Maximizing Energy Efficiency and Renewable Energy in ... · Maximizing Energy Efficiency and...

Maximizing Energy Efficiency and Renewable Energy in British Columbia

PollutionProbe/The Pembina Institute 1

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October 2006



POLLUTION PROBE is a non-profit charitableorganization established at the University ofToronto in 1969. Since the 1990s, PollutionProbe has focused its programmes on airpollution, water pollution, climate change andhuman health, including a major programme toeliminate human sources of mercury to theenvironment. Pollution Probe’s scope has alsoexpanded to new concerns, including the uniquerisks that environmental contaminants pose tochildren, the health risks related to exposures inindoor environments, and the development ofinnovative tools for promoting responsibleenvironmental behaviour. More informationabout Pollution Probe is available atwww.pollutionprobe.org.

THE PEMBINA INSTITUTE is an independent,not-for-profit environmental policy research andeducation organization. Incorporated in 1985,the Institute’s head office is in Drayton Valley,Alberta, with offices in Ottawa, Calgary,Edmonton, and Vancouver.

The Pembina Institute’s major policy researchand education programmes are in the areas ofsustainable energy, climate change,environmental governance, ecological fiscalreform, sustainability indicators, and theenvironmental impacts of the energy industry. Itsmandate is to develop and promote policies andpractices that lead to environmental protection,resource conservation and management, and theimplementation of environmentally sound andsustainable energy projects. The mission of thePembina Institute is to implement holistic andpractical solutions for a sustainable world. Moreinformation about The Pembina Institute isavailable at www.pembina.org.



Pollution Probe and the Pembina Institutegratefully acknowledge the funding supportreceived for the preparation of this report and theworkshop that provided the basis for the contentfrom the Oak Foundation and the VancouverFoundation.

We would like to express our appreciation to theparticipants at the workshop, whosepresentations and discussions contributedsubstantially to this report. We offer specialthanks to the many participants who reviewedthe report and submitted comments.

We would also like to thank the BC SustainableEnergy Association and the Canadian RenewableEnergy Alliance for their contribution to theworkshop and the report.

This report was researched and written by JulieGreen, Green Power Project Manager forPollution Probe and Josha MacNab, CommunityProject Analyst for the Pembina Institute withsupport from Matt Horne, Senior Technical &Policy Advisor for the Pembina Institute. It wasedited by Mary Pattenden and Ken Ogilvie ofPollution Probe.

Acknowledgements

We appreciate the contribution of Krista Friesen,who prepared the layout of the report andNatasha Lan, who helped with logistics.

The observations, conclusions andrecommendations are the responsibility ofPollution Probe and the Pembina Institute.

Contact Information

Pollution Probe:Ken Ogilvie, Executive [email protected] Green, Green Power Project [email protected]

The Pembina Institute:Josha MacNab, Community Project [email protected] Horne, Senior Technical & Policy [email protected]



Global Context for Energy Efficiency andRenewable Energy 5

Introduction 6Scope 6

Recommendations 8

Part 1: The Current Energy Context inBritish Columbia 11Energy Consumption 11Imports and Exports 13Current and Future Electricity and Natural

Gas Consumption 14Greenhouse Gas Emissions in British

Columbia 18

Part 2: Options for Improving EnergyEfficiency and Conservation 20Current Activities, Resource Potential and

Future Plans in BC 20

Part 3: Options for Expanding the Useof Renewable Energy 24Green Power for Electricity Generation 24Wind 26Ocean 28Solar 31Biomass 33Small Hydro 38Geothermal Electricity Generation 39Green Heat — Renewable Sources for Thermal

Energy 40Solar Water Heating Systems 41Geoexchange 43

Table of Contents

Part 4: Broadening Involvement inEnergy Efficiency and Renewable Energy 45Net-Zero Energy Homes 45Cooperatives 46First Nations 49Municipalities 52

Next Steps 54

List of Works Cited 55

Appendix A: Summary of CommonRenewable Energy Policies 61

Appendix B: Summary of WorkshopComments 64

Appendix C: Green Power ProvincialTargets and Policies 66



Global Context for Energy Efficiency and Renewable Energy

This report examines the potential for enhancingenergy efficiency and renewable energydeployment in British Columbia and introducespolicy options to maximize that potential. Thefocus is on exploring various policy options thatcould make BC a world leader in the vitallyimportant area of sustainable energymanagement.

There is increasing interest around the world inenergy efficiency and the development ofrenewable energy technologies. Countries areconcerned about the growing demand for energy,diminishing and unstable supplies ofconventional energy sources, and increasingfossil-fuel related air pollution and climatechange. The deployment of energy efficiency andrenewable energy technologies respond to theseconcerns and offer many benefits, including jobcreation, rural development, price hedging,energy security, reduced air pollution and climatechange mitigation, resulting in less damage tohuman health and the environment.

Germany, Spain, the United States, India,Denmark and Japan have taken the lead in thedevelopment of energy efficiency and renewableenergy technologies. Canada has only recentlybegun to take advantage of its enormous low-impact renewable energy resources. In the springof 2006, Canada became the twelfth country inthe world to surpass 1,000 megawatts (MW) ofinstalled wind capacity.1 In contrast, Germanynow has installed more than 18,000 MW of windcapacity.

The implementation of policies supportingenergy efficiency and renewable energy has beenan essential part of federal government strategiesto reduce greenhouse gas emissions. Provincialgovernments are also supporting energyefficiency and renewable energy to meet climatechange objectives, achieve regional air qualitytargets, reduce demand for imported energy andincrease local energy security, and to promoteeconomic development and domestic jobcreation.

1 Canadian Wind Energy Association (CanWEA) 2006.July 4, 2006, Issue #54 (2006). CanWEA.www.canwea.ca/downloads/WindLink/Issue_54.htm



Introduction

In British Columbia, energy consumption hasincreased over the past 10 years at an average rateof 1.5 per cent per year. Projected population andeconomic growth indicate that the demand forenergy services is likely to continue growing inthe future. Energy efficiency and renewableenergy offer a viable alternative to newconventional sources of energy supply to meetthat growing demand. Deciding between theseoptions will have significant implications forland, water and air quality, as well as BC’sgreenhouse gas (GHG) emissions. Energyefficiency and low-impact renewable energy offeran alternative with significantly fewerenvironmental impacts, and with many otherbenefits.

This report provides an overview of energyactivities in British Columbia and a summary ofthe opportunities available to improve energyefficiency, enhance energy conservation anddevelop renewable sources of energy. As BritishColumbia moves forward, it is essential to havean understanding of the current resource contextand potential.

The report has four parts:• Part 1 describes the current energy situation

in British Columbia• Part 2 contains a summary of energy use in

the province and explores options forexpanding energy efficiency and conservationmeasures

• Part 3 presents options for developingrenewable energy sources for electricitygeneration (referred to as green power) andfor heating and cooling (green heat)

• Part 4 outlines the roles of differentinstitutions and jurisdictions that promoterenewable energy and energy efficiencytechnologies

This report was inspired by the presentations anddiscussions at a workshop held in Vancouver inMarch 2006 that was conducted by PollutionProbe, the Pembina Institute and the BCSustainable Energy Association. These threegroups were working together as members of theCanadian Renewable Energy Alliance (CanREA).The workshop included representatives fromfederal, provincial and municipal governments,utilities, the private sector, first nations and non-governmental organizations (NGOs).

Scope

This report focuses on options for energydemand reduction and renewable energy supplyin all stationary energy uses in BC (60 per cent oftotal energy consumption). The transportationsector accounts for the remaining 40 per cent ofenergy consumption, which also results insubstantial levels of local air pollution andgreenhouse gas emissions. Transportation energydemands and their associated impacts clearlyneed to be considered in a comprehensive energyplan; however, transportation is beyond thescope of this report.



Energy efficiency means providing the sameservices with less energy. Examples of more energyefficiency practices include building better insulatedhomes and buildings, installing high-efficiencylighting, using high-efficiency industrial motors, usinghybrid vehicles, retrofitting furnaces and hot watertanks, and sealing leaks in walls and around doorsand windows.i

Energy conservation means to using less energyservices. Examples of energy conservation practicesinclude reducing engine idling and using lesscooling, heating or lighting. It also includes changingurban design to reduce the need for individualmotorized transport, and reducing generalconsumption, especially of over-packaged goods.ii

Demand-Side Management (DSM) refers toprogrammes delivered by electric or gas utilitiesdesigned to acquire savings in energy use andreduce load. Typically, DSM programs consist of theplanning, implementing and monitoring activities ofutilities that encourage consumers to reduce theirenergy consumption and modify their pattern ofelectricity or gas usage.iii

Green Power refers to sources of low-impactrenewable electrical energy that meet the criteria setby the Environmental Choice Program, currently themost commonly used definition in Canada. TheEnvironmental Choice Program gives EcoLogoM

recognition to electricity products from naturallyrenewed sources (such as the wind, water, biomassand sun) where the sources and technologies havesmall environmental impacts (such as less intrusivehydro and biomass combustion with lower airemissions). BC Hydro has entered into an agreementwith the Environmental ChoiceM Program (ECP) tocertify existing and new green energy suppliescontracted from independent power producers(IPPs).

Clean Energy, as used by the BC Ministry of Energy,Mines and Petroleum Resources, refers to electricitygenerated from resources and facilities built inBritish Columbia that have a smaller environmentalimpact relative to conventional generation sourcesand technology. The definition is intended to bedynamic and incorporates an expectation ofcontinuous improvement in energy development —economically, environmentally and socially.

Community Power is defined by the OntarioSustainable Energy Association as locally owned,locally sited and democratically controlleddistributed renewable generation that minimizesenvironmental impacts.iv

i CanWEA 2006. July 4, 2006, Issue #54 (2006).CanWEA. www.canwea.ca/downloads/WindLink/Issue_54.htm

ii Ibid.iii Electronic Industries Alliance (EIA). “Electric Utility

Demand Side Management 1997.” EIA.www.eia.doe.gov/cneaf/electricity/dsm/dsm_sum.html (accessed October 18, 2006)

iv OSEA. “Community Power — The Way Forward.”Canadian Renewable Energy Association.



Recommendations

The recommendations made in this report focuson policy options that British Columbia couldimplement to maximize the potential for energyefficiency and renewable energy deployment.They are based on multi-stakeholder input andadvice from the Canadian Renewable EnergyAssociation (CanREA) and have been derivedfrom each organization’s expertise in the fields ofrenewable energy and energy efficiency.

The recommendations have been grouped intocategories, including targets, better resourceplanning, financing, as well as skills andknowledge development.

Set Targets

1. Targets to reduce greenhouse gas emissions:The target should be consistent with thoseadopted by Federation of CanadianMunicipalities, the Conference of NewEngland Governors and Eastern CanadianPremiers, the State of California and otherjurisdictions, as well as those proposed by theDavid Suzuki Foundation for Canada:• A reduction in Canada’s GHG emissions

to 25 per cent below 1990 levels by 2020• A reduction in Canada’s GHG emissions

to 80 per cent below 1990 levels by 20502

Short-term targets should be established,including implementation of measures by2010 that demonstrate progress againstbenchmarks.

2. Targets to improve energy efficiency: Thetargets should focus on both energy efficiencyand energy conservation,3 and they should beset in a way that prioritizes energy efficiencyas the preferred means of meeting demand ifit is equally or more cost effective than low-impact renewables. The targets should buildupon current targets set by utilities fordemand-side management and those set byMEMPR for new and existing buildings with agoal of meeting 100 per cent of new demandwith energy efficiency. Improving uponmechanisms already used by Fortis BC andTerasen, strong incentives should encourageutilities to exceed their agreed-upon targets,and corresponding penalties shoulddiscourage them from failing to be incompliance.

3. Targets to increase low-impact renewableenergy: The target should improve upon BC’scurrent voluntary target of 50 per cent “BCclean” energy to mandate that 100 per cent ofnew electricity generation in the province besourced from low-impact renewable energy.

All targets need to be legally-binding, aggressive,and achievable. They also need to be clearlyarticulated for the short, medium, and long termso that progress is measurable and strong signalsare provided to energy producers and consumers.

Support the Energy Options that are in the BestInterests of all British Columbians

4. The Premier should direct the BC UtilitiesCommission to interpret its legal mandate“to serve the public interest” more widely, inorder to account for the public’s interest insocial, health, environmental impacts(including cumulative environmental

2 These goals are consistent with GHG emissionreduction targets contained within: The Case forDeep Reductions: Canada’s Role in PreventingDangerous Climate Change. 2005.www.davidsuzuki.org/files/climate/Ontario/Case_Deep_ Reductions.pdf; Oregon Strategy forGreenhouse Gas Reductions. http://egov.oregon.gov/ENERGY/GBLWRM/Strategy.shtml; GovernorAnnounces New Steps to Curb Global Warming inOregon http://governor.oregon.gov/Gov/press_041305a.shtml

3 Energy conservation is defined as the way we useenergy to meet our needs. Energy efficiency isdefined as the most efficient equipment andmeasures.



impacts), job creation, and support forinnovative technologies, as well as the priceof electricity.

5. The province should consider creating anagency that is responsible for setting energyefficiency targets, coordinating energyefficiency efforts across delivery agents andenergy types, measuring success at achievingenergy efficiency, and developing anddelivering programs. Previously establishedprograms could become the responsibility ofthis agency.4

Implement Financing and RegulationMechanisms to Support the Immediate andOngoing Deployment of Energy Efficiency andRenewable Energy

6. The province should support the EnerGuidefor Houses program and additional financingshould be made available for efficiencyupgrades in all building types, with particularfocus given to low-income citizens. Financingmechanisms should also be established tosupport green heat technologies,5 such asGeoExchange and solar hot water systems

7. Building Code and Energy Efficiency Actshould be updated as targets are achieved sothat improved levels of energy performance(including green heat) are required in allfuture construction and purchasing decisions.These updates should occur on a regular threeto five year cycle and serve as a starting pointfor new short-term targets.

8. We recommend the advanced renewable tariff(ART) as the best way to support thedevelopment of a low-impact renewableelectricity generation industry, deployed, asrequired, with other policy mechanisms. ARTshave been used with great success inGermany, Spain, Denmark and othercountries, where they have fostered vibrantdomestic energy industries. AdvancedRenewable Tariffs permit the interconnectionof renewable sources of electricity with thegrid and specify the price paid for theelectricity generated. Benefits include:increased local support and participation incommunity-based and developed powerprojects, fiscal confidence necessary tofinance low-impact renewable energydevelopment, job creation, manufacturingand investment opportunities, and Province-wide renewable energy development.

9. A study should be completed that identifiesthe effect of financial incentives anddisincentives on energy efficiency andrenewable energy, including those for fossilfuel energy sources. A system benefits chargeshould also be studied as a mechanism tosupport renewable energy and energyefficiency development.

Develop the Skills and Knowledge to IncreaseBC’s Ability to Take Advantage of EnergyEfficiency and Renewable Energy Resources

10. The province should devote resources todeveloping and supporting post-secondaryand certificate-based training programs fordesigners, engineers, project managers, utilitypersonnel and other related energy efficiencyand renewable energy jobs.6

4 These types of agencies have been effective atsupporting the acquisition of energy efficiency indifferent jurisdictions because they are able to focussolely on efficiency opportunities, while maintaininga broad perspective across sectors and energy types.

5 Green Heat is the use of renewable energy to heat orcool a building (or heat water) using thesetechnologies in the residential or commercial-institutional sectors: geothermal (earth energy) heatpumps, solar thermal water heaters, solar thermal airpre-heaters, and advanced biomass heaters.

6 These programs should build on existing programs,such as the Association for Canadian CommunityColleges renewable energy program and the Geo-Exchange geo-thermal certificate program.



11. A study should be completed to identify thepotential for the large-scale integration of lowimpact renewable energy into BC’s grid, theuse of BC’s hydro reservoirs to firm upvariable energy from renewables, andpotential grid bottlenecks.

12. A study should be completed to exploreopportunities for combined heat and power(CHP) within BC.

On behalf of CanREA Members:

BC Sustainable Energy AssociationDavid Suzuki FoundationOne Sky — The Canadian Institute of SustainableLivingThe Pembina InstitutePollution Probe



To provide an overview of the context in whichenergy decisions will be made, this sectiondiscusses current and future energy supply anddemand in BC and the associated greenhouse gasemissions. Energy and greenhouse gas emissionsfrom the transportation sector are included inthis section to help provide a complete picture,but as mentioned in the introduction, thediscussion of options is limited to stationaryenergy use.

Energy Consumption

Energy consumption in British Columbia hasincreased over the past 10 years at an average rateof 1.5 per cent per year, as indicated in Figure 1.Projected population and economic growthindicate that the demand for energy services islikely to continue growing in the future. Theenergy efficiency and conservation and energysupply resources available in BC to meet thesedemands are discussed in Parts 2 and 3.

Part 1: The Current Energy Context in British Columbia

Energy demand in BC is met primarily throughelectricity (about ninety per cent hydrogeneration), natural gas, wood waste andpetroleum-based products. Figure 2 contains ageneral breakdown of energy use by type ofresource in BC. It does not include resources thatare produced for export. Although not shown inthe figure, energy efficiency and conservationinitiatives, such as Hydro’s Power Smartprograms, have played a role in BC’s energy mix.Estimates of how much total energy has beensaved through those initiatives are not available.

Switching the focus to end-uses instead of fuels,Figure 3 breaks down energy use by five mainsectors: residential, commercial, industrial,agricultural and transportation. It indicates thepercentage of energy used by each sector forstationary purposes (buildings, industrialprocesses, etc.) and the percentage used for non-stationary purposes (transportation). For theindustrial and agricultural sectors, natural gas,electricity and wood waste consumption are usedas an approximation of stationary energy

Source: NRCan Comprehensive Energy Use Database, 2003. http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/comprehensive_tables/index.cfm?attr=0Industrial natural gas use reduced by ten per cent to account for Territorial industry. All other numbers reflect use inBC and Territories. Numbers provided by NRCan for industrial use are incomplete due to confidentiality concerns.

350,000

300,000

250,000

200,000

150,000

100,000

50,000

0

GW

h

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Figure 1: Total energy consumption in British Columbia and Territories from 1990–2003 (GWh)



7 This assumption may miss a small amount of fuelthat is being used for stationary purposes, but thedata was not available to make this assessment.

Source: NRCan Comprehensive Energy Use Databasesfor BC and Territories, 2003.Industrial natural gas use reduced by ten per cent toaccount for Territorial industry. All other numbers reflectuse in BC and Territories.

Figure 2: Energy use by source for British Columbia(GWh), 2003

Heavy Fuel Oil10,589 Other

9,228

Electricity60,511

Natural Gas62,288

Wood Waste46,654

Gasoline45,732

Diesel Fuel28,492

Aviation Turbo Fuel15,676

consumption.7 Figure 3 shows that, overall,stationary energy consumption accounts forapproximately 60 per cent of total energyconsumption in BC.

Source: NRCan Comprehensive Energy Use Databasesfor BC and Territories, 2003. http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/comprehensive_tables/index.cfm?attr=0Industrial natural gas use reduced by ten per cent toaccount for Territorial industry. Stationary energy usefor Industrial and Agricultural sectors assumed to bethe sum of electrical, natural gas and wood waste.Numbers provided by NRCan for industrial energy useare incomplete due to confidentiality concerns.

Figure 3: Energy consumption by sector

120,000

100,000

80,000

60,000

40,000

20,000

0

GW

h/ye

ar

Residential Commercial/Institutional

Industrial Agricultural Transportation

Non-stationary Stationary



Imports and Exports

British Columbia has substantial conventionalenergy resources, with the amount produced andconsumed, and the resulting surplus or deficit,shown in Table 1. It is the second largest naturalgas producer8 and the second largest coalproducer9 in Canada. As seen in Table 1, BCproduces more natural gas and coal than itconsumes. In 2003, it exported 97 per cent of thecoal produced and 73 per cent of the natural gas

8 Canadian Association of Petroleum Producers (CAPP).“British Columbia.” CAPP. www.capp.ca/default.asp?V_DOC_ID=713 (accessed October 16, 2006)

9 CAPP. “Coal in Canada.” CAPP. www.coal.ca/coalincan.htm (accessed October 16, 2006)

produced. While it is the fourth largest oilproducer in Canada,10 it consumes more oil thanit produces. In 2003, it imported 76 per cent ofthe oil consumed in the province. For electricity,BC both imports and exports electricity over thecourse of a year, trading with the United Statesand Alberta. With the exception of several lowwater years, 1995, 2001, 2004, BC has been a netexporter of electricity in each of the last 10years.11, 12

Table 1: BC production and consumption of energy resources

Resource

Oil (2004)a

Coal (2000)b

Electricity (2003)c

Natural Gas (2004)d

PrPrPrPrProduced per yoduced per yoduced per yoduced per yoduced per yearearearearear

15,728,000 barrels

26,482,075 tonnese

63,000 GWh

949 billion cubic feet

Consumed per yConsumed per yConsumed per yConsumed per yConsumed per yearearearearear

73,365,000 barrels

780,830 tonnes

60,000 GWh


SurSurSurSurSurplus/defplus/defplus/defplus/defplus/deficiticiticiticiticit

-57,637,000 barrels

25,701,245 tonnes

3,000 GWh


a CAPP. “BC.” CAPP. www.capp.ca/default.asp?V_DOC_ID=674 (accessed October 16, 2006)b Ministry of Energy, Mines and Petroleum Resources (MEMPR). “British Columbia Historial Coal Production and

Value.” www.em.gov.bc.ca/mining/MiningStats/31coaltotal.htmc Ministry of Labout and citizens’ Services. “BC Stats.“ Exports, December 2005, 05-12 (2005). Ministry of Labout

and citizens’ Services. www.bcstats.gov.bc.ca/pubs/exp/exp0512.pdfd CAPP. “BC.” CAPP. www.capp.ca/default.asp?V_DOC_ID=674 (accessed October 16, 2006)e Includes both metallurgic and thermal.

10 CAPP. “BC” CAPP. www.capp.ca/default.asp?V_DOC_ID=713 (accessed October 16, 2006)

11 Ministry of Labout and citizens’ Services. “BC Stats.“Exports, December 2005, 05-12 (2005). Ministry ofLabout and citizens’ Services.www.bcstats.gov.bc.ca/pubs/exp/exp0512.pdf

12 Because the majority of BC’s electricity is hydrogenerated, BC has the ability to control theproduction of electricity to a greater degree thanother jurisdictions that rely on coal or nucleargeneration: it is easier to stop and start the flow ofwater over a dam than to stop and start a thermal ornuclear generator. As a result, is it generally costeffective for BC to import coal or nuclear generatedelectricity at off-peak times from the US and Albertawhen it is cheap, and export electricity at high-peaktimes when the price is higher. BC also balances itsown use of thermal generation with imports,depending on which is cheaper. In general, exportsexceed imports, with the exception of a few low wateryears.



Current and Future Electricity andNatural Gas Consumption

This section provides a more detailed explorationof the demand for two of the three main sourcesfor stationary energy uses: electricity and naturalgas. Although wood waste is also a significantsource for stationary energy consumption(primarily to fire pulp mill boilers, cogenerationplants, power plants and other facilities), it doesnot operate in the same regulated utilityenvironment that electricity and natural gas do.As such, much less information is available andno detailed discussion is provided in this section.

Electricity

In British Columbia, per capita electricitydemand has been fairly stable over the pastfifteen years, and total electricity demand hasbeen increasing. NRCan estimates (2003)indicate that BC consumed nearly 60,000 GWh/year of electricity in its residential, commercialand industrial sectors.13 Figure 4 indicates the

growth trend for electricity use in BC for the pastfifteen years. The vast majority of this electricity(more than ninety percent) is supplied by BCHydro, with an additional five percent beingsupplied by Fortis BC to customers in thesouthern interior.14 The remaining five per cent ofelectricity is generated by other producers,including, Columbia Power Corp, Island Cogen,Alcan, Teck Cominco and about forty otherindustrial self-generators and independent powerproducers throughout the province.15 Many ofthese are pulp and paper mills that use woodwaste to generate energy.

Ninety percent of BC’s supply is produced byhydro-electric generating stations.Approximately six per cent is provided throughexisting purchase contracts, and four per cent willbe provided through market purchases andthermal generation (see previous section for adiscussion of electricity imports and exports).16

Until the 2006 call for power, BC had noinstalled wind or coal capacity.

14 FortisBC. “FortisBC announces 2006 results.”FortisBC News Releases, February 2, 2006.

15 MEMPR. “Fact Sheet: BC Electricity Resources.”MEMPR. www.gov.bc.ca/empr/popt/factsheet_electricity.htm

16 BC Hydro. Integrated Electricty Plan. 2006. BC Hydro.www.bchydro.com/info/epi/epi8970.html (accessedOctober 16, 2006)

13 Natural Resources Canada (NRCan).“Comprehensive Energy Use Database.” NRCan.http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/comprehensive_tables/index.cfm?attr=0(accessed October 16, 2006)

Source: NRCan Comprehensive Energy Tables, includes BC and Territorial use. http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/comprehensive_tables/index.cfm?attr=0

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

GW

h

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Figure 4: BC historical electricity use 1990–2003



17 BC Hydro accounts for approximately 90 per cent ofBC’s electricity. Therefore, numbers presented in BCHydro’s estimate are lower than what will actually beexpected for the whole province.

18 Resource Smart is a BC Hydro program intended toincrease and restore generating efficiencies andcapability of BC Hydro’s current generating facilities.

19 The decline in supply shown in Figure 5 (between2014 and 2015) is due to expected decline inelectricity generation by current facilities, mostnotable of which is the closing of Burrard Thermal.

20 The LTAP can be found in chapter 8 of BC Hydro’sIntegrated Electricity Plan. www.bc.hydro.com/rx_files/info/info43514.pdf

21 BC Hydro. Integrated Electricty Plan. 2006. BC Hydro.www.bchydro.com/info/epi/epi8970.html (accessedOctober 16, 2006)

Future electricity demand projections

In its 2005 Integrated Electricity Plan (IEP), BCHydro projected that, in the absence of demand-side management (DSM) programmes, BCHydro’s annual electricity demand in BC wouldbe expected to grow from approximately 57,800GWh17 in 2006 to 77,900 GWh by 2025. Withcurrent DSM strategies in place, annual demandis expected to be reduced to approximately68,300 GWh by 2025. These projections areshown in Figure 5.

BC Hydro’s existing supply is also shown inFigure 5. This projection includes existinghydroelectric and thermal facilities, existingpurchase contracts and existing Resource Smart18

projects. As is evident in Figure 5, there is a

growing gap between existing supply anddemand after 2008, even with DSM programs inplace.19 BC Hydro’s 2006 Long Term AcquisitionPlan (LTAP) outlines how BC Hydro intends tofill the growing gap.20 The LTAP is outlined inTable 2 and it includes existing supply, additionalplanned supply scheduled to come on line (butnot included in Figure 5), and future optionscurrently under consideration.

With respect to the additional planned supplyoutlined in the LTAP, BC Hydro recentlyannounced the results of its 2006 Call for Power.The contracts include 38 projects totalingapproximately 7,000 GWh per year, including 29hydro (3,077 GWh/year), three wind (979 GWh/year), two biomass (1,186 GWh/year), two wasteheat (75 GWh/year) and two coal/biomass (2,033

Figure 5: BC Hydro demand and supply projections to 202521

Source: BC Hydro 2006 IEP.

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

GW

h

20

06

20

07

20

08

20

09

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

20

20

20

21

20

22

20

23

20

24

20

25

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○○

○○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Projected demand — no DSM Projected demand with DSM Existing supply○ ○ ○



Table 2: Existing, proposed and potential future resources from the LTAP

Existing supply

DSM

Heritage hydro

Heritage thermal

Resource Smart

Purchase contracts

Additional planned supply

Expanding DSM

2006 Call for power (2,500 GWh/year)



2009 Additional market purchases

Future options

Further expanded DSM

New technologies

Large-scale coal or hydro

22 BC Hydro. “CFT Results: F2006 Call for Power.” BCHydro. www.bchydro.com/info/ipp/ipp47608.html(accessed October 16, 2006)

23 Terasen Gas. “About Terasen Gas.” Terasen Gas.www.terasengas.com/_AboutTerasenGas/default.htm (accessed October 16, 2006)

24 Terasen Gas. “Resource Plan.” Terasen Gas.www.terasengas.com/NR/rdonlyres/etcnssyr2vysupiq25wcyx2fnpasz2q6o2vionp2jvhwak7jamgsrsk2ir77c7qtkbhoasrubrkvhrcuz7fk4dhhbwe/TGI+2004+Resource+Plan.pdf(accessed October 16, 2006)

25 NRCan. “Comprehensive Energy Use Database.”NRCan. http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/comprehensive_tables/index.cfm?attr=0(accessed October 16, 2006)

GWh/year) projects.22 This is a significant increaseover the 2,500GWh/year estimate for the 2006call included in the LTAP.

Natural Gas

About 95 per cent of the province’s natural gas isprovided by Terasen Gas.23 BC’s natural gassupply is mainly extracted from the WesternCanadian Sedimentary Basin (Northeast BritishColumbia and Alberta) and can also be sourcedfrom the US.24 In BC, per capita and total naturalgas use has fluctuated over time due to acombination of factors, of which changes inprices and climate were the dominant ones.NRCan and Terasen data from 2003 indicate thatBC consumed approximately 62,000 GWh ofnatural gas in that year.25 Figure 6 indicates the

trend in natural gas consumption for the past 15years. Note that natural gas use is presented interms of GWh instead of petajoules to provide foreasier comparison to other energy sources.

Future natural gas demand projections

In its 2006 Conservation Potential Review (CPR),Terasen Gas estimated that, in the absence ofcontinued demand-side management initiatives,natural gas consumption in the residential,commercial and manufacturing sectors(including Vancouver Island) would grow fromthe base year (2003/04) consumption ofapproximately 40,500 GWh/yr to 49,400 GWh/yrby 2015/16. With current DSM strategies in place,annual demand would be expected to reach46,200 GWh/year by 2025.26 Figure 7 illustratesthis projected growth.

26 Marbek Resource Consultants. 2006. Terasen gasResidential Conservation Potential Review.



80,000

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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Figure 6: BC historical gas use, 1990–200327, 28

In order to meet increasing demand, Terasen Gasis considering the following options:

In general• Significant increase in DSM31

Coastal Transmission System32

• Pipeline looping33 in the northern leg of thesystem serving Coquitlam and BurrardThermal

• Compressors at Langley• Other storage options• Contract demand reductions

Interior Transmission System34

• Pipeline looping between Winfield andPenticton

• LNG storage facility between Vernon andFalkland

27 NRCan. “Comprehensive Energy Use Database.”NRCan. http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/comprehensive_tables/index.cfm?attr=0(accessed ???).

28 Industrial natural gas use reduced by ten per cent toaccount for Territorial industry. All other numbersreflect use in BC and Territories.

29 Marbek Resource Consultants. 2006. Terasen GasResidential, Commercial and ManufacturingConservation Potential Reviews.

30 Terasen’s demand projections do not include naturalgas used for electricity generation and so are lessthan demand indicated in Figure 6.

31 Marbek Resource Consultants. 2006. Terasen GasResidential, Commercial and ManufacturingConservation Potential Reviews.

32 Terasen Gas. “Resource Plan.” Terasen Gas.www.terasengas.com/NR/rdonlyres/etcnssyr2vysupiq25wcyx2fnpasz2q6o2vionp2jvhwak7jamgsrsk2ir77c7qtkbhoasrubrkvhrcuz7fk4dhhbwe/TGI+2004+Resource+Plan.pdf (accessed October 16, 2006)

33 A pipeline loop is the addition of a second pipelinethat is usually parallel to an existing one.

34 Terasen Gas. “Resource Plan.” Terasen Gas.www.terasengas.com/NR/rdonlyres/etcnssyr2vysupiq25wcyx2fnpasz2q6o2vionp2jvhwak7jamgsrsk2ir77c7qtkbhoasrubrkvhrcuz7fk4dhhbwe/TGI+2004+Resource+Plan.pdf (accessed October 16, 2006)

Figure 7: Terasen Gas Demand Projections29, 30

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Greenhouse Gas Emissions in BritishColumbia

In 2003, British Columbia generated 63.4megatonnes (Mt) of total greenhouse gas (GHG)emissions, representing 8.7 per cent of Canada’stotal. Between 1990 and 2003 the province’s totalemissions increased 12.1 Mt or 24 per cent.35 TheGHG emissions produced in BC are shown inFigure 8. The emissions are grouped according tosector and then further broken down into thoseresulting from energy consumption (e.g., heatingor transportation) and those resulting from otherGHG emitting processes (e.g., fugitive emissionsor waste decomposition).

35 Environment Canada. “Canada’s Greenhouse GasInventory, 1990–2003.” Environment Canada.www.ec.gc.ca/pdb/ghg/inventory_report/2003_report/toc_e.cfm (accessed October 16, 2006)

36 Environment Canada. “Canada’s Greenhouse GasInventory, 1990–2003.” Environment Canada.www.ec.gc.ca/pdb/ghg/inventory_report/2003_report/toc_e.cfm (accessed October 16, 2006)

Source: Environment Canada GHG Inventory.Note that Industrial GHGs include fugitive emissions and emissions from industrial processes, as well as from energyconsumption. Agricultural GHGs include emissions from agricultural processes, as well as from energy consumption.No sectors include emissions from electricity generation. These numbers do not include the consumption of BC energyproducts outside of BC (e.g., exported coal consumption in the US) or the GHG emissions associated with importedelectricity (e.g., coal-fired electricity imported from Alberta).

Figure 8: British Columbia’s GHG emissions per sector in 200336

GHGs from processes GHGs from energy consumption

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Industry Agricultural Transportation Landfill Gas

In British Columbia’s Strategic Plan for 2006/07–2008/09, the province stated its goal to improvethe ranking of its per capita GHG emissions inrelation to other provinces and US states,specifically Oregon, which now emits less GHGemissions per capita than BC.37 While this goalmay provide some direction for BC to reduce itsGHG emissions, it runs the significant risk ofallowing total GHG emissions to rise even if percapita emissions are decreasing. The per capitagoal fails to connect with Canada’s Kyotocommitment (i.e., reducing GHG emissions to sixper cent below 1990 levels between 2008 and2012), or any longer term targets for significantGHG reductions (e.g., the targets suggested forCanada by the David Suzuki Foundation and thePembina Institute of 25 per cent below 1990levels by 2020 and 80 per cent below 1990 levelsby 2050).38

37 Province of British Columbia. “STRATEGIC PLAN2006/07–2008/09.” www.bc.budget.gov.bc.ca/2006/stplan (accessed October 16, 2006)

38 David Suzuki Foundation and the Pembina Institute.“The Case for Deep Reductions.” www.davidsuzuki.org/files/climate/Ontario/Case_Deep_Reductions_Summary.pdf (accessed October 16, 2006)



The shortcomings of the current situation wererecently highlighted by the award of powerpurchasing contracts to two coal/biomassgenerating facilities. Currently in BC, the GHGemissions from electricity generation are lowbecause the majority of BC’s electricity isgenerated from hydro sources. The GHGsassociated with these new plants will beapproximately 1.83 Mt, which will represent anincrease of nearly 140 per cent in GHG emissionsfrom electricity generation in the province.

With the exception of targets for governmentoperations (16 per cent) and agriculture (eightper cent), BC has not set specific overall GHGemission reductions targets.39

39 Province of British Columbia. “STRATEGIC PLAN2006/07–2008/09.” www.bc.budget.gov.bc.ca/2006/stplan (accessed October 16, 2006)



This part of the report explores opportunities toexpand energy efficiency and conservation inBritish Columbia. When looking for ways to meetgrowing energy demand, there is a tendency tofocus on building new supply-side sources.However, opportunities to improve energyefficiency can achieve the same results, and areoften cheaper than supply-side options and offeradditional benefits. These can include: lowerenvironmental impacts by avoiding emissions ofgreenhouse gases and air and water pollutants;reducing land degradation associated withconventional energy production andconsumption; local economic developmentopportunities and associated new jobs; andprotection from price volatility.40 These potentialbenefits provide the justification for energyefficiency and conservation resources to be givenfirst consideration when determining the bestway to meet new demands.

Within British Columbia, there is tremendouspotential for energy efficiency and conservationto contribute to the energy supply mix, only asmall portion of which is currently beingcaptured. Other jurisdictions have implementedcomprehensive energy efficiency strategies thataim to meet most future growth in energydemand through efficiency.41 If BC were to followthese examples and build upon current efforts toimprove energy efficiency and conservation,many of the electricity and natural gas expansionplans for the province would not be necessary.

Part 2: Options for Improving Energy Efficiency andConservation

Current Activities, Resource Potentialand Future Plans in BC

BC Hydro, Terasen Gas, Fortis BC and theMinistry of Energy, Mines and PetroleumResources are currently all stewarding energyefficiency initiatives. While these programs havemet with some success, all of the studiesexamining the potential for energy efficiencyimprovements in BC point to significantuntapped potential that exists to further reducedemand.

BC Hydro

Power Smart and Resource Smart are the maincomponents of BC Hydro’s current DSMprogramme, started in 1989 and 1987,respectively. Power Smart is BC Hydro’s mainenergy efficiency programme. It is intended toreduce end-user energy consumption throughpublic education and incentive programmes. BCHydro’s Long Term Acquisition Plan (LTAP) andConservation Potential Review (CPR) indicateplanned and potential energy efficiency,respectively. Comparing these two reports paintsa picture of how close BC Hydro’s plans come tomeeting its identified potential.

The LTAP calls for the expansion of BC Hydro’senergy efficiency programme to include projecteddemand reductions of 5,900 GWh/year by 2015and 9,600 GWh/year by 2025.42 These targetsrepresent reductions of 64 per cent of newprojected demand in 2015 and 48 per cent in2025. According to the CPR, there is potential foreven greater electricity savings. For 2015, the CPRestimates that the economic potential for DSM is12,000 GWh/year. This represents a decrease innew demand of 135 per cent, which would be adecrease from current total electricity demand.

40 Canadian Renewable Energy Alliance (CanREA).“Energy Efficiency and Conservation — TheCornerstone of a Sustainable Energy Future.”CanREA. ww.canrea.ca/pdf/CanREAEEPaper.pdf(accessed October 16, 2006)

41 Pembina Institute. “Successful Strategies for EnergyEfficiency.“ Pembina Institute. www.pembina.org/pdf/publications/EESStrats_SS_FINAL.pdf (accessedOctober 16, 2006)

42 BC Hydro. Integrated Electricity Plan. 2006. BCHydro. www.bchydro.com/info/epi/epi8970.html(accessed October 16, 2006)



Both the planned and economic potential DSMare shown in Figure 9. The lines illustrate thatwhile the planned DSM reflects progress, thereare still significant potential DSM opportunitiesfor electrical energy efficiency in BC.45

BC Hydro’s Resource Smart programme is a muchsmaller programme than Power Smart. It isintended to increase and restore the generatingefficiencies and capability of BC Hydro’s currentgenerating facilities that can be lost over time.Efficiencies are gained by retrofitting, updating ormodifying existing facilities. By increasing theefficiency and capacity of existing generationfacilities, the construction of new facilities can beavoided. Since 1987, the Resource Smartprogramme has added or restored almost 1,300GWh/year.46 By 2012, additional Resource Smartprojects will add an additional 404 GWh/y ofenergy capability and 90 MW of new dependablecapacity.47

Terasen Gas

Terasen Gas operates a number of education,awareness and incentive programmes aimed atboth residential and commercial customers toincrease energy efficiency and encourage energyconsumption.

In 2004, Terasen Gas completed a ConservationPotential Review (CPR) to determine the extentof possible natural gas savings through DSM.Figure 10 shows the anticipated demand with noDSM, the savings that Terasen views as the mostlikely achievable, and the savings that Terasenestimates to be economically viable. The mostlikely DSM savings potential is estimated to be3,200 GWh in 2015/16, which if achieved, wouldrepresent 36 per cent of new demand since 2005/06. In a stable-demand scenario, in which thereis no increase in demand, 100 per cent of newdemand would be met by energy efficiency. Sucha scenario, which exceeds the current economicpotential, is certaintly technically feasible, andcould be economically viable if the costs ofenergy efficiency equipment are lower or energyprices are higher than assumed in the CPR.

43 Marbek Resource Consultants. 2002. BC Hydro2002 Conservation Potential Review.

44 BC Hydro. Integrated Electricity Plan. 2006. BCHydro. http://www.bchydro.com/info/epi/epi8970.html (accessed Oct 16, 2006)

45 BC Hydro is currently updating its 2002 CPR, so alarger potential for efficiency savings may beidentified.

46 BC Hydro. Integrated Electricity Plan. 2006. BCHydro. http://www.bchydro.com/info/epi/epi8970.html (accessed Oct 16, 2006)

47 Ibid.

Figure 9: BC Hydro’s planned and potential DSM compared to Demand43, 44

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Ministry of Energy Mines and PetroleumResources

In 2003, buildings in the residential andcommercial sectors, including lights, appliancesand heating, consumed 65,500 GWh, or twenty-six per cent of energy consumption in BC.48 Tobetter understand the potential for improvedenergy efficiency in new and existing buildingsand homes in BC, the Ministry of Energy, Minesand Petroleum Resources commissioned severalstudies to examine the life cycle costs andbenefits of various opportunities. The resultsfrom the studies were varied, but they all showeda collection of cost-effective opportunities notcurrently part of standard building and retrofitpractices.49

Figure 10: Terasen Gas’ most likely and potential DSM compared to projected demand

48 NRCan. “Comprehensive Energy Use Database.”NRCan. http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/comprehensive_tables/index.cfm?attr=0(accessed Ocotber 16, 2006)

49 These reports are not available electronically but canbe ordered through the Ministry of Energy, Mines andPetroleum Resources Alternative Energy Branch atwww.em.gov.bc.ca/AlternativeEnergy/Alt_Energy_%20Home.htm

Source: Terasen Gas. 2006. CPR

In order to help British Columbians to takeadvantage of these opportunities, the Ministrylaunched a strategy to improve energy efficiencyin BC’s buildings. The 2005 report, entitledEnergy Efficient Buildings: A Plan for BC, outlinesthe first provincial targets for energy efficiency inthe building sector in Canada. These targets areoutlined below for new and existing buildings inBC.50 In addition to coordinating with existingutility DSM programs and Federal programs, theProvince’s strategy includes several of its owninitiatives to achieve the targets. These includethe Community Action on Energy Efficiencyprogramme, the Energy Savings Plan, andpotential improvements to the Energy EfficiencyAct and Building Code.

50 MEMPR. “Energy Efficient Buildings: A Plan for BC.”MEMPR. www.em.gov.bc.ca/AlternativeEnergy/EnergyEfficiency/Energy_efficient.pdf (accessedOctober 16, 2006)

GW

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Sector

New detached single-family and row houses

New multi-unit residential buildings

New commercial, institutional and industrial buildings

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Target to be met by 2010

Achieve EnerGuide for Houses rating of 80 (R-2000energy standard)

Achieve reductions 25% better than the ModelNational Energy Code for buildings

Achieve reductions 25% better than the ModelNational Energy Code for buildings

Reduce energy consumption by 12% in 17% ofbuildings

Reduce energy consumption by 9% in 16% ofbuildings

Reduce energy consumption by14% in 20% ofbuildings



British Columbia has an abundance of renewableenergy resources for use in electricity generationor for heating and cooling purposes. Some ofBC’s renewable energy options include ocean,wind, solar, biomass, small/micro hydro andgeothermal energies. This part of the reportexplores opportunities to expand renewableenergy use for electricity generation (called greenpower). It also offers some examples of the use ofrenewables for heating and cooling purposes(called green heat).

Green Power for Electricity Generation

Introduction

Over the past four years, British Columbia hasintroduced a number of initiatives to increase itssupply of green power for electricity generation..The following section summarizes thoseinitiatives without assessing if they are sufficientand effective. The remainder of the section thenprovides a synopsis of the known resourcepotential for ocean, wind, solar, small/microhydro, geothermal and biomass energy in theprovince and the state of the technology toharness this power in each case.51 The currentstate of development of each energy source in theprovince is discussed, followed by the policychanges recommended by stakeholders in eachsector to help their sector achieve the maximumtechnical potential. Appendix C provides anoverview of current green power initiatives ineach province.

In November 2002, the province released Energyfor our Future: A Plan for BC that includes avoluntary target for electricity distributorsrequiring 50 per cent of new electricitygeneration to be from clean sources defined as“renewable or resulting in net environmental

Part 3: Options for Expanding the Use of Renewable Energy

51 For a more detailed discussion of the technologiessee Pollution Probe’s Primer on the Technologies ofRenewable Energy available atwww.pollutionprobe.org.

52 MEMPR. “Energy for our Future: A Plan for BC.”MEMPR. www.gov.bc.ca/empr/popt/energyplan.htm(accessed October 18, 2006)

53 MEMPR. “BC Clean Electricity Guidelines.” MEMPR.www.em.gov.bc.ca/AlternativeEnergy/Clean_Energy_2005.pdf (accessed October 18,2006)

54 BC Hydro. “Green Criteria.” BC Hydro.www.bc.hydro.com/info/ipp/ipp959.html (accessedOctober 18, 2006)

55 BC Hydro. “Green IPPs.” BC Hydro.www.bc.hydro.com/info/ipp/ipp958.html (accessedOctober 18, 2006)

56 BC Hydro. “CFT Results: F2006 Call for Power.” BCHydro. www.bc.hydro.com/info/ipp/ipp47608.html(accessed October 18, 2006)

improvement over existing generation”.52 InSeptember 2005, a revised version of the BC’sClean Electricity Guidelines was released that includes:biogas energy, biomass energy, cogeneration,energy recovery generation, geothermal energy,hydrocarbon energy, hydro energy, hydrogen,solar energy, supply-side efficiency gains, tidalenergy, wave energy, wind energy and otherpotential BC clean electricity sources.53

Since 2002, BC Hydro has issued three calls forindependent power producers (IPPs) to bid in aGreen Power Generation (GPG) process. The2001/02 bid resulted in 16 signed projects forone biogas and 15 small hydro projects. The2002/03 bid resulted in 16 signed projects: 14hydro, one landfill gas and one wind energyproject.54, 55 Due to problems with projectfinancing, a number of the projects (includingthe one wind project) that originally receivedcontracts were not built.

In July 2006, BC Hydro announced the results ofthe F2006 Open Call for Power. There were 38contracts to IPPs including, 29 hydro, three wind,two biomass, two waste heat, and two coal/biomass projects. These represent the first windprojects in BC and also the first coal projects.56

BC Hydro has also developed a net meteringprogramme. Net Metering allows small power



57 BC Hydro. “Net Metering.” BC Hydro. www.bc.hydro.com/info/ipp/ipp8842.html (accessed October 18, 2006)

58 BC Hydro. “Net Metering.” BC Hydro. www.bc.hydro.com/info/ipp/ipp8842.html (accessed October 18, 2006)

59 Commission for Environmental Cooperation (CEC).“Reviewing Gaps in Resource Mapping for RenewableEnergy in North America.“ CEC. www.cec.org/pubs_docs/documents/index.cfm?varlan=english&ID=2021 (accessed October 18, 2006)

60 Premier’s Technology Council. “A Vision for Growing aWorld-Class Power Technology Cluster in a SmartSustainable British Columbia.” www.gov.bc.ca/bcgov/content/docs/@2Ig53_0YQtuW/vision_for_bc_power_techv428.pdf (accessed October 18, 2006)

61 Altnerative Energy and Power Technology Task Force.“A Vision and Implementation Plan for Growing aSustainable Energy Cluster in British Columbia.”Alternative Energy and Power Technology Task Force.www.em.gov.bc.ca/AlternativeEnergy/AEPT_report.pdf (accessed October 18, 2006)

producers to sell back excess electricity to the BCHydro grid. Residential and commercial userswho wish to connect a 50 kW or less generatingunit using a ‘BC Clean’ (as defined by the BCGovernment) energy source to the BC Hydrodistribution system may do so under netmetering.57 If the producer generates less than theelectricity used over a billing period, thecustomer will be charged for the amount ofelectricity that they are short. If the customergenerates more electricity than what isconsumed, the electricity charge will be zero andthe total difference credit will be carried over tothe next billing period. At the end of each year onthe customer’s anniversary date, a credit will beissued by BC Hydro for any remaining excessgeneration at a rate of 5.4 cents per kWh.58 Todate, uptake for the net metering program hasbeen relatively slow, with only twelve solar PVsystems having applied as of April 2005.

The Net Metering programmes are a fundamentalcomponent of a sustainable electricity generationmix. They encourage the development of smallgreen power community projects that takeadvantage of distributed generation, therebystrengthening the electricity grid and introducinggreen power into communities in a moreinclusive manner. Germany, the world leader ininstalled wind power capacity, credits its successlargely to the development of community-ownedpower; a key ingredient in overcoming objectionsat the local level, often characterized as not-in-my-backyard syndrome (NIMBY).

To develop a green power strategy for the region,it is important to understand the resourcesavailable and the status of technologies toharness that power. Whereas the total ‘resourcepotential’ for green power generation is large,there are a number of technical and policylimitations that prevent rapid and widespreaddeployment. These limitations define the‘technical potential’. This distinction is importantsince it determines the difference between the

total available resource and the amount of theresource that can be captured with presenttechnology. For instance, transmission capacityand grid access are technical limitations to winddevelopment in some areas. Upgrades andextensions to transmission systems may thereforebe necessary to enable the development of thefull technical potential of green power sources inBritish Columbia. In regard to assessing theresource potential, The Delphi Group hasprepared a report for the Commission forEnvironmental Cooperation, Reviewing Gaps inResource Mapping for Renewable Energy in NorthAmerica, which takes a comprehensive look atrenewable energy resource mapping in Canadawith a focus on market drivers, limitations tomapping and barriers.59

In 2005, Premier Gordon Campbell, establishedthe Alternative Energy and Power TechnologyTask Force to build an implementation planbased on the strategic plan previously released bythe Premier’s Technology Council, A Vision forGrowing a World-Class Power Technology Cluster in aSmart Sustainable British Columbia.60 The TaskForce released A Vision and Implementation Planfor Growing a Sustainable Energy Cluster in BritishColumbia based on a series of formal andinformal meetings, discussions, and interviewson dozens of topics with government, industry,NGOs, academia, outside expertise and bestpractices.61 The provincial government shouldcontinue with its commitment and focus indeveloping the province’s vast energy efficiencyand renewable energy potential.



62 CanWEA. “Canada’s Current Installed Capacityr.”CanWEA. www.canwea.ca/images/uploads/File/FACT_SHEETS/nouvelle_fiche_-_anglais_2.pdf(accessed October 18, 2006)

63 BC Hydro. “CFT Results: F2006 Call for Power.” BCHydro. www.bc.hydro.com/info/ipp/ipp47608.html(accessed October 18, 2006)

64 BC Hydro. “Wind Monitoring.” BC Hydro.www.bc.hydro.com/environment/greenpower/greenpower1764.html (accessed October 18, 2006)

65 Garrard Hassan. “Assessment of the Energy Potentialand Estimated Costs of Wind Energy in BritishColumbia.” BC Hydro. www.bc.hydro.com/rx_files/info/info26565.pdf (accessed October 18, 2006)

Wind

Societies have been using the power of the windfor more than 2,000 years, but wind as a sourceof energy for commercial electricity productiondid not come into its own until the early 1970s.The modern versions of windmills are calledwind turbines. As of October 18, 2006 theinstalled wind capacity in Canada was 1,049 MW.However, there are no installed grid-connectedwind turbines in BC.62 In the recent BC Hydrocall for power, three wind turbines won contractsfor generation, which, when installed, will totalapproximately 325 MW of capacity.63 Unlikemany other provincial jurisdictions in Canada,BC has no specific target for wind energy.

The Technology

Wind turbines today come in a range of sizes,from the 400 watt turbine, designed for use at acottage, to large commercial turbines of up to fiveMW capacity. Utility-size turbines are becomingincreasingly larger to take advantage ofeconomies of scale. Each model will have its ownspecific power curve, which indicates the powerproduced at varying wind speeds. In general,wind turbines start to produce electricity at windsas low as 13 km/h, but generally operate best inlocations where the annual average wind speed is20 km/h or greater. Production increases untilwind speeds hit about 55 kilometers an hour.When winds blow at 90 kilometres an hour ormore, most large wind turbines shut down forsafety reasons. Wind turbines can be sited on andoffshore.

Market Readiness

Wind power technology has achieved fullcommercial status and is able to compete withconventional energy sources for electricity

generation in many locations. Competitivenessdepends on the competing technologies and themarket conditions for acquiring new powerproduction. The cost of wind power in Canadaranges from six to 12 cents per kWh dependingon the location and resource availability. Thisstill exceeds the wholesale price of electricity inmany jurisdictions. A substantial benefit of windpower is it is not subject to fuel cost variabilityonce the turbines are installed.

Resource Potential

The suitability of a given site for a wind projectdepends on many factors, including windresource, accessibility and proximity totransmission lines. BC is considered to have anexcellent wind resource, particularly at three sites:the Peace region, North Vancouver Island and theNorthern coast. Of these, the Peace region has thebest access to existing transmission capacity.

In 2000, BC Hydro launched a wind monitoringinitiative that saw the erection of windmonitoring equipment at a number of locationsthroughout BC. Currently, these stations haveeither been decommissioned or private partiesare operating them. BC Hydro released acomplete set of data up to August 2004, but willnot be releasing any further data.64

In 2005, to fill the information gap, a report wascompleted by Garrad Hassan for BC Hydro,providing an assessment of the potential andestimated costs of wind energy in the province. Itconcluded that the province had an achievablewind potential of 5,000 MW, including 3,500MW in the three onshore regions mentionedabove, and 1,500 MW in offshore sites.65 Addedto this potential are the benefits of wind/hydrointegration. BC is fortunate to have existingreservoirs that can capitalise on synergies



66 Robert Hornung. “Letter to Honourable RichardNeufeld.” CanWEA. www.canwea.ca/images/uploads/File/Wind_Energy_Policy/Provincial/BC/Letter_to_BC_Minister_of_Energy_-_March_14_-_Final.pdf (accessed October 19, 2006)

67 Environment Canada. “Canadian Wind Energy Atlas.”Environment Canada. www.windatlas.ca/en/index.php (accessed October 18, 2006)

68 AnemoScope. “Wind Energy Simulation Toolkit.”AnemoScope. www.anemoscope.ca (accessedOctober 17, 2006)

69 Personal Communication with Canadian Wind EnergyAssociation (CanWEA), August 9, 2006.

70 Garry Hamilton. “Maximizing Green Power forElectricity Generation — Wind Energy” in MaximizingEnergy Efficiency and Renewable Energy in BC, ed.Pollution Probe. www.pollutionprobe.org/Happening/pdfs/gp_march06_van/workshopnotes.pdf(accessed October 18, 2006)

71 MEMPR. “Wind Power Policy Supports AlternativeEnergy Industry.” MEMPR News Release, October 14,2005.

between wind and hydro energy sources. Withlarge-scale wind development, BC Hydro can useits hydro reservoirs to support short-term windoutput variations, and in turn use wind tosupport long-term variations in hydro levels.66

Environment Canada has also developed aCanadian Wind Energy Atlas, which is a web-based tool that allows the user to browse throughresults from previous numerical simulations todetermine wind energy potential in a given site.67

The atlas includes colour maps representingaverage wind velocity and power, as well ascorresponding geophysical characteristics. Adetailed assessment tool called Anemoscope hasalso been developed that allows users to identifyareas best suited for wind farms at the meso (5km) and micro scale (1 km to 100 m).68

Current Activities

Currently, one of the main opportunities forwind energy development is the awarding ofcontracts via BC Hydro’s Open Calls for Power.The 2006 Call for Power process saw submissionsfrom 53 separate projects, including six windprojects. Of these, three wind projects totaling325 MW of installed capacity were awardedenergy contracts.

The three projects — Dokie Wind, Bear Mountainand Mount Hays — will represent the first utility-scale wind projects in the province and mark apromising new era for wind as an importantcontributor to BC’s energy needs. They will resultin BC clean energy infrastructure investments ofsome $650 million and are projected to providemore than $100 million in direct provincial,regional and federal taxes and fees during their

operational lives. The projects will also generatesignificant benefits and opportunities for localcommunities and First Nations.69

While the Calls for Power provide an opportunityfor alternative energy sources in BC, there are stillbarriers for wind power development. The largestbarrier identified by the CanWEA BC Caucus isthe requirement in Calls for Power for a ‘monthlyfirm bid’ with liquidated damages for failure tosupply.70 CanWEA believes that there would bemany more successful wind projects in Call forPower bids if such a requirement were modifiedto better reflect wind’s characteristics (specifically,its variability).

On October 14, 2005 the Ministry of Energy,Mines and Petroleum Resources announced anew participation rent policy for wind powerprojects located on Crown land. The Ministryreports that it will ease the financial risk for windpower producers by offering no participationrents for the first 10 years of commercialoperations.71

Future Needs

The recommendations for the development ofthe wind industry in BC provided here representthe needs identified by CanWEA’s BC Caucus.They are provided here as the industryperspective and do not necessarily reflect therecommendations of the authors. CanWEA’srecommendations include:• Implement procurement processes that

recognize wind’s characteristics… CanWEAbelieves that the Call for Power process, ascurrently described, seriously disadvantageswind with respect to other technologies.



72 Robert Hornung. “Letter to Honourable RichardNeufeld.” CanWEA. www.canwea.ca/images/uploads/File/Wind_Energy_Policy/Provincial/BC/Letter_to_BC_Minister_of_Energy_-_March_14_-_Final.pdf (accessed October 17, 2006)

73 Garry Hamilton. “Maximizing Green Power forElectricity Generation — Wind Energy” in MaximizingEnergy Efficiency and Renewable Energy in BC, ed.Pollution Probe. www.pollutionprobe.org/Happening/pdfs/gp_march06_van/workshopnotes.pdf(accessed October 16, 2006)

CanWEA recommends that either a)subsequent Calls for Power be designed tobetter account for wind’s characteristics; orb) the government mandate BC Hydro toissue a call for tenders specifically for windcapacity. The government may also, as in thecase of Ontario, consider establishing a‘Standard Offer Contract’ process to promotesmaller wind projects, in addition toscheduled Calls for Wind Power over the nextfive to 10 years.

• Collaborate closely with the wind industry ondevelopment of BC’s updated Energy Plan.72

• “Implement a streamlined permittingprocess. The current process, which is muchmore laborious than that found in otherjurisdictions, hampers wind powerdevelopment. Both federal and provincialreviews are required, and the number of newproject proposals has meant that capacities atthe Ministry in Victoria are insufficient todeal with applications in a timely manner. Along-term provincial commitment wouldcreate a stable investment context that couldfurther the industry in BC.”73

Ocean

The oceans contain vast quantities of energyembodied in waves, tides and ocean currents. Sofar, very little of what is available is beingutilized. There are, however, a number of projectsunderway exploring how energy can predictably,perpetually, efficiently, effectively andeconomically be captured from waves and tidalcurrents. The energy source, the technology tocapture it, and the status of the technologiesvaries in each project and in every jurisdiction.

The Technology

The focus on technology to harness tidal energyis on capturing power from the tidal stream (withrelated approaches to marine currents).

The 20 MW Annapolis Royal Tidal PowerGenerating Station in the Bay of Fundy in NovaScotia is a pilot project built in the 1980s todemonstrate a barrage power system, whichcreates a dam to hold back water at high tidethen releases it at low tide to generate electricity,similar to a large hydro dam. It is one of onlythree tidal barrage projects in the world.

The current generation of tidal technologyextracts the kinetic energy using underwaterdevices similar to wind turbines. The blades orrotors are mounted on pilings or pads on theseafloor and are completely submerged in waterwhere currents from tides have velocities ofbetween two and three metres per second. Thistidal stream technology is being tested at variouslocations around the world and is expected to becommercially available soon. Several companiesin Canada are developing tidal streamtechnology, including Blue Energy, CleanCurrent, Coastal Hydropower and New EnergyCorp. in British Columbia. The world’s leadingtidal power technology companies are expressinginterest in exploiting BC resources.

Wave energy converters rely on the up and downmotion between wave crest and trough togenerate electricity. There are several types ofsystems: some extract the energy from surfacewaves, and others use the energy from pressurefluctuations below the water’s surface or from thewave itself. Some systems are fixed in position,while others move with the waves. The morecommon methods used to capture the energyfrom waves include floats or buoys drivinggenerators, or turning the wave motion into anoscillating water column forcing air back andforth through a generator-driving turbine.

The first wave energy farms are being planned forPortugal and Spain. These farms will be made upof multiple modules deployed in 50 to 100 meterdepths, anchored, and sending power ashore bycable. SyncWave and AquaEnergy Canada are



74 Emile Baddour. “Ocean Energy: An Update.” NationalResearch Council Canada. www.pollutionprobe.org/Happening/pdfs/exploregpatlantic/baddour.pdf(accessed October 16, 2006)

75 Carbon Trust. “Future Marine Energy.” Carbon Trust.www.oreg.ca/docs/Carbon%20Trust%20Report/FutureMarineEnergy.pdf (accessed October 16, 2006)

76 Electric Power Research Institute (EPRI). “EPRI OceanEnergy Program.” EPRI. www.epri.com/oceanenergy/oceanenergy.html#reports (accessed October 16,2006)

77 National Research Council-Canadian HydraulicsCenter (NRC-CHC). “Low-Head Hydro: The CanadianOcean Energy Atlas.” NRC-CHC. www.nrcan.gc.ca/es/etb/cetc/cetc01/TandI/lowhead_ocean_e.htm(accessed October 16, 2006)

78 For updates and an overview of the project seewww.oreg.ca/atlas.html

79 Andrew Cornett and Michael Tarbotton. “Inventory ofCanadian Marine Renewable Energy Resources.”NRCouncil-CHC. www.oreg.ca/docs/May%20Symposium/Cornett.pdf (accessed July 10, 2006).

working in BC on point absorber technologies,and other approaches are being tested in EasternCanada. BC Hydro explored options for waveprojects at Ucluelet in the early 2000s, attractingattention of local and international developersand creating an expectation in the community,both of which endure. Domestic andinternational developers continue to look activelyat this and other high-energy areas on the BCcoast.

Market Readiness

Most ocean energy technologies are still in thedemonstration and pilot production phases andnot yet able to provide commercially competitivepower. A number of different approaches arelikely to emerge for producing power efficientlyand economically to suit different locations,scales, types of power or product outputs, etc.Several countries have been investing in oceanenergy research and development (R&D) as theybid to become leaders in this emerging energyfield. Industry representatives believe Canada hasthe potential to join the leading countries in thissector if sufficient R&D funding is madeavailable; however, Canadian support for oceanenergy technologies (i.e., wave power) hasconstituted only 0.18 per cent of all federalCanadian clean energy funding initiativesannounced and funded since 2003.74

The International Energy Agency has forecastocean energy cost reductions, coming withexperience, that will make wave and tidal streampowered electricity generation cost competitive.Recent forecasts by the UK Carbon Trust andElectric Power Research Institute projects alsosuggest that this goal is reachable.75, 76

Resource Potential

Currently, the Canadian Hydraulics Centre of theNational Research Council of Canada (CHC) isdeveloping The Canadian Ocean Energy Atlas.The overall aim of the project is to quantify andmap Canada’s renewable energy resources fromocean waves and marine currents and make theresults available to all Canadians through adigital ocean energy atlas.77 Phase 1 of the projecthas been completed, providing information onCanada’s potential from offshore wave energyand tidal current resources. Currently, Phase II isbeginning.78 Results estimate BC’s potentialoffshore wave energy resources to be 37,000 MWin the Pacific and potential tidal current energyresources to be 4,015 MW.79 Several of the tidalstream technology developers are looking atinstream generation resources, such as rivers,irrigation canals, dam inflows and spillways.Technical approaches will be similar for use inocean currents. These resources have not beenidentifies or assessed yet.

Current Activities

Several groups are active in ocean energy researchin Canada, with some work carried out throughthe ocean technology clusters that make up theOcean Science and Technology Partnership. TheClean Energy Centre and Ocean Engineeringgroups at UBC are engaging with the sector;several companies have tested at the UBC wavetank. The Integrated Energy Systems Group at theUniversity of Victoria is actively involved intechnology development, and student projectsare assessing approaches to integrate wave andtidal power. The Ocean Renewable Energy Group(OREG) is another active organization with



industry, government and academic members. Itsvision is a “Canadian sustainable ocean energysector, serving domestic and export power needsand providing projects, technologies andexpertise in a global market”.80 OREG hasoutlined a national target of 25,000 MW ofinstallations by the year 2025. In March 2006,this group also released The Path Forward. A Planfor Canada in the World of Renewable Ocean Energy,which identifies immediate actions to developthe sector to ensure Canada’s competitiveposition with industry leaders, such as the UKand other European Union countries. It sets out abroader sector development plan.81

The federal government has created aninterdepartmental working group, the FederalOcean Energy Working Group (FOEWG). As aresult, Natural Resources Canada has nowincluded ocean energy within the renewableenergy initiatives and a number of foundationprojects have been launched.82

The work by BC Hydro in the early 2000s hasencouraged an ongoing interest in ocean energywithin BC Hydro and the BC government. In2005, the provinces of New Brunswick and NovaScotia engaged in a study by the US-basedElectric Power Research Institute. The 2006presentation of results has stimulated intenseinterest in the region, by utilities, governmentsand industry, in moving tidal stream energyahead.

Actual development of ocean energy projects hasbegun in BC. The Pearson College-EnCana —Clean Current Tidal Power DemonstrationProject is expected to be completed in 2006. Itwill be Canada’s first free-stream tidal powerproject. It is deployed in the ocean near RaceRocks Ecological Reserve, located ten nauticalmiles southwest of Victoria. It will have an

installed capacity of 65 kW. In 2006, the projectwas expanded to include the installation of solarpanels that will contribute at least 6.5 kW via agrant from the Ministry of Energy, Mines andPetroleum Resources.83

Sustainable Development Technology Canada(SDTC) has funded a tidal power generationproject on the province’s west coast. The projectwill install up to 500 kW of power-generatingcapacity in a narrow channel between MaudeIsland and Quadra Island, adjacent to SeymourNarrows, near Campbell River, BC.84

Future Needs

The below recommendations for thedevelopment of the ocean industry in BCrepresent the needs identified by OREG and donot necessarily reflect the recommendations ofthe authors.

In March 2006, OREG released The Path Forward.A Plan for Canada in the World of Renewable OceanEnergy, which outlines an action plan for oceanenergy development in Canada that involvesmulti-stakeholder participation and acomprehensive range of action items. Topicsoutlined include: technology, sector building,research, testing and evaluation resources,business, delivering market products, creatinginvestor value, bringing in the integratedcompanies, policy and regulatory environment,and integrating Canadian and internationalefforts.

OREG has also outlined a broad-range of actionitems that include• The introduction of a policy that diversifies

energy resources in BC• Interconnection standards

80 OREG. “About.” OREG. www.oreg.ca/about.html(accessed October 17, 2006)

81 OREG. “The Path Forward.” OREG. www.oreg.ca/docs/OREG%20docs/OREG%20_The%20Path%20Forward_v7sm.pdf (accessed October 18, 2006)

82 OREG 2005. July 27, 2005. Vol. 1 Issue 5. OREG.www.oreg.ca/docs/Biweeklies/OREG%20BiWeekly%20July%2027.pdf (accessed July 10, 2006)

83 Pearson College. “The Pearson College-EnCana —Clean Current Tidal Power Demonstration Project atRace Rocks.” Pearson College. www.racerocks.com/racerock/energy/tidalenergy/tidalenergy.htm(accessed October 18, 2006)

84 Sustainable Development Technology Canada(SDTC). “$48 Million in Clean Technologies FundingApproved by Sustainable Development TechnologyCanada.” SDTC News Releases, July 5, 2006.



• Power purchasing agreements• Higher pricing for pioneer ocean energy

projects bridging to commercial pricing• An RFP from BC Hydro targeted at pre-

commercial technologies for demonstrationand development purposes

• A development initiative for emerging energyoptions

• A streamlined R&D effort to avoid parallelwork that would lead to the creation of aCenter of Excellence for ocean energy in BC

• Facilitation of the regulatory process andcreation of ocean energy development zones

• Funding initiatives, such as royalty holidays,grants, accelerated depreciation and greenpower credits.

Solar

Energy from the sun can be harnessed to warmresidential buildings, heat water and generateelectricity using three different methods: passivesolar architecture, active solar heating andphotovoltaic (PV) power generation. This sectionfocuses on solar PV for electricity generation.

The Technology

Photovoltaic technology turns the radiant energyof the sun into direct current electrical energy. PVor solar cells are small semiconductor devicesthat produce a flow of electricity when the sunshines on them. They are module units that aregrouped together to produce electricity in usefulamounts. Photovoltaic modules can be integratedinto buildings (rooftops and façades) and otherstructures and offset part or all of the associatedelectricity consumption. According to a recentstudy by Pelland and Poissant (2006), buildingintegrated photovoltaics could supply about 46per cent of the residential electricity needs of anaverage Canadian household.85 In addition,

photovoltaic systems can also be used ascentralized power stations supplying electricity tothe grid.

Market Readiness

Photovoltaic technology costs continue to behigh, although they have seen a significantdecline in the last 10 years since this technologyhas been promoted by a number of countries. Forexample, countries such as Japan, Germany, andthe United States have established majorprogrammes to promote solar roofs, resulting inmore than 400,000 solar PV rooftop installationsworldwide. PV is currently not very efficient,requiring a large surface area, which contributesto its high cost. PV panels available commerciallytoday convert only 12 to 15 per cent of the sun’slight into electricity, but research anddevelopment continues to improve these figures.

Resource Potential

Many people incorrectly believe that the solarenergy resource in a temperate climate likeCanada’s is insufficient for running solar energysystems. In fact, the solar resource in Canada isgenerally very good and compares favourablywith other regions of the world, due in part to its“clear-sky” climate.86

BCSEA reports that BC has an impressive solarenergy potential, very similar to Germany, aworld leader in solar energy installation anddevelopment.87 BCSEA reports the provinceslong-term PV potential to be 6,000 MW.

The BC Hydro Green Energy Study estimatesresidential building integrated PV (BIPV) to be280 MW for detached or semi-detached homes,with a cost of between 90 and 110 cents per kWh,and 160 MW from BIPV for commercial

85 Sophie Pelland and Yves Poissant. “An Evaluation ofthe Potential of Building Integrated Photovoltaics inCanada.“ CANMET Energy Technology Centre-Varennes, NRCan. http://ctec-varennes.nrcan.gc.ca/fichier.php/codectec/En/2006-047/2006-047_OP-J_411-SOLRES_BIPV.pdf (accessed October 18, 2006)

86 World Energy Council. “Survey of Energy Resources.Solar Energy. Canada.” World Energy Council.www.worldenergy.org/wec-geis/publications/reports/ser/solar/solar.asp (accessed October 18, 2006)

87 BCSEA. “Huge Green Power Reserves Can Fuel Jobs,Economy.” BCSEA. www.bcsea.org/media/051121-taskforcerelease.asp (accessed October 18, 2006)



buildings, with a cost of between 40 and 70 centsper kWh.88 BC Hydro reports, from a utilityperspective, that BIPV is not feasible forproduction of green energy in British Columbiadue to limited resource potential and the highcost for electricity generation.89

Current Activities

Currently, solar panels are being incorporatedinto the Pearson College-EnCana — CleanCurrent Tidal Power Demonstration Project thatwill contribute at least 6.5 kW using a grant fromthe Ministry of Energy, Mines and PetroleumResources.

The Ministry of Energy, Mines and PetroleumResources is also involved in an educationinitiative called the BC Solar for SchoolsProject.90 It is a “pilot programme developed toteach future generations about the potential ofclean, solar energy to reduce greenhouse gasemissions and the threat of global climatechange”.91 Currently, two BC schools haveinstalled solar power systems.

Also, as of April 15, 2005, 12 PV projects hadapplied under the net metering programme. Ofthese 12, eight projects are generating electricitywith an installed generation of 34.91 kW, andfour projects, totalling 23.68 kW, need to sign aninterconnection agreement.

The province also has two of the largest CanadianPV manufacturers, Xantrex and CarmanahTechnologies. They are part of a growing numberof globally competitive companies that exporttheir products all over the world and benefit from

the booming market where PV solar solutions arethe best option.92

Future Needs

There are few technical barriers to solar energyapplications — the technologies are marketready, but they are often poorly understood andup-front costs are still high. Supportive policiesare needed to educate people about the benefitsof PV and to help finance the up-front costs.Until the multiple benefits of solar energy arefully accounted for, including potential foroffsetting energy demand, low maintenancerequirements, no operation costs, long operatinglife and so on, the sector will not achieve its fulltechnical potential.

Solar energy efficiency is affected by a number offactors, including climate, terrain, building andsite suitability. Many of these can be easilyaddressed with careful planning and sitingconsiderations. Municipalities are key players tosupport solar energy in urban settings sinceshading is an important concern. Suitable sitesneed to be identified, developed and protectedfrom shading.

A representative from the Canadian SolarIndustries Association (CANSIA) made thefollowing recommendations for BC.93 Theserecommendations represent an industryperspective and do not necessarily reflect therecommendations of the authors:• Develop lower costs PV modules• Ease borrowing

• Low/no interest loans• Certification and licensing to reassure

lenders• Building Integrated Photovoltaic (BIPV)

• Credit for building materials and labourcosts

• Raises a new barrier — compliance withbuilding code

88 BC Hydro. “Green Energy Study for British Columbia.Phase 2: Mainland.” BC Hydro. www.bchydro.com/rx_files/environment/environment3927.pdf(accessed October 18, 2006)

89 BC Hydro. “Green Energy Study for British Columbia.Phase 2: Mainland.” BC Hydro. www.bchydro.com/rx_files/environment/environment3927.pdf(accessed October 18, 2006)

90 MEMPR. “BC Solar for Schools Project.” MEMPR.www.solarforschools.ca (accessed October 18, 2006)

91 MEMPR. “BC Solar for Schools Project.” MEMPR.www.solarforschools.ca (accessed October 18, 2006)

92 Personal Communication with Natural ResourcesCanada, September 11, 2006.

93 CanSIA has also produced a strategy document,Sunny Days Ahead — Insuring a Solar Future forCanada 25 Million Megawatt-hours by 2025, seewww.cansia.ca/downloads/sunnydaysahead.pdf.



• Increase market to realize economies of scale• Offer $0.43/kWh for 20 years

• Stop talking about payback, solar electricity isan investment

• Dispel myths

Biomass

Biomass is a blanket term referring to all organicmatter. When referring to biomass as a renewableenergy source, it includes plants, trees andresidues from crops, such as corn stalks andwheat straw. It includes organic waste frommunicipalities and waste from forestryoperations, including sawdust, timber slash andmill waste. Biomass is a very flexible renewableresource that allows various processes and uses.These include thermal, microbial and chemicalprocesses that can be used for power generation,steel and cement making, transportation fuels,space heating, plastic, paints and chemicalproduction. Currently, about six per cent of thetotal energy consumed in Canada is frombiomass sources mostly for industrial processheat, electricity generation and residential spaceheating. Corn and other agricultural products arealso used to generate ethanol and biodiesels forthe transportation market.94

Biomass is a renewable energy source that isconsidered to be carbon neutral. When biomassis converted to energy the carbon dioxide it addsto the atmosphere is offset by the carbon dioxidethan is sequestered when it was growing. If it isused as a substitute for fossil fuels for electricitygeneration, it will reduce greenhouse gasemissions. However, biomass power plants emitother criteria air pollutants. The amounts emitteddepend on the type of biomass that is burnedand the type of generator used. To be recognizedas low-impact renewables under theEnvironmental Choice Program, biomass power

plants must meet specific limits on the level ofemissions of carbon monoxide (CO), particulatematter (PM), nitrogen oxides and sulphuroxides.95 In BC, there are certified bioenergy-fuelled electricity plants and there is work beingdone on a biomass gasification plant.Gasification plants are usually low in airpollutant emissions.

Although not a focus in this paper, it is importantto note that when biomass is used to generateelectricity, the heat produced is equally importantand can be used for heating purposes. Where thisdisplaces the use of fossil fuels, there is acorresponding reduction in emissions ofgreenhouse gases and criteria air pollutants. Thisapproach also increases the efficiency of thebiomass. According to BIOCAP, traditional open-pit combustion of biomass offers an energyefficiency of about five to ten per cent. However,techniques such as gasification for powergeneration can bring the efficiency up to forty percent, while combined heat and power extractioncan capture 80 per cent of the total energy.Canada, for the most part, is failing to takeadvantage of this potential.96

The Technology

Biomass differs from other green powertechnologies, as human intervention is requiredfor both the production of the energy resourceand the conversion into electricity generation.

Biomass has a low energy density and highlogistic costs. Focus is placed on efficientcollection of biomass as well as thetransportation and preparation of feedstockbefore converting it to energy. Transportation

94 NRCan. “Improving Energy Performance in Canada —Report to Parliament Under the Energy Efficiency Actfor the Fiscal Year 2004–2005.“ NRCan. http://oee.nrcan.gc.ca/Publications/statistics/parliament04-05/chapter7.cfm?attr=0 (accessed October 18,2006).

95 For more information on the specified limits foremissions see the Environmental ChoiceM ProgramCertification Criteria Document CCD-003 for theProduct: Electricity — Renewable Low-impact.www.environmentalchoice.com/images/ECP%20PDFs/CCD_003.pdf#search=%22ECP%20CCD-003%20%22

96 BIOCAP Canada. “Biomass: Key to a Clean EnergyFuture.” BIOCAP Canada. www.biocap.ca/images/pdfs/Backgrounders/Biomass_Backgrounder.pdf(accessed October 18, 2006)



types and distances from feedstocks to electricitygenerating plants, need to be carefully considereddue to associated air pollution and GHGemissions in the transportation process.Sustainable forest and air quality managementare integral parts of large-scale biomassutilization for energy purposes.

Biomass is a clean fuel if processed and convertedwith modern techniques and currently can becombusted nearly as cleanly as fossil gas.Unfortunately, few high quality installations arefound in BC.

There are several ways of turning biomass intoheat and electricity, including direct combustion,anaerobic digestion, co-firing, pyrolysis andgasification. The simplest way of generatingelectricity from biomass is to burn it. This iscalled direct combustion. Any organic materialthat is dry enough can be burned. The heat, insome cases, is used to boil water to producesteam, which turns a turbine attached to agenerator to create electricity. In many instances,the combined production of heat and power(CHP) provides heat for processes and heat forbuildings and water. The basic biomasstechnology is not unlike that for fossil fuels usedfor electricity generation, such as coal. It ispossible to burn both coal and biomass in somepower plants in a process called co-firing. Solidbiomass can also be converted to a liquid (in aprocess known as pyrolysis) or a gas (throughgasification) and combusted. These latter twoprocesses are less well established.97

Various technologies for biopower productionhave different efficiencies. Small combustiontechnologies are often less than 20 per centefficient, whereas large combustion technologiescan be as high as 40 per cent efficient, andgasification coupled with combined cycle couldhave an even greater efficiency.

Biomass technology is mostly developed inEurope where advanced research is done with

large amounts of public and private sectorfunding. Recently, the focused has turned to costreduction in feedstock preparation andtransportation logistics, which are the mainroadblocks for the faster employment of biomassfor energy production. Research in these areas hasbegun at the University of British Columbia bythe Biomass and Bioenergy Research Group at theDepartment of Chemical and BiologicalEngineering. Much of the focus is directedtowards size reduction, densification, economicmodeling and life cycle assessment. This parallelsresearch in other forest-based economies aroundthe world. Unfortunately, researchers haveexpressed concern that insufficient R&Dresources are available in Canada for thisresearch.98

Market Readiness

Biomass power production has many provenoperations around the world, particularly in theUnited States and Finland. The majority arecombustion operations, although gasification isbecoming increasingly popular due to thesubstantially reduced air pollution emissions.While most of the technologies are market ready,continuing research is needed to increase theefficiency of technologies and maximize energyextraction.99

Resource Potential

Biomass is a significant producer of domesticallyused energy in BC and has the potential todevelop in the short and medium term. Most ofthis energy is produced as process heat for theindustry and is an integral part of the forestindustry.

There are three biomass options available for BCThese include wood fiber-based biomass, such asforest industry residues and fiber crops;agriculture-based biomass, such as cereal crops

97 Personal Communication with Staffan Melin, WoodPellet Association of Canada, September 20, 2006.For more information see www.pellet.org/Web/Page.aspx?Page=216

98 Personal Communication with Staffan Melin,September 20, 2006.

99 BIOCAP Canada. “Exploring the Potential for BiomassPower in Ontario.” BIOCAP Canada. www.biocap.ca/files/Ont_bioenergy_OPA_Feb23_final.pdf (accessedOctober 18, 2006)



and residues, oilseed crops and animal effluent;and municipal biomass, such as municipal solidsand municipal effluent.100 BC Hydro’s GreenStudy explored the following biomass options:wood residue, municipal solid waste (MSW),landfill gas (LFG), demolition and land clearing(DLC), and new technologies (gasification).Estimates in the Green Study for wood residue,DLC, LFG and MWS, are considered to be low bythe biomass industry. A main source ofcontention when considering biomass resourcepotential are the divergent opinions regardinghow much biomass can be harvested sustainably.

A multitude of wood fiber availabilityassessments have been done over the years, butnone have been a comprehensive assessment offull biomass potential. Most of the assessmentsreflect the information or opinion of the industryinvolved in harvesting the forest under stationaryconditions. These assessments have, in almost allcases, focused on the fringe volumes going toincinerators (beehive burners) or landfill andhave not included the total biomass inventory.101

The statistics for beehive burners tend to be lessaccurate as a result of the licensing structure tokeep them open. The following graph illustratesthe extraction of energy products (heat andelectricity) from biomass as well as hydro andfossil gas in 2003 in BC and provides aperspective on the theoretical potential forbiomass based on an annual harvest of 75million cubic metres. As the harvest volumes areincreasing, partly as a result of the mountain pinebeetle (MPB) infestation, the volumes of biomassavailable on an annual basis is also increasing.Depending on the harvesting techniques used,some estimates indicate 40 to 50 per cent of thebiomass from an average tree life cycle is leftbehind in the forest after harvesting.102

The mountain pine beetle infestationsignificantly has increased BC’s biomass potentialsignificantly, though it should be considered ifthis is the best use of the infested wood. Aboutfive per cent of the 960 million cubic metres oftrees expected to be killed by 2012 would provideabout 300 MW of electricity for 20 years at anestimated production cost of $0.07 per kWh.103

Large amounts of biomass are also available inlandfill sites in BC, with most of the carbon stillremaining. This material could be mined andconverted to energy with supportive policymechanisms that could prevent.the release ofmethane, a gas with about 21 times higher globalwarming potential than CO

2, that is found in

many landfull sites. In addition, BIOCAP104

reports that there is significant potential for newbiomass production for use as an energy resourcethough this is a contentious issue requiringthorough review. Examples include:

• Intensive forest management (e.g., pre-commercial thinning, fertilization, replantingwith superior or faster-growing genotypes)would increase forest biomass production by25 per cent or more, and the additionalbiomass could be used as an energy resourcewithout compromising the forestry sectorproduction of wood products or pulp andpaper. Given the current roundwoodproduction in BC of 74 million m3 per yearwith biopower potential of about 9,500 MW(assumes 40 per cent efficiency and 80 percent capacity factor:• If a 25 per cent increase in biomass was

allocated to provide an energy resource,this could support about 2,400 MW ofrenewable base load biopower capacity.

• If a ten per cent increase in biomasscapacity were allocated for electricitygeneration, this would support about 950

100John Swann. “Maximizing Green Power for ElectricityGeneration — Biomass” in Maximizing EnergyEfficiency and Renewable Energy in BC, ed. PollutionProbe. www.pollutionprobe.org/Happening/pdfs/gp_march06_van/workshopnotes.pdf (accessedOctober 18, 2006)

101Personal Communication with Staffan Melin,September 20, 2006.


103Amit Kumar, Shahab Sokhansanj and Peter Flynn.“British Columbia’s Beetle Infested Pine: BiomassFeedstocks for Producing Power.” BIOCAP Canada.www.biocap.ca/images/pdfs/2005-04-30_Final_Report.pdf (accessed October 18, 2006)

104The BIOCAP Canada Foundation funds research andbuild multisector collaboration on biomass capital inCanada. They provided the following calculations.



MW of renewable base load, biopowercapacity.

• For biomass crops, the introduction of fast-growing, low-input biomass crops, such aswillow, switchgrass or Miscanthus, could alsoprovide a major biomass resource. Biomasscrops can produce more than ten dry tonnesper hectare per year and can be grown onpasture lands, marginal agricultural lands andconverted forest lands.• One million hectares could produce ten

million dry tonnes per year that couldprovide 2500 MW of renewable base load,biopower capacity.

• 100,000 hectares could produce onemillion dry tonnes per year that couldprovide 250 MW of renewable base load,biopower capacity.105

The question of optimal use for biomassresources needs to be addressed. Green powertechnologies, such as wind, solar, hydro, oceanand geothermal energies, can only be used as asource of electrical power or heat. Along withthese functions, biomass can also provide liquidfuels, chemicals and materials. A study should becompleted to identify where biomass resourcescould best be utilized. From a greenhouse gasperspective, the biggest return is for heat andpower.106

A number of variable economic factors affect thepotential for conversion of biomass to energy.The Wood Pellet Association of Canada hasprovided the following information: Due togradual degradation, the MPB infested trees willnot be suitable for lumber or pulp production forbetween three and seven years, depending onlocation. To prevent natural fires, the majority ofthe trees will have to be slash-burned, andreplanting will be the provincial government’s

responsibility as the trees are located on crownland. The Wood Pellet Association of Canada hassuggested that the BC government abolish thestumpage fee for much of the degraded treestands and let the industry produce energy orpellets from the material. This would reduce thegreenhouse gas emissions associated with slashburning or with the natural decomposition of thewood. The cost for harvesting and transportingsuch wood would be carried by the industry, butnot the cost for building roads and reforestation.The government bureaucracy is not set up tohandle this type of arrangement and is simplynot able to respond to such proposals withoutpolicy directives at the minister level.

• A new forest management regime will emergeover time with a far more intensive extractionof low-grade material such as clearing,thinning (probably in several stages) andperhaps pruning in high value stands. Thiswill produce biomass of commercial valueand become part of the fire management ofthe forest.

• New harvesting machinery is constantlydeveloped, which changes the economics ofharvesting low-grade trees for directconversion to chips or bundles for energyproduction.

• Decreased cost sensitivity for feedstock due to:• A gradual increase in market value of

renewable energy as climate changemitigation policies are implementedwhich means less sensitivity to cost forfeedstock.

• New densification as well as liquificationtechnology under development for woodwill allow increased worldwidedistribution of wood fuel and increasedcompetitiveness with fossil fuel such asfossil gas and coal.

• New low cost methods for increasingcalorific value in bulk wood fuels willallow increased substitution of coal forheat and electricity production.

• New methods for use of low-gradebiomass, such as branches, tops, stumpsand even needles in production of high-grade fuels will make available largeamounts of harvest residue for energypurposes (see graph above).

105Personal Communication with Dr. David Layzell,BIOCAP Canada, September 21, 2006. For moreinformation see www.biocap.ca/?index.cfmlg=f&meds=section&section=36&category=20

106D.G. Layzell and J. Stephen. 2005. “Climate Changeand Managed Ecosystems“ in Linking BiomassEnergy to Biosphere Greenhouse Gas Management,ed. Jaqtar Bhatti, Chapter 11. CRC Press.



• Better use of bark for commercial bio-fuels as a result of advances made in thethermal conversion stage.

• A substantial part of the stream of pulp chipswill likely be diverted to energy production orwood pellet production due to the gradualdecline in the requirement for long fiber inpaper making (this trend is already very clearin North America and overseas, and willescalate. Over time, we may see more millclosures in BC).

Current Activities

There are approximately 1,500 MW of installedbiomass electricity generating facilities capacityin BC.107 The bulk of this power is from woodresidue produced provincially at pulp and papermills. It also includes 55 MW produced byindependent power producers utilizing biomasstechnologies such as landfill gas.108

Several biomass projects have been awarded inBC Hydro’s calls for Green Power Generationfrom independent power producers. In the 2000/01 call, one landfill gas cogeneration utilizationproject was awarded (5.0 MW capacity). In the2002/03 call, one landfill gas project wasawarded (1.85 MW capacity). And in the 2006open call for power, one woodwaste and coalproject was submitted, as well as two woodwasteprojects.

In 2005, the Ministry of Forests and Rangeannounced that some MPB infested wood inPrince George would be used to manufacturewood pellets to be used as biofuel in Europeanpower plants. On May 31, 2006, the Ministry ofForests and Range as well as Energy, Mines andPetroleum Resources, announced that abioenergy strategy is being developed by theprovince “to promote new sources of sustainable

and renewable energy, and to take advantage ofpine beetle-attacked timber”.109 This followsseveral other strategies developed by thegovernment over the years for better utilization ofthe significant amount of biomass available inBC.110

The dynamic development of the wood pelletsindustry in Canada, particularly in BC, is due tooverseas export markets. The lack of domestic useindicates a need for the development andimplementation of a renewable energy strategythat makes better use of this resource. Woodpellets are produced from sawdust and shavingsfrom sawmills and planer mills as residue (alsoreferred to as wood waste). In 1996, the woodpellets industry in BC produced less than 60,000metric tonnes, and in 2005 production reached650,000 tonnes. By the end of 2006, theproduction capacity will reach close to 900,000tonnes annually, with high utilization levels dueto overseas export markets. The consumption inBC is limited to approximately 20,000 tonnes in2006, with little or no growth potential.111

Wood pellets are the most transportable of allbio-fuels and are distributed in small bags,jumbo bags, containers, tank trucks, rail cars andocean vessels. With a new generation of robustpellets (primarily ligno-cellulose, but alsoherbaceous) coming to the market within thenext five years, this product will become a majortrading commodity since it can be used as asubstitute for thermal coal with smallmodifications to the large coal burning plantsworld-wide.112

107 Forest Products Association of Canada. “Fact Sheet:Electricity Generation Within the Forest ProductsIndustry. ” (Ottawa: Forest Products Association ofCanada, 2005).

108BC Hydro. “Green Energy Study for British Columbia.Phase 2: Mainland.” BC Hydro. www.bchydro.com/rx_files/environment/environment3927.pdf(accessed October 18, 2006)

109Ministry of Forests and Range, MEMPR. “BCDevelops Bioenergy Strategy to Include BeetleWood.” Ministry of Forests and Range, MEMPR.www2.news.gov.bc.ca/news_releases_2005-2009/2006FOR0056-000704.htm (accessed October 18,2006)






Future Needs and Considerations

These recommendations are from experts withinindustry and academia and do not necessarilyreflect the recommendations of the authors:

Given the many different types of biomassresources found in a range of sectors fromagriculture to municipal waste, there is nouniform biomass-energy-based industry inCanada, such as is found in almost all Europeancountries. The industries’ disparate nature andlack of incentives in Canada is a barrier tochange. Better alignment is needed among thevarious areas, as well as a united voice thatpushes for policy support. Particular areasneeding attention include better resourceassessment for sustainable production in allsectors and ensuring the generation of heat and/or electricity, or alternatively the conversion tocommercial renewable fuels, close to source toreduce transportation costs. A stronger emphasison energy in terms of heat applications (not onlyfor electricity generation) is needed and shouldbe developed by organizations other thanelectrical utilities.113

Costs can also be reduced through enhancedefficiency, for which more R&D is required.Public education and participation, as well aslinkages with rural communities to ensuremaximum local benefits are also important areasto explore in this sector.114

Small Hydro

Small hydro is the largest green power contributorin British Columbia. In 2004, Natural ResourcesCanada reported an installed capacity of 653 MWfor sites less than or equal to 50 MW in size andan installed capacity of 244 MW for sites lessthan or equal to 25 MW in size.115

The Technology

Hydroelectric plants convert the potential energyof water to electrical energy by taking advantageof a drop in the elevation of the water. Somehydroelectric stations use a river’s natural drop inelevation. Others use dams to raise water levelsupstream of the station and increase the drop inheight to produce more electricity and/or to storewater and release it to produce electricity tomatch changes in demand. Hydropowerdevelopments with a low environmental impactare often termed “run of river,” which refers toplants that use the flow of the river in a mannerthat does not appreciably alter the existing flowsand water levels. Appropriate development ofhydro resources can bring about environmentaland socio-economic benefits through integrateddesign, multipurpose planning and communityinvolvement.

Hydropower is generally divided into small andlarge capacity plants.116 Definitions of smallhydro vary in Canada and can refer to plants withcapacities up to 50 MW. Low-head run-of-river(less than 15 metre drop) plants can have sitecapacities greater than 50 MW. The size of thehydropower project doesn’t dictate its impact onthe environment. Rather, the design of the projectwill determine the extent of flooding,displacement of communities and wildlife,


114Personal Communication with Dr. David Layzell,September 21, 2006.

115Personal communication with Natural ResourcesCanada, September 13, 2006.

116Large hydro projects often require dams that maycause extensive flooding of environmentally sensitiveareas. Dams and reservoirs may also destroy or alterfish habitat and migration routes for fish and wildlife,as well as require people to relocate theircommunities. Cumulative environmental impact ofmany small hydro sites on a river system could besignificant. Small-capacity hydroelectric plantsshould not be looked at in isolation.



greenhouse gas emissions and otherenvironmental considerations. Hydropower onlyin line with Canada’s Environmental ChoiceEcoLogoM criteria is considered part of a greenpower package,

Market Readiness

Conventional hydropower technology is the mostmature of all renewable electricity sources and iscompetitive with all other electricitytechnologies. To develop hydropower meetingthe Environmental Choice Program (ECP)criteria, various techniques exist to minimizeecological impacts, but there are issues related tocost and efficiency. In addition, many low-headsites near urban centers have not been developeddue to the higher cost of the large equipment.

Resource Potential

Small hydro resource assessment is considerablymore developed than assessments for other greenpower technologies in BC. A number ofinitiatives have been taken, including Inventory ofUndeveloped Opportunities at Potential Micro HydroSites in British Columbia, Green Energy Study forBritish Columbia, and Green Energy Study for BritishColumbia (Small Hydro).117 The Green EnergyStudy estimates a resource potential ofapproximately 2,450 MW, with production costsbetween $0.04 and $0.09 per kWh. StatisticsCanada has also developed an inventory ofexisting sites and the Canadian HydropowerAssociation completed an inventory ofhydropower potential in Canada in 2006. Itshould be noted that small hydro is defined aseither less than 25 MW or 50 MW, depending onthe agency.

Current Activities

In the 2000/01 BC Hydro call for power, 15 smallhydro projects were awarded (total capacity172.45 MW). In the 2002/03 call, 12 small hydroprojects were awarded (total capacity 202.82 MW).

117 BC Hydro. “Small Hydro Assessment Reports.” BCHydro. www.bc.hydro.com/environment/greenpower/greenpower1751.html (accessed October 18, 2006)

And in the 2006 call for power, 29 hydro projectswere awarded (total capacity 832.76 MW). In thethree calls for power, small hydro comprised alarger portion of awarded contracts than othergreen power options.

Geothermal Electricity Generation

Currently there is no installed geothermalelectricity generation in British Columbia.118

However, the province has abundant geothermalresources.

The Technology

Geothermal energy uses large amounts of energyin the earth’s crust in the form of steam or hotwater to produce electricity. For geothermalfacilities to be installed, local geography musthave the right features. As geothermal energyrequires a source temperature of more than100°C, areas with recent volcanic activity offerhigh-grade resources.119 There are threegeothermal power plant technologies thatinclude dry steam, in which the steam from thegeothermal reservoir is routed directly throughturbine/generator units to produce electricity,flash steam plants, in which water attemperatures greater than 182°C is pumpedunder high pressure to the generation equipmentat the surface, and binary cycle plants, in whichthe water or steam from the geothermal reservoir

118Geothermal for electricity generation is dependenton indigenous resources referred to by scientists asthe “geothermal gradient” meaning the increase oftemperature with depth in the Earth’s crust. Thegeothermal gradient is not uniform around the worldthough BC has a high geothermal gradient meaningtemperature increases more rapidly with depth andthere is potential for electricity generation.Comparatively, geothermal for heating and coolinguses the warmth of the Earth, groundwater andwater in lakes to heat the air and water in buildings.This will be discussed in the Geoexchange section.

119NRCan. “About Earth and Geothermal Energy.”NRCan. www.canren.gc.ca/tech_appl/index.asp?CaID=3&PgID=8 (accessed October 18,2006)



never comes in contact with the turbine/generator units.120

Market Readiness

Geothermal sources for electricity generation arewidely used throughout the world espeically inAsia, Europe, New Zealand, Mexico and theUnited States. The US Capacity is 2,800 MW,which is projected to increase by 50 per cent overthe next five years.121 Geothermal energy is alsobaseload power, with a capacity factor ofapproximately 100 per cent.

Resource Potential

In the Green Energy Study, BC geothermalpotential was identified at between 150 and1,070 MW, with production costs between $0.05to $0.09 cents per kWh.122 The Ministry of Energy,Mines, and Petroleum Resources has compiled aGeothermal Resources Map. 123

Current Activities

Western GeoPower Corp. is currently assessingthe potential for a 100 MW geothermal plant atSouth Meager, which is 170 kilometers north ofVancouver.

Green Heat — Renewable Sources forThermal Energy

The term Green Heat refers to renewable energytechnologies that are used for heating andcooling. The main renewable sources used aresolar thermal, geoexchange (earth energysystems) and biomass. This section is limited tobrief summaries on solar thermal water heatingand geoexchange.

Passive solar refers to architectural techniquesused to capture the sun’s energy without the useof mechanical equipment. These techniques relyon the design of buildings and the types ofmaterials used to construct them. Through acombination of a high-performance thermalenvelope, efficient systems and devices, and fullexploitation of the opportunities for passive solarenergy, as much as 50 to 75 percent of ahousehold’s building energy needs can either beeliminated or satisfied through passive solarmeans.124

Active solar energy systems use solar collectors tocapture the sun’s energy to heat air and water. InCanada, the most widely used active solartechnologies heat air and water for use in houses,offices, factories and apartment buildings. Thereis substantial potential to offset polluting energyuse through solar hot water heaters in residential,commercial and industrial settings.

The use of biomass is a more complicated issueand is not included in this section. For example,while the use of wood burning for home heatingor other purposes can reduce greenhouse gasemissions where it replaces the use of fossil fuels,it can also increase criteria air pollutants. Morework needs to be done to determine how to takeadvantage of the GHG reductions associated withbiomass use for thermal energy while keeping therelease of other air pollutants to levels that allowjurisdictions to meet their targets for reductionsin criteria air contaminants.

120US Department of Energy. “Geothermal TechnologiesProgram.” US Department of Energy.www1.eere.energy.gov/geothermal/powerplants.html(accessed October 18, 2006)

121Alyssa Kagel. “Geothermal Energy 2005 in Review,2006 Outlook.” Renewable Energy Access.www.renewableenergyaccess.com/rea/news/story?id=41267 (accessed October 18, 2006)

122BC Hydro. “Green Energy Study for British Columbia.Phase 2: Mainland.” BC Hydro. www.bchydro.com/rx_files/environment/environment3927.pdf(accessed October 18, 2006)

123MEMPR. “Geothermal Resources Map.” MEMPR.www.em.gov.bc.ca/Geothermal/GeothermalResourcesMap.htm.(accessed October 18, 2006)

124Cédric Philibert. “The Present And Future Use OfSolar Thermal Energy As A Primary Source OfEnergy.” The InterAcademy Council. www.iea.org/textbase/papers/2005/solarthermal.pdf (accessedOctober 18, 2006)



Solar Water Heating Systems

Water heating is one of the most cost-effectiveuses of solar energy. Solar water heaters can beused for residential, institutional and commercialwater heating. Solar water heating systems offer awide range of benefits. As they are not connectedto the power grid, their use decreases electricitydemand. If they replace the burning of fossilfuels for water heating (either directly or fromelectricity generation), their use reducesgreenhouse gas emissions and criteria airpollutants. For residential installations, a solarwater heating system can eliminate up to twotonnes of CO

2 emissions per year, in proportion

to energy savings. Conventional water heatingcontributes about 19 million tonnes of GHGseach year to Canada’s greenhouse gas emissions.125

The benefits can include considerable decreasesin hot water heating costs, which account forapproximately 22 per cent of energy usage in aCanadian home. The energy savings depend onthe size of the collectors and storage tank,appliance efficiency, amount of sunlight in theregion and the amount of water used.126

Canada has a low ranking for installed solarwater heating systems, compared to other parts ofthe world. In 2001, Europe had an installedcapacity of 6.4 m2/1,000 people; China had aninstalled capacity of 3.9 m2/1,000 people; andCanada had an installed capacity of 0.08 m2/1,000 people. Europe and China have also settargets for 100 million m2 by 2010 and 230million m2 by 2015, respectively.127

The Technology

There are different types of solar water heatingsystems, many of which use a small solar electric(photovoltaic) module to power the pumpneeded to circulate the heat transfer fluidthrough the collectors. The use of such a moduleallows the solar water heater to operate evenduring a power outage. There are generally threemain components for all systems that include asolar collector (converts solar radiation intouseable heat), a heat exchanger/pump module(transfers heat from solar collector into potablewater), and a storage tank (stores solar heatedwater).128 A solar water heating system willfunction during power outages if it has aphotovoltaic pump. Solar water heating systemsin Canada need a conventional system as backupfor periods when there is no sunshine.

In addition to residential use, solar water heatingsystems can also be used in commercialapplications, such as car washes, hotels and motels,restaurants, swimming pools, laundromats, fishhatcheries, apartment buildings, condominiums,university residences, the hospitality industry andso on. This technology can be applied to anycommercial or industrial application using largeamounts of hot water.129

Market Readiness

BC has been described as a good market for solarwater heating systems. The Canadian SolarIndustries Association (CanSIA) reports that solarwater heating systems have the best energy priceof any technology, with a comparative electricitycost of approximately five cents per kWh (BC’saverage rate is more than six cents per kWh). Aresidential installed system will typically cost about$5,000. One of the main challenges is a lack offinancing mechanisms to assist in covering theupfront costs.

125NRCan. “Residential Sector — GHG Emissions.”NRCan. http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/tablesanalysis2/aaa_00_2_e_4.cfm?attr=0 (accessed October 18, 2006)

126NRCan. “About Solar Energy.” NRCan.www.canren.gc.ca/tech_appl/index.asp?CaId=5&PgId=121 (accessed October 18, 2006)

127Nitya Harris. “The Solar Hot Water AccelerationProject” in Maximizing Energy Efficiency andRenewable Energy in BC, ed. Pollution Probe.www.pollutionprobe.org/Happening/pdfs/gp_march06_van/workshopnotes.pdf (accessedOctober 17, 2006)

128NRCan. “An Introduction to Solar Hot Water HeatingSystems.” NRCan. www.canren.gc.ca/app/filerepository/BC4150C5F0A34FC7A872AA6039AB1904.pdf (accessed October 17, 2006)

129NRCan. “An Introduction to Solar Hot Water HeatingSystems.” NRCan. www.canren.gc.ca/app/filerepository/BC4150C5F0A34FC7A872AA6039AB1904.pdf (accessed October 17, 2006)



Resource Potential

There is immense resource potential in theprovince for solar water heating technologies.With proper financing mechanisms and anawareness campaign in place, solar water heatingsystems can provide significant reductions inelectricity demand, which includes a number ofspin-off benefits, such as a substantial decrease inprojected resources required to maintain,upgrade and expand the transmission grid.NRCan estimates potential water heating energysavings from solar water heating systemsinstallation to be 43 per cent in Vancouver andKamloops, 39 per cent in Victoria, and 36 percent in Prince George.130

Current Activities and Future Needs

These recommendations do not necessarily representthe views of the authors.

A Solar Hot Water Acceleration Project iscurrently underway in British Columbia, led byBCSEA. The project has a multi-stakeholderproject advisory team.131 The goal is to test theacceleration of the installation of solar hot watersystems in communities in BC by identifying andremoving the barriers. 132 A rebate of up to $900is offered to the first 50 homeowners who areeligible from NRCan’s REDI133 Program in theprovince of BC.

BCSEA reports that the main challenges includethe cost of systems, limited number ofmanufacturers, unavailability of CSA certified

systems, limited number of qualified installers,no certified installers, and low awareness of solarwater heating systems in most communities.134

Financing options have been suggested, such asinterest-free loans or ‘solar utilities’, whichprovide financing with no up-front costs. Formunicipalities, local improvement charges couldbe implemented, enabling the municipality tobuy solar water heating systems that would thenbe paid back by residents via a user tax. Thecertification of systems is also strongly needed forseveral reasons, including the difficulty forbuilding inspectors faced with uncertified systems.Currently, BCSEA is working with local collegesto train solar installers. BCSEA is increasingawareness with the municipalities of DawsonCreek and the City of Vancouver, and also throughthe energy efficiency programme at the Ministryof Energy, Mines and Petroleum Resources.135

The success of the Solar Hot Water Accelerationproject has enabled BCSEA to target a 100,000Solar Roofs Program in BC. To reach the 100,000solar roofs target, BCSEA supports three policymeasures that include, standard offer contracts(including the heat portion of renewable energysystems); regulations requiring solar thermal fornew residential buildings, such as the BarcelonaSolar Thermal Ordinance; and financial incentiveprogrammes for solar water heating systems.136, 137

130NRCan. “Solar Water Heating Systems.” NRCan.www.canren.gc.ca/app/filerepository/AC5201041AFA42A1BFD51EA128F787CF.pdf(accessed October 17, 2006)

131BCSEA. “Solar Hot Water Acceleration Project.”BCSEA. www.solarbc.org (accessed October 17, 2006)


133NRCan. “Renewable Energy Development Initiative(REDI).” NRCan. www2.nrcan.gc.ca/es/erb/erb/english/view.asp?x=455 (accessed October 17, 2006)



136REN21. “Policy Landscapes/Solar Hot Water/HeatingPromotion Policies.” REN21. www.ren21.net/globalstatusreport/gsr4c.asp (accessed October 17, 2006)




Geoexchange

Geoexchange technologies, also known as earthenergy systems or ground/water-source heatpumps, are used for space conditioning and hotwater heating in buildings and homes. Much likesolar water heating systems, geoexchange systemscan provide reduced demand for electricity andother conventional fuel sources and providesubstantial savings to home and businessesowners over the long term. BC Hydro estimates asavings of more than 50 per cent on heating costsin comparison to electric resistance heating, suchas with an electric furnace, and up to 30 per centon air conditioning costs.138

Significant GHG reductions can be achieved. Infact, geoexchange systems are touted as havingthe single largest GHG mitigating potential of allmarket-ready, building space conditioningsystems. The Canadian Geoexchange Coalition(CGC) reports, “the average home in Canada(i.e., 2500 sq. feet) can reduce carbon dioxide(CO

2) emissions by 2.5 to 5 tonnes annually by

using geoexchange technology instead of electricheat or fossil fuels”.139

The Technology

Geoexchange technology uses heat from theearth, ground water or surface water that hastemperatures that are a constant seven to 13degrees Celsius year-round (or any other readilyavailable thermal source/sink) for space heating,cooling and water heating for both residentialand commercial applications.

Heat is collected and transferred from the earth/water/thermal source via a series of fluid-filledpipes that run to a building; the low temperaturesourced heat is then compressed and thetemperature is raised for inside use. Heat is notcreated through combustion, but instead istransferred from the thermal source to the

building through the use of a heat pump system(making this a renewable energy source). Forcooling purposes, the system flow is reversed,thereby transferring the heat from the building tothe ground/water/thermal sink where it isabsorbed. Therefore, one system can be used forspace heating, cooling and hot water heating.Unlike conventional systems, a slightly lowertemperature, but a steady stream of heat, istransferred into the building and therefore doesnot offer a blast of heat, we with more commonsystems. Geoexchange systems are ideally suitedfor hydronic radiant in-floor heating/cooling,heating tubes in laneways to melt snow in thewinter, hot water for outside hot tubs, capturingand transferring underutilized thermal sources(such as the heat removed from an arena ice slaband used to heat an adjacent pool) and energy toheat domestic/commercial hot water.140

Market Readiness

Geoexchange systems are more widely used incommercial and multi-residential buildings thanin residential homes. The main commercialinstallations include factories, retail stores, officebuildings, recreational facilities and schools.141

Aside from condominiums, cluster housingcapable of using a district system, and large singlefamily homes, the main barrier to widespreadinstallation for residential units is a lack offinancing mechanisms to cover the up-frontcosts. Installation costs are approximately$13,000 to $15,000 for a 2,000 square foothouse. GeoExchange BC has developed anInventory of GeoExchange System Installations in BCthat includes a listing of known commercial andmulti-residential geoexchange projects in theprovince. A total of 72 installations are listed thatare either operating or in the construction phase,demonstrating an increasing interest.142

138BC Hydro. “Geothermal Heat Pumps.”www.bchydro.com/powersmart/elibrary/elibrary685.html (accessed October 18, 2006

139Canadian GeoExchange Coalition (CGC). “FAQ —General Questions.” www.geo-exchange.ca/en/whatisgeo/faqs.htm (accessed October 18, 2006)

140NRCan. “About Earth and Geothermal Energy.”www.canren.gc.ca/tech_appl/index.asp?CaId=3&PgId=8 (accessed October 18, 2006)

141 Canadian GeoExchange Coalition (CGC). “FAQ —General Questions.” www.geo-exchange.ca/en/whatisgeo/faqs.htm (accessed October 18, 2006)

142GeoExchange BC. “Inventory of GeoExchange SystemInstallations in BC.” GeoExchange BC.www.geoexchangebc.ca/resourcedir/InstallationsBC.pdf (accessed October 18, 2006)



Resource Potential

There is immense resource potential forgeothermal systems in BC. Because geoexchangesystems are highly versatile, adaptable andcapable of tapping onto a wide array of thermalsources/sinks, there is essentially a designappropriate for any conceivable application.Depending upon the conditions that prevail foreach specific site, the size and type of system maybe easily adapted. It is interesting to note thateven sewer and water mains and road surfaces arecurrently being tapped as thermal sources/sinks.

Current Activities and Future Needs

These recommendations are based on multi-stakeholder input and do not necessarilyrepresent the views of the authors. There aresome programmes in place that help overcomethe financing barriers that exist for new andretrofit geoexchange installations. The BCMinistry of Provincial Revenue has exemptedqualifying geoexchange systems from the socialservice tax (PST) if purchased or leased forresidential purposes during the period fromFebruary 16, 2005 to April 1, 2007. Also, BCHydro’s High Performance Buildings Program(new construction) provides incentives forgeoexchange systems, both for simulation studiesand electricity conservation-based incentives.

The private sector is offering financingmechanisms to cover installation costs forresidential and commercial applications, such asinstalling the exterior ground loop portion of thegeothermal system for the customer and thenmaintaining and leasing it to them. Othercompanies are offering competitive financingoptions, and some financial institutions are nowrecognizing geoexchange as a reputable systemand are offering conventional loans for theirinstallation.

Further financing mechanisms have beenimplemented by private energy utilityinfrastructure companies that provide funds forthe installation of multi-unit residential projects,including subdivision, single family andcommercial projects. The company owns andoperates the system. Clients make monthlypayments, which are fixed to the cost of livingincreases. Utility costs are lowered and the keybarrier to geoexchange installation (large upfrontinfrastructure costs) is overcome. This type offinancing structure can be modeled in variousways as each project may have different andunique characteristics.



This section reviews some of the current andpotential actions on energy efficiency andrenewable energy outside of utilities andprovincial governments. It provides examples ofhow a broader community of stakeholders can beinvolved and further integration betweenefficiency and renewable energy can be achieved.This is a key contribution to widespreaddevelopment of both efficiency and renewableenergy.

Net-Zero Energy Homes

Overview

“A net-zero energy home at a minimum suppliesto the grid an annual output of electricity that isequal to the amount of power purchased fromthe grid. In many cases, the entire energyconsumption (heating, cooling and electrical) ofa net-zero energy home can be provided byrenewable energy sources”.143

There is growing interest in applying availableenergy efficiency and renewable energytechnologies to develop buildings that use net-zero energy. While there are some net-zero energybuildings in use now, we need to work towardsthis target for building on a commercial scale. Atthe international level, the World BusinessCouncil on Sustainable Development (WBCSD)is leading an initiative to map out how totransform the building industry to move towardsnet-zero buildings, to identify the barriers and todevelop mechanisms to address them.144

Part 4: Broadening Involvement in Energy Efficiency andRenewable Energy

The successful construction of residential homesthat attain a ‘net-zero energy’ status requires theintegration of numerous technologies and designparameters across the entire home, includingwell-insulated walls, proper ventilation and heatexchange, highly efficient appliances, andelectricity generated from one or more renewableenergy sources. The package of systems thateventually comes together to form a net-zeroenergy home can vary significantly and willdepend on a variety of factors, including size andconstruction of home, cost, location and accessto resources. Net-zero technologies include: aminimum R2000 or higher energy-efficientbuilding standard, Energy Star appliances,photovoltaic roof, passive solar heating and solardaylighting, earth energy systems, heat recoverytechnologies and solar thermal. Most importantly,these technologies and design parameters alreadyexist today and have been successfullyimplemented and proven in a wide variety ofclimates in Canada and around the world.145

In Canada, in 2004, the Net-Zero Energy Home(NZEH) Coalition was formed with the intentionto promote the use of existing renewable energytechnologies and energy efficiency/conservationtechnologies for the construction of homes thatconsume no energy on an annual net-basis andsignificantly reduce greenhouse gas emissions.Members of the Coalition include: homebuilders, industry, not-for-profit organizations,utilities and government. Demonstrationinitiatives have been developed with the supportof Canada Mortgage and Housing Corporation(CMHC), Natural Resources Canada, IndustryCanada and Environment Canada.146 Thecoalition’s vision is for all new homeconstruction to be net-zero energy homes by 2030.

143Net-Zero Energy Home Coalition (NZEH). “What is anet zero energy home.” www.netzeroenergyhome.ca(accessed October 18, 2006)

144GreenBiz.com. “Top Global Companies Join Forces toMake ‘Net-Zero’ Buildings a Reality.” GreenBiz.com.www.greenbiz.com/news/news_third.cfm?NewsID=30713&CFID=14603724&CFTOKEN=91835526(accessed October 18, 2006)

145Delphi Group. “Net-Zero Energy Home: A SustainableEnergy Solution for Canada.” Industry Canada.www.netzeroenergyhome.ca/downloads/government%20report%20on%20workshop_e.pdf(accessed October 18, 2006)

146Net Zero Energy Home Coalition.www.netzeroenergyhome.ca/index.htm



Current Activities

On July 20, 2005, the Ministry of Labour andHousing announced one million dollars infunding through CMHC to launch the first phaseof a Canadian net-zero energy healthy housinginitiative facilitated through a government/industry partnership. The initiative is “designedto help reduce the energy intensity of Canada’shousing sector, support the growing renewableenergy and sustainable housing industries, andhelp Canada meet its goal of reducing GHGemissions”.147 There are three phases associatedwith the pilot demonstration phase that include,phase I — request for expressions of interest(May 15–July 10, 2006); phase II — designdevelopment (July 31–November 6, 2006); andphase III — construction demonstrationmonitoring (December 2006–July 2009). Thedemonstration projects will provide exposure tomarkets, capacity development, and a platformfor larger scale grid-tied systems helpingminimize strain from taxed electricity grids, thusfacilitating the transition to a sustainableelectricity system.148 Twenty teams have beenselected to proceed to the second phase todevelop and submit a detailed design for theirdemonstration projects by November 2006.These include three teams from BritishColumbia-Quiniscoe Homes Ltd, TQConstruction Ltd. Sustainable Building Centre(SBC) Brantwood and Dockside Green Ltd.

Barriers

A number of barriers will need to be addressed tobuild net-zero energy homes on a commercialscale. There are long-term investment risks forbuilders and manufacturers — especially forsuppliers in Canada that do not have exportcapacity, as the domestic market is not welldeveloped. Other challenges include the absence

of existing guidelines or standards to enableproper valuation of net-zero energy homes —financial institutions require this certainty toconsider financing options, such as greenmortgages; and risks associated with the highlevel of uncertainty in the regulatory andoperating environments in Canada, such asmetering and building codes. Builder risksinclude capital costs and initial minimalutilization.149

Policy and Support Recommendations

Recommendations include: energy balancingthrough the grid, net metering and feed-in-tariffs,which give customers full credit for energyproduced; and time-of-use metering, whichencourages consumers to match energy load withenergy production. BC has implemented netmetering. Government support has proven to bethe key to successful deployment in otherjurisdictions. The Government of BC shouldprovide financial support for early adopters, toclear up regulatory and institutional bottlenecks,and to work with stakeholders to create aroadmap. The NZEH coalition is currentlyproviding “a window of expertise and advice” forthe net-zero energy homes strategy. Acollaborative approach with the coalition shouldbe undertaken by the province to developsupportive policies and programmes.

Cooperatives

Overview

The cooperative development model forrenewable energy usually means local ownershipof the project that can be set up by locals or aspecialist developer. To date, cooperativedevelopment for renewable energy has beenlargely focused on wind power. It began in the1970s in Denmark, where today co-ops areresponsible for installing 80 per cent of the

147 Government of Canada. “Minister AnnouncesFunding for Sustainable Housing.” Government ofCanada News Releases, July 20, 2005.

148Konrad Mauch. “Maximizing Green Power forElectricity Generation — Wind Energy” in MaximizingEnergy Efficiency and Renewable Energy in BC, ed.Pollution Probe.

149Konrad Mauch. “Maximizing Green Power forElectricity Generation — Wind Energy” in MaximizingEnergy Efficiency and Renewable Energy in BC, ed.Pollution Probe.



country’s turbines. This has facilitated turbinemanufacturing, the creation of an industry, andDenmark’s leading position in wind turbinemanufacturing in the world. In Germany, theworld’s single largest market and world leader ininstalled wind power capacity (18,427.5 MW asof December 2005), approximately one-third ofall wind capacity has been built by associationsof local landowners and nearby residents.

Cooperative development has beendemonstrated to overcome objections at the locallevel, also known as not-in-my-backyard (NIMBYsyndrome). The NIMBY syndrome has the powerto halt renewable energy development. In the UKin the late 1990s, two-thirds of all wind projectswere halted at the permitting level. Ontario isbeginning to experience this as projectsannounced from a tendering process are beingbuilt. Cooperative development also providesincreased benefits for local populations byallowing them to directly invest and benefit fromthe projects their communities host.

Renewable energy cooperative developmentbegan in Canada in 2003, when the world’s firsturban wind turbine was erected on the Torontowaterfront by the Toronto Renewable Energy Co-operative (TREC). Ed Hale, Director of TREC hasoutlined the differences between cooperativesand business corporations in the table below.

Co-op Model: Key Differences

Co-operatives (share cap)

One Member One Vote

Board comes from membership

Members must vote on bylaws

Limited liability

Taxable income

Securities subject to Financial Securities Commissionof Ontario; capital can be raised more easily from

community

Business Corporations

Voting power linked to capital invested

Directors may not have stake in corporation

Board controls bylaws

Limited liability

Taxable income

Securities subject to Ontario Securities Commission;tight rules on raising of capital

From TREC’s work, the Ontario SustainableEnergy Association (OSEA) was formed toimplement community sustainable energyprojects across Ontario and serve as an advocatefor renewable energy community ownership.OSEA has been building a network ofcommunities that are pooling information andexperiences towards the development ofcooperative renewable energy projects. OSEA wasthe main advocate for the recently introducedStandard Offer Contract (SOC) programme inOntario that guarantees a pre-determined pricefor renewable energy projects less than 10 MWand guarantees connection to the transmissiongrid. The policy has been modeled afterGermany’s feed-in tariff law, one of the maindrivers in Germany’s widespread development ofrenewable energy.

The Val-Eo Cooperative in Quebec is alsodeveloping a cooperative model for windresource development with financial supportfrom Government of Canada’s CooperativesSecretariat under the Cooperative DevelopmentInitiative. Funding has also been allocated toshare the model with communities in Quebecand the rest of Canada.150

150Renewable Energy Access. “Canadian CooperativeShare Wind Project Development Model.” RenewableEnergy Access. www.renewableenergyaccess.com/rea/news/story?id=45385 (accessed October 18, 2006)



Current Activities

In BC, the Peace Energy Cooperative wasestablished in 2002. The group’s major project isestablishing a wind park on Bear Mountain nearDawson Creek. In partnership with Aeolis Corp.,the Peace Energy Cooperative holds a minorityshare in the Bear Mountain wind project thatreceived a power purchasing agreement from BCHydro in the 2006 call for power. Permitting andfinancing for the project are now underway.

Barriers

Barriers include a lack of political will,organizational and development expertise,enabling policy from government, and startupcapital.151


The following recommendations represent theviews of an industry representative and do notnecessarily reflect those of the authors. Twoprimary conditions need to exist for widespreadcooperative development — a contract topurchase renewable energy power with aguaranteed price before project development(standard offers) and guaranteed connection to

151 Ed Hale. “Maximizing Green Power for ElectricityGeneration — Wind Energy” in Maximizing EnergyEfficiency and Renewable Energy in BC, ed. PollutionProbe.

152Ed Hale. “Community Wind Development.” OntarioSustainable Energy Association. www.pollutionprobe.org/Happening/pdfs/gp_march06_van/hale.pdf(accessed October 18, 2006)

the transmission grid. Currently, the provinceintroduces new generation through a request forproposals (a tendering process), whichcooperatives are not able to bid into. Forwidespread cooperative development to occur,policy to support the use of standard offersshould be introduced. The key differencesbetween the request for proposals and standardoffers is listed in the table below.

Accompanying supportive policies should bedeveloped, such as net metering, which theprovince has established.

Knowledge barriers can be overcome byestablishing training programmes fororganization structure, project evaluation,permitting processes and equipment evaluationand selection. A start-up capital fund needs to beestablished, as well as coordination among groupsto facilitate resource and knowledge sharing.153

Financial barriers can be overcome by theestablishment of a Cooperative Fund forCommunity Power, as community groups do nothave access to the venture or risk capital availableto commercial corporations. Initial incorporationand studies are required before communityinvestment capital can be raised.154

Request for Proposals

High submission cost

Time sensitive, financial uncertainty

Requires financial guarantees

Suitable for projects >50MW

Projects only viable in the best sites

Too uncertain to attract manufacturing

Standard Offers

Low submission cost

Always open

All completed projects eligible

Can work for large or small projects

Incentives for distributed generation

Encourages local manufacturing152

153Ed Hale. “Maximizing Green Power for ElectricityGeneration — Wind Energy” in Maximizing EnergyEfficiency and Renewable Energy in BC, ed. PollutionProbe.

154Ed Hale. “Maximizing Green Power for ElectricityGeneration — Wind Energy” in Maximizing EnergyEfficiency and Renewable Energy in BC, ed. PollutionProbe.



First Nations

Overview

First Nations Communities in BC are significantand active stakeholders in the development ofenergy efficiency and renewable energy. In theprovince, there are 198 First Nations (most notunder treaty) and almost 500 reserves, with manygroups organized under tribal councils. For BC’soff-grid First Nation communities(approximately 20), two major concerns are thehigh costs and environmental impacts associatedwith diesel generators.

Many First Nations are interested in pursuingenergy efficiency and renewable energy projectsas a means to reduce energy costs, develop localeconomies and increase local sovereignty overtheir energy supply, while reducing theenvironmental impact on their traditional lands.Some sustainable energy options include: energyefficiency technologies and managementpractices, green power, and district heating. Thereare numerous opportunities for distributedgeneration in non-grid connected communities.

Current Activities

Both the provincial and federal governmentshave been active in facilitating development.Indian and Northern Affairs Canada (INAC)developed a four-year (2004–2008) nationalAboriginal and Northern Community ActionProgram (ANCAP). In August 2003, theGovernment of Canada announced new fundingtotaling approximately $30.7 million over fouryears for climate change and energy initiatives inAboriginal and northern communities. ANCAP isfocused on engaging Aboriginal and northerncommunities in all provinces and territories tobecome active partners in climate change action.Many First Nations in BC have taken advantageof this programme, which grants up to $250,000for large projects, although typically the projectshave been much smaller.

The provincial government has committed totraining programmes for Aboriginals andenhanced First Nations consultation by engaging

the community in various initiatives, such as theIntegrated Electricity Plan.

The First Nations Community convened anEnergy Summit in October 2006 in PrinceGeorge. The First Nations Summit and the Unionof BC Indian Chiefs were mandated by resolutionto convene the summit and develop a BC FirstNations Energy Plan.

BC Hydro has also awarded several green powerprojects in the ongoing Green IPPS, such as theChina Creek Hydro Project developed byHupacasath First Nation in Port Alberni where72.5 per cent of the Upnit Power Corporation isowned by the Hupacasath First Nation.

The Squamish First Nation has developed fiverun-of-river projects totally 104 MW and isdeveloping another 49 MW run-of-river projectthat is currently waiting for rezoning.

The Xeni Gwet’in First Nation is planning toreduce its consumption of diesel by including PV-genset hybrids in a community plan.155, 156 About30 residences would use the PV-hybrid systems.This is a demonstration project partly funding byXantrex and the Government of Canada’sTechnology Early Action Measures (TEAM)programme. TEAM is an interdepartmentaltechnology investment programme that supportsprojects designed to demonstrate technologiesthat mitigate greenhouse gas (GHG) emissionsand sustain economic as well as socialdevelopment.157, 158

The Ministry of Energy, Mines and PetroleumResources is completing its First Nation andRemote Community Clean Energy Program, whichwill implement renewable energy and energy

155Personal Communication with Natural ResourcesCanada, September 11, 2006.

156For further information on the Xeni Gwet’in FirstNation see http://www.xenigwetin.com

157Personal Communication with Natural ResourcesCanada, September 11, 2006.

158For further information on the program seewww.xantrex.com/DocumentDepot/press/08222006.pdf



efficiency in several First Nations communities.The incentive level for the projects will becalculated on the basis of the total electricity andemissions impacts anticipated in the first year ofproject operation. This includes the displacementof diesel-fired electricity supplies in remotecommunities (i.e., off the integrated BC Hydroelectrical grid) and the displacement of fossil-fuelled generating stations on the integratedsystem (e.g., natural gas turbines). Thedisplacement must be achieved with zero-emission, alternative energy resources or energy-efficient technologies and management practicesthat promote energy conservation.159

The Ministry also initiated the First Nations andRemote Community Clean Energy Program in2006. The programme supports BC First Nationsin the implementation of their CommunityEnergy Planning action plans. The programmealso provides financial incentives (totalling $3.8million) to ten First Nations communities whodevelop and implement zero-emission electricitysupply projects and demand-side efficiency andmanagement options. The incentives will beapplied to the communities’ clean energy projectcapital costs and, to a maximum of 20 per cent ofeligible costs, local training in the field ofalternative energy and energy efficiency, leadingto increased employment opportunities.160

The incentive rates for displaced fossil fuel-derived electricity are as follows:• Large projects in remote communities — over

1 million kilowatt-hours (kWh) of annualoutput: 0.30 $/kWh generated in the first yearof operation

• Small projects in remote communities —under 1 million kilowatt-hours (kWh) ofannual output: 0.45 $/kWh generated in thefirst year of operation

• Projects on the integrated grids — BC Hydroor Fortis BC: 0.15 $/kWh in the first year ofoperation

BC Hydro has launched a Remote CommunityElectrification programme to ensure remotecommunities currently not served by BC Hydroreceive electric service. In 2006, BC Hydrocommunicated with 50 to 60 First Nations andsix civic communities. Questionnaires werecompleted and workshops were held thatincluded an opportunity for First Nationscommunities to give feedback on BC Hydro’selectrification eligibility criteria and to assist increating prioritization criteria. An agreement wasreached that the communities who coulddemonstrate the greatest hardship and a goodlevel of commitment would take priority. A targethas been established to connect threecommunities per year for the first four years thatwill increase to ensure 50 communities, 26 ofwhich are First Nations, are electrified in the next10 years. Priority connection for First Nationscommunities has not been established but sevenof the first eight communities are First Nations.161

Barriers

Barriers to the implementation of renewableenergy technologies and energy efficiencyimprovements faced by on-grid communities andoff-grid communities vary considerably. Whilesome First Nations communities (both on andoff-grid) are leading the way in terms ofrenewable energy and energy efficiency, othersface unemployment and a lack of local financialand human resources, which can lead to limitedcapacity to pursue these projects.

Funding presents a challenge to First Nationscommunities’ involvement in renewable energyand energy efficiency in three main ways:

1. Indian and Northern Affairs Canada (INAC)funding approach — The current funding159MEMPR. “Annual Service Plan Reports.” MEMPR.

www.bc.budget.gov.bc.ca/Annual_Reports/2005_2006/empr/Highlights_of_the_Year.htm(accessed October 18, 2006)

160MEMPR. “Annual Service Plan Reports.” MEMPR.www.bc.budget.gov.bc.ca/Annual_Reports/2005_2006/empr/Highlights_of_the_Year.htm(accessed October 18, 2006)

161 BC Hydro. “Report on Performance. RemoteCommunity Electrification.” BC Hydro.www.bchydro.com/info/reports/2005annualreport/report39496.html (accessed October 18, 2006)



formula used by INAC for energy costs hidesthe full costs of energy consumption fromindividual band members and thereforelimits the individual benefits that can be seenby reducing energy consumption. In someextreme cases, the funding formula canactually encourage energy consumption toprovide more budgeting flexibility inupcoming years. In addition, capital fundingdecisions do not necessarily consider the fulllife-cycle cost of a project. As renewableenergy projects often have higher initial costs,but lower operating costs over time, theseoptions can be overlooked.

2. Limited funding for alternative energyprojects — First Nations face challenges insecuring financing for renewable energy andenergy efficiency projects as funders andfinancers tend to be less familiar with thesetypes of projects than with conventionalenergy systems.

3. Overlapping jurisdictions — Within INAC,renewable energy projects can fall underCapital Projects, Economic Development,Public Works and even Claims, making theadministrative navigation cumbersome. Thereare also overlapping provincial and federaljurisdictional issues, which furthercomplicate the process.

Off-grid communities also face a number ofchallenges related to diesel generator use.Generators are sometimes oversized to meet peakdemand. However, generators have a declininglifespan and efficiency if run below capacity. As aresult, energy consumption is increased to ensurethat the generator’s lifespans are not reduced; thisis a direct disincentive to conserve energy.


Policy support and recommendations to increasethe use of renewable energy and energy efficiencyin First Nations communities are as follows:

• Implement new funding formulae by INACthat do not penalize energy consumption andtransparently outline how energy costs arebeing met. This would help to empowercommunities to make better energy decisions.For both sides to benefit, First Nations andINAC could share the savings.162

• Most off-grid community members do notsee the financial cost of their energyconsumption directly and therefore do seeany incentive to conserve. Creating a linkbetween consumption and cost would help toillustrate the individual savings that could beachieved. A creative rate design may beneeded to avoid creating new challenges forthose living in poverty.

• Capacity building within First Nationscommunities and within INAC, with regardto the implementation of renewable energysolutions, will be necessary to move forward.

• Consideration should be given to BC Hydrotaking over current generating systems for off-grid communities. The BC Hydro RemoteCommunities Electrification Initiative aims toprovide electrical service to remotecommunities over the next 20 years. Fundingfor this programme could be increased toimprove the rate at which communities canbe served.

• Funding from the ANCAP programme shouldbe continued to help facilitate furtherprojects aimed at promoting energy efficiencyand renewable energy development in FirstNations communities. Other funding sourcesshould also be identified.

Other policy and support recommendationsmirror those presented in the cooperativessection above.

162Personal communitcation with Tim Weis, PembinaInstitute, September 20, 2006.



Municipalities

Overview

There are 154 municipalities in BC. Each has thepotential to make a significant contribution tothe development of energy efficiency andrenewable energy technologies. Measures can beimplemented for both municipal operations andthe entire community. For municipal operations,renewable energy strategies include:procurement, municipal buildings andinfrastructure. For municipal buildings, solarwater and solar air heating, photovoltaics, ground-or water-source heat pumps, and ocean/lakecooling are easily implemented viable options.Municipal infrastructure options include districtheating, waste heat usage, green power frommunicipal water supplies, and landfill gasutilization.163

The development of energy efficiency andrenewable energy technologies can be facilitatedthrough community energy planning.“Community energy planning involvescommunity and energy strategies that can beapplied at the local level by planners, engineers,developers, and the public in cooperation withutilities. It encompasses land use planning andtransportation, site planning and buildingdesign, infrastructure efficiency, and alternativeenergy supply”.164

Municipal initiatives can also occur as individualprojects that are not a component of a largerplan, such as government procurementinitiatives. Developers are also in a position tomake a major contribution by creatingsustainable transit-supportive communities that

incorporate environmentally sensitive andenergy-efficient design, as well as the planned useof renewable energy technologies, such as districtheating that employs a renewable fuel source.

Current Activities

There are a number of energy efficiency andrenewable energy activities and programmescurrently under way at the municipal level,initiated by a range of institutions, includingutilities, the provincial government, NGOs andmunicipal governments.

Fortis BC has developed a programme calledPartners in Efficiency, which helps municipal,commercial, industrial and institutionalcustomers “identify and implement a higher levelof energy efficiency in their capital upgrades”. Theprogramme includes funding, financial incentivesand a monitoring component.165 BC Hydro alsoworks closely with municipalities through theirPower Smart programmes.

Several municipalities, such as the ResortMunicipality of Whistler and the Township ofLangley, have purchased Green Power Certificatesavailable from BC Hydro and Fortis BC. Severalmunicipalities have developed energy efficiencyand renewable energy technologies at themunicipal scale. For example, Kelowna isdeveloping a groundwater geoexchange system toheat and cool $400 million worth of buildingsfor the UBC-Okanagan campus in Kelowna. Ithas also taken advantage of Fortis BC’s Partnersin Efficiency programme, have implemented alandfill gas electricity project, and has upgraded80 city-owned buildings and saved almost fourmillion kilowatt hours of electricity per year.166

163Laura Porcher. “Maximizing Green Power forElectricity Generation — Wind Energy” in MaximizingEnergy Efficiency and Renewable Energy in BC, ed.Pollution Probe. www.pollutionprobe.org/Happening/pdfs/gp_march06_van/workshopnotes.pdf(accessed October 18, 2006)

164Community Energy Association (CEA). “What isCommunity Energy Planning.” CEA.www.communityenergy.bc.ca/tk_i_whatis.htm(accessed October 18, 2006)

165Kelowna Energy Management CommitteePublication. “Partners in Efficiency.” Energy Matters,Winter 2005. Kelowna Energy ManagementCommittee Publication. www.city.kelowna.bc.ca/CityPage/Docs/PDFs/Environment%20Division/Energy%20Management/Energy%20Matters%20Winter%202005.pdf

166City of Kelowna. “Energy Management.” City ofKelowna. www.city.kelowna.bc.ca/CM/Page887.aspx(accessed October 19, 2006)



The Town of Revelstoke recently opened itsdistrict heating system, serving a number ofpublic and private buildings in the downtown.Utilizing wood waste from the local mill, this isthe first renewably based district heating systemin BC.

The Ministry of Energy, Mines and PetroleumResources has recently launched the CommunityAction on Energy Efficiency (CAEE) initiative,which provides resources to municipalities thatare pursuing energy efficiency initiatives.

The federal government is also providing gas taxmoney to municipalities that is intended to fundinfrastructure and public transit projects thatresult in cleaner air, water, or reduced greenhousegas emissions.

Barriers

Barriers include: risk averseness of engineers anddesigners, longer payback periods, high capitalcost at the early stage of market development,lack of financing opportunities, low electricitypurchase prices, public opposition, and airquality implications of biomass power.167



Policy recommendations include: OfficialCommunity Plan statements on energy efficiencyand the use of renewables, policies and standardsfor civic buildings, and policies to encourageefficiency in private sector new construction168, 169

Policies should be developed with accompanyingbylaw and community engagement programmes.Bylaw recommendations include: district energyzones mandating buildings to use district energysystems, solar access requirements, and densitybonuses for efficiency or renewables. Communityengagement is required for full development ofconservation programmes and development ofrenewable energy systems. Communities shouldbe provided with information, training,education, labeling, awards and incentives.170

Creation of Integrated Sustainability Plans (ISPs)is also recommended. ICSPs provide a decision-making framework for municipalities to helpensure that all decisions reflect the community’sgoals for sustainability.


169Canada Green Building Council. “LEED.” www.cagbc.org/building_rating_systems/leed_rating_system.php (accessed October 18, 2006)




The benefits for implementing the full potentialof energy efficiency and renewable energy inBritish Columbia are substantial. It offers a widerange of benefits, including manufacturing fordomestic and international markets, job creation,rural development, price hedging, greater energysecurity, reduced air pollution, climate changemitigation and reduced negative impacts onhuman health and the environment through thetransition away from conventional energysources.

Next Steps

British Columbia needs a provincial strategy thatincludes targets and timelines for thedevelopment of energy efficiency and renewableenergy to their fullest potential in order to reapthe maximum benefits. The strategy shouldidentify short-term actionable items that can beimplemented quickly and longer-term items withplans for laying the foundation now for futureimplementation.

It is hoped that the work in this document can beused to help inform the development of anenergy efficiency and renewable energy strategyfor British Columbia and show the willingnessand capacity of stakeholders, including industry,municipalities, First Nations, academia andNGOs, to participate fully in its development andimplementation.



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Personal Communication with Dr. David Layzell,BIOCAP Canada, September 21, 2006.

Personal Communication with Staffan Melin,Wood Pellet Association of Canada, September20, 2006.

Philibert, Cédric, “The Present And Future Use OfSolar Thermal Energy As A Primary Source OfEnergy,”The InterAcademy Council,www.iea.org/textbase/papers/2005/solarthermal.pdf.

Porcher, Laura, “Expanding Options forRenewable Energy – The Municipal Approach,”in Maximizing Energy Efficiency and RenewableEnergy in BC, ed. Pollution Probe,www.pollutionprobe.org/Happening/pdfs/gp_march06_van/workshopnotes.pdf.

Premier’s Technology Council, “A Vision forGrowing a World-Class Power TechnologyCluster in a Smart Sustainable BritishColumbia,” www.gov.bc.ca/bcgov/content/docs/@2Ig53_0YQtuW/vision_for_bc_power_techv428.pdf

Province of British Columbia, “Strategic Plan2006/07–2008/09,” www.bc.budget.gov.bc.ca/2006/stplan/.

REN21, “Policy Landscapes / Solar Hot Water /Heating Promotion Policies,” REN21www.ren21.net/globalstatusreport/gsr4c.asp.

Renewable Energy Access, “Canadian CooperativeShare Wind Project Development Model,”Renewable Energy Access, www.renewableenergyaccess.com/rea/news/story?id=45385.

Sustainable Development Technology Canada(SDTC), “$48 Million in Clean TechnologiesFunding Approved by SustainableDevelopment Technology Canada,” SDTC NewsReleases, July 5, 2006.



Swann, John, “Maximizing Green Power forElectricity Generation – Biomass,” inMaximizing Energy Efficiency and RenewableEnergy in BC, ed. Pollution Probe,www.pollutionprobe.org/Happening/pdfs/gp_march06_van/workshopnotes.pdf.

Terasen Gas, “About Terasen Gas,” Terasen Gas,www.terasengas.com/_AboutTerasenGas/default.htm.

Terasen Gas, “Resource Plan,” Terasen Gas,www.terasengas.com/NR/rdonlyres/etcnssyr2vysupiq25wcyx2fnpasz2q6o2vionp2jvhwak7jamgsrsk2ir77c7qtkbhoasrubrkvhrcuz7fk4dhhbwe/TGI+2004+Resource+Plan.pdf.

US Department of Energy, “GeothermalTechnologies Program,” US Department ofEnergy, www1.eere.energy.gov/geothermal/powerplants.html.

World Energy Council, “Survey of EnergyResources. Solar Energy. Canada, World EnergyCouncil, www.worldenergy.org/wec-geis/publications/reports/ser/solar/solar.asp.



Appendix A: Summary of Common Renewable Energy Policies

This document provides an overview of commonstrategies deployed in many parts of the world topromote renewable energy. It is not an extensivedocument; rather, it has been put together tointroduce some of the key concepts discussed attwo renewable energy workshops held in theAtlantic Region in 2005. Additionally, acronymsfrequently used within the industry are identifiedand defined.

Green Power

Green Power is defined as low-impact sources ofgrid-tied renewable energy, including wind, solar,small hydro, biomass, geothermal, tidal and waveenergy projects that meet the criteria forEcoLogoM certification for electricity generationas developed by the Environmental ChoiceProgramme.

Renewable Energy

Renewable energy is a broader term that appliesto all end-uses including electricity, heat andtransportation. It refers to “energy obtained fromthe continuous or repetitive currents of energyrecurring in the natural environment”.1 Energyfrom the sun, gravity and the earth’s rotation arethe ultimate sources for these energy currents.These are further identified by the element fromwhich they originate to include energy from:wind, sun, biomass, heat from the earth(geoexchange) and different forms of watermovement (wave, tidal, run-of-river, hydro dam).

Types of Renewable Energy PromotionStrategies

Regulatory

Regulatory strategies establish the desired level ofrenewable energy penetration to be achieved; themarket decides how to achieve it. Quotas andcertificates are commonly used to assign targetsand monitor progress.

Quotas, often referred to as Renewable PortfolioStandards (RPS), oblige distribution companiesto generate a certain proportion of their energyfrom new renewable sources. RPSs, which are setand enforced by government, typically apply tothe electricity sector, but are being explored forthe heating sector (referred to as Renewable HeatObligations). Under an RPS or ‘Obligation’ (asthey are known in the UK), electricity retailersmust use an increasing share of renewable powerin their energy mix. This can be achieved eitherby building new facilities or by purchasingrenewable power from independent providers.Such a system assures that each provider issubject to the same burden and that the cheapestrenewable power options prevail.

Renewable Energy Certificates (RECs) are oftenused to implement a Renewable PortfolioStandard. A trading system allows utilities to buygreen power certificates, representing units ofrenewable power production, in order to fulfilltheir obligations, if that is cheaper than creatingtheir own facilities. Such programmes allow apower retailer to generate its own renewableelectricity, buy it (in the form of RECsrepresenting the green benefits of green power),or pay a fine for noncompliance. Trading RECs islike selling green power at a premium, as an extraprice has to be paid for the certificate in additionto the wholesale power price. Through such atrading provision, governments allow powerretailers to fulfill their renewable energy salesquotas the cheapest way, which may not be intheir own service area.1 J. Twidell and A. Weir. 1986. Renewable Energy

Resources. London: E. & F.N. Spon.



Tendering — Developers are invited to bid forthe construction/development of a certainamount of renewable energy capacity. If theproposals are considered viable and pricecompetitive within the same technology band,they are awarded a contract. Contracts aretypically for a relatively long period to facilitatefinancing. For the successful operations, aguaranteed surcharge per unit output is typicallygranted for the entire contract period. Tenderingis often used by utilities to meet the requirementsof a Renewable Portfolio Standard.

Financial incentives

Renewable energy generators are given directfinancial support in the form of a subsidy or acustomer base rate to encourage development.Feed-in laws are a common mechanism used inEurope to ensure the interconnection ofrenewable sources of electricity with the electric-utility network, while specifying how muchrenewable generators are paid for their electricity.There are two versions of the feed-in law:

Feed-in tariffs are a statutory arrangementregulating the price paid to generators(producers) for electricity. They encourage thedevelopment of renewable energy by providing aprice above that paid for electricity generatedfrom conventional sources of energy. Anyintended producer is guaranteed the feed-in tarifffor each unit of electricity exported to the grid ifthe form of generation meets the statedrequirements; no bidding process or tendering isinvolved. Feed laws set the price paid forrenewable energy as a simple percentage of theretail tariff. For example, the initial German feed-in tariff (law) stipulated that renewable sourcesof energy would be paid 90 per cent of the retailrate. The cost above the wholesale price is thenevenly shared among all electricity consumers.This contrasts with obligation programmes whereincreased tariffs are only available to selectedwinners after competitive tendering.

Advanced Renewable Tariffs (ARTs) are themore recent version of the feed-in tariff and differin some important ways. ARTs permit theinterconnection of renewable sources ofelectricity with the electric-utility network at the

same time as they specify how much therenewable generator is paid for its electricity.Arts are more sophisticated than feed laws andcan be tailored to different renewabletechnologies and to different regions of acountry. There are often several tiers of paymentsdepending upon technology and how long thegenerator has been in service.

Financial incentives — incentive-type policiesare usually in the form of some monetaryinducement to the consumer to purchase aparticular product or to the producer to produceit. Incentives are often distributed as rebates andsubsidies that lower the cost of a product, or inthe form of a tax exemption that reduces theburden of purchasing the product.

Common rebate programmes in Europe includethe promotion of small, decentralizedphotovoltaic systems. Authorities and electricutilities subsidize investment costs by privateindividuals or organizations, and commercial orindustrial companies. The average rebatepayments typically cover 60 to 70 per cent of theinvestment costs. Another example is theCanadian federal government Wind PowerProduction Incentive (WPPI) programme thatpays eligible wind producers $0.012 per kWh toensure a certain level of return, thereby making ita safer investment.

Voluntary

Voluntary strategies are mainly based on thewillingness of consumers to pay premium ratesfor renewable energy. Voluntary approaches areeither investment focused or generation based.

Investment focused — Examples includeshareholder programmes, donation projects andethical trusts that essentially raise money tosupport/pay for building renewable energygeneration.

Shareholder programmes have been particularlysuccessful in Germany. Private customerspurchase shares of the renewable energy plant(i.e., in blocks of 100W capacity) thus becominga shareholder of the company owning the plant.



Within donation programmes, subscriberscontribute to a fund for renewable energyprojects. The projects developed are unrelated tothe subscriber’s energy usage.

Within ethical trusts, a company committed tofunding a specified renewable energy plant issuesshares to subscribers.

Generation based — These are typically greenpower programmes that require customers to paya premium to have a proportion of their energygenerated by renewable energy. The premium orsurcharge per kWh helps to meet the extra costsof generation — those particularly associatedwith capital costs of the new plant. Greenelectricity labels are now being used in Europeancountries to accredit green premiums to provideconsumers with the assurance that the accreditedsuppliers do indeed utilize renewable energy.

Net Metering — This is a particular kind ofpricing policy that is used to compensate ownersof small power systems for electricity fed into thegrid. In a net metering arrangement an electricitygenerator, usually small-scale renewable energygeneration, is connected to the electricity grid.The metering system tracks electricity generatedand electricity used by the consumer. Duringtimes of surplus production, (i.e., when morepower is produced than is consumed on-site) thesurplus power is ‘sold’ to the utility at the retailprice. Net metering is a kind of financialincentive to encourage renewable electricitygeneration that does not require governmentexpenditure since the arrangement is made withthe utility.

Common Acronyms in the RenewableEnergy Policy Debate

ARTs: Advanced Renewables TariffCHP: Combined Heat & Power (or Co-

generation)IPP: Independent Power ProducerPPA: Power Purchase AgreementRECs: Renewable Energy CertificateRPS: Renewable Portfolio StandardR&D: Research and DevelopmentWPPI: Wind Power Production Incentive



A workshop was held in March, 2006, MaximizingEnergy Efficiency and Renewable Energy in BC,where participants were asked to comment onBC’s current energy efficiency and conservationprogrammes, targets and institutions. Participantsincluded representatives from provincialgovernment, utilities, industry, academics, andNGOs. Below are the summary comments fromthe workshop.1

Question #1: Comments on Policies/Programmes/Initiatives• We need a new rate structure — something

similar to stepped rate structure for largeindustrial consumers (e.g., establish abaseline for each consumer class where 90per cent of consumption is at base rate, whilethe last ten per cent is charged a premium).

• Least cost mandate of BCUC/Energy Plan forutilities does not adequately account forsocial and environmental impacts.

• Building codes need to be brought in linewith best practice for energy efficiency.

• Building codes need to reflect the equipment,lighting, and appliances in addition to theshell.

• Should the Province have a more marqueeenergy efficiency programme (e.g., 1,000,000solar roofs) that are very visible and tangibleand have a basis in the community?

• There is a critical need to train builders anddevelopers on energy efficiency techniquesand technologies. The Province has a role inproviding for this training.

Appendix B: Summary of Workshop Comments

Question #2: Comments on Targets• For each sector, there should be mandated

targets for aggressive reductions ingreenhouse gas emissions and improvementin air quality.

• Our targets are not stringent orcomprehensive enough.

• The government needs to set ambitiousmedium and long-term targets for energyefficiency in all sectors.

• All targets, including those for utilities,should be mandated.

• Targets should be set in recognition of theglobal nature of energy issues, with specificattention paid to the risk of increasing, andmore volatile prices, on BC’s economy andthe risks of climate change for the province.

Question #3: Comments on Institutions• The province needs a multi-stakeholder group

to oversee climate change and air qualitytargets with a focus on how they relate toenergy efficiency and energy supply issues.

• A dramatic shift towards energy efficiency isgoing to require a mechanism to rewardutilities for achieving energy efficiency if theyare the delivery agents.

• If the Province has a separate body for energyefficiency, should that agency also be taskedwith renewable energy? Similarly, an energyefficiency body could tackle all areas ofefficiency (i.e., electricity/gas, water,transportation and so on).

• There is a lack of research into the potentialfor energy efficiency and analysis of oursuccess at achieving energy efficiency (e.g.,poor in comparison to California).

• There was interest in a separate body tocoordinate/deliver energy efficiency in theprovince, but there was not consensus on theexact mandate or scope of such a body.Additional questions about whether such abody would be housed within government/NGO/utility or some combination.

1 For a complete set of Workshop Notes seewww.pollutionprobe.org/Happening/pdfs/gp_march06_van/workshopnotes.pdf.



2 Efficiency NB. “About.” Efficiency NB.www.efficiencynb.ca/about-e.asp

3 Efficiency Vermont. “About Us.” Efficiency Vermont.www.efficiencyvermont.com/pages

• We should have an agency that isindependent from the utilities that can buildrelationships directly with all municipalities(e.g., Efficiency New Brunswick2 which hasbeen modeled after Efficiency Vermont3).

• Important to note that many structuralchanges would be significant departures frombusiness-as-usual. This would need to becarefully considered to ensure we are betterable to pursue energy efficiency. For example,a situation where utilities loose sight ofenergy efficiency and are focused solely onnew supply is not desirable. Although a validconcern, it has been managed in otherjurisdictions through careful design andeffective government oversight.

• If an agency is created, adequate resourceallotment is critical to deliver the energyefficiency mandate.

• British Columbia’s Energy Plan will look atthree phases: electricity is first, then oil & gas,but it does not look at the other sectors.Decisions will have impacts on energyefficiency as well. These issues should all beintegrated — the current energy plan renewaldoes not allow this.



Nova Scotia — RPS for 5 per cent of totalgeneration must be renewables by 2010.• Sources include: small-scale hydroelectricity,

wind power and biomass fuels• Sources must be built after 2001 as per

Electricity Act• 10 per cent of total generation from

renewables by 2013. In draft form that willsoon be available for public consultation

• Province considering 20 percent to comefrom renewables by 2013

• Spring 2006 — tidal power contract to beawarded

New Brunswick — RPS for additional 10 percent of total consumption by 2016.• RPS established in regulation under the

Electricity Act that includes a one per centaddition per year of Environmental ChoiceProgramme approved generation between2007 and 2016

• Most common sources include: wind,biomass, hydro and landfill gases

• By 2009 — 200 MW of wind power to be inoperation

• By 2016 — up to 400 MW of wind energy tobe purchased by NB Power.

• Tidal-energy demonstration projects to beidentified

Prince Edward Island — Target for 30 per centof energy needs from renewable resources by2016.• December 2005 — Renewable Energy Act

proclaimed including an RPS and guaranteedfeed-in tariff for community, windcooperative and large systems. Utilities mustacquire 15 per cent from renewables by 2010.Regulations for net metering for small scalegenerators.

• Sources include wind, solar, hydro andbiomass

• Bonds issued allowing islanders to invest in awind farm

• Fall 2006 — tendering to begin for wind-hydrogen village. August 2007, first phase ofdemonstration project to be in operation

Appendix C: Green Power Provincial Targets and PoliciesInformation Updated October 20, 2006

Newfoundland — RFP for 25 MW to bereleased December 2005.

• November 2005 — Public Discussion Paperreleased Developing an Energy Plan forNewfoundland and Labrador; consultations stillongoing

• December 2005 — 25 MW wind RFPreleased; first phase completed; finalizedfeasibility studies due in August 2006

• June 2006 — Newfoundland and LabradorHydro to oversee a wind monitoring program

• October 2006 — 25 MW wind power RFPawarded

• October 2006 — announced intention torelease 25 MW RFP for wind power

Québec — Targets for 4,000 MW of wind by2015.• Contracts signed for approximately 1,200

MW of wind• 2,000 MW of wind to be delivered by

December 2013 (300 MW by December 2009,400 MW by December 2010, 400 MW byDecember 2011, 450 MW by December 2012,450 MW by December 2013)

• Wind power development to be facilitated byintegration with large hydroelectric projectscurrently under development

• May 2007 — bids to be submitted

Ontario — RPS for 5 per cent (1,350 MW) by2007 and 10 per cent (2,700 MW) by 2010 oftotal generation to be new renewables.Currently:• Wind: 139 MW (operating), 67.5 MW

(complete), 1,104 MW (in progress)• Small Hydro: 8 MW (operating), 43 MW (in

progress)• Biomass: 2.5 MW (operating), 5 MW (in

progress)• November 2006 — standard offer contract

program to be introduced modeled after feed-in tariff. There is no limit but expected toresult in 1,000 MW of green power by 2016



Manitoba — Target for 1,000 MW of wind by2014.• October 2004 — wind power strategy

developed• March 2006 — 99 MW wind project

operating• Winter 2007 — RFP to be released for 300

MW of wind• Wind and hydroelectric integration to be

considered• 2013–14, 2015–16, 2017–18 — 200 MW of

wind are targeted for each time framedepending on economic viability. To includesmaller, community-based wind projects

Saskatchewan — Target for 150 MW of wind by2005. 100 per cent of new generation until 2010to be operations that do not add to GHGemissions.• Projects include: wind (major component),

energy conservation, small hydro, distributedgeneration (includes cogeneration), andEnvironmentally Preferred Power (EPP)Program (low environmental impactgeneration such as, flare gas and heat recoverysystems)

• December 2005 — 50 MW wind farmoperating

• May 2006 — 25 MW wind power projectselected for EPP

• October 2006 — Short-termrecommendations, including renewableenergy, to be presented to the Premier

• June 2007 — Final report including ablueprint for the medium and long terms forrenewable energy development andconservation to be presented to the Premier

Alberta — Target for 3.5 per cent of totalgeneration by 2008.• 3.5 per cent renewables target represents

about 560 MW of new capacity• A 900 MW “threshold” (maximum) of wind

energy established due to transmissionconstraints; ongoing analysis and stakeholderengagement to increase threshold

• 20 kWs of solar PV to be installed onmunicipal buildings; project began July 2006

British Columbia — 50 per cent of newgeneration to be “clean energy” by 2012.• Voluntary goal for electricity distributors• Sources include wind, solar, ocean, biomass,

hydro, geothermal, fuel cells, efficiencymeasures and cogeneration

• April 2005 — release of Alternative Energy andPower Technology: A Strategy for BC

• 2006 RFP: 325 MW of wind, 140 MW ofbiomass and 238 MW of small hydro(defined as no greater than 50 MW)

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