Green Power In Canada Workshop #5, Next Steps Pollution Probe & - - PowerPoint PPT Presentation

Green Power In Canada

Workshop #5, Next Steps Pollution Probe & Summerhill Group Western Economic Diversification Canada April 3, 2002 Vancouver, B.C. Presentation by Nigel Protter, MBA Representing the IPPBC

IPPBC: Independent Power Producers Association of B.C.

• formed in 1992
• 200 members, both green and otherwise...
• Voice of IPPs and industry service providers
• Progress:
• RFPs from 1989 to 2000: 18 projects, 600 MW
• RFPs from 2001 to today: 4 RFPs, likely 33 small to

medium sized projects, excludes VI-CFT

• Total, about 50 projects and 6000 GWh or 10% of

domestic consumption by ~2007

Nigel Protter

• President & CEO of Sieber Energy Inc., developer of SieWAVE

Energy Accumulator offshore power technology

• Director, IPPBC. Green Power Champion
• Background: Technology development, management,
• marketing. MBA Management of Technology, SFU
• Live in rural B.C., outdoors person, fixated on promise of

green energy

• Exergetics Development Co.: Run of river project

development: “permission to build”, government & stakeholder relations, community consultation, feasibility, general management

• Industry work: Sea to Sky LRMP - energy sector rep., BC Wind

Integration System Expansion (WISE) P3 study

7 Key Ideas For Improved Green Power Producer (GPP) Opportunity

• Share the Storage
• Revamp the Grid
• Open call under 5MW
• Tax consumption, not production
• National System for Tradable Green Tags
• Utilities and GPPs work together, roles are clear
• Wake up to marine power

Share The Storage

• De-facto utility monopsonies effectively curtail electricity

sales opportunities for GPPs

• Why? Despite improved “access to wires” rules, GPPs can’t

practically sell unfirm power across the border or to industrial customers

• To be able to offer a firm product, GPPs must have

guaranteed access to storage and to power pooling - but please not at terms dictated by the utility

• With access to storage, GPPs could sell to customers of their
• wn choosing, more green projects would be financeable

Revamp the Grid

• Public utilities are mandated to deliver a reliable supply

with highest possible up-time

• Was easier to do in the days of centralized, monolithic

generation

• Grid old, out of shape. Grid models, analogue grid

controls, and dumb power electronics cannot cope

• GPPs herald the new distributed generation paradigm.

Trend will accelerate, become more complex, more fine grained, more multi-dimensional with net metering

• Grid is both path and pool, but pool is getting full
• Implement a Smart Distributed Generation Grid System,
• Share the cost equally, not just on IPPs

Open Call for Green Under 5MW

• Allow any green project under 5 MW capacity to

be built under fixed price menu with a standard EPA - at any time

• Increased certainty = lower cost of money
• Provides more private sector opportunities
• Stimulates the distributed generation system

model

• Encourages innovation in projects and

technologies

Fix the EPA, Avoid perverse manipulations

• Energy purchase agreements can be seen as political

instruments

• Utility EPAs represent policy as much as they do markets
• Accelerate the move to market pricing for all electricity -

internalize the externalities, lose the subsidies

• Need to fix obvious problems such as flow-through for

“change in law”

• Don’t give Power Production Incentives just to one source.

Incentivise all green sources equally

Tax the Product (consumption), not Resource Efficient Production

• Longer tunnels and penstocks solve potential

environmental problems, and usually lead to better resource utilization

• Long feeder lines enable otherwise marginal projects
• But the longer these conveyances are made, the

more cost and construction risk is taken by developers

• Yet, developers are taxed on these conveyances,

essentially by the foot

• Result: Developers are dis-incented to build the best

green projects

National System for Tradable Green Tags

• Emissions Credits punish the “bad guys”. That’s OK, but we

need to also reward the “good guys”

• Green tags create “Green Liquidity”. Go ahead and bet on a

great new green technology or project. It might just get built

• Requires national registry & certification authority for

authentic green sources. e.g. A fully quantified “Eco-Logo” marque

• Need a regulated bourse or market for trades and arbitrage
• GPPs would have two products to sell, energy on the first
• rder, and second order green benefits, both at a price

dictated by the market, not by policy

Utilities & GPPs Together

• Utilities:

– Standards - RPS, net metering, reliability – Resource identification, cataloguing – Distributed Generation Infrastructure (grid) – Supply risk management, Storage & Shaping – Alliances and Funding for technological development – Fix international reciprocation - no more rate pancaking

• GPPs

– Project Risk – Project Capital – Creative project development – Innovative technology application

Marine Power

• Terrestrial green power sources are simply too scarce to

ultimately displace fossil power.

• Dam every river, put a wind mill on every hill, shuck every cob,

and chip every tree. Even so, would we meet even 25% of energy demand?

• Where will all that green H2 come from?
• Global warming: what happens to resources? (e.g. glaciers)
• Look to the sea. Waves and wind contain enormous potential
• energy. An order of magnitude beyond entire global energy

demand

• No clear path but a big opportunity, perhaps the greatest

business and environmental opportunity of our century

Review: 7 Ideas For Improved GPP Opportunities

• Share the Storage - provide firming & shaping
• Revamp the Grid - Get ready for dist. generation
• Open call under 5MW - encourage innovation
• Tax consumption, not production - easiest DSM
• National System for Tradable Green Tags - green

liquidity

• Utilities and GPPs work together - roles are clear
• Wake up to marine power - vast opportunities