Our Energy Resources: What s the Plan? Andy Fisher Faculty of Engineering January 2009

Transcription

1 Our Energy Resources: What s the Plan? Andy Fisher Faculty of Engineering January 2009

2 Where did we start? An understanding of Sustainability People, planet and profit A sense of real opportunity combined with the certainty that nothing was certain. The NL Energy Plan

3 Why Focus on Energy? Critical resources with huge economic impact and a provincial plan that looks out past Worldwide market for product and tied to greenhouse gas emissions. Two main sectors: Oil and Gas (non-renewable) Electricity (subject of concern)

4 Guiding Questions What if People and Planet were just as important as Profit? What would the Energy Plan look like if it came out of the Department of Environment? Or maybe the Department of Innovation, Trade and Rural Development?

5 Perhaps Focus on renewable energy & reducing impact Distributed instead of centralized Small scale instead of large scale Locally owned/controlled development

6 Technical Questions What is the renewable resource capacity? What are the technical barriers to bringing this power on-line?

7 Focus of Review Consider electricity production, transmission and usage on the island portion of the province. Leave oil & gas as an entirely different challenge to consider. Focus on grid connected systems. Recognize the potential of the lower Churchill but don t assume it s the answer.

8 So What are the Facts? Study by Kyla Fisher (Engineering student), Dr. Tariq Iqbal and myself into the potential for renewable energy on the island. Current situation: Total grid connected capacity of 1900MW on island Has produced up to 8100GWh / year Contrast with Churchill Falls at 5428 MW & GWh Lower Churchill planned for 2824 MW

9 So What are the Facts? Island Interconnected Installed Capacity (MW): Cogeneration, Gas Turbines, Diesel, 21.7 Holyrood (oil), 490 Hydro,

10 So What are the Facts? Recent data: Holyrood MW produced 1340 GWh Bay D Espoir MW produced 2600 GWh Total picture Hydro 4700 GWh Purchased 450 GWh Thermal 1340 GWh Total 6490 GWh

11 Hydro Potential 1986 Inventory of small hydro potential on the island was completed by Shawmont Newfoundland for NL Hydro Identified 196 sites with capacities between 1-20 MW Evaluation suggested that 160 of these sites would be feasible in the future with a total capacity of 850 MW

12 Hydro Potential After 20 years, many factors regarding feasibility have changed. Redo analysis assuming: Standard offer of 86.68$/MWh Current construction costs Current grid access Use Retscreen software to review 9 of the original sites and compare with original recommendations

13 Site Name Payback Cost *Profit (years) ($million) ($million) Bottom Brook Pipers Hole River Great Gull River Great Rattling Brook Squid Cove Brook Little Harbour River Three Brooks White Bear River Parsons Pond * After 20 years Hydro Potential

14 Hydro Potential Considered sites in all major hydrological regions of the province Considered sites considered both feasible and infeasible from original study Based on the review of 9 sites, revisited the acceptable cost/benefit ratio: 190 feasible projects combined could produce 940 MW Study showed 1300MW of larger projects

15 Wind Potential NL has the strongest winds of any province according to Env. Canada (and anybody who has been here) Using a method adapted from Archer and Jacobson, total potential wind capacity for the island is 9.47x10 5 GWh (145 x current demand) The limiting factor for utilization of wind power is not the resource!

16 Wind Potential Newfoundland Wind Speed Map at 30m

17 Wind Potential NL Hydro suggests a feasible limit of 80 MW of wind power can be added to the grid Approximately 50 MW are already committed between Fermeuse and St. Lawrence wind farms There is much debate about penetration potential: Dependant on the make up of the generation & distribution system Studies have suggested that penetration rates of 20 30% are possible where there is a very significant component of hydro generation this would give >200MW of potential First 2 projects provided 20 year power contracts to groups led outside of province (& country)

18 Total Potential Integrating small scale hydro, larger hydro and wind energy into a future state picture. Significant impacts on grid system for distributed generation model (e.g. smart grid ) Environmental impacts are different compared to large scale projects not negligible. Many variables are open to debate and are ultimately driven by policy, not science or economics

19 Total Potential One scenario: Small & Larger Hydro + Wind Energy (GWh) 3,500 3,000 2,500 2,000 1,500 1, Year New Large Hydro Production Thermal Generation Required 2008 Wind Projects Production Proposed NLH Hydro Production Small Scale Projects Total Energy Production

20 Conclusion of Study There are no capacity or technical reasons why we can t consider replacing thermal generation on the island with distributed, small-scale renewable energy sources. It is not clear that this has been explicitly considered in the Energy Plan as presented

21 Energy Plan Says Develop the lower Churchill and bring a cable across to the island to provide power and stable prices (although costs would go up). Develop a limited number of wind farms in the order of 25MW each. Reconsider the moratorium on small-scale hydro after determining feasibility of cable. Consider introduction of further damn based hydro projects (proposals developed). If no cable, then plan for future thermal generation.

22 Energy Plan Says Province introduced Nalcor Energy to direct: Newfoundland and Labrador Hydro Churchill Falls (Labrador) Corporation Oil and Gas Corporation of Newfoundland and Labrador. Provincial lead for the Lower Churchill Project Bull Arm Site Corporation. Nalcor Energy may be the right tool to deal with oil companies and plan major projects... But is it the best strategy to focus on regional development and the environment?

23 What s Next? Explore why should consider the model and, in particular, the issue of local ownership Consider what is being done in other progressive jurisdictions with respect to energy planning Start a debate between well informed stake-holders Thank You

24 Communities as Power Producers: The Case for Small Hydro Sarah-Patricia Breen MA Candidate MUN Geography

25 Overview and Research Questions What is the role of the community in the energy system? Small hydro as a tool for sustainable community development What is small hydro? How has small hydro been used? Why are communities interested? What are the barriers to development? What are the benefits to communities? How does this apply to Newfoundland and Labrador?

26 Centralized Energy Systems Distributed

27 Small Hydro

28 Drivers Desired Outcome: Sustainability Opportunity Resource Availability Economic Opportunity Opportunity Cost Efficiency Incentives Revenue Small Hydro Development Necessity Resource Control Development Initiation: Project Champions Community Independence Community Values

29 Barriers Attitude Utility Public Government Finance Capital Bonding / Credit Budget Communication Knowledge and Skills Technology Uncertainty Bureaucracy Timing Complexity Planning / Management

30 Community Benefits Future Development Opportunities Financial Environmental Small Hydro Community Development Community Pride

31 Benefits: Percentage of Small Hydro in Energy System Case Study Number of Residential Households Small Hydro Household Equivalent Percentage Small Hydro Almonte 4, (2.4MW) 1, 600 (5MW ) 17% 35% Boulder 39, 596 7, % Bracebridge 8, 568 3, 700 total 43% Swanton 1, 031 (village) 2, 329 (town) 2, % Source: City of Boulder, Bracebridge Generation, Mississippi River Power Corp., Village of Swanton, Statistics Canada, U.S. Census Bureau

32 Benefits: Carbon Dioxide Equivalent Case Study Year kwh CO 2 equivalent (metric ton) Almonte , 698, 447 6, 190 Boulder , 966, , 151 Bracebridge 2009 (projected) 21, 811, , 521 Swanton , 935, , 938 Source: (U.S. Environmental Protection Agency, 2008)

33 Benefits: Financial Contribution Case Study Year Revenue Community Benefit Almonte $615,087 $410,492 - $143,333 paid to Almonte - Infrastructure upgrades Boulder 2006 $2,129,375 (USD) - Reinvested into utility - Lower water rates Bracebridge Unknown total $1,697,080 (projected) $325,000 $325,000 -Public works, culture and recreation, unclassified, and general revenue Swanton 2006 $5,182,739 (USD) - Reinvested into utility - Lowest energy rates

34 Newfoundland: Small Hydro Potential 190 sites 940MW $20 million Source: Fisher, Iqbal, Fisher, 2008

35 Newfoundland and Labrador: The Future of Community Energy Infrastructure Necessary upgrades Inclusive planning Policy Changes to existing Development of new Sustainable Community Development Information exchange Pilot communities

36 Conclusions Changes in the energy system Distributed energy Diversified technology Community owned energy generation Determining what is possible Developing a system that minimizes typical barriers Focusing on building sustainable communities Changes in Newfoundland and Labrador Access to information Policy and politics

37 Thank You Sarah-Patricia Breen

38 Powering up Communities Policy options to advance distributed, community scale renewable energy in Newfoundland and Labrador Nick Burnaby Sierra Club Canada

39 Outline 1. Brief overview of benefits and challenges to distributed and community power 2. What policy approaches and mechanisms exist to overcome barriers and drive adoption? 3. Policy options for Newfoundland and Labrador

40 Benefits and Challenges Benefits - Economic - Social - Environmental Disadvantages - Economies of scale - Administrative burden Challenges - Grid access, connection & bureaucracy - Financing - Knowledge and skills - Supportive policy

41 Policy Approaches and Mechanisms to Mitigate Challenges Renewable Portfolio Standard Net metering Policy Standard Offer Contracts (ARTs) Financial Tools Integrated Planning and Red Tape Reduction measures

42 Renewable Portfolio Standard Quota system - Mandate a quota for renewables to be meet through tender Cons Imposes a ceiling (time or quantity) No guaranteed long-term market certainty Example: PEI 15% by 2010; 100% by 2015

43 Net Metering Policy Enables customers to use their own generation to offset their consumption over a billing period by allowing their electric meters to turn backwards when they generate electricity in excess of the their demand. Pros Net metering is a low-cost, easily administered method of encouraging customer investment in renewable energy technologies. A first step. Cons Utility concerns* Example: BC, Ontario, NS

44 Standard Offer Contracts Legislated (often premium) prices paid to producers of renewable energy over a guaranteed period of time. Key components: - Grid access for all RE producers - Fair prices for different technologies and locations - Contractual long term power agreements Example: Germany- ramped up RE to 12.5% of its supply; 50%+ owned by community; 215,000 employed in RE.

45 Financial Tools Loans, Funds and Program Investment - Low interest or forgivable loans and grants (through RE revolving fund) - Renewable Energy Investment Fund - Tax incentives (tax breaks, gas tax) - Partnership equity options - System benefit charge - Standard Offer Contracts

46 Integrated Planning and Process Streamlining Build in DG into regular energy infrastructure, community and economic development planning processes Review and or develop grid interconnection standards for small generators. Streamline planning and permitting processes

47 Policy Option Recommendations for NL Provincial Government: 1. Begin removing barriers to grid interconnection. Provide access to development capital and adequate financing through innovative loan, grant and tax-based programs. 2. Policy framework that supports achievement of green power development RPS and Feed in Tariffs. Fed and provincial policy should be synched. 3. Invest in public and technical education on renewable energy, distributed generation and new technologies. 4. Prepare the Labour Force

48 Policy Option Recommendations for NL Provincial government: 5. Streamline zoning, planning and permitting requirements (including fairness on property taxation where green power is generated). 6. Work with federal counterparts on joint funding arrangements, standardization to ensure quality, safety and consistency. 7. Compliment with DSM (ee&c), GHG regulation, distribution system upgrades, land use planning, transportation, waste reduction, innovation and sustainable development

49 Policy Option Recommendations for NL Municipal Government: 1. Develop community energy plans and land use policies that support DG. 1. Promote innovative, local solutions to grow demand 1. Lead by example 1. Promote awareness and an understanding of energy issues.

50 Why now? Global Warming

51 Why now? NL Context - We need to think strategically about how we use our energy resources. - Pursue projects that bring the most benefit with least impact from a social, economic, cultural, environmental and cumulative perspective. - Understand that Jobs and the economic growth can occur well maintaining and projecting a healthy environment. - Distributed and community focused power generation holds great potential and is ONE solution in suite of opportunities to transition NL towards a low carbon future.

52 Thank you! Nick Burnaby

53 Memorial Presents Questions? Comments?