Greening canada by tapping into the solar gold rush
Download
1 / 19

Greening Canada by Tapping Into the “Solar Gold Rush” - PowerPoint PPT Presentation


  • 88 Views
  • Uploaded on

Greening Canada by Tapping Into the “Solar Gold Rush”. By Tim Murphy Presented to: Solar Gigawatts Location: Munich, Germany Date: May 28, 2009. Overview. Solar in Canada Federal incentives Ontario Incentives by other provincial and municipal governments

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Greening Canada by Tapping Into the “Solar Gold Rush”' - uta


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Greening canada by tapping into the solar gold rush
Greening Canada by TappingInto the “Solar Gold Rush”

  • By Tim Murphy

  • Presented to: Solar Gigawatts

  • Location: Munich, Germany

  • Date: May 28, 2009


Overview
Overview

  • Solar in Canada

  • Federal incentives

  • Ontario

  • Incentives by other provincial and municipal governments

  • Roadblocks to solar energy in Canada


Introduction solar in canada
Introduction: Solar in Canada

  • Canada’s solar resources

    • More solar potential than Germany (a world leader in solar energy deployment)

    • “PV hotspots” such as Regina, Saskatchewan (Yearly PV potential of 1,361 kWh/kW)

    • Cold weather increases PV efficiency

  • Resources have been underdeveloped

    • Criticized by groups such as Green Cross International and the David Suzuki Foundation


  • Federal incentives
    Federal Incentives

    • ecoEnergy programs

      • Renewable Power program

        • $1.48 billion investment to increase renewable energy sources

        • Goal: produce 14.3 terrawatt hours

        • Open to businesses, municipalities, and institutions

      • Renewable Heat

        • $36 million investment

        • Encourage industry and commercial businesses to install solar heating systems


    Federal incentives cont d
    Federal Incentives (cont’d)

    • ecoEnergy programs

      • Retrofit program

        • Grants for making energy efficient upgrades to properties

        • Upgrades must be recommended by certified adviser

        • Residential: up to $5,000

        • Commercial: lessor of: (a) $10/GJ of savings; (b) 25% of cost; or (c) $50,000

        • Industrial: lessor of (a) $10/GJ of savings; (b) 25% of cost; or (c) amount to reduce net simple payback to no less than 12 months


    Federal incentives cont d1
    Federal Incentives (cont’d)

    • Tax incentives

      • Accelerated Capital Cost Allowance (CCA)

        • 50% deduction on cost of renewable energy generation equipment (acquired after February 23, 2005)

        • Certain intangible project start-up expenses qualify (feasibility studies, engineering and design work)

    • Canadian Renewable and Conservation Expense (CRCE)

      • Deduction for certain expenses related to getting project started (e.g. access road, clearing land, service connection, engineering) as long as at least 50% of expenses fall within category of qualifying equipment

      • Does not include most payments to non-residents, administrative and management expenses, land acquisition, depreciable capital property

      • Advantage of CRCE is ability to transfer benefit directly to shareholders through flow through share structure


    Ontario
    Ontario

    • Most populous province

    • Integrated Power System Plan (“IPSP”)

      • Ontario Energy Board (“OEB) approval

    • Supply Mix Directive: June, 2006 directive to the Ontario Power Authority (“OPA”)

    • Conservation measures to reduce peak demand 6,300 MW by 2025, including:

      • Solar heating

      • Small scale (10 MW or less) customer-based electricity generation

      • Generation encouraged by net metering

    • Increase renewable energy by 2,700MW by 2010 and 15,700 by 2025


    Ontario cont d
    Ontario (cont’d)

    • Renewable Energy Standard Offer Program (“RESOP”)

      • Launched November 2006

      • First initiative of its kind in North America

      • Features:

        • Simplified eligibility and contracting

        • Standard rates paid for grid-delivered energy

        • Available only to projects under 10 MW

      • Rates

        • Most technologies: base rate of 11.08 cents/kWh (20% indexed to for inflation) plus reliability premium of 3.52 cents/kWh

        • Solar PV: 42 cents/kWh

      • Project put on hold due to overwhelming response

        • 290 contracted PV projects, but most may never come online


    Ontario cont d1
    Ontario (cont’d)

    • Green Energy and Green Economy Act, 2009 (“GEA”)

      • Introduced February 23, 2009

      • Will amend 20 other Acts (including energy, real estate, planning and environmental legislation)

      • Measures include:

        • Feed-in tariff (the “FIT”)

        • Streamlined project approval process

        • Right to connect

        • Province-wide renewable energy standards

        • “Smart grid”

        • Financial incentive (e.g. low interest loans for small scale projects)


    Ontario cont d2
    Ontario (cont’d)

    • FIT

      • Replaces RESOP

      • First feed-in tariff of its kind in North America

      • Expected to launch June 2009

      • Renewable producers receive set price for energy fed into grid over a 20-year contract (40 years for water power)

      • Fears that program will raise electricity prices


    Ontario cont d fit rates
    Ontario(cont’d)Fit Rates


    Ontario cont d3
    Ontario (cont’d)

    • “Smart grid”

      • Provisions in GEA provide for its development

      • Defined as “advanced information exchange system and equipment”

      • Will allow for greater integration of renewables into energy supply mix


    Ontario cont d4
    Ontario (cont’d)

    • Incentives outside of the GEA

      • Ontario Solar Thermal Heating Incentive

        • $14.4 million program to entice industrial, commercial and institutional sector to install qualifying solar thermal heating equipment

      • Net metering

        • Credits consumers for energy they contribute to the grid; reduces electricity bills

        • Available for projects under 500 kW

        • Similar to programs offered in other provinces, such as Quebec, Saskatchewan, Manitoba, P.E.I. and Nova Scotia

      • Tax incentives

        • Rebate on provincial sales tax (8%) paid on solar equipment

        • Similar to rebates in other provinces, such as B.C.


    Provinces and municipalities
    Provinces and Municipalities

    • Alberta

      • No provincial PV incentives

      • 20 municipalities in the Alberta Solar Municipal Showcase

        • Provides funding for grid-connected PV installed on municipal buildings

        • Funded by the municipalities and the Federation of Canadian Municipalities

    • British Columbia (B.C.)

      • Released BC Energy Plan in 2007

        • Goal: achieve zero greenhouse gas emissions


    Provinces and municipalities cont d
    Provinces and Municipalities (cont’d)

    • Programs in B.C.

      • Standing offer program

        • B.C. Hydro purchases energy from small projects (0.05 – 10 MW)

        • Features simplified process

        • Rate is lower than Ontario’s RESOP

      • 100,000 Roofs

        • Goal: install solar water heaters on 100,000 roofs by 2020

        • Participants can receive up to 36% of the cost

        • progress was slow due to lack of installers

      • Innovative Clean Energy Fund

        • $25 million/year levy on sales of conventional energy

        • Funds provided to renewable energy projects to decrease technical application costs

      • Solar Communities

        • Seven communities in B.C. selected to be SolarBC Communities

        • Each receives $20,000 plus marketing, training and policy development assistance for solar energy projects


    Provinces and municipalities cont d1
    Provinces and Municipalities (cont’d)

    • New Brunswick

      • Embedded Generation tariff program

        • Producers are paid 9.445 cents/kWh fed into grid

        • Available for projects between 100kW to 3,000 kW

    • Northwest Territories

      • Alternative Energy Technologies Program

        • Provides funding to develop renewable energy projects; communities (half the cost up to $50,000/year), businesses (1/3 the cost up to $15,000/year) and homeowners (1/3 the cost up to $5,000/year)

    • Quebec

      • Net metering program

    • City of Toronto

      • Municipal government’s Sustainable Energy Funds

        • $62 million funds provide interest-free loans for renewable energy projects in the municipal, academic, social services or health sectors


    Roadblocks
    Roadblocks

    • Cost

      • More financial and tax incentives required to decrease capital and operational/management costs

        • e.g. Ontario’s RESOP and FIT

  • Targets

    • No federal solar targets

    • 88 MW target in Ontario too low considering potential

      • it is hoped that the GEA and the soon to be updated IPSP will address this problem

  • Caps

    • Decrease potential of incentives (e.g. Ontario’s net metering program limited to projects under 500 kW)


  • Roadblocks cont d
    Roadblocks (cont’d)

    • Connectivity

      • No grid priority for solar power

      • Inconsistency in connection costs and procedures

      • GEA should eliminate some of these problems in Ontario by making the following amendments to the Electricity Act, 1998:

        • Priority connection

        • Mandating time limit for connection assessments

        • Making the connection assessment process more transparent

  • Administrative Deficiencies

    • Delays during the planning and zoning phase for projects

      • Addressed by GEA’s amendments to the Planning Act

    • Application process can be cumbersome

      • Streamlined under GEA

    • Some programs are difficult to access; discourages involvement for projects under 1,000 kW

    • Proposed FIT lottery


  • Questions answers
    Questions & Answers

    4364786


    ad