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Federal Initiatives to Encourage Emerging Renewable Energy

Federal Initiatives to Encourage Emerging Renewable Energy

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Federal Initiatives to Encourage Emerging Renewable Energy

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  1. Federal Initiatives to Encourage Emerging Renewable Energy Presentation to CEA Workshop Ottawa, November 25, 2002 by David Burpee Natural Resources Canada

  2. Federal Energy Policy • Open-market framework • decisions on prices, investments, etc. made in competitive and freely functioning markets • focused interventions when necessary • climate change • Kyoto objective of reducing greenhouse gas emissions at 6% below 1990 levels • post-Kyoto commitments likely

  3. capture, sequestration demand efficiency international permits supply efficiency lower carbon energy substitution amongst conventional sources emerging low/no-carbon sources Climate Change Strategies Issue: finding the path of lowest cost and maximum benefits for Canada

  4. Electricity Table (Nov. 99) • Measure #7 • ensure the availability of emerging non-GHG-emitting technologies by the commitment period • wind, solar, biomass, geothermal, extra-low- head hydro, micro-turbines run on renewable resources • governments to introduce initiatives to help reduce cost of deployment through experience, scale, etc. • procurement, production and consumer incentives, small RPS, net metering

  5. Federal Response • Grid-electricity • Government Purchases • 3 successful pilots • 20% federal commitment • Market Incentive Program • marketing expenses of ‘green’ power programs for residential and small business customers • Wind Power Production Incentive • about 1 cent per kWh for ten years to encourage 1,000 MW of new capacity over 5 years

  6. Expected Results by 2010 * at 542 tonnes per GWh

  7. Federal Response (end) • On-site generation • Micropower Connect • partnership to develop Canadian guidelines for connection with the main electrical grid • federal on-site generation • installation of 125 kilowatts on federal facilities

  8. Promising Emerging RE • Wind Power • 200 MW installed capacity • high-quality resource with nearly ‘unlimited’ potential • no technical limits to grid integration in short/medium term • near price-competitive, costs still declining • 6 to 7 ¢/kWh in good regime • less 1 cent WPPI incentive

  9. Promising Emerging RE • Biomass • currently, waste biomass: • 1,300 MW from industrial waste • 100 MW from biomass-methane • limited new potential from waste but with large emission reduction potential • wood waste, methane from landfill site, sewage plants and agriculture activities • near price-competitive, potential revenues from GHG credits

  10. Promising Emerging RE • Solar Photovoltaic • 10 MW installed capacity • good-quality resource with nearly ‘unlimited’ potential • no technical limits to grid integration in short/medium term • price-competitive in off-grid applications • costs still declining but only expected to become price-competitive only post-Kyoto

  11. The Road Ahead • Climate Change Plan for Canada • proposes new actions with 100 MT reductions, including • target of at least 10% new electricity capacity from emerging renewable sources • 7,000 GWh/yr by 2010 • or 2,750 MW expressed in wind power equivalent • Establish goals for more efficient buildings; renewable energy systems an contribute (e.g., geoexchange) • Comprehensive approach to large industrial emitters sectors (targets, emissions trading, offsets, cost-shared strategic investments) • Coordinated Innovation Strategy

  12. Annex - Draft Definition • Emerging Renewable Electricity • wind power, solar photovoltaic, geothermal power • hydraulic power, including from fresh water if: • turbine / plant size: individual turbines of 2 MW nameplate or less, or total plant capacity (nameplate) of 15 megawatts or less; and • plant refurbishment: increased production from plant automation, equipment improvements using computational fluid dynamic (CFD) optimization, or • innovative applications:wastewater treatment plant outfalls, pressure relief valves in water supply systems, irrigation canal drop structures, syphon intakes and hybrid energy systems, or • innovative turbine‑generator units:low head (with head less than 15m), pump as turbine and variable speed units • electricity from biomass combustion • technologies: gasification, two‑stage combustion, fluidized bed combustion, combustion system with a modern (novel) air system • when methane: from landfill sites, or from anaerobic fermentation of municipal sewage or animal manure