PEI Energy Strategy
Prince Edward Island’s new energy strategy calls for strengthened consumer protections and upgrades to infrastructure, while highlighting energy equity and affordability.
The PEI Energy Strategy outlines high-level priorities to achieve the Government of Prince Edward Island’s long-term vision for the energy system through to 2035.
Development of the energy strategy
The previous provincial energy strategy was released in 2016/2017. Since that document was released there have been many changes that require the province to rethink and update its strategy, including the commitment to be net zero by 2040.
PEI has already surpassed some of the projections outlined in the 2016/2017 strategy, like peak energy use. The prices of renewable alternatives have decreased, and their accessibility has increased. Emerging technologies, like storage, have started to become feasible options for utilization in our energy system. There is an increased interest in resiliency, reliability and security in our energy system from the increasing number of major storms and other issues related to climate change as well as the volatile price of petroleum products.
Government invited Islanders to share their opinions about energy in PEI to help guide future legislation and government priorities and develop a new energy strategy for PEI. This started with the PEI Energy Blueprint Discussion Paper which provided an overview of the current status of energy on PEI and background information. Feedback received through input from hundreds of Islanders and over 60 community, energy and environmental stakeholders about the future of energy in PEI has been compiled in the PEI Energy Blueprint - What We Heard Report. Government used this report, the results of energy system modelling, energy sector reports, studies and news on sector developments and trends, along with Doane Grant Thornton’s PEI Energy Review, to compile a new energy strategy for PEI that is consistent with the province’s environmental and social priorities.
Frequently asked questions on energy
What are the main sources of energy on PEI?
25 per cent of the energy used in PEI is in the form of electricity, while refined petroleum products and biofuels (gasoline, diesel, propane, home heating oil, wood chips, etc) comprise 75 per cent of PEI’s energy supply. PEI imports all of its petroleum and natural gas as well as some of its biofuels from the mainland.
PEI’s electricity comes from:
- on-Island renewable energy (14%)
- imported from New Brunswick (85%) - via two sets of submarine cables. Over 80% of the power imported from New Brunswick comes from non-emitting sources.
- on-Island oil fired generation (0.2%)
PEI’s electricity rates are in the middle of the pack when compared to rates in other provinces and territories.
How much electricity does PEI use?
PEI has an average electrical load of less than 300 megawatts, which can be supplied through on-Island generation and importing power. In 2022, the peak power demand of PEI was approximately 320MW. In February 2023 during a polar vortex, the peak demand was 393 MW.
System peak is the time of highest demand for power across the Island. It typically occurs on a cold winter evening. It is an important measure to consider, as the peak demand affects the rates for electricity and impacts the transmission infrastructure, i.e. how the electricity gets to homes.
What is renewable energy?
Renewable energy is energy that is generated from renewable resources that are naturally occurring and do not deplete when used, like wind, sunlight and movement of water. Renewable Energy Source means any source of renewable energy from which electric energy may be generated and includes:
- the sun
- the wind
- flowing water
- organic material, and
- such other sources as are prescribed by the regulations of the Renewable Energy Act
Solar PV (photovoltaics) is the conversion of light into electricity. Solar has in recent years become a more financially viable renewable energy generation source. On PEI, small scale solar PV for individual households has become popular. Larger scale solar PV installations are also being installed, including the development in Summerside.
Wind energy has been a staple on the Island for many years, in the form of onshore wind turbines. The primary source of energy generated on the Island comes from renewable wind energy.
How can we store renewable energy?
Lithium ion storage is the most common energy storage technology. It is used in electric vehicles but also in larger forms. Storage capacity is currently limited but with technological advancements more is being integrated into the energy system and becoming better utilized in the energy system.
How much power does PEI produce?
PEI has the generation capacity of 203 MW through wind turbines and wind farms. There is 12.4MW of Biomass Capacity, primarily biomass for heating. There is also 31MW installed of solar capacity.
PEI also has the capability of 104 MW of diesel generation, largely only used for back up generation at peak times, however some of these generation facilities are being decommissioned or approaching the end of their life-cycle.
What is net zero?
Net-zero means achieving a balance between the emissions we produce through day-to-day activities and how much can be absorbed by the natural environment and through technology.
Currently, Prince Edward Island produces more emissions than can be absorbed by the environment, which is contributing to rising global temperatures and climate change.
To achieve net-zero we must reduce emissions across all sectors and industries, switch to cleaner sources of energy, and demonstrate a commitment to innovation and transformational change.
Government has committed to reaching net zero in PEI by 2040.
Using less energy can lead to reduced greenhouse gas emissions and cost savings for ratepayers. There are programs, rebates and incentives available for homeowners, businesses and communities aimed at reducing energy use. These are offered through the Office of Net Zero and efficiencyPEI. To find an incentive that works for you, visit Net Zero Navigator or call 1-833-734-1873
What is net metering?
Net metering is an agreement entered into by a public utility and a small capacity renewable energy generator under section 11 of the Renewable Energy Act.
Typically the agreement is made between an individual customer or household and Maritime Electric if the generation asset is under 100kW.
Who is responsible for energy in PEI?
The Department of Environment, Energy and Climate Action is currently the government body that oversees energy on PEI.
The PEI Energy Corporation is a crown corporation and owns 73MW of wind generation capacity on the Island. The PEI Energy Corporation is also considered a utility in charge of demand side management and energy reduction. It also owns the submarine cables that connect PEI to New Brunswick.
Maritime Electric and Summerside Electric provide electricity to households in PEI.
The Island Regulatory and Appeals Commission (IRAC) regulates both electricity and fuels in PEI. Summerside Electric is excluded from the IRAC regulations.
Information and resources on energy in PEI
How to use a heat pump - Government of PEI
Operating a heat pump in extreme cold - Government of PEI
Net Zero Navigator - Government of PEI's list of rebates and incentives related to energy use
Prince Edward Island’s Energy Resources - Atlantica Centre For Energy
Energy 101 series from Atlantica Centre for Energy
Island Regulatory and Appeals Commission (IRAC)
How do I get more information?
You can email PEIEnergyStrategy@gov.pe.ca for more information.