Reliable, Energy-efficient Transformers AreanEssentialPartofCanada’s Electrical Infrastructure Opportunities, Threats and Next Steps forthe Canadian Transformer Industry The Canadian Transformer Industry: At-a-Glance The Transformer industry is a vital component of our electrical system. Transformers allow the efficient transmission and distribution of power across grids, providing society with safe and reliable access to electricity. The Canadian Transformer industry is a large and growing market, contributing 36 per cent of Canada’s total electrical manufacturing revenue.1 Electro-FederationCanada(EFC)representsleadingelectricalmanufacturersthatdesign,manufactureandmarketPower, Distribution and Dry-typeTransformers, among other electrical equipment, for Canadian and global markets. EFC’sTransformer members contribute significantly to the overall Canadian economy. In 2017, members in this industry segment contributed: ECONOMIC OUTPUT $870 million EMPLOYEES 3,100 people throughoutCanada GDP $380 million MANUFACTURING PLANTS 12 plants across Canada PROCURED GOODS & SERVICES $250 million TOTAL CANADIAN PAYROLL $200 million IndustryOutlook With customer demand for electricity on a steady rise, investments in new energy and infrastructure projects are required to renew Canada’s aging infrastructure to enable efficient power transmission. According to the Canadian ElectricityAssociation (CEA), worldwide revenue from residential demand response is expected to grow from $322 million in 2014 to $2.3 billion in 2023. On a provincial level, Ontario is aiming to use demand response to meet 10 per cent of its peak demand by 2025, equivalent to approximately 2,400 megawatts under forecast conditions. CEA also forecasts capital expenditures in new electrical infrastructures, including transformers, to exceed $350 billion over the next 20 years, and total North American expenditures are forecasted at 10 times that amount.2 While this investment is a positive step forward, continued stakeholder engagement and commitment is necessary if we are to preserve and advance Canada’s interests in a sustainable and local transformer industry—a critical pillar for a secure and reliable electricity grid and strengthening Canada’s economy. 1 The Canadian electrical manufacturing industry generates $4.5 billion in total revenue. The Transformer market accounts for 36.4% of this total revenue (Source: IBIS World. Electrical Equipment Manufacturing in Canada, September 2016) 2 Canadian Electricity Association (CEA), Electric Utility Innovation: Toward Vision 2050, 2015: https://cea-ksiu6qbsd.netdna-ssl.com/wp-content/uploads/2017/05/ElectricUtilityInnovation-2.pdf