Celebrating 50 years of the Office of Energy Research and Development

The evolution of smart grids in Canada: a journey towards modernization and sustainability

Canada’s electricity systems maintained a traditional grid structure until the early 2000s when smart meters and variable energy resources such as solar and wind started to emerge. In 2003, OERD funded its first smart grid project on Ramea Island, Newfoundland, which featured a hybrid wind and storage system. CanmetENERGY collaborated with the IEA to establish the International Smart Grids Action Network in 2010 and produce the Smart Grid Standards Roadmap in 2012 on mitigating adoption risks.

After a decade and a half of supply-push innovation, OERD targeted a demand-pull innovation approach, emphasizing utility-led projects to accelerate organizational change and technological adoption. This was exemplified by funding projects that accelerated the utility transformation process alongside grid modernization. Then, in 2021, with the release of NRCan’s Clean Technology Regulatory Roadmap to respond to calls for regulatory reform, OERD rounded out its innovation approach to be a full systems approach with the launch of the Innovation & Electricity Regulation Initiative to complement the technology and business innovation supports. It solidified this systems approach in 2023 with the inclusion of a full Regulatory Innovation Capacity Building stream in the EIP – Smart Grid call. The evolution of smart grids in Canada reflects a shift towards sustainable and reliable energy systems. OERD's journey underscores the importance of a systems approach to innovation that focuses on the technology and energy actor needs in accelerating the energy transition, supporting a cleaner and more resilient economy.

Related links:

• Green Infrastructure Smart Grid Program
• Energy Innovation Program – Smart Grids
• Innovation and Electricity Regulation Initiative (IERI)

Canada's leadership in carbon management: innovation and investment

Carbon management (CM) — a range of approaches to capture carbon dioxide (CO2) from point sources or the atmosphere to be reused or durably stored — is recognized as a critical element of global climate action. It includes carbon capture, utilization, and storage (CCUS) and carbon dioxide removal (CDR) approaches like direct air capture to carbon storage (DACCS).

Since 1990, OERD has supported a series of investments in CM innovation that have helped position Canada as a leader in this sector. CanmetENERGY and CanmetMATERIALS labs have been at the forefront of CCUS R&D from the start. In fact, early development of CCS technology evolved out of CanmetENERGY Ottawa’s coal power generation research program, with references to carbon capture technologies as early as 1989. Thanks to OERD's early investments in federal research and academic and private sector innovation, Canada is home to world-class CM research and testing facilities; world renowned CM technology firms; and 8 out of 41 of the world’s commercial-scale CCUS projects, some of which were the world’s first commercial-scale CCUS projects.

Canada is well-positioned to deploy CM to mitigate emissions across sectors, advance CDR approaches, and continue R&D on world-renowned technologies. In Budget 2021, the Government of Canada announced an investment of $319 million over seven years to improve the commercial viability of CCUS technologies. OERD is funding earlier-stage RD&D activities across the CCUS value chain as well as front-end engineering and design (FEED) studies to support demonstrations of novel CCUS technologies, first-of-kind deployment projects in hard-to-decarbonize industries, and groundbreaking DAC facilities. These FEED studies help address uncertainty about technical and financial risks to support a final investment decision. OERD also supported the implementation of the CCUS Investment Tax Credit, which is playing a key role in the deployment of large-scale projects.

Related links:

• Carbon Management
• Capturing the opportunity: A Carbon Management Strategy for Canada
• Energy Innovation Program - Carbon capture, utilization and storage RD&D Call
• Energy Innovation Program – FEED Studies for Carbon capture, utilization and storage

Transforming wind energy in Canada: OERD's role in advancing standards and integration

OERD played a pivotal role in transforming Canada’s wind energy industry from marginal "science projects" to a key energy source. Wind energy development was initially hampered by a lack of codes and standards, and OERD supported projects that resulted in internationally aligned, Canadian-specific standards that made project development easier. OERD also supported the development of the Canadian Wind Energy Atlas and advanced wind forecasting models, which reduced costs and improved predictability. OERD supported decision-makers across Canada with research and technologies that improved understanding of grid impacts and enabled higher penetration of wind energy on the grid. OERD’s investment in the Tugliq project at the Raglan Mine demonstrated that wind energy was a viable source of renewable generation, even in the North. Over the decades, OERD has systematically identified barriers to the growth of wind energy and supported key projects to enable further growth.

Related links:

• Wind Energy
• Renewable resource assessment: wind energy

Revolutionizing deep energy retrofits for Canadian housing

OERD has been supporting the adoption of a transformative Dutch retrofit process called Energiesprong to accelerate the uptake of deep energy retrofits in Canada. Energiesprong aggregates demand for deep energy retrofits and uses technology innovations such as prefabricated envelope panels to enable deep retrofits at scale. These retrofits reduce energy use and greenhouse gas (GHG) emissions and improve the longevity and resilience of buildings while enhancing occupant well-being and comfort.

From 2016 to 2022, OERD supported a CanmetENERGY-led collaborative R&D project called Prefabricated Exterior Energy Retrofit (PEER) that sought to develop an industrialized process and prefabricated panel designs for deep energy retrofits of the Canadian housing stock. The process involves scanning or imaging a building to capture all relevant dimensions, designing custom-fit wall panels to reclad the building, fabricating these panels off-site, and installing them on the building. With funding from OERD’s Green Infrastructure - Energy Efficient Buildings program, Ottawa Community Housing advanced that work to a real-world demonstration, completing a PEER pilot in 2021 where four townhomes were retrofitted to be net-zero energy. That project resulted in annual GHG savings of 18 t CO2e per unit with a two-year payback for emissions generated during construction. Based on PEER results, that scaling up to retrofit 100,000 similar housing units could mitigate 0.5-1.0 Mt CO2e annually, a significant step towards reducing the buildings sector’s emissions.

The Greener Neighbourhoods Pilot Program builds upon these outcomes and aims to validate the benefits and business case of scaling up the Energiesprong model in community housing neighbourhoods across Canada.

Related links:

• PEER – Prefabricated Exterior Energy Retrofit
• Greener Neighbourhoods Pilot Program

Driving Canada’s zero-emission future: the evolution and expansion of electric vehicle (EV) charging infrastructure

50 years ago, internal combustion engines dominated Canadian on-road transportation, leaving zero-emission vehicles (ZEVs) far in the background for decades. Along with automakers like Tesla and other key stakeholders, OERD helped shift the perception of EVs and address range anxiety that hindered EV adoption. Specifically, OERD increased funding for RD&D projects on EV technologies and charging infrastructure, supporting key programs like the ecoETI (2008), Clean Energy Fund (2011), and ecoEII (2012-2016), which led to breakthroughs in battery chemistry technology and charging infrastructure.

Programs like ecoEII funded companies that became industry leaders such as Hydro Quebec's TM4, which developed electric motor technology now used globally in heavy-duty vehicles, and AddEnergie/Flo, which grew into Canada's top charging infrastructure manufacturer, renowned for reliable equipment.

Canada's automotive sector is vital to its economy. Today, ZEVs account for over 11% of passenger vehicle sales in Canada, with 186,000 vehicles sold in 2023. The figure is set to rise as Canada aims for 100% of light-duty vehicle sales to be zero-emissions by 2035. OERD's Electric Vehicle Infrastructure Demonstration Program has driven EV charging infrastructure solutions across various sectors, enhancing competitiveness for Canadian companies.

Moving forward, OERD will target underserved areas, focusing on electrifying medium and heavy-duty trucks and developing affordable charging solutions for multi-unit residential buildings and EV drivers without dedicated parking. The EIP – On-Road Transportation Decarbonization call is one way that OERD has already started to tackle these challenges.

Related links:

• Electric vehicle charging
• Electric Vehicle Infrastructure Demonstration Program
• On-road Transportation Decarbonization

Pioneering Indigenous-led clean energy solutions in Canada

Through its dedicated Northern and Remote S&T expertise, OERD has played a key role in advancing the government’s efforts in innovative and accessible programming for Indigenous peoples. OERD is one of the leads for an interdepartmental initiative, “Wah-ila-toos,” which provides access to funding for renewable energy and capacity-building projects in Indigenous, rural, and remote communities across Canada. “Wah-ila-toos” receives guidance on program and policy development from an Indigenous Council comprising of First Nation, Inuit, and Métis representation, and prides itself on its community-centered approach, hands-on support, flexible timeline, engagement and ongoing dialogue, and commitment to meeting applicants where they are and removing barriers. OERD has run successful programs such as the Indigenous Off-Diesel Initiative, which provided renewable-energy training and ongoing funding and support for 24 Energy Champions. It was rooted in 18 months of engagement with Indigenous communities and included an all-Indigenous jury. OERD continues to make significant investments in clean energy solutions in Indigenous communities through programs like the Clean Energy for Rural and Remote Communities program.

Related links:

• Wah-ila-toos
• Indigenous off-diesel initiative
• Clean Energy for Rural and Remote Communities

Transforming waste into clean fuel: Canada’s pioneering efforts in waste-to-biofuels technology

50 years ago, waste management shifted from incinerators to modern landfills due to the 1970s energy crisis and regulatory shifts. At that time, gasification, primarily used for coal products, was in its infancy. The management of waste was an escalating challenge globally. In Canada, solid waste surged 17% from 2002 to 2020. Today, gasification has matured, enabling the conversion of waste into heat and power. Supported by OERD, Enerkem’s Edmonton facility, the world’s first commercial gasification-of-waste-to-biofuels plant, showcased the viability of waste-to-fuel technology. With global municipal solid waste projected to rise 70% by 2050, innovative solutions like the Varennes Carbon Recycling plant, using Enerkem technology and operating at a scale five times larger than the Edmonton plant, are crucial. The $1 billion project, which OERD is supporting in collaboration with the Canada Infrastructure Bank and private sector partners, will convert carbon in non-recyclable waste into biofuels and biochemicals. Additionally, it will install one of the world's largest polymer electrolyte membrane electrolyzers.

Related links:

• Clean fuels
• Clean fuels – fueling the future