Accelerating the Deployment of Zero Emission Vehicles: Atlantic Canada and the Prairies

Executive Summary

The main objectives of this study were centered around understanding perspectives on zero-emissions vehicles (ZEVs) and their deployment in the Atlantic and Prairie regions of Canada, two regions that have seen minimal uptake of ZEVs. This report serves to communicate the current state of play of ZEVs in these two regions and is particularly focused on regional and inter-regional challenges and opportunities, which were confirmed and discussed via stakeholder consultations carried out in each region.

In addition to serious detrimental impacts to the natural environment, climate change represents one of the largest threats to social, economic, and political systems worldwide. A 2011 study by the National Round Table on the Environment and the Economy estimated that climate change could cost Canada
$21-43 billion per year by 2050.

International concern has been demonstrated by the near-unanimous ratification of the Paris Agreement, which aims to limit global warming to “well below 2°C above pre-industrial levels”. A low carbon economy will ultimately be required to achieve the significant greenhouse gas (GHG) emission reductions required to meet the objectives of the Paris Agreement.

Canada has set a 30% GHG emissions reduction target below 2005 levels by 2030 (equivalent to 523 Mt CO2e). Canada’s long-term goal is to reduce emissions by 80% from 2005 levels by 2050.Federal and provincial governments have introduced climate policies to help achieve these ambitions.

GHG emissions from the transportation sector are the second largest source of emissions in Canada, representing 24% of total GHG emissions in 2015, of which 12% originate from light duty vehicles. Canada recognizes that reducing transport emissions will be required for meeting its targets and has identified expanding the number of ZEVs on Canadian roads in its approach for doing so. The federal government is working with provincial and territorial governments, industry and other stakeholders to develop a Canada-wide ZEV strategy in 2018.

ZEVs include battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hydrogen fuel cell electric vehicles (FCEVs). Canada has seen impressive growth in ZEV sales over the past few years. In fact, ZEV sales in Canada increased 68% between 2016 and 2017. As of the end of 2017, the total number of ZEVs on Canadian roads was 47,800.

General key barriers to ZEV adoption in Canada include the upfront purchase cost, technology uncertainty, lack of charging infrastructure and lack of public awareness and education. Quebec, Ontario and British Columbia have implemented policies and programs to help overcome a number of these barriers and have seen significant growth in ZEV sales over the 2013 to 2017 time period.

Provinces in the Prairie and Atlantic regions have seen much lower ZEV adoption rates. While some municipalities in Alberta (namely Calgary and Edmonton) are developing their own ZEV strategies, accelerating ZEV deployment does not feature prominently in provincial climate strategies. Several provinces in the Atlantic region have included ZEVs as part of their plans to reduce GHG emissions from the transportation sector, however policies have not yet been defined and implemented, and uptake remains low.

Regional Barriers and Opportunities

Subject matter expert interviews, regional workshops in Fredericton and Calgary, and an Atlantic Canada webinar were conducted to explore regional and provincial barriers and opportunities with respect to accelerating ZEV deployment.

In Atlantic Canada, barriers to ZEV adoption were identified including:

• Lack of incentives and high purchase costs
• Lack of consumer and policy-maker awareness and education about ZEVs and their benefits
• Lack of public charging infrastructure
• Lack of ZEV availability in dealerships
• Lack of available models (e.g., pickup trucks) to meet required vehicle performance
• specifications for large consumer demographics
• Lack of access to maintenance and repair
• Higher future ZEV deployment would displace revenue from gasoline sales taxes used
• for road infrastructure
• Displaced revenue for dealerships from service and repairs for ZEVs
• Priority opportunities for action identified by Atlantic Canada region stakeholders included:
• Incentives for vehicle purchase and charging infrastructure
• Increase charging infrastructure
• Education and awareness campaigns by multiple groups (Government, NGOs, OEMs, etc.)

Priority opportunities for action identified by Atlantic Canada region stakeholders included:

• Incentives for vehicle purchase and charging infrastructure
• Increase charging infrastructure
• Education and awareness campaigns by multiple groups (Government, NGOs, OEMs, etc.)

 

In the Prairies region, barriers to ZEV adoption were identified including:

• Lack of provincial government interest/engagement
• Lack of coordination of stakeholders/activities
• The higher cost of ZEVs and lack of equivalent models (e.g., pickup trucks and SUVs)
• Lack of public charging infrastructure
• Lack of consumer awareness (economic and environmental benefits, total cost of ownership,
• infrastructure, safety)
• Lack of ZEVs and service capabilities at dealerships
• Technology barriers (battery performance and perceived cold weather performance)
• Lack of standardization of charging infrastructure

Prairie region stakeholders identified several priority opportunities for action including:

• The need for governments to make ZEVs a priority
• Funding for vehicle incentives, charging infrastructure incentives and education/awareness
• Exploring future/smart mobility systems

Provincial perspectives on grid readiness

While utility stakeholders from across Canada agree that ZEVs do not pose an immediate challenge from
an electricity generation capacity and transmission perspective, the primary challenge that ZEVs pose
is to local electricity distribution systems. This is especially true considering that ZEV adoption tends to
be concentrated in certain, mostly urban, neighbourhoods. Regional perspectives on grid readiness are
highlighted below.

NEWFOUNDLAND AND LABRADOR	PRINCE EDWARD ISLAND	NOVA SCOTIA	NEW BRUNSWICK
Newfoundland and Labrador generates 95% of its electricity from hydro sources and is a significant net exporter of electricity. Large GHG emissions reductions could thus be achieved from ZEV adoption. Current levels of ZEV market penetration do not currently threaten local electricity grids, however as ZEV penetration increases, the effects of ZEVs on generation, transmission and distribution infrastructure will require examination. NL Hydro has the exclusive right to sell electrical power to retailers on the island portion of the province. It is expected that any distribution or system level impacts could be minimized by encouraging ZEV owners to charge during off-peak periods. This would increase the utilization of existing utility assets while reducing the need for capacity upgrades. Measures, such as time of use pricing, would require significant metering technology changes in Newfoundland and Labrador	Approx. 25% of the province’s electrical needs are met by wind, the highest percentage of any jurisdiction in North America. Further increasing electrical production from wind is a priority. The use of smart grid technology will enable wind integration. An increase in the peak load identified as possible adverse impact of ZEV adoption and associated electricity use, if users charge their vehicles when they get home from work in the early evening in winter. Provincial Energy Strategy (2016/17) identifies options for mitigating potential impacts, in cooperation with electric utilities. These include linking the introduction of ZEVs to smart grid measures and harnessing vehicle batteries to manage electric loads.	NS Power is keen to examine the potential impacts of ZEV adoption on the provincial electrical system. The short-term impacts of L3 fast charging on the electrical system are expected to be greater than L2 charging. NS Power’s recent proposal to install 12 L3 chargers as part of pilot project to study the impact and usage of the charging network on the electrical system, was rejected by the Nova Scotia Utility Review Board. The majority of existing L2 charging stations in Nova Scotia are not network-enabled, which means the opportunity for data collection on usage	NB Power targets 40% of electricity sales being provided from renewable energy, and a total of 90% of electricity generation from non-emitting sources by 2020. Large GHG emissions reductions could thus be achieved from ZEV adoption. NB distribution is robust —no foreseeable grid concerns—might be local community challenges in future when adoption numbers increase. NB Power is keen on smart grids as strategy and ZEVs can play a big role (i.e. storage, vehicle-to-grid, etc.).
MANITOBA	SASKATCHEWAN	ALBERTA
Provincial grid is >98% emissions-free and generation capacity is well in excess of demand, which means switching from internal combustion engine (ICE) vehicles to ZEVs offers large-scale GHG reduction benefits. Transportation is leading source of emissions in the province, yet ZEVs are not a focus of Manitoba’s proposed Climate and Green Plan. Over 500,000 plug points at home and at work already exist in the province. Manitobans are accustomed to plugging in. Conversion of all gasoline powered vehicles to electricity would require 1,200 GWh to 2,500 GWh a year. The large-scale integration of ZEV charging into the electrical grid identified as one area of focus for Manitoba’s ZEV advisory committee.	Electricity generation is the leading source of emissions in the province followed by the oil and gas sector; current priority is for government to reduce emissions in these areas rather than transportation. Currently low demand for and uptake of ZEVs in province, so ZEVs currently pose little-tono threat to provincial grids. Province has no plans to become engaged on public ZEV charging. Government will reassess actions if and/or when ZEV adoption increases. SaskPower has the exclusive right under the Power Corporation Act to supply, transmit and distribute electricity, and to provide retail services to consumers in the province, except for the Cities of Saskatoon and Swift Current. Both purchase electrical power in bulk from SaskPower.	Not an issue on transmission systems. Utility capacity to incent ZEV users to charge off-peak or monitor ZEV impacts on the grid is limited because necessary advanced metering infrastructure does not exist. No legislative provisions enabling utilities to rate base the cost of charging infrastructure. Future challenge on local transformer levels with larger ZEV adoption, but there are technologies and incentives for time of day charging that could help address this. A number of Alberta utilities are being proactive in planning for increased ZEV adoption and recognize emerging opportunities with respect to ZEVs and advanced energy management solutions.

Full reports available upon request. Please contact  Low Carbon and Alternative Fuels / Carburants à faible teneur en carbone et alternatifs at nrcan.lowcarbonandalternativefuels-carburantsafaibleteneurencarboneetalternatifs.rncan@canada.ca