EOS ECO-ENERGY INC. Balancing the Environment, Economy and Social Aspects Roland Chiasson Chair of the Board of Directors, EOS Eco-Energy Inc. January 27 th, 2011
2 Purpose The goal of this brief report is to provide recommendations to the New Brunswick Energy Commission on the proposed 10-year Energy Plan for the province of New Brunswick. We hope that our recommendations will provide constructive feedback that will help shape the Energy Plan and the future of energy in our province. Our Vision EOS Eco-Energy was created around a vision of the Tantramar Region of Southeastern New Brunswick becoming a model for (1) energy conservation (2) renewable energy and (3) sustainable community planning. Through these approaches Tantramar will become: 1. self sufficient in electricity generation; 2. reduce our reliance on dwindling fossil fuels; 3. meet the challenges of climate change and; 4. create vibrant healthy communities. In summary, EOS is committed to a vision of the Tantramar Region being green energy sustainable. In other words, that we use no more energy in our region than we can produce, using sustainable methods. Our Mission EOS Eco-Energy is dedicated to energy sustainability in Tantramar and pursues that goal by active collaboration on research, education, projects and action with individuals, communities, and organizations in the region. Our Work In the past, EOS Eco-Energy has collaborated on a number of projects related to environmental initiatives dealing with energy efficiency, energy conservation, renewable technologies and sustainable communities. Most recently, EOS is working with a steering committee of 12 stakeholders, including four municipalities, to develop a regional sustainability plan for Tantramar. In partnership with the Tantramar Planning District Commission, the organization is coordinating the development of a sustainability plan for the Village of Port Elgin. EOS was also involved on the working group for the Sustainable Sackville plan that was recently approved by Council in October 2010. EOS developed a Standby Power Campaign in 2009 to help homeowners and students in rental accommodations reduce the phantom load resulting from appliances and electronics that draw power even when they are turned off. In 2008, we initiated the energy audit process with three municipalities in the region, and we served as a resource throughout the implementation phase. By highlighting a few of our recent projects, we hope to convey our interest in long-term sustainability of energy in the Tantramar region and throughout the province of New Brunswick.
3 Our Approach EOS Eco-Energy is an education-based organization that takes a three-tiered approach in achieving energy sustainability. Energy conservation is the foundation for residents and businesses to address energy issues. As a first step, we need to change our behaviours to reduce the amount of energy that we use. The second step involves energy efficiency. Investing money into products that improve the energy efficiency of a household or business and adopting energy efficient practices will save money and reduce greenhouse gas emissions. Lastly, it is of paramount importance that our society shifts to generating electricity from renewable technologies. Energy produced using renewable resources (i.e., wind, solar, biomass, etc.) needs to be utilized efficiently and should only be considered if the first two steps have been achieved successfully. Barriers & Suggestions We commend the Government of New Brunswick and Efficiency NB for their work on energy conservation and energy efficiency, but there is still a great deal of work to be done concerning renewable energy. The Brundtland Report released by the United Nations defines sustainable development as 'development which meets the needs of the present without compromising the ability of future generations to meet their own needs.' 1 Using non-renewable, finite resources to produce energy is not sustainable. The province of New Brunswick should strive to become self-sufficient in renewable electricity generation in order to provide energy security to the people of New Brunswick. The option of buying power at five cents per kilowatt hour from the United States, which is roughly half of the estimated cost of power from a new wind project, is not the a longterm solution, is not sustainable, and does not provide energy security. For a sustainable system, we need to look at balancing the economy, the environment, and social considerations. To sustain a long-term energy system in the province, we recommend: (1) Working with Efficiency NB to continue to deliver incentive-based programs and educational resources dealing with issues of energy conservation and energy efficiency to the residential, community and business sectors. Efficiency NB plays a crucial role in raising awareness about how energy efficiency measures can lead to a more reliable energy supply for New Brunswick. (2) Decreasing the use of fossil fuels by diversifying our energy sources. For example, wind energy is New Brunswick s largest source of renewable energy, with a potential of 40,000 megawatts (MW). The current generation capacity of NB Power is 3,200 MW. To date, we have only harnessed roughly 300 MW of wind energy, which is enough to power 44,000 homes. The issues of intermittency can easily be addressed by forecasting energy production from weather patterns. By coupling wind energy with hydro-electric, which can quickly react to energy demand, the province could generate upwards of 20% of our energy from wind. This is the case in Denmark. 1 United Nations. 1987."Report of the World Commission on Environment and Development." General Assembly Resolution 42/187, 11 December 1987.
4 With advancements in technology in Europe, the efficiency of wind energy production is expected to increase. Of particular interest, the variability of wind matches the variability of demand. Generally, wind is strongest in cold-weather months when our demand for electricity is highest. 2 New Brunswickers would benefit from an increase in generation capacity during our winter months. (3) Revisiting the Community Energy Policy. Allocating 75MW to municipalities, First Nations, cooperatives, non-profits and institutions is a good first step that offers more stability for our future than rising prices of fossil fuels and nuclear generation. There are three prominent flaws with the existing policy. First, a price of 10 cents per kilowatt hour (kwh) is too low to be economically viable. The province of Quebec offers 12.5 cents/ kwh for community wind projects, whereas Ontario offers 14.5 cents/ kwh. Currently, Nova Scotia is discussing 16 cents/ kwh for community wind. While most recommendations indicate that 12 cents/ kwh would be sufficient for communities to develop wind projects, a higher price would attract more projects. In addition, we support the recommendations of Dr. Yves Gagnon for the Government of New Brunswick to create a Renewable Energy Investment Fund (REIF) where investors would obtain fiscal benefits similar to the existing investment tax credit. The proceeds of the Renewable Energy Investment Fund would be used to invest in community-based renewable energy projects, including community wind energy projects. This strategy spreads the benefits of local energy projects to a wider group of NB residents; benefits that would otherwise flow to private equity sources outside the province. The development of a REIF would yield positive results in terms of viable local projects, capturing more benefits for the province and building more support for community energy projects. The flat rate being offered through the Community Energy Policy does not reflect the cost of production based on the source of renewable energy. For example, the price for solar projects in Ontario is 44.3-80.2 cents/ kwh, depending on project size and where the system is mounted (i.e., ground vs. rooftop). The Energy Commission should work towards diversifying our energy sources by taking advantage of various forms of renewable sources, and offering a fair price based on the cost of production. Lastly, the cap of 75 MW for community energy should be increased in the future. As energy becomes of increasing concern to residents of New Brunswick, the demand for renewable technologies will increase. With a fair price, communities will invest in their future by protecting the environment and growing the economy through job creation. It is estimated that wind energy creates 27% more jobs than coal-electric and 66% more than natural gas-electric per unit of energy. 3 2 Source: http://www.windpower.org/en/tour/grid/season.htm 3 Source: A.K. Sanghi., Economic Impacts of Electricity Supply Options, New York State Energy Office
5 (4) The Government of New Brunswick needs to take a leadership role in the energy sector. Many provinces and municipalities are taking the lead to initiate and develop innovative projects to produce energy, benefitting the environment, the economy and the people. For example, the Community Solar Program in Halifax is a $5 million pilot project to encourage individual homeowners (500-700 homes) to install solar panels for heating domestic hot water. Hot water heating accounts for 20% of electricity use in the residential sector. The Province of Nova Scotia worked with the Halifax Regional Municipality (HRM) to amend the HRM Charter to allow participants to be billed as part of their annual tax bill. The solar hot water systems would be financed through property tax bills, and the payback would be 5-10 years depending upon available rebates and interest rates. (5) Reduce greenhouse gas emissions from transportation fuels. Working with community groups and members, it is possible to implement alternative public transportation options. Throughout the sustainability planning process in the Tantramar region, one of the recurring issues has been the access to healthcare, goods and services for our aging population. There have been numerous discussions highlighting the need for a public shuttle around the region and into larger city centres. EastLink Shuttle has recently launched a similar service between Moncton and Shediac. Conclusion If the province of New Brunswick intends to meet the goals outlined in our provincial Climate Change Action Plan, we need to make significant changes to the way we do things. We need to reduce the amount of energy we use, use our energy more efficiently, and invest in our future by investing in renewable energy. The benefits include reduced CO 2 emissions, a greener province, technological innovation, and job creation. The cornerstone of this topic is the well-being of our communities.