Transcript Federal Initiatives to Encourage Emerging Renewable Energy

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
Climate Change Strategies
demand
efficiency
capture,
Issue: finding the path
sequestration
of lowest cost and
maximum benefits for
Canada
international
supply
efficiency
permits
lower
carbon
energy
substitution amongst
conventional sources
emerging low/nocarbon sources
4
Electricity Table (Nov. 99)
Measure #7
– ensure the availability of emerging non-GHGemitting technologies by the commitment period
• wind, solar, biomass, geothermal, extra-lowhead 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
Gov.
Purchasing
Market
Incentive
WPPI
Total
direct: 450 GWh/yr
0.3 MT*
indirect: 3,200 GWh
(5% of residential customers purchasing a
portion of their requirements)
direct: 2,600 GWh from 1,000 MW
indirect: 2,600 GWh from 1,000 MW
about 9,000 GWh
(e.g. 12% of new demand)
1.7 MT*
2.8 MT*
4.8 MT*
* 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 pricecompetitive 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