The well-regulated West

What Albertans need to know about our thriving renewables market

Alberta accounted for the lion’s share—75%—of Canada’s utility-scale wind and solar capacity growth in 2022. And even further expansion is expected in 2023. Alberta’s recent development is beyond anyone’s expectations.

As CanREA’s Senior Director of Policy and Government Affairs, Director for Alberta, and a proud Albertan, I am thrilled to see this growth.

But make no mistake, this isn’t “the wild west” of renewable energy. Alberta is enjoying well-regulated growth, rooted in strong policies and robust community engagement practices.

Here’s what Albertans need to know about the well-regulated West:

1. There are rules.

The first thing we need to know is that Alberta is a well-regulated jurisdiction, governed by a strong framework of renewable energy policies at the provincial level.

I can attest to this because, over the last decade, I have represented CanREA and its members in consultations with Alberta Environment and Protected Areas (and its predecessors) to establish essential directives that are now used to guide the responsible development of renewable energy project sites. For example:

I have also seen the Alberta Utilities Commission (AUC), which regulates the sector, modernize a host of rules, from the application process covered in Rule 007, to sound control requirements in Rule 012, to post-approval monitoring requirements in Rule 033. Albertans need to know that Rule 007 provides key landowner protections in terms of project decommissioning and land reclamation. Not only does it empower the AUC to implement project conditions based on the Conservation and Reclamation plan, but it requires applicants to provide details on how they intend to pay for end-of life work.

2. Renewables never dry up.

The second thing Albertans need to know is what happens to a renewable-energy project at the end of its lifespan.

Albertans are concerned at the moment about “orphan oil wells” on our landscapes and in our communities, with good reason, but it is important to understand that renewable energy project planning presents an entirely different scenario.

Alberta’s high-quality wind and solar resources will never “dry up.” A wind or solar site can continue to generate power as long as the wind blows and the sun shines.

When the parts used in a wind turbine or solar panel reach the end of their lifespan—about 25 years—they can be swapped out, returning the site to operation. Other physical infrastructure, such as transmission lines and substations, can remain in place for the long haul.

When a site already has 20-30 years of operations data, and good, solid relationships with landowners and communities, and transmission lines already in place, it just makes sense to repower it rather than develop a new one.

According to the Farmers’ Advocate Office, “a renewable energy lease gains value over time. Whereas an oil or gas well will become depleted over time, a wind or solar site may be considered ‘proven’ as it ages. Therefore, even an older site could remain attractive to investors.”

In this way, well-maintained renewable energy projects can be truly renewable, remaining in operation and profitable in perpetuity.

Should these projects power down after their 25- to 30-year operational life, Alberta’s regulations ensure that decommissioning and reclamation occurs responsibly.

3. Landowners hold the reins.

The third thing Albertans need to know is that, with renewables, landowners hold the reins. Unlike sub-surface energy resources, wind and solar energy are subject to surface rights, which are described here.

  • One highlight: Landowners have the right to refuse entry to their land for wind and solar projects, so they decide if, where, and how, a renewables project gets installed.
  • Another: The Surface Rights Act does not extend to the negotiation of renewable energy leases, so renewable energy projects can only be established with a private civil contract. This allows landowners and developers to pen the best possible deal for each party.

In order to move forward on projects, it is in developers’ best interest to work in harmony with individuals and communities in the jurisdictions where they intend to operate. Simply put: Developers must address owners’ concerns, or they will not get land access, much less work out an agreement.

I have seen this firsthand, with the growth of wind and solar opportunities in Vulcan County, just over an hour southeast of my home in Calgary. CanREA members are at the forefront of this development. It has spurred an influx of well-paid, sustainable jobs for workers in the surrounding community, while offering landowners new ways to generate income, and will continue to provide the community with benefits for decades to come.

I would like to see the same kind of thing happening across Alberta, where CanREA member companies are working hard to establish good, productive partnerships with communities and landowners.

My team and I will continue to engage with key government officials to optimize the strong rules and regulations, policies and community engagement practices already in place, to keep growing the renewable energy sector in a well-regulated way that works for all Albertans.

In 2023, CanREA is running a new monthly blog series. Don’t miss a post: Subscribe to our “Power Together” newsletter!

The green light

Green hydrogen is a massive enabler of wind and solar in Canada

One of the most exciting things about working in the renewable energy sector is witnessing the dawn of innovative, non-emitting new technologies that promise to power Canada’s net-zero future. In 2023, I am particularly excited about green hydrogen and the prospects for onshore wind and solar.

Green hydrogen is a completely clean, non-emitting fuel source from start to finish. Unlike hydrogen made from emitting energy sources, like oil and gas, green hydrogen is produced using wind and solar energy.

When Canada’s budding green hydrogen industry starts to bloom, it will require huge amounts of wind and solar supply. In this way, it will be a massive enabler for Canada’s wind and solar energy suppliers.

Canada needs green hydrogen to power the path to net-zero

As a clean and scalable solution, green hydrogen is essential to Canada’s decarbonization goals.

To get to net-zero, we need to decarbonize sectors that produce the most significant amounts of GHG emissions, such as large industrial processes, freight transportation, and manufacturing.

According to Environment and Climate Change Canada, manufacturing accounts for a third of all facility-reported emissions in the country. It takes a lot of energy to power these processes and it is heavy on carbon emissions as a result.

We know that grid-level electricity will not be enough, on its own, to power these sectors in the net-zero economy. But green hydrogen can be produced at a scale large enough to tackle even the most colossal decarbonization efforts.

In Powering Canada’s Journey to Net-Zero: CanREA’s 2050 Vision, we point out that Canada is not yet on track to meet its commitment to decarbonize by 2050, and we advocate for governments to develop hydrogen strategies that prioritize green hydrogen.

We know that green hydrogen should play a key role in decarbonizing our economy, because it will provide the cleanest form of energy and at a scale that is required to ensure that Canada reaches net-zero and becomes well positioned to compete in future markets.  

It’s clear that expanding green hydrogen production is the big push we need to meet our clean energy goals in Canada and abroad and CanREA is prioritizing its advocacy for policies and incentives that promote the adoption of green hydrogen.

Green hydrogen will unlock GWs of opportunities for wind and solar

CanREA’s 2050 Vision calls for 5 GW of wind and solar to be built annually until 2050 in order to reach Canada’s net-zero targets, knowing that wind and solar are the cleanest, lowest-cost sources of new electricity available today, Canada has significant, untapped onshore wind and solar potential, and our industry is up for the challenge.

And yet, in 2022, Canada installed only 1.8 GW of new wind and solar and the year before, less than 1 GW.

The scale and size of the need for wind and solar energy is unprecedented. Our industries are ready to deliver the gigawatts required to support the energy transition and to power the production of green hydrogen. With the massive, untapped potential of Canada’s wind and solar resources, CanREA will continue to advocate for the accelerated deployment of these technologies.

Green hydrogen will help that acceleration.

Wind and solar are essential to green hydrogen production. In order to scale up green hydrogen we will need to scale up wind and solar.

Green hydrogen will inevitably lead to a renewable energy boom in this country. We are talking gigawatts of new opportunities for our industry, creating thousands of jobs in the process – all while kickstarting a new hydrogen economy powered by wind and solar energy.  

Green hydrogen export opportunities

Canada’s many clean energy advantages offer a strong foundation for green hydrogen growth. Already, the federal government and some provinces have developed hydrogen strategies.

CanREA has aggressively lobbied for additional financial incentives, such as the investment tax credit announced in the 2022 Fall Economic Statement, to accelerate the deployment of wind and solar and to incent investment in green hydrogen production. 

There’s no question, Canada’s emerging green hydrogen economy will mean new economic opportunities—at home and abroad. Clean electricity alone will not be enough to power the full transition to a decarbonized economy. Here at home, the use of green hydrogen to power our hard-to-abate industries and large freight transport networks means we can also avoid costly transmission investments for electricity generation that is better served to power the production of green hydrogen directly.

As we expand our capacity to meet our own net-zero energy transition goals with green hydrogen, we will also be in a strong position to support the goals of other nations, through exports.

Last summer, Canada and Germany signed a hydrogen trade deal, highlighting the lucrative export opportunity that awaits our industry as we expand green hydrogen production.

We must build more stable, predictable investment opportunities like these to optimize the huge, untapped potential of Canada’s onshore wind and solar resources today. Our coastal geography and ports provide the advantage for us to build a global export economy for green hydrogen.

As consumer preferences and governmental policies continue to shift toward greener alternatives, Canada is poised to drive sustainable innovation, such as green hydrogen derived from wind and solar, and reap long-term economic benefits.

The green light

The way I see it, the benefits of scaling up green hydrogen production in Canada are threefold: Keeping Canada on track to meet decarbonization goals, expanding domestic market opportunities and establishing a leading export economy.   Green hydrogen is clearly a massive enabler for wind and solar, allowing us to reach net-zero and unlock new long-term economic benefits in the process.

In 2023, I am excited to continue leading CanREA’s push for comprehensive green hydrogen policies and incentives in key jurisdictions across the country. As the leader of CanREA’s Policy Team, I will remain unapologetic about promoting the benefits that Canada’s onshore wind and solar potential can provide now to unlock Canada’s emerging green hydrogen economy, and vice versa.

It’s time to give green hydrogen the green light in Canada!

In 2023, CanREA is running a new monthly blog series. Don’t miss a post: Subscribe to our “Power Together” newsletter!

New year’s message

By Vittoria Bellissimo, President and CEO Canadian Renewable Energy Association 
January 13, 2023

CanREA’s new President and CEO reflects on 2022 and charts a course for 2023.

The start of this new year finds me two months into my role leading CanREA. My tenure is recent enough that I still see the organization through fresh eyes, but enough time has passed that I can also look back at CanREA’s recent successes. In this blog post, I want to celebrate some of the top highlights from 2022 and share a sneak preview of what CanREA will tackle in 2023, and beyond.  

First off, I would like to thank the industry for the warm welcome I received this fall. Whether at CanREA’s 2022 Electricity Transformation Canada conference in Toronto, at our November networking events in cities across the country, in private meetings, or by correspondence, your positive energy (pun intended!) has been most appreciated.  

Secondly, I cannot say enough about the determination, work ethic and commitment of the CanREA team. It has been a very busy few months and I am constantly impressed with how the team manages critical priorities, supports each other and responds to the needs of members. 

I particularly want to congratulate our policy team, who worked tirelessly to deliver on key priorities this fall.  

Key accomplishments in Fall 2022 

For instance, CanREA was very pleased to see our recommendations included in the Fall Economic Statement, announced on November 3, 2022. Of note, the Federal Government stated its commitment to refundable investment tax credits for wind, solar and energy-storage technologies, as well as green hydrogen investments that will bolster the competitiveness of Canada’s renewable-energy industry. Our policy team and Federal Caucus were very clear that there is a need for a Canadian response to the Inflation Reduction Act passed in the United States, and with this new Federal commitment, we are set up for success. 

I also want to stress the launch of the CanREA Electricity Transition Hub, supported by nearly $1.6 million in funding from Natural Resources Canada, which NRCan announced at the Electricity Transformation Canada conference on October 28. The Hub is a knowledge-transfer tool, helping electricity utilities and system operators accelerate their decarbonization efforts. It will equip participants to integrate the larger amounts of wind energy, solar energy and energy storage needed to support electrification and Canada’s net-zero GHG-emission targets.  

Outlook for 2023 

In this new year, I am looking forward to tackling several key policy priorities at CanREA. Our new year’s outlook includes – but is not limited to – the following projects: 

  • In both Ontario and Saskatchewan, we are advocating for transparent and stable procurement schedules for renewables and energy storage. Our industries can deliver affordable electricity to ratepayers—and if they know what is required, they can manage their supply chains and better plan for upcoming project proposals. 
  • In several jurisdictions across the country, we are actively looking at Corporate Power Purchase Agreements (PPAs). Alberta has been the poster child for Corporate PPA success to date, but other provinces can enable Corporate PPAs as well. Customers should have the ability to buy clean, renewable electricity in the jurisdiction in which they operate. 
  • We are also looking at workforce development in the renewable and energy storage industries, with more to come on this important project in 2023. 
  • We will keep working with our members and partners to support an energy storage tariff that works in Alberta. As we work towards a net-zero electricity grid in Alberta, we need to be open for business regarding all forms of energy storage. 
  • In the longer term, CanREA will look at supporting green hydrogen and the decarbonization pathways that it enables. 

As I kick off the new year at CanREA, one thing is very clear to me: this work matters. The work we all do is vital to decarbonizing electricity and several other industries, which is key to achieving Canada’s net-zero objectives. 

It is a privilege to work in this sector at this transformative time. Everyone on the CanREA team knows this as well. I want to thank you all for the support I, and CanREA, have received to date, and thank you in advance for the support we will continue to need going forward as we work on these critical projects together. 

Happy new year!

In 2023, CanREA is running a new monthly blog series. Don’t miss a post: Subscribe to our “Power Together” newsletter!

Energy storage will help Canada reach net-zero 

Plug into CanREA to leverage exciting new opportunities in energy storage. 

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?  

The Canadian Renewable Energy Association (CanREA) has a solid plan for advancing energy storage in Canada. Our plan identifies six top priorities, presents the challenges and provides the solutions. Click here to read our whitepaper: “Laying the Foundation: Six priorities for supporting the decarbonization of Canada’s electricity grid with energy storage.”

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. 

A holistic approach: CanREA to launch Human Factors workplan

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.  

For more information on this Caucus, visit CanREA’s Caucuses and Programs webpage or contact our membership team.  

Taking Charge

Electricity consumers want more renewable energy

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.

Writing the Story of Storage

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.

Steady as we go

A reliable electricity grid can be built on a foundation of wind and solar energy

Wind energy, solar energy and energy storage, working together, will provide reliable solutions to meet Canada’s energy needs in a net-zero greenhouse-gas emission economy.

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%).

But wind and solar can also go much further.

Wind energy already meets 16% of electricity demand in the European Union as a whole, with the numbers exceeding 20% in Ireland, Portugal, Germany, Spain and the UK, and reaching nearly 50% in the case of Denmark.

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.

There is a significant body of research demonstrating the excellent investment value of improving interconnections and its critical importance in supporting increased deployment of renewables.

But it’s not all about building new transmission.

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.

When permitting matches innovation

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.

For more information on eligibility, please contact CanREA member services at: members@renewablesassociation.ca

Carpe diem, 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.

Studies, like those undertaken by the Trottier Institute, the UN’s Deep Decarbonization Pathways Project, and Transition Accelerator, have consistently found that Canada’s current electricity system will need to double or triple in size by 2050 to address climate change.

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.

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.