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You already know that energy storage will play a key role in helping Canada build the expanded, decarbonized electricity grid needed to reach net-zero GHGs by 2050. But is your company well-positioned to leverage these emerging opportunities?
Through stakeholder advocacy and public engagement, CanREA works to advance this plan and create the conditions for a modern energy system.
Our low-cost, reliable, flexible and scalable solutions will play a central role in transforming Canada’s energy mix, and you can play an active role.
Plug into CanREA, your source for energy storage policy news and information.
Join CanREA to access our National Energy Storage Caucus, a member forum with the latest information on energy storage policies, regulations and market trends across Canada. In this forum, you can connect with other companies active in the energy storage space, and help guide CanREA’s advocacy and engagement actions. View the options for your CanREA membership here.
Please contact member services for more information on CanREA’s National Energy Storage Caucus.
On May 31, CanREA will launch a unique new resource addressing Human Factors issues in Canada’s renewable-energy industry
CanREA is proud to launch a new, robust resource for Canada’s renewable-energy industry, one that addresses key issues about Human Factors in a holistic manner.
“In a workplace, Human Factors include physical demands, cognitive demands, psycho-social elements, fiscal elements and more. We are taking a holistic approach to all these factors,” said Mary MacLean, CanREA’s Environment, Health and Safety & Workforce Development Project Coordinator, who is leading the association’s efforts to address human factors for wind, solar and storage technicians.
This resource, in the form of a three-year Human Factors Workplan, meticulously breaks down this all-encompassing topic into categories relevant for renewable energy operations, substantiates the importance of these issues, and explores their interconnectedness while touching on ergonomics, training, mental health and diversity needs.
“Many of these individual topics have been addressed in silos before, but this is the first time they are pulled together into a cohesive plan,” said MacLean. “There is nothing else out there like this.”
Don’t miss the Human Factors presentation at CanREA’s Operations Summit 2022, when Mary MacLean (CanREA’s Environment, Health and Safety & Workforce Development Project Coordinator) will present this project, assisted by two of Canada’s renewable energy Environment, Health and Safety experts (Michael Baker of Enbridge Power and Mike Doherty of Blue Arc Electrical Safety Technologies Inc.). This presentation will also explore some of the specifics of ergonomics and electrical safety for renewable energy site operations. To learn more, visit the event website.
Over the past year, CanREA has committed significant resources to this Human Factors Workplan project, hiring a full-time Environment, Health and Safety Project Coordinator and several student interns, made possible by funding from Electricity Human Resources Canada (EHRC).
As lead author, Mary MacLean was assisted by Conor Tosh, a Master’s student at the University of Lethbridge, and Phil McKay, CanREA’s Senior Director of Operations, and informed by the members of CanREA’s Environment, Health and Safety Committee, particularly the seven CanREA members in the new Human Factors Working Group, who are all part of the National Operations Caucus.
“Our members advised us on which tools and equipment to include, and which specific weather conditions were important considerations,” she explained. “When you are up 300 feet in the air and a storm is approaching, you might be tempted to make different decisions than you would in calm weather, for example. This is important for companies to address.”
CanREA also looked at the psychological impacts of working remotely. “When you are working in a team of two on Bear Mountain, hours from emergency first responders, you know that you can’t easily get help if something happens, and your work decisions can be affected,” said MacLean.
What are the next steps for CanREA’s Human Factors Working Group? “We will launch the Workplan at the Operations Summit in Toronto and we will share it with CanREA members,” said MacLean. “After that, we will start to prioritize which items from the Human Factors Workplan to focus on next.”
“This resource is intended to be useful for CanREA members,” said MacLean. “We are hoping it will broaden everyone’s understanding of Human Factors in our industries.”
According to MacLean, CanREA aims to help members address Human Factors issues using an effective, interconnected approach. Because ultimately, Canada’s thriving renewable-energy industry is made up not only of technologies but also of human beings, on whom we all depend to make Net-Zero happen, as laid out in CanREA’s 2050 Vision.
CanREA would like to thank contributing members of the National Operations Caucus and specifically of the Human Factors Working Group for their essential contributions of materials and time. These members include representatives from Capital Power, Capstone Infrastructure, Enbridge, Liberty Power, Martin Up Consulting Inc., Pattern Canada, Suncor Energy Inc., TriSummit Utilities and Vestas Canada.
Wind energy, solar energy and energy storage, working together, will be at the core of Canada’s energy transition. One key reason for this is the fact that electricity consumers—corporations, governments, households and small businesses—have an increasing interest in renewable energy. Why renewables? They offer a mix of low costs, important environmental benefits and increased energy independence.
Corporations: An emerging driver of renewable-energy growth
A growing number of corporations are prioritizing the reduction of greenhouse-gas emissions within their environmental, social and governance (ESG) strategies and taking steps to ensure the electricity they use is generated by non-emitting sources, like wind and solar energy.
To that end, companies are signing power-purchase agreements (PPAs) with renewable-energy providers. PPAs are long-term agreements through which commercial or industrial customers buy renewable power from renewable generators at an agreed-upon price. “Renewable power,” in this case, usually includes both the renewable attribute (either an offset or a credit) and the electricity itself.
Where it is not possible to directly purchase renewable energy through the grid, corporations may purchase renewable attributes alone, and by doing so, help to enable renewable power to be produced elsewhere.
In 2015, corporate PPAs facilitated the deployment of 4.7 GW of new renewable energy worldwide. By 2020, that number had increased to 23.7 GW – more than Canada’s total installed wind and solar energy capacity.
Globally, more than 300 leading companies have come together as RE100 to signal their commitment to 100% renewable electricity. According to Bloomberg New Energy Finance, these RE100 members will need to purchase 93 GW of renewable energy in 2030 just to meet their existing commitments.
This trend is evident in Canada, but on a smaller scale
In Alberta’s deregulated electricity market, 2021 has already seen a flurry of new PPAs from corporations like Amazon, Budweiser, TD, Bimbo and others, that will stimulate 769 MW of new wind and solar energy development.
Regulated electricity markets are also responding to growing corporate demand for renewables. The new Green Choice Program in Nova Scotia, for instance, will enable government, businesses and institutions to purchase new wind and solar energy.
Indeed, a growing number of utilities are now offering renewable-energy options for consumers in different parts of the country.
In addition to corporations, a growing number of municipal, provincial and federal governments are also looking to sign PPAs for renewable energy. For example, the City of Edmonton is now looking to sign such agreements to meet its electricity needs with wind and solar energy.
More potential for growth: distributed energy resources
Distributed energy resources are poised to provide increased opportunities for homeowners and small businesses to demand on-site renewable-energy generation. Indeed, such consumers have already enabled 190 MW of net-metered solar photovoltaics (PV) to be deployed across Canada. With a view to further stimulating such demand, the Alberta, Nova Scotia and Federal Governments have all recently made funding available to support the deployment of behind-the-meter solar PV.
While consumers may show an interest in distributed energy resources (DERs) for their economic and environmental benefits, these technologies can also enable them to become “prosumers.” By PRO-ducing the energy they con-SUME, they can take charge of the way they power their households and technologies, including electric vehicles. This can increase their energy security and independence.
Governments and utilities are also exploring the potential opportunities for DERs to provide system benefits as well. DER technologies, such as rooftop PV systems, heat pumps, electric vehicle (EV) chargers and batteries, can all be bundled into virtual power plants (VPPs) that can provide valuable grid-balancing services, in addition to meeting the needs of on-site consumers. This can help reduce the need for investments in new generation and transmission infrastructure, reducing the cost of the electricity system as a whole.
While Canada has made limited use of these resources, their contribution to the electricity system is significantly higher in markets like the United States, Europe and Australia.
Consumer interest in wind and solar energy is emerging as an important driver for renewable-energy deployment. But this is still at an early stage in Canada. Increasing public concern about climate change, however, coupled with the economic and environmental benefits of these technologies, ensure that consumer demand for these technologies will only accelerate going forward.
CanREA’s Vision
In my series of five blog posts on CanREA’s 2050 Vision, I have argued that wind energy, solar energy and energy storage will be at the core of Canada’s energy transition for five key reasons:
1. Because these technologies represent the most affordable path forward for Canada’s electricity system; 2. Because they offer many important economic benefits, such as good stable jobs and investment in rural communities; 3. Because they enable Canada to combat climate change, the most significant environmental challenge of our time; 4. Because they will help provide reliable solutions for Canada’s energy future; 5. Because consumers are increasingly demanding them.
Read the full series of posts on CanREA’s 2050 Vision here.
CanREA pens a new plan for advancing energy storage in Canada
Ten years ago, my colleagues and I first started modelling hybrid wind/energy storage facilities in what was, at the time, a largely hypothetical exercise. How times have changed.
Battery technologies are now being rapidly deployed, having declined in cost by 90% over the last decade. I am thrilled to see fully operational hybrid and energy storage facilities in Canada.
This seems like the perfect time to lay out the story of energy storage and CanREA’s plan for advancing energy storage in Canada.
I’m going to tell the storage story by starting at the end: What does “Happily Ever After” look like for energy storage? Ultimately, these technologies will become ubiquitous. Storage will be routinely considered whenever new investments in the electricity system, such as for generation or transmission, are being contemplated by project developers or system operators.
But we must work through many chapters before we reach this perfect ending. CanREA has identified six key transition elements that make up the story of storage.
1. Education and Familiarity
Chapter one will focus on increasing Canadians’ understanding and familiarity with energy storage.
Energy storage is a technology that uses electricity as an input, stores energy for a period of time, and returns electricity as an output. It is important that it be viewed from a wide perspective, not only to provide backup power or to smooth out the variability of renewable-energy generation.
Batteries can provide at least 13 different services to the grid, such as frequency regulation and grid congestion management, as identified by the clean energy think-tank RMI, while other energy-storage technologies, such as pumped hydro and compressed air energy storage, are also capable of providing most, if not all, of these services.
CanREA is currently writing this chapter of the story by leveraging our member companies’ wealth of knowledge, while we advance our advocacy for this flexible technology with system operators, regulators, developers and legislators.
2. Legislation and Regulations
Chapter two will focus on the introduction of new legislation and regulations to enable energy storage to participate in the electricity system.
CanREA’s position is that every jurisdiction in Canada needs a legislated or regulatory definition of energy storage, and rules and regulations that enable energy storage to participate in the electricity system.
Alberta has already started: Alberta Energy has completed a stakeholder-engagement process on a legislative definition for energy storage and other issues, such as regulated utility ownership. CanREA also participated in the processes to develop energy storage rules for the Ontario and Alberta wholesale electricity markets.
3. Market Structures
Chapter three involves the implementation of market-structure changes. Private investors need to identify revenue streams to monetize the many services that energy storage will provide. Likewise, regulated entities need valuation methodologies for various storage services to justify the investment to their regulator, customers and other stakeholders.
CanREA is currently involved in key processes in Alberta and Ontario that impact storage market participation. Going forward, CanREA will continue to advocate for market-structure changes that enable multiple revenue streams for energy storage technologies.
4. Grid Efficiency
Chapter four highlights the need for key stakeholders to consider a broader range of tools to address the needs of the electricity grid. Energy storage is one such tool that can help increase efficiency in the transmission and distribution systems, to manage congestion and peak loads.
New mathematical models to evaluate transmission capacity will enable progress in this area, in parallel with the development and deployment of advanced metering infrastructure to facilitate dynamic management of consumer loads.
For example, CanREA has advocated that energy-storage technologies should be considered as an alternative to building more transmission and distribution wires in Alberta.
5. Remote and Indigenous Communities
Chapter five focuses on the use of energy storage to help clean the electricity supply for remote and Indigenous communities that currently use shipped-in diesel to generate electricity. CanREA members are already starting to deploy hybrid projects in these communities, to produce local energy along with cleaner air, reduced GHG emissions, energy security and economic value for the community.
For example, CanREA member ATCO Group signed an agreement this year with the Vuntut Gwitchin First Nation in Old Crow, Yukon, who began operations on a 900 kW solar/ 350 kWh battery project that will reduce diesel usage in the summer.
6. Sustainability
Last but not least, chapter six requires that energy-storage components be produced in a sustainable way that supports a circular economy and safe labour practices. CanREA’s member code of conduct promotes ethical considerations in product-procurement and supply-chain practices.
CanREA has also initiated work to identify current and emerging battery-recycling opportunities in Canada. For more information, see our “Repowering and Decommissioning” webpage, and one-pager on the recycling of lithium-ion batteries.
What Happens Next
CanREA continues to hold the pen on the story of storage, through ongoing advocacy work as a member association, and remains actively involved in all the relevant discussions with provincial and federal governments, to move this story forward.
CanREA will release a whitepaper telling the full story of energy storage in the coming months. Subscribe to our enewsletter for details.
Everyone knows that the energy of the wind and the sun is a variable force—the sun does not always shine and the wind does not always blow.
Thanks, however, to emerging technologies in the electricity sector, and to new approaches to using existing technologies and infrastructure, it is now clear that a reliable electricity grid can be built on a foundation of wind and solar energy.
Relying on wind and solar
This is not science fiction. Wind and solar have already demonstrated they can make a very significant contribution to energy needs.
Today, approximately 6.8% of Canada’s electricity demand is met by wind and solar, and the contribution is much larger in PEI (25%) and Nova Scotia (13%).
At the same time, solar energy now meets close to 10% of electricity demand in some countries.
In fact, Bloomberg New Energy Finance projects that wind and solar will account for 56% of global electricity production in 2050, with penetration levels reaching 70 to 80% in some countries.
How can this be, given the variability of wind and solar energy production?
Wind energy production tends to be higher at night and in the winter, while solar energy production is highest in the summer and during the day. This natural complementarity can help reduce variability but, for the electricity-system operator tasked with balancing supply and demand, more is required to ensure reliability.
While wind and solar represent low-cost and emissions-free renewable energy, their rapid growth does introduce more variability into the grid.
Fortunately, system operators are being presented with an expanding number of tools to manage this variability while optimizing the benefits of solar and wind energy.
One rapidly emerging tool is energy storage.
Energy-storage technologies are quite diverse (batteries, flywheels, pumped hydro, compressed air, hydrogen), but they all share a common characteristic: they store electrical energy produced at one time for use at another time.
Battery technologies have attracted significant attention recently. They are being rapidly deployed, having declined in cost by 90% over the last decade.
Batteries can be used in conjunction with renewable energy projects (also known as hybrid projects), or on a stand-alone basis. They can respond quickly and accurately to system operator directions, making them attractive providers of reliability services to the grid, such as renewable-energy shaping, transmission-congestion management and voltage support.
While batteries can store energy for several hours, other developing technologies, such as compressed-air energy storage, have a longer-term storage capacity.
Canada’s massive hydroelectric resources can also store energy for much longer periods of time. Reservoirs behind dams store energy when wind and solar energy are operating, and release that energy when required. In fact, Minnesota uses Manitoba Hydro’s hydroelectric resources to help manage the variability of the state’s wind-energy production.
Interconnection between grids
Interconnection between electricity grids is another important tool for managing variability, and increasing these interconnections expands the range of options available to do so.
The rapid emergence of distributed-energy resources, and the prevalence of smart-grid technologies, are also providing system operators with new options to manage variability from the demand side.
For example, wind-energy production generally peaks at night when electricity demand is lower, so by increasing demand at that time—such as by encouraging electric vehicle charging in the overnight hours—this low-cost electricity could be easily utilized. In essence, the batteries in electric vehicles permit electricity to be stored on-site for later use.
It is also worth noting that new wind- and solar-energy technologies can themselves provide a variety of reliability services to the grid, such as Fast Frequency Response and Reactive Power Control. Another example is when electricity demand drops rapidly, these technologies can ramp down production much more quickly, and at a lesser cost, than any conventional generating technology can.
Foundation of the future grid
So, can we take advantage of the incredibly low cost of wind and solar energy and place them at the core of a reliable electricity grid? The answer is yes.
In fact, wind, solar and energy storage will serve as its solid foundation. The future grid will be more diverse, decentralized and interconnected. It will place wind and solar energy at its core, while providing the tools required to ensure reliability. And as a result, Canadians will receive better services, at a lower cost, while also fighting climate change.
This is the fourth article in a series of CanREA Vison blogs, in which I’ve argued why wind energy, solar energy and energy storage will be at the core of Canada’s energy transition. 1. Because these technologies represent the most affordable path forward for Canada’s electricity system. 2. Because they offer many important economic benefits, such as good stable jobs and investment in rural communities. 3. Because they enable Canada to combat climate change, the most significant environmental challenge of our time. 4. Because they will help provide reliable solutions for Canada’s energy future. And 5. Because they empower Canadians.
CanREA’s Alberta Caucus celebrates new flexibility in AUC’s Rule 007
CanREA’s Alberta Caucus is celebrating a decision by the Alberta Utilities Commission (AUC) to update its Rule 007. Our members have been working with the AUC for several years to improve this Rule, which governs the application process for power plants, substations, transmission lines, industrial system designations and hydro development.
Acting on behalf of its members, the Canadian Renewable Energy Association (CanREA, or CanWEA prior to July 1, 2020) advocated for changes that would make the Rule better reflect the reality of rapid technological change within our industry.
Innovation and Obsolescence
One of the most remarkable things about the renewable-energy sector is its rapid evolution, spurred by the constant development of new technologies. While beneficial for lowering costs [see our blog on the subject here], change is happening so quickly that the approval process could not keep up, making it difficult for developers to apply for regulatory permits in Alberta.
For instance, when a wind developer applies for a permit, their plans feature turbine technologies that, while cutting edge at that time, may no longer be in production when it comes time for construction, having been replaced by an even newer, more advanced model in the interim.
Under the previous version of Alberta’s Rule 007, a developer had to file for an “amendment” in their permit if they changed the model of their turbine prior to construction, essentially starting the application over from the beginning. It was an arduous regulatory process that could take months, if not years.
More Flexibility Needed
Thanks to the changes to Rule 007, a developer may now file a permit application using a “placeholder” turbine model—one that is currently available—or a “projected” turbine model—technology that is expected to become available in the short term.
If this is approved, project planning can proceed until, weeks prior to construction, the developer must submit an update confirming the final choice of technology for the project. As long as the new model does not exceed the pre-approved model in terms of turbine capacity, blade length, hub height, noise profile, or environmental impact, the project can move ahead.
A long and arduous process has become a quick and straightforward administrative procedure.
Ambitious Overhaul
In addition to implementing new flexibility measures and making Rule 007 easier to understand, the AUC also introduced a storage-facility application process, modified the permitting extension process, updated the Participant Involvement Program (PIP), and clarified the way project impacts are reported to landowners, to keep landowners, community members and Indigenous communities informed about the potential impacts of proposed projects.
These changes were part of an ambitious overhaul of the Rule 007 document from 2019 to 2021, during which the AUC consulted with landowners, community members and industry members, through CanREA (and CanWEA, originally).
We commend the AUC for undertaking the process and bringing it to fruition, and we are happy to have contributed to this innovative solution.
For More Information
Members of the Alberta Caucus will continue to be involved with this issue, receiving complete information on this regulatory change in Alberta, including a webinar that will explore the changes to the Alberta Utilities Commission’s Rule 007.
Participating in Caucuses, Working Groups and Steering Committee is one of the key benefits enjoyed by CanREA members at the Advocate level and above. There are caucuses for Alberta, Saskatchewan, Ontario and Quebec, a federal caucus, and national caucuses for energy storage, operations and distributed energy resources. This engagement offers member companies the chance to do important work to determine the future of the wind, solar and storage industries in Canada.
We can mitigate climate change, but only by putting wind, solar and energy storage at the centre of a comprehensive clean-energy transition, starting today.
I have been advocating for actions to reduce greenhouse-gas emissions for more than 30 years, primarily from within the environmental community and as a representative of renewable-energy industries. While we can point to some real progress in that time, the pace of change has been wholly inadequate. We are slowly walking into a climate catastrophe when we should be sprinting to do all we can to mitigate it.
Canada’s average temperature is increasing twice as fast as the global average and the signs of a changing climate are everywhere: our permafrost is melting, our coastal sea levels are rising, our snow-cover patterns are changing, and our weather is becoming more extreme, with floods, droughts, and intense storms on the rise.
We are already seeing serious impacts on our ecosystems, communities, infrastructure and economies, and things are currently on track to get much worse.
Under the Paris Agreement, Canada has committed to reducing its GHG emissions by 30 percent below 2005 levels by 2030 and has joined more than 120 other nations in pledging to reach net-zero GHG emissions by 2050. We have also made a clean-grid target, aiming to have 90 percent of Canada’s electricity coming from non-emitting sources by 2030 and 100 percent before 2050.
Targets are one thing. Results are another. Despite the measures taken to date, Canada’s greenhouse gas emissions have remained relatively stable since 2005, at more or less 700 Mt per year, getting no closer to our Paris target of 524 Mt.
In December 2020, CanREA welcomed the federal government’s new plan, “A Healthy Environment and a Healthy Economy,” as an important step forward on the path to net-zero greenhouse-gas emissions by 2050, but it is critical that the new proposals identified within the plan are translated into concrete actions that deliver meaningful results starting in 2021.
So how do we get there?
Meeting Canada’s 2030 and 2050 greenhouse gas emission reduction targets will be challenging, but it is clearly doable.
The Canadian Institute for Climate Choices recently released a report examining 60 different potential pathways for Canada to get to net zero greenhouse gas emissions by 2050. They conclude that existing “safe bet” technologies can get us most of the way to 2030 and much of the way to 2050 – although some of a broad range of potential “wild card” technologies will also be required to fully complete the job.
While there are important differences between the scenarios, they all rely on a significantly expanded, non-emitting electricity grid to get us to net-zero.
Fortunately, Canada is better positioned than most countries to build a strategy around this cornerstone. Doing so requires action on three fronts.
1. The first step is to clean up the electricity supply.
In Canada, 82 percent of our electricity system is already non-emitting. The remaining 18 percent—and significantly more—can easily be supplied by Canada’s massive untapped renewable energy resources.
We need to ensure that all new electricity generation is enabled through competitive processes and market signals that seek to deliver the most affordable, non-emitting generation.
Halkirk Alberta Wind Farm. Photo: Capital Power
The cost-competitiveness of wind and solar energy will make them a key focal point for such new investments, while additional investments in interprovincial transmission and energy storage will help to ensure reliability.
President Biden has said the U.S. will move to decarbonize its electricity grid by 2035. Canada has the potential to meet a similar target and should accelerate its efforts to decarbonize the grid, while also working with the U.S. to allow Canadian clean-electricity exports to help them achieve their goal.
2. Step two is transitioning away from fossil fuels because cleaning the grid is not nearly enough.
We can have the cleanest electricity in the world, but until we electrify transportation, heavy industry and heating, we will not substantially reduce the bulk of our country’s GHG emissions.
Currently, electricity supplies 16 percent of Canada’s energy needs. The remaining 84 percent is supplied largely by fossil fuels (oil, natural gas, coal). Luckily, there are tremendous opportunities to use electricity to service many of these energy needs.
The transition should start with transportation. There have been many positive signals on electric vehicles in recent months, including commitments by automakers to shift production to electric vehicles, growing purchases of such vehicles by consumers, and increased investments in electric vehicle-charging infrastructure.
In addition, we have seen commitments to ban the sale of gasoline cars: by 2035 in Quebec and by 2040 in British Columbia. All of these promising initiatives must now be brought together in a comprehensive federal–provincial strategy for the electrification of passenger transportation.
Similar strategies will ultimately be required for the electrification of heavy industry and buildings. Governments are correctly focused on improving energy efficiency within existing building stock, but it is critical that such retrofits also explore opportunities for energy self-supply, through the on-site production of electricity, such as rooftop solar.
3. Step three will be to produce a lot more electricity.
To significantly reduce greenhouse-gas emissions by 2050, there will be increased demand for clean, non-emitting electricity to power electric vehicles, electric heat pumps, and new, innovative industrial machinery in sectors like the aluminum industry.
Such a build-out will take time and we need to start planning today for the electricity grid of 2050 if we are to be successful.
Global leadership
Canada has an opportunity to become a true global leader when it comes to the energy transition. We have a competitive advantage provided by our abundant renewable energy resources, and we are well positioned to build on this advantage: Cleaning and significantly expanding our non-emitting electricity grid will do much of the heavy lifting required to reach net zero by 2050.
There is no reversing climate change, but by working together across all sectors and provinces, we can slow it down to keep its impacts at a more manageable level while ensuring opportunities for all Canadians.
We have a fleeting opportunity to avert a catastrophe for our children and grandchildren. We need to seize it. Today.
Carpe Diem.
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This is the third article in a series about CanREA’s Vision, exploring why wind energy, solar energy and energy storage, working together, will be at the core of Canada’s energy transition. I have so far argued that these technologies represent the most affordable path forward for Canada’s electricity system while also offering many important economic benefits, such as good stable jobs and investment in rural communities. Clean power also represents the core of Canada’s efforts to combat climate change, the most significant environmental challenge of our time. In my next Vision Blog, I will explore how wind energy, solar energy and energy storage, working together, can help create the best possible future for Canadians by empowering consumers.
The strong economic case for putting wind energy, solar energy and energy storage at the centre of Canada’s energy transition.
In a previous blog, I argued that today’s low-cost wind and solar energy, coupled with existing hydropower and increasingly economical energy-storage options, represent the most affordable and best path forward for Canada’s electricity future.
Here, I explore another facet of the economic argument: that affordable, clean and reliable power not only provides the lowest-cost pathway to meeting our climate-change goals, but also offers many other important economic benefits for Canadians.
Putting wind energy, solar energy and energy storage at the centre of Canada’s energy transition will benefit Canada economically in many ways: significant new local investment and job creation, and direct benefits to homeowners, small businesses and host communities in rural and remote areas of Canada, including Indigenous communities.
Investment
Renewables and energy storage represent the foundation of the energy transition required to move Canada to net-zero greenhouse gas emissions by 2050.
On a global scale, Bloomberg New Energy Finance projects that, between now and 2050, 80 percent of all investment in new power-generating capacity will go to wind, solar and batteries. This represents $12 trillion in new investment.
With its abundant, untapped and high-quality solar and wind resources, Canada should strive to position itself as a competitive destination for such investment.
Every 100 MW of new wind-energy capacity represents approximately $180 million in total investment, while every 100 MW of new solar-energy capacity represents $112M. These investments bring significant benefits to local communities throughout the life cycle of the project.
Job creation
This new investment in wind energy, solar energy and energy storage will also create significant employment opportunities in Canada.
It is already happening around the world. According to the International Renewable Energy Agency (IRENA), approximately 5 million people were employed in the wind energy and solar photovoltaic (PV) industries in 2019, up from just over 2 million people in 2012. There is rapid growth in these industries, and it is accelerating at a rapid pace worldwide.
Investments in solar, wind and energy storage create employment opportunities throughout the project life cycle: development, construction, operations and decommissioning. Additional jobs are created through the manufacture of these technologies and their key components.
When one considers the rapid projected expansion of wind and solar energy, the opportunities for job growth are significant. Indeed, the United States has already reported that wind turbine and solar technicians are the fastest growing jobs in the country.
Benefits for individuals and communities
New utility-scale solar- and wind-energy development provides lease income to local landowners and municipal tax revenues for host communities, along with a diverse range of benefits that contribute to the priority needs of the community, as per agreements with project developers.
For example, an Alberta supply-chain study found that 100 MW of wind provides approximately $1 million in annual property taxes for host communities and approximately $500,000 in royalty payments to landowners.
These are important economic benefits for the rural communities that host utility-scale wind-energy and solar-energy projects. Many of these host communities are found in rural areas with a limited industrial base. Revenues from this type of renewable energy development provide increased stability for economies that often rely on variable revenues from activities like agriculture, forestry and fisheries.
What’s more, rooftop solar PV installations bring direct economic benefits to homeowners, businesses and community organizations, helping to reduce energy costs and increasing the economic value of the building.
Benefits for indigenous communities
Increasingly, indigenous communities across Canada are seeking opportunities to benefit from wind- and solar-energy development; project proponents, along with government policy, are responding to this interest.
According to Indigenous Clean Energy, 197 of Canada’s medium-to-large renewable-energy projects (more than one third of them solar or wind) are fully or partially owned by indigenous people and benefit from indigenous involvement, while approximately 2,000 small renewable-energy systems have Indigenous leadership and partnerships in place. These numbers are poised to grow significantly over the next few years.
The role of storage
Energy storage is at an earlier stage of deployment than wind and solar energy in Canada, but it already promises strong economic benefits.
Energy storage is proving to be the Swiss Army Knife of the energy transition because of the multiple services that storage can provide. These include grid reliability services, decreases in costly outages, and a reduction in system costs, by enabling the more efficient use of reliable and affordable wind and solar energy resources.
Already, many renewable energy companies and utilities are including storage in their development and planning activities: this activity is expected to accelerate as the costs of storage continue their rapid decline.
Returns on renewables
Canada needs to significantly increase its development of wind energy, solar energy and energy storage if it is to have any hope of getting to net-zero greenhouse gas emissions by 2050. Just as importantly, Canadians—and the communities in which they live—need to capture the strong and significant economic benefits associated with maximizing the development of these renewable energy technologies. These benefits will continue to give back for generations to come.
In my next blog on CanREA’s vision, I will explore why wind energy, solar energy and energy storage are critical in our efforts to combat climate change.
For more data on solar energy, wind energy and energy storage in Canada, please see our By the Numbers page.
Energy efficiency alone won’t get us to net-zero emissions – Canada needs a lot more renewable electricity. It’s time to make use of the enormous untapped potential on the rooftops of homes and businesses, while also taking steps to improve building energy efficiency.
A 6 kW rooftop solar PV system on a home in Lethbridge, AB – Credit: Solar Optix Energy Services
The Government of Canada’s new climate plan, released in December 2020, contains a host of measures aimed at exceeding our current reduction target for greenhouse-gas emissions under the Paris Agreement, of 30 percent below 2005 levels by 2030.
Support for energy efficiency is prominent in the plan, with the Government pledging $2.6 billion to help homeowners make their homes more energy-efficient.
It is vital that homeowners also have the opportunity to utilize these funds for investments in rooftop solar because, while measures to reduce energy consumption are crucial, they are not enough on their own.
The Federal plan asserts that by 2050, Canada will need to produce up to three times as much non-emitting electricity as it does today, just to meet increased demand from the clean electrification of transport, heating, and industry.
When making major investments in existing buildings, it is important to pursue both energy efficiency and energy self-supply. These investments are complementary and should be considered as a package, just as provinces like Alberta and Nova Scotia have done in their own energy-efficiency programs.
Rooftop solar is among the simplest and most straightforward, “no regrets” steps we can take on the road to net-zero.
Detractors will point to the fact that solar panels don’t work when it’s dark, and they’re absolutely right. But rooftop solar can help to provide the energy Canadian households need, when they really need it: during the day, when we use electricity the most. Furthermore, energy-storage technologies can help bridge the gap by providing electricity during non-sunny periods.
Over the course of a year, a 6-kilowatt residential PV system will generate at least 6,000 kilowatt-hours (kWh) of electricity. That’s enough to power an electric vehicle driving 15,000 km, as well as an electric water heater to meet a household’s annual hot water needs, with plenty of electricity left over for other household uses.
Powering an electric vehicle and a water heating system with solar electricity, rather than fossil fuels, would avoid approximately four tonnes of CO2 emissions each year, equivalent to a 40 percent reduction in the CO2 emissions of an average household.
To be sure, not all buildings are suitable for rooftop solar – some roofs face north, others are shaded by tall trees or neighbouring buildings. But there is no practical reason why Canada should not have ten times as many solar rooftops as we do currently.
Today, there are approximately 40,000 solar rooftops across Canada. Meanwhile, Australia has 2.5 million, the US has well over 2 million, and even Germany and the famously sunny UK each have well over 1 million solar rooftops installed.
We are far behind many of our peer countries in deploying rooftop solar. The good news is, we are now able to take advantage of incredible cost decreases in the technology, along with steady improvements in durability and performance. The cost of solar panels has fallen 90 percent since 2010. Panels have also become more durable – a solar rooftop installed today will reliably generate zero-carbon electricity for at least the next 30 years, with barely any maintenance.
Rooftop-solar generation, either stand-alone or paired with battery storage, can also be installed very quickly. Thanks to simple, efficient design and a straightforward permitting process, a residential rooftop-solar system can go from a gleam in the eye to fully operational in as little as two months.
While improving the energy efficiency of our buildings is a critical step on the path to net-zero, it is not enough to just find smarter ways of burning fossil fuels. Our buildings also need to produce and use more clean electricity to substitute for fossil fuels.
Policymakers should use new opportunities to retrofit buildings to achieve truly transformational change in how we generate and use energy, in order to fulfil the promise of Canada’s ambitious climate plan. Providing the resources to enable more Canadians to install solar rooftops would be a great start.
“When the Levee Breaks,” be sure your company is well-positioned.
As a young drummer twenty years ago, one of my favourite songs was “When the Levee Breaks” by Led Zeppelin. Although my best playing days may be behind me, I still play that song today as part of a new band—and it has a whole new level of significance for me now.
In my new role as CanREA’s Vice President (Business Development, Finance and Operations), I see that classic Led Zep song as a positive metaphor for the continuing work we are doing to remove the policy, regulatory and market barriers that prevent renewable energy from reaching its full potential across Canada. Every time we make a breakthrough, there is a rush of opportunities that enable the market to grow.
CanREA is like a newly formed super-group. On July 1, 2020, the Canadian Wind Energy Association (CanWEA) amalgamated with the Canadian Solar Industries Association (CanSIA) to create the Canadian Renewable Energy Association (CanREA). Combined, we are now one powerful voice supporting the deployment and sustainable operation of wind energy, solar energy, and energy-storage solutions to power Canada’s energy future.
Those familiar with CanREA’s tune will know that there is tremendous potential for solar energy, wind energy and energy storage in Canada, especially given our abundant natural renewable resources from coast to coast to coast.
On the global song sheet, new harmonies are already happening. In 2020, almost 90% of new global electricity generation will come from renewables, according to the International Energy Agency (IEA). More major growth is predicted around the world by 2050, as CanREA’s President and CEO explained in his November blog, “Massive expansion of wind and solar energy critical to ensuring the affordability of Canada’s future electricity system.”
What is driving all this growth? It’s partly the fact that solar and wind energy are now the lowest-cost forms of new electricity generation, and that energy storage is quickly becoming cost-effective in many jurisdictions.
It’s also because energy consumers, from homeowners to large global corporations like Apple and Amazon, are now demanding clean energy from renewable energy sources like solar and wind.
Tremendous forces are building globally, pushing for the expansion of the renewables market.
In Canada, however, there is a levee of sorts that is slowing the development of these technologies. There remain numerous policy, regulatory and market barriers in Canada that make it either difficult or impossible for electricity consumers to purchase renewable energy or build their own solar energy, wind energy and energy-storage facilities.
This is where CanREA comes into play.
CanREA’s mission is to advocate on behalf of the wind energy, solar energy and energy-storage industries. Our members include companies that are either active in these sectors or interested in supplying or servicing the growing number of companies involved.
We work hard to ensure these technologies play a central role in transforming Canada’s energy mix. We aim to grow the market for our technologies and to increase stakeholders’ understanding of these clean, low-cost, reliable, flexible, and scalable solutions for Canada’s energy needs.
CanREA keeps on beating that drum every day and making our industry’s voice heard.
Stay informed on the latest market intelligence and industry news.
Help lead and shape policy and regulatory development, to amplify our industry’s voice.
Be part of a network where you can engage and raise your company’s profile.
Join CanREA today and, every time “the levee breaks,” your company will be well-positioned to benefit from each expansion of Canada’s wind energy, solar energy, and energy storage markets.
