GREEN POWER:

Canadian Context and International Developments

SUMMERHILL GROUP MELISSA FELDER NOVEMBER 2002

OVERVIEW

Overview of Green Power Canadian Context International Developments

GREEN POWER: Benefits and Present Status

Addresses air quality and additional environmental problems associated with the use of traditional fuel sources Supports diversity of supply and distribution of resources In Canada, non-large hydro renewables represent only 1.2 - 3% of the nation’s electricity generation (Fig.), 3% growth forecast

GREEN POWER: International Developments

Electricity Structure in Canada

GWh/a

100000 80000 60000 40000 20000 0

GREEN POWER: Potential in Canada

Potential in Canada is estimated to be significant: Current capacity: 3, 746 MW Achievable by 2010: 21, 360 MW Geothermal Wind Small hydro Biomass Wave Tidal

Probe, 2002

GREEN POWER: Comparison of Generation Costs

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0 0.03

0.02

0.025

0.06

0.29

0.08

0.076

0.113

0.0891

0.08

GREEN POWER: Government Subsidies

EUROPEAN ADVANCEMENTS, POLICY White Paper

: Action Plan to double renewables' share of EU energy supply by 2010 (CTO, EU Directive)

Germany

:

Denmark:

Feed-in tariffs for renewable energy (i.e. PV generators CDN 71 ¢/kWh in 1990s) Tariffs & production tax credit – CDN 9.4 ¢/kWh

Netherlands:

World Wildlife Fund marketing campaign - increase customer base for green power by 40% over two years.

3000

~ 2500 MW

Installed wind generating capacity in Denmark (Probe, 2002)

2500 2000 1500 1000 500 0 1995 1996 1997 1998 1999 2000 2001

U.S. ADVANCEMENTS, POLICY National RPS:

Calls for non-large hydro renewables to be 10% of supply by 2020

Production Tax Credit:

Level is double that of Canada, extended duration ~ 1700 MW of windpower in 2001

State SBC: State RPS:

$ 135M – California Renewable Customer Credit Texas – 400 MW by 2003; 951 MW in 2001

~ 1700 MW

Installed renewables capacity in Texas (Probe, 2002)

3000 2500 2000 Wind Landfill gas (19 MW) Solar PV (1 MW) Hy dro 1500 Existing Planned 2003 RPS Goal (1301 MW ) 1000 500 0 1999 2000 2001 2002 2003

MELISSA FELDER [email protected]

CANADIAN ADVANCEMENTS, POLICY Wind Power Production Tax Incentive:

$0.012 /kWh, declines per annum by $0.001, short time frame. Favours specific renewable technology.

Canadian Renewable and Conservation Expense (CRCE):

Influential; however designed to underwrite feasibility studies, resource audits for new projects.

Certification:

EcoLogo product label.

Federal Government Procurement:

20% of electricity from low and non-emitting sources; good example of demand-pull program however does not include other sectors

GREEN POWER: Definitions

Definitions vary across and within countries (Fig.) In Canada debate has centred around the role of hydro, biomass, biogas Only new renewables Efficiency resources Cogeneration Mine-based methane Hydrogen fuels Tire waste Digester gas Ocean Muncipal Solid Waste Landfill gas Geothermal Fuel cell (no fossil fuels) New hydro Some hydro (with or without size limits) Wind Biomass Solar thermal Solar photovoltaic 0 5 10 15 20

Number of States Permitting this Fuel Source

25