Kineticor understands the significance of the changing energy landscape across North America. Efficiency and optimization of resources is critical to reduce operating costs and compliance liabilities.
Regulatory and market landscapes are changing. With emerging climate change policy and rising electricity rates, the way we create and utilize energy is shifting. Companies, system operators, and governments are focused on clean energy generation, with the aim to reduce emissions and costs from the value chain.
Reducing emissions is seen as a priority in many jurisdictions, resulting in the introduction of carbon taxes or cap and trade programs, as well as legislation to limit emissions from industrial operations. These changes result in a cost of compliance that can alter the economics of a project, creating either liabilities or opportunities for consumers.
Investment in electricity generation and transmission infrastructure along with energy conservation programs are increasing the delivered price of power in jurisdictions across North America. Utility costs typically account for a significant portion of a company’s operating expenditures, therefore, these rate increases will have a considerable impact on individual projects and companies overall.
In Alberta, power transmission costs are expected to nearly double over the next decade due to investment in new transmission infrastructure. According to the Alberta Electric System Operator's forecast, the average transmission costs for Small Industrials is expected to increase to almost $53/MWh by 2020 from $39/MWh in 2013 (AESO Transmission Rate Impact Projection Workbook, 2014)
In Ontario, one of the main challenges of the province’s power system is ensuring reliable delivery of electricity to users. Unplanned power interruptions are prevalent in several areas of the province resulting in disruptions to operations at many facilities.
The Ontario government’s strategy to address reliability issues is focused on conservation potential, essentially reducing power demand versus investing in generation and transmission capacity. This strategy can be seen through the province’s Global Adjustment (“GA”) rate, a charge administered for energy used during peak hours that contributes up to 46% of the industrial customer rate
Investment in on-site gas to power generation, a form of decentralized energy, is increasing across North America as a means to avoid these increasing utility and compliance costs. More facilities are relying on on-site generation to meet facility power and heat needs. By controlling your own generation of heat and power, companies can reduce their energy costs by avoiding transmission fees or peak demand charges, reduce unplanned power interruptions, and minimize the emissions intensity of their facilities.
Kineticor understands the significance of the changing energy landscape across North America. Efficiency and optimization of resources is critical to reduce operating costs and compliance liabilities. Whether through behind-the-meter generation or more efficient heat and power production, Kineticor develops customized and reliable solutions to allow companies to remain competitive in this new landscape.