Consequences of under-investing in the grid

Canada's energy transition isn't coming. It's already here. As 2025 winds down, Trevor shares a holiday rewind featuring five of the most electrifying conversations from the thinkenergy podcast this year. From clean energy trends and Hydro Ottawa's investment plan to grid modernization, the rise of DERs, and decarbonizing buildings. Sit down with something warm and revisit the insights, challenges, and big ideas that defined our fast-moving energy landscape in 2025.

Related links

• Episode 149 (Looking ahead at 2025 clean energy trends): https://thinkenergypodcast.com/episodes/looking-ahead-at-2025-clean-energy-trends/

• Episode 160 (Digging into Hydro Ottawa's historically large investment plan): https://thinkenergypodcast.com/episodes/summer-rewind-digging-into-hydro-ottawas-historically-large-investment-plan/

• Episode 162 (Consumer impact: revisiting grid modernization with Capgemini Canada): https://thinkenergypodcast.com/episodes/consumer-impact-revisiting-grid-modernization-with-capgemini-canada/

• Episode 163 (How Distributed Energy Resources (DERs) are reshaping the grid): https://thinkenergypodcast.com/episodes/thinkenergy-shorts-how-distributed-energy-resources-ders-are-reshaping-the-grid/

• Episode 150 (Decarbonizing Canada's buildings with the Building Decarbonization Alliance): https://thinkenergypodcast.com/episodes/decarbonizing-canadas-buildings-with-the-building-decarbonization-alliance/

• Trevor Freeman on LinkedIn: https://www.linkedin.com/in/trevor-freeman-p-eng-cem-leed-ap-8b612114/

• Hydro Ottawa: https://hydroottawa.com/en

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http://thinkenergy.libsyn.com/

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Transcript:

Trevor Freeman 00:00

Welcome to thinkenergy, a podcast that dives into the fast, changing world of energy through conversations with industry leaders, innovators and people on the front lines of the energy transition. Join me, Trevor Freeman, as I explore the traditional, unconventional and up and coming facets of the energy industry. If you have any thoughts, feedback or ideas for topics we should cover, please reach out to us at think energy at hydro ottawa.com, hi everyone, and welcome back. This is our special holiday rewind edition of the thinkenergy podcast, which has become a bit of a tradition around here. I'm your host, Trevor Freeman, and as we settle into the final days of the year, it feels like the perfect time to slow down and take a look back at some of the conversations that we feel really shaped 2025 at least, for the podcast and in our own minds. This year, we explored everything from grid modernization to decarbonizing buildings distributed energy resources (DERs) and some of the technologies that are really defining how Canadians live, work and stay connected. Today's episode is the first of a two-part holiday rewind series, each part highlighting five standout episodes that we feel really sparked ideas curiosity and great discussions throughout the year. So pull up a comfortable seat, pour yourself something seasonal and festive, and join me as we revisit some of the insights and innovations that we feel lit up 2025 to start with, we kicked off 2025 with a forward looking conversation on some of the trends that we thought might shape the year, and to be honest that many of them unfolded even more quickly than we expected. In our first episode of 2025 we looked at clean energy trends. We talked through how electrification and AI driven grid intelligence and new customer expectations were really going to change the landscape in real time for us, here's a moment that we captured just how quickly the industry is accelerating and why adaptability is so important to us. At the same time, utilities across the country will continue to invest in grid modernization. So as well as infrastructure expansion, not just modernization, we're also building and growing our grids to keep up with the pace of change, but we need to also be able to leverage more DERs on the grid, so more distributed energy resources, small scale solar generation, things like that. So we will continue to see utilities make steps in that direction. They will look to levels of government to support those initiatives, through programs and funding and regulatory change. So we will continue to see that change in grid modernization, but I know it's definitely a big topic for us here at hydro Ottawa. And finally, in this section, energy efficiency. Energy efficiency is not new. It's been around for quite a while. In fact, it was the primary focus, kind of before we shifted a little bit more towards thinking about carbon. But we cannot fully decarbonize, we cannot fully electrify without significant energy efficiency. We just won't be able to affordably build the infrastructure we need if we're not using energy in an efficient way. So that will continue to be a focus. And in fact, I mentioned the new incentive programs from the province of Ontario that is very much designed to support ongoing energy efficiency measures. So we will continue to see that as a focus in 2025 and our final area, area number five, is technology. So there is no year anymore. In fact, maybe there never was where technology doesn't continue to grow and expand and evolve in ways that we couldn't even imagine, and it does seem like the pace of change is picking up, but I think that's kind of normal. So we will see technology that supports or augments the energy transition continue to evolve in 2025 and the ways that technology influenced that really, you know, we have an idea on some of them, and it'll be interesting to look back in 12 months at what we know in December, 2025 that we didn't even know here today in January. So there you have it. That's going back 12 months. And my expectation of what 2025 might have in store in the new year, I'll be doing a similar deep dive on some of the trends that we've been seeing over the course of this year and what we might expect to continue into 2026 but that idea that the pace of change is accelerating certainly became one of the defining themes of the year, and I think is something that we can expect to stick with us for the foreseeable future. And I think you'll hear echoes of that in all the different episodes that we revisit today. Next up, a modern, reliable grid doesn't just happen. It's built through long term planning, thoughtful investments and a deep understanding of how our communities are growing and how their energy needs are changing. In an episode that we. Least back in June, we unpacked hydro Ottawa's 2026 to 2030 investment plan, and what that means for reliability and customer experience and preparing the system for tomorrow. In this next clip, I chat with Hydro Ottawa's Guillaume Paradis to really get into why it's so critical that we get our investment in the next five years, right for our grid, so that that's a nice segue into his next question, which is, of course, there's a cost for this, and this is why it is an investment plan we're out there outlining. These are our targets. This is what we want to do, but there's a cost to that, and so if we don't do this, if we said, look, we just can't put that extra investment into these areas, what are the implications on the grid, on our service? And let's look at kind of like, quality of service, reliability, safety, etc, if we don't make these investments that we are identifying right now.

Guillaume Paradis 06:03

Yeah, so it's pretty direct, right? What we've done for the in preparation for our rate application, in preparation for to develop our plans for 26 to 2030 is we've considered all the needs. We've looked at how old the assets are, how quickly they're deteriorating, how many might require replacement over the next five years, what would be an appropriate rate of replacement to ensure that we don't let risk build up in our system, we don't cause reliability issues. We've looked at how we make sure that we can provide service to our customers, that we can connect them in a timely manner, that we can do all those things in a fashion that is safe and ensures the safety of the public, our customers. And so a lot of thought goes into what is required over the next five years. And then on top of those factors and considerations, we also look at what impact will this have financially on our customers, because we're mindful that our service does affect, you know, our customers live, yes, in a positive manner when our service is reliable and power is available, but also financially. From a cost standpoint, we add to other pressures that everyone experiences in their lives, and so we want to be very judicious in setting the size of our programs the level of investments in managing those various factors, right? So we have a multifaceted responsibility, and we weigh all those factors in in our setting the plans for the future. So doing so looking five years out, as you can probably imagine, you know, if we didn't constrain the plans, if we just did everything our planning engineers would like to do, we would have spent probably another 50% more than what is in the current plan. So looking at old assets, looking at the service levels we want to deliver, we could have spent a significantly larger amount of money if it was purely based on we'll call them planning, you know, drivers. But as I said, we are mindful that we're responsible for the quality of our service on behalf of all our customers. And we took a very deliberate, extensive approach to adjusting the program size to match the various considerations and ultimately manage the impact on our customers from a financial standpoint. And so we landed where we are after some measure of restraint, some measure of adjustments down to the plans that would otherwise have been put in place. So thinking about what the outcomes would be if we didn't take the actions we're proposing. You know, it's pretty direct, if you think about it, and we've covered most of them, but it ranges from, you know, difficulties in connecting and delivering power to new customers in a timely manner so that can have impacts with respect to economic development and growth of our community so fairly direct, and frankly, you know, it's our obligation to connect, so we would do everything we can to provide power, but it might just be more difficult take more time on the reliability front again, what happens when you don't replace old assets is the failure risks continue to build in your system. So an 80 year old wood pole doesn't get any younger and. Doesn't get any stronger if you wait five, six more years. And so as I said, we do a risk assessment before we choose to invest, and our risk assessments tell us that we need to take action on those type of assets. And you know, take action in a timely manner. If we don't, what is likely to happen is that in a storm scenario, those polls that are deteriorated are more likely to fail, even in normal conditions, it's likely that we would see more failures that could lead to reliability issues, and so just a direct impact on the quality of our service for our customers, with respect to other outcomes, like enabling customers and supporting them in integrating more embedded energy resources, that might just become more difficult, as I said earlier, when we're don't have good real time awareness, we have to err on the side of caution and be more conservative in our management of the system, and that might mean restrictions on where and how we can integrate renewable energy resources. And then ultimately, you know, the paramount consideration for us is always safety, and that's an area where we would just have to be even more vigilant if we couldn't reinvest so old assets are inherently more likely to create failure risks and failures can lead to undesirable outcomes from a safety standpoint. So we would have to and already do, but be very vigilant in monitoring those assets, looking at them, looking at what we can do from a maintenance standpoint to ensure that they don't fail in a manner that would be problematic. So we would be an R always very active in looking at those riskier assets, those older assets, to make sure they don't cause problems. But reducing investment levels from what is being proposed now, reducing them further relative to, as I said, the planning levels we would have liked to put forward would have real consequences. And of course, we would do everything we can to manage those consequences and ensure that, you know, we continue to deliver the best service we can, but that would become more difficult than it is today.

Trevor Freeman 12:29

So that forward focus, that planning for the city that Ottawa is becoming and our energy needs of the future really reflects that shifting mindset that we're seeing across the whole sector. And I think we saw that throughout 2025 and certainly are going to keep seeing that throughout 2026 for our next clip, one of our most popular conversations of the year, not surprisingly, was with Andrea Nuesser from Capgemini, Canada. Andrea and I dug deep into what it means to modernize the grid, how technology, data, cybersecurity and customer expectations are all coming together and pushing utilities into a new era of grid management and grid design. This was a really great, wide-ranging conversation, but there was one moment that really stood out for its clarity and simplicity, and it highlighted this idea that modernizing the grid isn't just about technology alone. It's primarily about people. Yeah, well, let's do that right now. Actually, it's exactly where I wanted to go. Next is you and I have chatted before and talked about how there is this shift in how utilities are seeing customers, and there's a traditional mindset of how utilities looked at their customers, which has been different from you know, take your average retail customer, or retail relationship between an organization and a customer, utilities are shifting more. So let's dive into that. Tell me a little bit more about what that shift is, and how you see utilities moving in terms of how they engage with customers.

Andrea Nuesser 14:00

Yeah, so when I started working with utilities, the term rate payer was a very prominent term. So utilities would refer to their customers as rate payers, or in terms of account numbers, really and what mattered was really just how much electricity do these accounts or these rate payers consume, and there was very little other consideration around that. So I think there's a real shift happening right now where utilities are trying to understand who is this, who is this family, who are these individuals behind these account numbers? Because if I understand and if I become interested as a utility in who is actually consuming electricity, I can have a very different relationship with them. I can reach them with the right messaging, because it matters a lot to me. And if somebody talks to me and understands that. Let's say I'm a growing family living in a more urban area versus a retired couple out in the booth somewhere. So I think demonstrating that understanding really opens up opportunities for much deeper relationship and more targeted customer programs and overall, different messaging and communication, and ultimately an opportunity to build trust between customers and utilities, something that in the past, has been a little bit shaky, I would say, but there's huge opportunity to build brand awareness, to build this, this value based relationship and to build trust.

Trevor Freeman 15:45

I really liked this conversation, and I liked this particular moment because it really conveys that grid modernization goes beyond just the technological improvements, and it really prioritizes the human relationships and human interaction at the heart of our energy system, ultimately, all of this that we talk about on the show, the technology, the strategies, the policies, it's all about how we as people, as energy consumers, interact with our energy systems and use it to do all the other things in our life that are important doing, you know, heating our spaces and traveling and moving our families from one place to another, and all these things that are actually the important things are tied up in the energy system. And I liked how this conversation really tied those, those two concepts together. Next up this year, we definitely talked about distributed energy resources. It's been a theme of the podcast for a long time now, but we really are seeing lots of movement and progress. And this episode that I'm about to highlight really broke down how rooftop solar, battery storage, EVs, smart devices, they're all creating a more dynamic, flexible and decentralized grid. So it's taking DERs from just kind of standalone devices that do their own thing to really this ecosystem of devices and technologies that interact together. In this clip that you're about to hear, we explore why DERs, they're not just a technical change, but they're really a cultural one as well. One option to set up your der for financial reasons, is net metering, which I kind of alluded to earlier. Net metering is a setup for renewable generation sources only that allows you to use as much of your generation as you can to power your home when you're using it, and then push back whatever you don't use to the grid. Whatever you push back to the grid will give you a credit on your bill that you can use to offset the electricity charge portion of your bill. In the near future, you will also likely see more utilities wanting to partner with der owners. Here at hydro Ottawa, we are working on a technology project that will be launched next year that will enable der owners to leverage their devices for an incentive to help manage the grid in targeted areas. It's pretty exciting stuff, and it's really the next wave of distributed energy resources on our grid and how we're going to interact with them. It's pretty exciting. And finally, last one for this episode, one of our more thought provoking conversations of the year was with Bryan Flannigan from the Building Decarbonization Alliance. In this conversation, we talked about decarbonizing Canada's buildings. Bryan helped us really unpack why buildings are such a significant part of Canada's emissions profile, and why solutions require systems thinking, collaboration and long-term commitment. This clip really kind of captures the heart of that conversation, balancing practicality with urgency. Yeah, I know on this show, we talk a lot about the different parts of, as you said, all of society that need to be decarbonized. Obviously, buildings kind of comes to the forefront often, and so specifically around buildings talk us through this, maybe kind of a basic question, but, you know, help our listeners understand, why are buildings so important? Why is the decarbonization of our built environments so important when it comes to decarbonizing all of society?

Bryan Flannigan 19:17

Yeah, I mean, that's the crux of the question, right? Well, there's a bunch of reasons. I mean, if you think about it, the building, this is where we live, right? These are our homes. These are this is where we go to work. This is our place. Is a business from an economic perspective, organizations arrive in jurisdictions for the purposes of meeting their overall objectives. And if you require energy intensive sort of production. Or if you want to have a big workforce, you want to house your workforce in buildings that align with your objectives. And increasingly, those objectives feature a carbon kind of future, right? And so just from that perspective, it's important for us to kind of get aligned with the global trend toward this, to make sure that we have the investments that we need. And that we want to attract, and we want to have places where people can live that are aligned with those kinds of values. But from an emissions perspective, it's hard to kind of overstate how important the sector actually winds up being. The building sector emits about 90 megatons, give or take, of direct scope one emissions. And if you factor in the grid emissions that result from being buildings being connected to the grids across Canada. It's about 120 megatons. There are digits there that we could go into. But to put it into context, that's about the same as all of the vehicles on the road. So when we think about how important it is to electrify the fleet of vehicles that we're all driving, the building sector is the same. It's the same level of importance. And if we think about all of the work that we've done to decarbonize our electricity system over the years, eliminating coal plants, and those kinds of initiatives that we hear are in the news recently, the building sector emits about twice as much as all of that. And so, the context is that buildings are pretty vast in terms of the overall emissions. And when we think about where those emissions come from, ultimately, it's combustion of fossil fuels for heating our buildings. We're in a cold climate in Canada, takes a lot of energy to heat buildings, and because of the abundance of the resource and a bunch of policy decisions that have been made decades ago, you know, we're in a situation where we've got an abundant and relatively inexpensive source of fossil fuel to heat our buildings. It's about 1500 petajoules, I guess, give or take, and ultimately, we need to move to eliminate that over time, or to largely eliminate it. I mean, I think there's always going to be a bit left in the system. There's, you know, it's, it's a very complex and daunting task, because the building sector itself is very diverse. The buildings last a really long time. It's not like, you know, technology change, where you have if you want to change a phone, you can upgrade it from one year to the next. It's small. It fits in your pocket. It's easy to manage. But buildings are constructed to last hundreds, 100 years. 50 years is the typical lifespan. But, you know, we have lots of buildings that are very, very old, and it's a slow kind of system to turn over. It's a slow inventory to turn over. So it's a really big challenge, a lot of a lot of emissions from the sector. And so it rises to the level of really needing close attention and a different approach than what we've been taking in the past.

Trevor Freeman 22:15

Bryan's point there about systems level planning really resonates deeply with all the things we've been talking about this year, because none of these challenges exist in isolation. And systems thinking and systems planning is really this important concept or this important ethos, and something I actually want to explore further. And so keep your eyes open for an episode on that sometime in 2026 so as we wrap up this first of two holiday rewind episodes. The few themes keep rising to the surface. There's the accelerating pace of electrification. No question that we're seeing electrification continue to move forward, and to do so at an increasing pace, despite some bumps in the road, and we're going to see that. We're going to see two steps forward and one step back. But I think we're still seeing an increased pace of electrification, we are seeing the importance of modernization, of moving the technologies that we use to monitor and manage the grid forward in terms of, you know, catching up to where we are with modern technology. And we're also seeing the need for long-term thinking as Canada transitions towards a, you know, low or no carbon future towards net zero as we electrify our lives, we need to have that long term vision in mind, whether we're talking about the future of buildings, upgrading the grid, embracing distributed energy resources or navigating some new and emerging technologies. There's one truth that kind of stood out, and it's something I've said before, but I really want to make sure everyone kind of sits with this and appreciates it. Is that the energy transition is not something that is going to happen? It's not something that's in the future. It is something that's happening right now. We are in the midst of the energy transition. It's not going to be over tomorrow. It's not one of these things that happens very quickly, but we are living it right now. We are seeing it all around us, and it's something that I'm really excited about, talking on this podcast about and with our fantastic guests, and I'm glad to have all of you along with us on that journey. So join us in two weeks for the second part of our holiday rewind series. On that one, we're going to turn the spotlight towards renewable energy and revisit some of the conversations that inspired us the most in 2025 until then, from all of us at think energy, warm wishes for the holiday season. I hope you're staying warm and safe and have a great December and thanks for listening. Thanks for tuning in to another episode of the thinkenergy podcast. Don't forget to subscribe wherever you listen to podcasts, and it would be great if you could leave us a review. It really helps to spread the word. As always, we would love to hear from you, whether it's feedback, comments or an idea for a show or a guest. You can always reach us at thinkenergy@hydroottawa.com.