Renewable Energy: Canadian Adjusting Perspectives

by Sean Forgie, Senior Vice President, SRD at ClaimsPro, with contributions from Michael Martow & Michael Buzzeo

In 2021, there were 305 planned (announced, under review, or approved) energy projects in Canada worth CDN$449bn, and 97 energy projects under construction worth CDN$139bn. Oil and gas sector projects accounted for the largest portion of project value (CDN$336bn), while there were more electricity projects overall (154). There were 168 clean technology projects valued at CDN$92.1bn*

Canada has an abundance of renewable energy sources given its huge landmass and diverse geography. As of 2019, the Government of Canada reported that renewable energy technologies provided 17.3% of Canada’s total primary energy supply, including energy generated from solar, wind, geothermal, hydropower and ocean resources, solid biomass, biogas and liquid biofuels.

Hydroelectricity is by far the most important form of renewable energy produced in the country, with wind second, accounting for 3.5% of power generation, and biomass third, generating 1.4% of Canada’s electricity.

Renewable power generation increased 18% between 2010 and 2019, with solar and wind having the largest growth. In 2019, 82% of electricity in Canada came from non-greenhouse gas-emitting sources. Hydro made up 59%, nuclear was 15%, and other renewables were the remaining 7%.

We are seeing traditional oil and gas producers investing in renewables as they embark on their own energy transition, and other large businesses unrelated to energy production are also investing in wind and solar for their own facilities to offset carbon tax through related government incentive programs.

In recent years, Canada has seen several large-scale hydropower projects including the 1,100 MW Site C project in British Columbia, the 824 MW Muskrat Falls project in Labrador, the 695 MW Keeyask project in Manitoba and the 245 MW La Romaine 4 project in Québec.

Michael Martow, ClaimsPro Specialty Risk Division’s Vice President, Eastern Canada commented “As Canada looks to reduce its carbon footprint and increase green energy production, we’ve seen several large hydroelectric

projects, and other renewable energy projects come online in the last few years which have generated multiple large losses during the project phase. Remote locations coupled with harsh winter conditions can pose challenges when losses occur, both in accessing the site and investigating the claim. Often, the best places to generate hydroelectric power are the most isolated and hardest to get to.”

With over 100 bricks and mortar offices located across Canada, ClaimsPro is well placed to reach rural and remote locations, ensuring a quick response with ease of access to sites.

Michael Buzzeo, ClaimsPro Specialty Risk Division’s Vice President, Western Canada added, “Canada is planning significant investment in renewable energy technology in the next decade, and we expect losses occurring during the construction and development of new projects as well as at existing facilities will increase over this time”.

He noted that supply chain issues and sourcing of materials caused by the Covid pandemic conditions has been a challenge and sometimes led to project delay or delayed repairs.

“Given the challenges we already face accessing remote sites and dealing with severe weather conditions, we hope that recent supply chain issues will resolve as pandemic restrictions are lifted.”

Both Martow and Buzzeo are the appointed Control Adjuster on several major accounts within the Canadian energy sector, including some of the largest hydroelectric construction projects in Canada. These established partnerships ensure constant open and transparent communication with all stakeholders, while working with the right experts and specialised contractors to ensure an efficient and successful outcome.

While Canada has yet to see large scale development of energy storage technologies, as this is in an early stage of development, we expect this will be a growth area in the not-too-distant future, along with continued growth of wind and solar technologies.

As renewable energy continues to grow in Canada, we expect to see a strong demand for technical loss adjusters to assist with losses on projects and facilities.

*_{Natural Resources Canada (NRCan)’s Energy Fact Book 2021-2022}