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Federal Initiatives to Encourage Emerging Renewable Energy

Federal Initiatives to Encourage Emerging Renewable Energy. Presentation to CEA Workshop Ottawa, November 25, 2002 by David Burpee Natural Resources Canada. Federal Energy Policy. Open-market framework

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Federal Initiatives to Encourage Emerging Renewable Energy

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  1. Federal Initiatives to Encourage Emerging Renewable Energy Presentation to CEA Workshop Ottawa, November 25, 2002 by David Burpee Natural Resources Canada

  2. Federal Energy Policy • Open-market framework • decisions on prices, investments, etc. made in competitive and freely functioning markets • focused interventions when necessary • climate change • Kyoto objective of reducing greenhouse gas emissions at 6% below 1990 levels • post-Kyoto commitments likely

  3. capture, sequestration demand efficiency international permits supply efficiency lower carbon energy substitution amongst conventional sources emerging low/no-carbon sources Climate Change Strategies Issue: finding the path of lowest cost and maximum benefits for Canada

  4. Electricity Table (Nov. 99) • Measure #7 • ensure the availability of emerging non-GHG-emitting technologies by the commitment period • wind, solar, biomass, geothermal, extra-low- head hydro, micro-turbines run on renewable resources • governments to introduce initiatives to help reduce cost of deployment through experience, scale, etc. • procurement, production and consumer incentives, small RPS, net metering

  5. Federal Response • Grid-electricity • Government Purchases • 3 successful pilots • 20% federal commitment • Market Incentive Program • marketing expenses of ‘green’ power programs for residential and small business customers • Wind Power Production Incentive • about 1 cent per kWh for ten years to encourage 1,000 MW of new capacity over 5 years

  6. Expected Results by 2010 * at 542 tonnes per GWh

  7. Federal Response (end) • On-site generation • Micropower Connect • partnership to develop Canadian guidelines for connection with the main electrical grid • federal on-site generation • installation of 125 kilowatts on federal facilities

  8. Promising Emerging RE • Wind Power • 200 MW installed capacity • high-quality resource with nearly ‘unlimited’ potential • no technical limits to grid integration in short/medium term • near price-competitive, costs still declining • 6 to 7 ¢/kWh in good regime • less 1 cent WPPI incentive

  9. Promising Emerging RE • Biomass • currently, waste biomass: • 1,300 MW from industrial waste • 100 MW from biomass-methane • limited new potential from waste but with large emission reduction potential • wood waste, methane from landfill site, sewage plants and agriculture activities • near price-competitive, potential revenues from GHG credits

  10. Promising Emerging RE • Solar Photovoltaic • 10 MW installed capacity • good-quality resource with nearly ‘unlimited’ potential • no technical limits to grid integration in short/medium term • price-competitive in off-grid applications • costs still declining but only expected to become price-competitive only post-Kyoto

  11. The Road Ahead • Climate Change Plan for Canada • proposes new actions with 100 MT reductions, including • target of at least 10% new electricity capacity from emerging renewable sources • 7,000 GWh/yr by 2010 • or 2,750 MW expressed in wind power equivalent • Establish goals for more efficient buildings; renewable energy systems an contribute (e.g., geoexchange) • Comprehensive approach to large industrial emitters sectors (targets, emissions trading, offsets, cost-shared strategic investments) • Coordinated Innovation Strategy

  12. Annex - Draft Definition • Emerging Renewable Electricity • wind power, solar photovoltaic, geothermal power • hydraulic power, including from fresh water if: • turbine / plant size: individual turbines of 2 MW nameplate or less, or total plant capacity (nameplate) of 15 megawatts or less; and • plant refurbishment: increased production from plant automation, equipment improvements using computational fluid dynamic (CFD) optimization, or • innovative applications:wastewater treatment plant outfalls, pressure relief valves in water supply systems, irrigation canal drop structures, syphon intakes and hybrid energy systems, or • innovative turbine‑generator units:low head (with head less than 15m), pump as turbine and variable speed units • electricity from biomass combustion • technologies: gasification, two‑stage combustion, fluidized bed combustion, combustion system with a modern (novel) air system • when methane: from landfill sites, or from anaerobic fermentation of municipal sewage or animal manure

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