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Published in Fall 2001
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Looking for the green lining in the changing electricity market
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Discussion paper for public review, November symposium—key milestones in CEC’s Article 13 initiative
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Electricity is at the heart of our economy. But how we produce, distribute and use it has significant implications for the environment. The CEC is exploring policy directions that could help guide the evolving North American electricity market along an environmentally sustainable path.
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The electricity market is changing. Deregulation. The prospect of a single North American electricity market on a continent-wide grid. Plans for expansion of generating and transmission capacity. These are the major themes.
But what are the environmental implications? Are there ways to maximize both environmental and economic benefits? This fall, the CEC Secretariat is continuing its exploration of these questions with a view to submitting its findings in a report to the governments of Canada, Mexico and the United States early in the new year.
The study is being conducted under the authority of Article 13 of the North American Agreement on Environmental Cooperation (NAAEC) which permits the CEC Secretariat to develop reports for the NAFTA Parties. The Secretariat has also appointed an independent advisory board, composed of some of the leading figures in the electricity and environment fields to guide and advise on every step of the process.
The issues
The question posed by the CEC initiative is, "What policy directions are needed to ensure that the transformation of the electricity market promotes sustainable development; that it generates both environmental and economic benefits?"
Issues to be explored include:
- the environmental dimensions of the North American integrated energy market and the effects of restructuring, development and increased trade;
- the challenges and potential of "green electricity" in North American markets, including the identification of trends in the definition, production and marketing of "green electricity" and the prospects for renewable sources of energy, electricity conservation and energy efficiency;
- trade and environment issues relating to the evolving North American electricity market;
- enhanced cross-border/regional environmental planning and assessment.
The process
Discussion Paper
The process begins in October with our publication of a discussion paper, "Environmental Challenges and Opportunities of the Evolving Continental Electricity Market." The paper will profile the evolving electricity sector, outline issues, preview possible environmental outcomes, and offer policy options for consideration. In early November, you will find the paper on our web site. Paper copies will also be available upon request.
Public Consultation
From early November, the public is welcome to submit comments on the discussion paper. In turn, these will be posted on our web site, enabling others to benefit from, and respond to, your comments. The consultation period ends on 31 December 2001.
Symposium
The CEC will host a symposium, in cooperation with the Institute of the Americas, in San Diego, California, on 29 and 30 November. Stakeholders, experts and other interested people are invited to exchange views and provide input on the key environmental considerations of the North American electricity market.
JPAC to advise CEC Council
The CEC’s Joint Public Advisory Committee (JPAC) will meet on the afternoon of 30 November at the site of the symposium to develop advice to the CEC Council on electricity and the environment. Members of the public are invited to attend the discussion as observers.
Report and Recommendations
After reviewing comments received through the public consultation and symposium, we will write our report, including policy recommendations, to be submitted early in 2002 for consideration by the governments of Canada, Mexico and the United States.
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