ECO Conservation Report

In its 2013 report, the Ministry of Energy concluded that energy conservation results in significant energy savings. For instance, between 2006 to 2011, Ontario avoided building new capacity (CAD 4 billion) and saved about $2 in costs to the electricity system for every $1 invested in energy efficiency (Ministry of Energy, 2013, p.1-2). Moreover, there is a decline by almost 25% in the average household electricity consumption since 1990, representing about $350 savings for the average household (Ministry of Energy, 2013, p. 3). These savings result from extensive conservation initiatives such as improvements in building codes and product efficiency standards, and conservation programs delivered by LDCs and provincial agencies (Ministry of

iii). In its report, citing information provided by the IESO, the ECO found that utility conservation programs for 2014 cost electricity ratepayers 2.9 cents per kWh saved. This is substantially lower than the 6-9 cents per kWh for refurbished nuclear, 13 cents for wind power, and 8-29 cents for gas-fired turbines (ECO Conservation Report, 2016, p. iii). For natural gas, the ECO reported that gas utility conservation programs in 2014 (CAD 66 million) cost natural gas ratepayers 2.5 cents per cubic meter of gas saved versus an average residential natural gas price of 18.3 cents per cubic meter (ECO Conservation Report, 2016, ii).
2. Growing the economy
Investing in energy efficiency also generates a positive increase in the gross domestic product or GDP (Acadia Center, 2014, p.17). Based on Acadia Center’s projection, Ontario’s implementation of efficiency programs for electricity over a fifteen year period from 2012-2026 will generate a total net increase in GDP ranging from $24 billion to $71 billion. This translates into $2.65 to $1.94 of GDP for every $1 of program and participant spending over the entire study period (2012-2040), with the maximum annual increase in GDP ranging from approximately $2 billion to $7 billion (Acadia Center, 2014 p. 56).
3. Job

The study explained that other forms of spending increase when households realize lower energy bills, including travel/tourism, dining out, renovations, among others. Moreover, the study explained that lower energy bills lead to a reduced cost of doing business in a region and improvement in the relative competitiveness of the industry, which serve as drivers for additional growth. This helps explain why “energy efficiency is such a powerful economic stimulus and effective means of generating jobs.” (Acadia, 2014, p. 27).
If Ontario implements efficiency programs for electricity over a fifteen year period from 2012-2026, the study projects that Ontario will generate a total net increase in employment ranging from 200,000 to 600,000 job-years over the entire study period (2012-2040). Viewed differently, this translates into 21 to 17 job-years per million dollars of program spending, with the projected maximum annual increase in employment ranging from approximately 14,000 to 44,000 jobs (Acadia Center, 2014, p. 17 and