00:00:00 - 00:00:55
Lance Mortlock
Welcome to the next episode of the Energy Drivers podcast. I’m Lance Mortlock and I’m your host for today’s chat with Emily Heitman, Country President for Schneider in Canada. Throughout our series, we invite Canadian Industrial and Energy leaders to discuss key issues, provide insights and ask challenging questions. This episode will be slightly different from the other ones that we’ve had in the past because we’re actually recording live from 2024 Energy Disruptors Unite here in Calgary. Shifting our focus to our guest, we have a fascinating conversation ahead of us where we’ll review how Schneider Electric is supporting its clients’ digital transformation journeys, and what the organization expects in terms of the energy transition outcomes in Canada. Emily, thank you for joining us.
00:00:55 - 00:00:59
Emily Heitman
I’m so happy to be here. I’m looking forward to the discussion today.
00:00:59 - 00:01:16
Lance Mortlock
I’ve been eagerly anticipating our conversation, given your interesting background and the pivotal role that I guess Schneider Electric is playing in the transition. To start us off, could you share a bit more about your professional journey in the organization?
00:01:16 - 00:02:21
Emily Heitman
Absolutely. I have over 20 plus years of experience in this industry, and by this industry I mean in electrical manufacturing. I’ve done everything from transformers to switch gear, mostly early days in the internet of things as we saw that attachment between electrical equipment and technology. But we’ve seen a rapid evolving of the technology over the last couple of years. I’ve been with Schneider Electric since 2017 and had the opportunity to take several roles in the organization. I served in positions in the US, power products to power systems, which for us just meant everything from systems and equipment that are going into commercial buildings, industries and electro-intensive applications like oil and gas or mining and metals. And then most recently, I joined Schneider in Canada to become the country President since October last year. Actually, today is my one-year anniversary.
00:02:21 - 00:02:22
Lance Mortlock
And how are you finding Canada?
00:02:22 - 00:02:23
Emily Heitman
I love it.
00:02:23 - 00:02:53
Lance Mortlock
Yeah. That’s awesome. So, maybe diving into Schneider Electric’s core expertise a little bit. I understand that electrification automation and digitization are the heart of what you do. For those in our audience that might not be familiar with Schneider, could you walk us through kind of your key solutions and services you offer in Canada and perhaps touch on how these are empowering, you know, energy companies that are here at EDU edge closer to net zero?
00:02:53 - 00:04:40
Emily Heitman
Sure. Schneider Electric is recognized as a leader in the digital transformation of energy management and automation in Canada. You can find Schneider Electric in almost one out of every two homes, one out of every three commercial buildings. And our leadership has lasted over the years. That being said, with the new emerging digital transformation, our innovative solutions are committed to driving sustainability in this country. We offer end-to-end solutions that integrate seamlessly with systems enhancing efficiency and reliability. Our focus on advanced technology such as AI, the internet of things, they do enable both ourselves and our partners to effectively move and progress along their digital journey. So, as an example, recently we’ve collaborated with Vancouver International Airport. They have a pretty ambitious goal, and I’m very impressed that they are aiming to reach net zero by 2030. So, in order to do that, they’ve had to be creative about their solutions. They’ve worked with Schneider Electric to use one of our automation systems called the Ecostructure Platform, and this partnership has helped them to automate their electrical infrastructure. They’re utilizing advanced energy management solutions to optimize their energy infrastructure and effectively reduce their carbon emissions. This platform, it enhances safety, reliability, sustainability and connectivity across various industries. So, this platform not only advances our ability to help our clients manage their energy costs, it also helps them reduce energy waste, thus creating less and less or emitting less and less carbon emissions.
00:04:40 - 00:05:14
Lance Mortlock
Very cool. So, your hands-on experience, by the sounds of it, with clients must give you a pretty unique vantage point in terms of the energy transition and the progress we’re making. From your observations, Emily, do you feel that the goal of becoming net zero is within reach? Are the national targets that we have in Canada by 2050 getting to net zero overly ambitious, or are we hitting the right mark? Where are we? Are we close?
00:05:14 - 00:06:49
Emily Heitman
I think that the ambition of reaching net zero by 2050 is achievable. But we have to, for lack of a better word, get out of our own way. The technology is there. Canada is already significantly well along this process because of some of the things that we just naturally already have at our disposal. We have some of the greenest natural resources to create hydroelectric power, for example, in several of our provinces. We’ve already made investments in some regulations across the country, such as the new Vancouver bylaw that allows, and actually requires, large commercial buildings to report their emissions. We’re seeing investments in businesses and trying to digitize their operations so as to reduce their energy efficiency. But the two big obstacles that I see that we need to make sure that we address and overcome is grid modernization and policy alignment. Not everyone in Canada is on the same journey, and we do need the federal government to allow, to create, they have the opportunity, let’s say, to create a more unified policy that could align the country under a decarbonization goal. Likewise, our aging infrastructure and particularly our aging grid, needs to be updated to be able to seamlessly integrate the new renewable energy sources, not just at utility scale, but also being installed at site, say at an airport or on the rooftop of a new factory.
00:06:49 - 00:07:10
Lance Mortlock
So maybe building on that theme a little bit, considering your insights on the energy transition and the momentum that we’ve got, what do you see as the biggest blocker, the biggest challenge in the way of energy companies to sort of drive and change and embrace decarbonization looking at it as an opportunity, not a risk?
00:07:10 - 00:08:02
Emily Heitman
I think the biggest investment that companies have the ability to make and is available right now is in digital technology. So many of our electrical systems within our buildings, factories, industries are still very traditional. If we can install digital technology into the electrical ecosystem within a building, we have the opportunity to reduce energy waste by up to 70%. There is an investment, but there’s also an ROI. We’ve seen operating costs decline significantly for those who make this investment. At the same time, more incentives in order to put more renewable energy online would be ideal as well. Incentives for grid optimization and modernization, and then also incentives for renewables.
00:08:02 - 00:08:14
Lance Mortlock
Okay. So, when you think about Schneider’s suite of solutions, which ones do you believe will deliver the most value to the clients in this context?
00:08:14 - 00:09:06
Emily Heitman
I believe that automation is one of the very effective tools to be able to run an operation or a business without the touchpoint of human interaction. We’ve seen an example like at HSBC Place in Edmonton, where we’ve helped transform a class C office space into a LEED gold certified facility. With our Eco structure platform, we helped reduce their energy consumption and modernize their building energy management systems. Basic example, I mean, I noticed it right here in this facility. It’s not running equipment or processes when people aren’t around. It’s the lights being out when nobody’s in the room. It’s the escalator not running when nobody is on it. This can be automated. We don’t need manual intervention anymore.
00:09:06 - 00:09:37
Lance Mortlock
On the topic of digital transformation, data management inevitably comes to mind. With the integration of technologies from endpoint to cloud, AI and beyond, the benefits are clear and we’ve talked about it quite a bit on this podcast. However, this also raises concerns about the management and the storing of the resulting data. How is Schneider Electric helping clients navigate that kind of complex data landscape?
00:09:37 - 00:10:48
Emily Heitman
I think that we are creating so much data at this moment that, that data storage has become an issue, not just from the quantity of data, but also the security of that data as well. We get those questions every day from clients. We do work with the data centre market to scale their needs and demand of digital security and digital lifestyle. The demand is driving a hybrid data centre architecture right now with centralized regional and local edge. So, to survive and grow, we do need to leverage, and our clients do need to leverage the power of connected infrastructure for more sustainable and resilient data centre. At Schneider, we provide comprehensive solutions across various sectors, including energy manufacturing, data centres, and smart cities. Our portfolios include software, hardware, and services, and they effectively contribute to the cleaner energy transition. As we think about data collection and analysis, the integration of smart technologies and energy systems is crucial for addressing challenges like climate change and resource management.
00:10:48 - 00:11:43
Lance Mortlock
Yeah. Yeah. I mean, in the data is everything. And particularly if you’re going to leverage AI, machine learning, natural language processing. You need good-quality data to drive that automation and enable the insights that you need. Building on that, the demand for energy to fuel these technologies is growing and it’s a growing concern. Reflecting on the recent events, like the near capacity demand we saw last winter here in Alberta, and I think you were here when that happened, it’s evident that we need even more energy moving forward. One of the things that concerns me is base load. You know, renewables are great, but when the wind’s not blowing and the sun’s not shining, you still need energy. And where does that energy come from? With clean energy sources, what are you most excited about? How do you see them fitting into the larger energy puzzle in the future I suppose?
00:11:43 - 00:11:49
Emily Heitman
I’m most excited about the new trend, which we’re calling the prosumer. You’re probably familiar with.
00:11:49 - 00:11:50
Lance Mortlock
Yeah.
00:11:50 - 00:13:25
Emily Heitman
Of course, it’s well known that Canada’s electrical grid is expected to see two times the demand of today by 2050. And we can’t approach the expansion of capacity the way we have in the past. If we look at traditional ways of expanding utility grade generation, sure, we want to be able to invest in green energy generation at a utility scale. But the prosumer, which is the ability to produce locally, at home, at a factory, at an industry, in a commercial building, alleviate some of the pressure on the utility for how much demand they need, and also allows for the businesses and operations to also play a part in the expansion of our overall capacity as a country. Provinces and territories like Saskatchewan, Alberta, who have traditionally relied on fossil fuels for energy production, there’s some of the most sunny days in Alberta. Think about the Calgary Airport, the new data centres that are being attracted into this region here. If solar panels were put on the roof to generate energy for local consumption, not only does it allow them to alleviate the demand on the grid, it also helps neutralize some of the carbon emissions that are being generated here in this territory.
00:13:25 - 00:13:34
Lance Mortlock
What do you think of the moratorium on renewables in this province? Do you agree? Do you not agree? Are you prepared to say?
00:13:34 - 00:13:44
Emily Heitman
I think that we all have a part to play. For me, I think it is less of a political conversation and more of a financial conversation.
00:13:44 - 00:13:45
Lance Mortlock
Right.
00:13:45 - 00:14:29
Emily Heitman
What we’ve noticed is when companies and prosumers have been able to invest in renewables, particularly locally, they’ve seen their energy cost go down. They’ve seen their efficiency improve across their operations, and they’ve seen higher levels of resiliency. So, despite policy, companies are still making the decisions that have a financial impact and are still reducing carbon footprint. Now, that being said, I think there’s also technology that is emerging that is pretty interesting. We’re waiting to see what’s going to happen with hydrogen, with more advanced battery storage. There are some pretty interesting things coming that could be even more cost effective for local investment.
00:14:29 - 00:15:23
Lance Mortlock
So, building on that, one of the things I’ve been saying for a long time is, you know, renewables is great, and the cost of renewables continues to exponentially go down, which is awesome. And we’re seeing the proliferation of solar power and wind power across the world and also in this province. I mean, most people wouldn’t know that actually Alberta in Canada is one of the biggest producers of renewable energy in the country, and we’re very proud of that. But back to my comment earlier, you need base load, and you need security of energy supply. And I believe that nuclear power plays a role, whether that’s fusion or fission you know, if we can make fusion happen, it’s game changing. One of the previous guests that we’ve had on this podcast is Greg Twinney, who runs General Fusion as you know. What’s your view on nuclear, the future of nuclear? Does it have a role to play in this country? Small nuclear reactors as well?
00:15:23 - 00:16:08
Emily Heitman
I think small nuclear reactors are, or what we’re even calling the small modular reactors, really do offer a promising solution to energy challenges. This reliable low-carbon power and generation profile matching the demand is a sustainable alternative to our existing sources. SMRs are manufactured in controlled environments with built-in scalability and high safety. So, while, whether it’s decoupled power from advanced nuclear technologies, we do think that it could revolutionize the energy landscape. But educating decision-makers is critical in order to advance their deployment.
00:16:08 - 00:16:55
Lance Mortlock
Yeah. And probably we need a different regulatory framework as well. I mean, what strikes me, and I’ve talked about it previously on the podcast, that one of the challenges we have in this country is the regulatory framework is very, very complicated. And we continue to layer on new regulations without taking other regulations away. And when it comes to the transformation that needs to happen, whether it’s from power generation to transmission and distribution, we need new regulatory instruments that support a pace of investment and transformation that we’ve never seen before. And I’m not sure we’re ready for that, and we need to get ready for that if we have any hope of achieving net zero in the timeframe.
00:16:55 - 00:18:17
Emily Heitman
I would agree with that. Canada could not be more diverse. It’s really easy to compare us to countries like Germany or Sweden or Switzerland, where progress is being made at a potentially more rapid pace. However, we’re not just big from a landscape, diverse from a landscape perspective. Also, resources, people and policy. The policy that’s likely needed here in Canda to unify every region who’s on their own path would have to take into account the different variations between the regions and territories. That being said, I think we’re starting from a very good point with our already high level of green energy generation. We can’t discount the fact that 80% of the people in this country have access to hydroelectric power and/or green energy sources. It’s making that move to, for the other regions and territories that don’t have access to it and making policies to help incentivize that capital investment and/or update our aging grid. Our grid was designed, started I think in 1880. So, policies are probably quite out of date at this point with the technologies that are advancing at such a rapid pace.
00:18:17 - 00:19:12
Lance Mortlock
Yeah. One of the things that we’ve recently put out into the market, and a bit of a shameless plug here, is our point of view on DSOs of the future and how DSOs play a role, particularly in an environment where you have huge amount of proliferation of distributed energy resources and the old ways of managing the grid will not be the new ways of managing the grid in the future. Lastly Emily, I’m interested in how Canada stacks up against other nations in terms of innovation. You know, from your interactions, how receptive do you find Canadian energy companies to adopting these new technologies and how do we compare to a global stage? Because Schneider’s a global company, you support clients outside of Canada. What are you seeing? Are we innovative or are we kind of behind the eight ball?
00:19:12 - 00:19:15
Emily Heitman
I think we have the potential. I’ll start there.
00:19:15 - 00:19:16
Lance Mortlock
That’s diplomatic.
00:19:16 - 00:20:22
Emily Heitman
I think Canada has the potential to lead the world in this transition if we were to accelerate our investment in our aging infrastructure and modernize our grid as well as decarbonizing the generation. But we need policy alignment across the country and we need it now. According to the Energy Transition Index, Sweden leads the global rankings. We, Schneider are selling into Sweden. Some of the other following countries, Denmark, Finland, Switzerland, France. We see the moves that they’re making to incentivize new renewable energies, to shut down carbon-emitting generation sources. And to be able to improve their overall transportation mix. When every country is in a unique situation, whether it’s economics, status, energy mix, or geographic. But I think that when you look at where we stack up, we could move up the ladder in our ranking should make the investments in our grid and align our policy to do so.
00:20:22 - 00:20:26
Lance Mortlock
Yeah. And Schneider’s headquartered in Germany?
00:20:26 - 00:20:27
Emily Heitman
In Paris.
00:20:27 - 00:20:29
Lance Mortlock
In Paris. Okay. Yeah.
00:20:29 - 00:20:32
Emily Heitman
We’re a French company, headquartered in Paris.
00:20:32 - 00:20:42
Lance Mortlock
Okay. Before we conclude, anything else that you want to share that we didn’t cover, Emily? Anything that I should have asked?
00:20:42 - 00:21:40
Emily Heitman
I think the important thing that we want to stress is that every Canadian has a role to play in this. Whether you’re a business owner, a government official, a utility, or simply a concerned citizen slash homeowner. This isn’t going to be solved by one entity. Everyone has a part to play, whether it’s investing in your own generation at site as a business leader, whether it’s working on aligning policy to new technologies, and as you said, potentially eliminating outdated policies. We all have to reduce our energy consumption. And it’s my and Schneider’s opinion that doing the right thing for the planet is also the right thing for your pocketbook. You don’t have to wait for, we don’t always have to wait for government to catch up or for policies to catch up to find the financial return on decarbonization.
00:21:40 - 00:21:50
Lance Mortlock
Right. Well, with that, that brings us to a close in terms of this episode. Thanks for joining us. Appreciate having you here.
00:21:50 - 00:21:51
Emily Heitman
It was my pleasure.
00:21:51 - 00:23:54
Lance Mortlock
So that concludes another episode. And thank you Emily for sharing Schneider Electric’s role in driving the digital transformation for the energy transition. Your perspectives have been enlightening, and it’s clear that Schneider is at the forefront of empowering companies to really innovate and adapt in this rapidly evolving landscape. For our listeners, if you have any questions or comments, feel free to reach out to EY teams via the attached contact details. As we wrap up another insightful conversation, here are a few key takeaways that I took from this conversation. Number one, Emily highlighted the critical role that digital transformation plays in reaching our net-zero goals. With Schneider Electric at the helm, providing the necessary tools and expertise to facilitate this journey, digital transformation will be key enabler of change. Number two, data and AI are the future. These technologies are not just enhancing energy efficiency, but are also key to unlocking new opportunities for decarbonization and sustainability. Each organization will require a different toolkit to embrace the energy transition, but data and AI, which Emily talked about, will be at the heart of this transformation. And finally, clean energy needs to be embraced. Our conversation touched on the critical need for clean energy sources to support technological advancements driving the energy transition. Emily’s insights into the potential innovative energy solutions, including nuclear and fusion energy options, point to the need for a more diverse and resilient energy future. Once again, thank you to our listeners for joining our podcast, and we’ll see you at the next episode.
