1. Overview of the Legal Framework New Policy Initiatives Renewable Energy Certificate Mechanism 2.
Federal Initiatives to Encourage Emerging Renewable Energy
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Transcript of Federal Initiatives to Encourage Emerging Renewable Energy
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Federal Initiatives to Encourage Emerging Renewable Energy
Presentation to CEA Workshop
Ottawa, November 25, 2002
by David BurpeeNatural Resources Canada
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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
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Climate Change Strategies
international permits
lower carbon energy
supply efficiency
capture, sequestration
demand efficiency
Issue: finding the path of lowest cost and
maximum benefits for Canada
substitution amongst conventional sources
emerging low/no-carbon sources
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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
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Federal ResponseGrid-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
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Expected Results by 2010Gov. Purchasing
direct: 450 GWh/yr 0.3 MT*
Market Incentive
indirect: 3,200 GWh(5% of residential customers purchasing a
portion of their requirements)1.7 MT*
WPPIdirect: 2,600 GWh from 1,000 MW
indirect: 2,600 GWh from 1,000 MW2.8 MT*
Total about 9,000 GWh(e.g. 12% of new demand)
4.8 MT*
* at 542 tonnes per GWh
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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
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Promising Emerging REWind 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
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Promising Emerging REBiomass
– 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
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Promising Emerging RESolar 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
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The Road AheadClimate 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
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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