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

0

20000

40000

60000

80000

100000

Geothermal

Wind

Small hydro

Biomass

Wave

Tidal

GREEN POWER: Potential in Canada

Potential in Canada is estimated to be significant:

Probe, 2002

Current capacity: 3, 746 MW

Achievable by 2010: 21, 360 MW

GWh/a

GREEN POWER: Comparison of Generation Costs

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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: Feed-in tariffs for renewable energy (i.e. PV generators CDN 71 ¢/kWh in 1990s)

Denmark: 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.

0

500

1000

1500

2000

2500

3000

1995 1996 1997 1998 1999 2000 2001

MW

Installed wind generating capacity in Denmark (Probe, 2002)

~ 2500 MW

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: $ 135M – California Renewable Customer Credit

State RPS: Texas – 400 MW by 2003; 951 MW in 2001

0

500

1000

1500

2000

2500

3000

1999 2000 2001 2002 2003

Inst

alle

d C

apac

ity in

MW

Wind

Landfill gas (19 MW)

Solar PV (1 MW)

Hydro

Planned

2003 RPS Goal (1301 MW)

Existing

Installed renewables capacity in Texas (Probe, 2002)

~ 1700 MW

MELISSA FELDER

mfelder@summerhillgroup.ca

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

Definitions vary across and within countries (Fig.)

In Canada debate has centred around the role of hydro, biomass, biogas

0 5 10 15 20 25

Number of States Permitting this Fuel Source

Solar photovoltaicSolar thermal

BiomassWind

Some hydro (with or without size limits)New hydro

Fuel cell (no fossil fuels)GeothermalLandfill gas

Muncipal Solid WasteOcean

Digester gasTire waste

Hydrogen fuelsMine-based methane

CogenerationEfficiency resources

Only new renewables

GREEN POWER: Definitions