Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy &...
Transcript of Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy &...
![Page 1: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/1.jpg)
Clean Electricity Standard Overview Creating a market-based solution to foster lower-carbon electricity in Alberta
Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy The Pembina Institute 21 May 2013 Thought Leader Forum
![Page 2: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/2.jpg)
2
Outline • Assumptions
1. Alberta will try to achieve it’s climate commitments
2. There are barriers to renewable/low-carbon electricity in today’s market
3. It is possible to develop a clean electricity policy that can work in Alberta’s market
![Page 3: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/3.jpg)
3
Assumption #1 • Alberta plans to meet its climate
change commitments
![Page 4: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/4.jpg)
4
0
50
100
150
200
250
300
BC AB SK MB ON PQ NB NS NL PE TR AB Elec
2005
2010
2020
Source: Environment Canada. Canada’s Emissions Trends 2012
National GHG Trends
![Page 5: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/5.jpg)
5
9%#
5%#
16%#
17%#
51%#
Newfoundland+and+labrador+
PEI+
Nova+Sco4a+
New+Brunswick+
Quebec+
Ontario+
Manitoba+
Saskatchewan+
Alberta+
Bri4sh+Columbia+
Yukon+
NWT+
Alberta’s Electricity grid resulted in 51% of Canada’s Electricity GHG Emissions in 2011 Alberta
Reference NaHonal Inventory Report 2013
![Page 6: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/6.jpg)
6
Alberta’s commitments
37 Mt = “Greening Energy ProducHon”
139 Mt = CCS
24 Mt = CCS
Net: 14% below 2005
![Page 7: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/7.jpg)
7
Good news: Regulations are resulting in an intensity reduction forecast
Source: IPPSA (2013) Trends in GHG Emissions in the Alberta Electricity Market
Note – this includes all behind the fence electricity, not AESO market
![Page 8: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/8.jpg)
8
Bad news: Emissions to grow & BAU misses target
Source: IPPSA (2013) Trends in GHG Emissions in the Alberta Electricity Market
~14% below 2005
0
20
40
60
Mt C
O2/yr
![Page 9: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/9.jpg)
9
Assumption #2 • Developing renewable energy
technologies is challenging in Alberta’s market
![Page 10: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/10.jpg)
10
Policy Development History • The Pembina Institute organized a
“Thought Leaders Forum” was hosted at U of C in 2010* to understand barriers and look for solutions to low-carbon electricity
* www.pembina.org/re/powerwedges
![Page 11: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/11.jpg)
11
Barriers Identified in Alberta • Environmental impacts are not fully priced into
market • Merchant market
pricing uncertainty makes financing challenging
• Price volatility • Competition for
capital into other markets
![Page 12: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/12.jpg)
12
Assumption #3 • It is possible to develop a clean
electricity policy that can work in Alberta’s market
![Page 13: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/13.jpg)
13
Key Criteria to Satisfy • Competitive • Performance based • Can work within existing AB market • Can work with existing GHG regulations • Overcomes the barriers to further growth in low
and zero emission technologies
![Page 14: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/14.jpg)
14
Options considered • Feed-in Tariff (FIT) • Government issued PPA • Provincial production incentive (tax based) • Renewable Portfolio Standard (RPS)
![Page 15: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/15.jpg)
15
Renewable Portfolio Standards • Allows market to choose technologies to meet
minimum requirements • RPS policy in more than 30 states in the US
![Page 16: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/16.jpg)
16
Renewable Portfolio Standard • Requires government mandated % of
renewables by given date(s) • This approach, picks renewables as “winners”
• Can CCS, cogen, nuclear, other low-carbon alternatives fit?
• Goal (in Alberta) is to achieve GHG reductions, not necessarily renewable options
• Challenge: Develop a similar framework that is technology neutral…
![Page 17: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/17.jpg)
17
Clean Electricity Standard Concept
![Page 18: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/18.jpg)
18
Why this approach could work for Alberta • Is market based, retailers have choices on how
to build their portfolio – spot market, long-term contracts, etc.
• Is performance based • Fleet-wide approach allows for flexibility • Compliments the existing Specified Gas Emitters
Regulation and Offsets program • Recognizes early action
![Page 19: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/19.jpg)
19
Still a work in progress • Stakeholder discussions • Looking for feedback • Incorporate feedback • Refine and improve
![Page 20: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/20.jpg)
20
Summary • A Clean Electricity Standard could work within
Alberta’s existing electricity market, while creating predictability for low-emissions energy investment • Market-based • Avoids picking winners • Allows for renewables, CCS, cogen, natural gas,
nuclear, etc. • Open to discussion, improvement and
refinement
![Page 22: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/22.jpg)
22
Appendix
![Page 23: Clean Electricity Standard Overview · Tim Weis, P.Eng., Ph.D. Director, Renewable Energy & Efficiency Policy ... policy that can work in Alberta’s market . 3 Assumption #1 •](https://reader034.fdocuments.net/reader034/viewer/2022051408/60066eb82e16e52c7e3adc10/html5/thumbnails/23.jpg)
23
CASA recommendations (2008) • Foster market demand • Recognize and incorporate environmental
costs and benefits into the marketplace • Create an investment environment that is
stable • Complement other policies • Identify and resolve regulatory barriers • Help achieve clean air objectives