approach With Caution

Uncertainty about electricity demand over the coming months is an important risk factor for those who are considering their option to be Class A for GA purposes under the Industrial Conservation Initiative over the coming adjustment period. Distortions in electricity usage resulting from shut-downs due to COVID-19 are likely to be felt for several months longer and could impact Global Adjustment costs and the allocation of those costs into 2022.

An effective risk management program is risk-responsive

It is useful to think of risk as “the impact of uncertainty on your objectives”. Nothing in our future is certain, but we need to identify when the degree of uncertainty and the potential consequences of uncertain events are big enough to really matter. If so, then we need to do something to manage that risk. Otherwise, we can just go about our business.

RFPs are not a good tool for procuring expertise

Many organizations faced with the need to source energy sector expertise resort to that old procurement warhorse, the Request for Proposals, or “RFP”. Some public buyers consider themselves compelled to use an RFP when obtaining the professional services of a consultant or advisor.

Yet the RFP is a fundamentally flawed tool for procuring the expert advice needed to solve a complex problem.

Commodity price risk management: when to hit the brakes

You’re hitting the road for your daily commute. Driving can be risky and you want to arrive safely at your destination. You consider yourself a careful driver and you’ve adopted a strategy of maintaining 50% braking force for the entire journey.

Wait, what? Nobody drives like that.