BC Clean Energy (IPP) Guidebook 2011 Version

In the Draft Integrated Resource Plan released this week, BC Hydro forecasts that "BC's electricity demand is expected to increase by about 50% over the next 20 years."  That is not a small amount. And based on the recommended actions contained in the Draft IRP, it is logical to assume that this increased demand will be supplied, in part, by the development of new clean and renewable energy projects in British Columbia (wind, hydro, biomass, ocean, geothermal and solar). 

So for those looking to undertake the development of clean energy projects in British Columbia, here a link to the new 2011 updated British Columbia Clean Energy Guidebook [pdf] prepared by the BC Ministry of Forest, Lands and Natural Resource Operations specifically for clean energy project proponents in the Province. 

The Guidebook provides excellent information on a variety of key project development matters including: 

  • Where to begin?
  • Permitting
  • Preparing a Development Plan
  • Hydro Power
  • Wind Power
  • Other Power (Bioenergy, ocean and geothermal)
  • Environmental Assessment
  • Stakeholder Engagement
  • First Nations Consultation
  • Transmission Interconnection

You will also find some important Q & A's on the Ministry's website.

BC's 2010 Throne Speech - Untapping BC's Clean Energy Potential

Today, the Lieutenant-Governor of British Columbia delivered the Speech from the Throne (click to read), which opened the Second Session of the 39th Parliament of British Columbia.  

The 2010 Olympics and the economy were principal topics of course, but the BC government's commitment to revamping the Province's clean energy industry also featured prominently. Below are some of the highlights from the Speech relevant to the clean energy sector:

  • The BC government will take a fresh look at B.C.'s regulatory regimes, including the BC Utilities Commission.
  • BC can harness [BC's untapped energy] potential to generate new wealth and new jobs in its communities while it lower greenhouse gas emissions within and beyond our borders.
  • Clean energy is a cornerstone of BC's Climate Action Plan to reduce greenhouse gas emissions by one‑third by 2020.
  • Building on the contributions of the Green Energy Advisory Task Force, the BC government will launch a comprehensive strategy to put BC at the forefront of clean energy development.
  • BC has enormous potential in bioenergy, run‑of‑river, wind, geothermal, tidal, wave and solar energy. We will put it to work for our economy.
  • The BC government will introduce a new Clean Energy Act to encourage new investments in independent power production while also strengthening BC Hydro.
    • It will provide for fair, predictable, clean power calls.
    • It will feature simplified procurement protocols and new measures to encourage investment and the jobs that flow with it.
  • New investment partnerships in infrastructure that encourage and enable clean modes of transportation, such as electric vehicles, hydrogen‑powered vehicles and vehicles powered by compressed natural gas and liquid natural gas, will be pursued.
  • The BC government will support new jobs and private sector investment in wood pellet plants, cellulosic ethanol production, biomass gasification technologies and fuel cell technologies.
  • Bioenergy creates new uses for waste wood and beetle‑killed forests and new jobs for forest workers.
  • A new receiving license will give bioenergy producers new certainty of fiber supply, while a new stand‑as‑a‑whole pricing system will encourage utilization of logging residues and low‑grade material that was previously burned or left on the forest floor.
  • The BC government will optimize existing generation facilities and report on the Site C review this spring.
    • It will develop and capture B.C.'s unique capability to firm and shape the intermittent power supply that characterizes new sources of clean energy to deliver reliable, competitively‑priced, clean power — where and when it is needed most.
  • New conservation measures, smart meters and in‑home displays will help maximize energy savings. New smart grid investments and net metering will provide more choices and opportunities for reduced energy costs and more productive use of electricity.
  • New transmission investments will open up the Highway 37 corridor to new mines and clean power.
  • New transmission infrastructure will link Northeastern B.C. to our integrated grid, provide clean power to the energy industry and open up new capacity for clean power exports to Alberta, Saskatchewan and south of the border.
  • We will seek major transmission upgrades with utilities in California and elsewhere.
  • If the Province act with clear vision and concerted effort now, in 2030, people will look back to this decade as we look to the 1960s today.

With significant investment in green energy being made elsewhere, both in Canada and the US,  we hope that today's Speech from the Throne demonstrates the BC government's commitment to building the Provincial economy in part with the support of the clean energy sector.

BC's Green Energy Advisory Task Force

Following up on the BC Government's August 2009 throne speech and the Premier's announcement on November 2, 2009, today, the BC Government announced the members of, and the terms of reference for, BC's Green Energy Advisory Task Force. 

 
Here is the weblink for public submissions, which can be made on any of the four task force topics until December 31.
 
I am very pleased to have been appointed to be a part of a team that will advance BC's long-term vision for green energy.
 
Reporting directly to the Cabinet Committee on Climate Action and Clean Energy, the Green Energy Advisory Task Force will comprise of the following 4 advisory task force groups:
  • Green Energy Advisory Task Force on Procurement and Regulatory Reform
    This task force will recommend improvements to BC Hydro’s procurement and regulatory regimes to enhance clarity, certainty and competitiveness in promoting clean and cost-effective power generation; and identify possible improvements to future clean power calls and procurement processes.
  • Green Energy Advisory Task Force on Carbon Pricing, Trading and Export Market Development
    This task force will develop recommendations to advance British Columbia’s interests in any future national or international cap and trade system, and to maximize the value of B.C.’s green-energy attributes in all power generated and distributed within and beyond B.C. borders. The task force will also develop recommendations on carbon-pricing policies and how to integrate these policies with any cap and trade system developed for B.C.
  • Green Energy Advisory Task Force on Community Engagement and First Nations Partnerships
    This task force will develop recommendations to ensure that First Nations and communities see clear benefits from the development of clean and renewable electricity and have a clear opportunity for input in project development in their areas. It will work in partnership with First Nations, not only to respect their constitutional right, but to open up new opportunities for job creation and reflect the best practices in environmental protection.
  • Green Energy Advisory Task Force on Resource Development
    This task force will identify impediments to and best practices for planning and permitting new clean, renewable-electricity generation to ensure that development happens in an environmentally sustainable way. The task force will also consider allocation of forest fibre to support energy development and invite input from solar, tidal, wave and other clean energy sectors to develop strategies to enhance their competitiveness.
BC has tremendous green energy potential and we are pleased that the government is taking steps that will help turn British Columbia's energy potential into real economic, environmental and social benefits for all British Columbians.

Update: BCUC Section 5 Transmission Inquiry

Following up from our earlier blog post on the Section 5 Transmission Inquiry, after almost four months of workshops and procedural conferences, the BCUC continues to narrow the scope of the issues for the Inquiry. Stakeholder consultation is on-going and the two principal utility participants are holding workshops and inviting comments from participants on specific issues (BC Hydro on resource option potential and BCTC on its scenario development process and the export study) before September 18 when the first draft "evidence" is submitted by BC Hydro and BCTC.

Two weeks ago, after an uncomfortably long but ultimately productive oral hearing on the scope of issues for the Inquiry, the BCUC released its preliminary determinations on the scope and scale for the next steps in the long-term analysis of the transmission system. The issues addressed in the BCUC's July 10 letter on preliminary determinations focused mainly on the following issues

  • provincial generation potential
  • domestic electricity demand
  • interjurisdictional trade (import and export of electricity)
  • analysis of the transmission system
  • areas inappropriate for development
  • integration of generation, demand and transmission requirement
As you can see, the issues are very broad and the analysis at a very high-level.
 
Yesterday, over 200 participants attended a BC Hydro workshop in Vancouver on the Province's renewable energy resource option potentialBC Hydro's presentation included a series of renewable energy resource maps of the Province showing potential sites for run-of-river, large hydro and pumped storage, wind, geothermal, biomass, solar and, wave and tidal. BC Hydro also provided detailed maps on so-called "exclusion areas" (ie, legal no build zones) and potential regional power clusters. I found the maps to to be very very interesting, albeit not particularly site specific. If you interested in where the renewable energy potential is in British Columbia you have to check out these maps (I am told the materials will be available on the BC Hydro site sometime soon).  BC Hydro has asked that stakeholders provide it with confidential comments on BC Hydro's version of the Province's resource option potential by August 14. Stakeholders may also submit their own comments directly to the BCUC through the Inquiry process. 
 
There is also a significant First Nations element to the Inquiry. The first issue which the BCUC is addressing in this regard, is the duty to consult and accommodate First Nations in the context of the Inquiry. I won't at this time get into the complex legal issues on the subject, but a further procedural conference on First Nations issues is scheduled at the BCUC on August 18 and 19, 2009 and written submissions are now being made.

With over 105 registered participants, the Section 5 Transmission Inquiry is certainly one of the most followed hearings ever before the BCUC, and one of the more interesting, especially with respect to the future development of renewable energy resources in this Province.

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Integrating Variable Electricity Generation into the Grid

The North American Electric Reliability Corporation (NERC), the international regulatory authority for electric reliability of the bulk power system in North America, yesterday released a special report entitled "Accommodating High Levels of Variable Generation", which calls for changes to the way the North American bulk power system is planned and operated.  For a quick read, here is a copy of the executive summary

The NERC special report was drafted by a committee of some 50 industry experts, including grid operators, utilities, wind and solar manufacturers, trade associations and government authorities across North America. Some of the report’s specific recommendations include:

  • Planning practices and methods require change — The integration of high levels of variable generation will require system planners to change planning practices, procedures, methods, and tools to ensure reliability in the coming years. Incorporating resources located at the distribution-level (such as roof-top solar panels and “smart grid” technologies) into bulk power system planning studies is a key area in need of improvement, along with integrated analysis of transmission and resources in probabilistic planning studies.
  • Grid operators require new tools and practices — Ensuring the efficient, effective, and reliable use of variable resources will require a number of changes in system operations centers, including incorporating consistent and accurate forecasting of daily and seasonal variable generation output and advanced control techniques into daily and real-time practices. A comprehensive regional analysis of the operational impacts of proposed system changes (i.e., larger balancing areas or participation in wider-area balancing management) is also recommended.
  • Industry encouraged to pursue research and development and establish appropriate market signals — A renewed focus on research and development for new system models, continued improvement of variable generation technologies, and advanced planning techniques is needed. The report also recommends that organized markets consider instituting mechanisms designed to ensure the availability of adequate flexible balancing resources. Appropriate requirements for generation ramping requirements, minimum generation levels, and shorter operations scheduling intervals should also be considered.
  • Policy makers encouraged to remove barriers to transmission development and consider reliability — The report encourages policy makers to accelerate transmission siting, approve permits for needed facilities, and otherwise remove barriers to needed transmission development. It also encourages policy makers to consider the opportunities and issues associated with proposed system changes, the importance of coordinated planning, and the impacts of variable generation on wide-area system reliability.

In the context of the BCUC's Section 5 Inquiry on BC's long term electricity transmission requirements, this report comes at a most appropriate time.  There is no doubt that intermittent, or variable, electricity poses a challenge connecting to BC's heritage electricity grid, so it is critical that these issues are considered, at a precisely the time when more and more electrons from renewable power, like wind and solar, are seeking access to the grid.  

The BC Energy Plan: Report on Progress

Last week, the BC Government released a report on progress of its 2007 BC Energy Plan.  The report shows just how far the Province has come in a little over 2 years since the introduction of the BC Energy Plan and demonstrates the Province's environmental leadership and many initiatives in the clean energy sector.

Some of the renewable energy specific highlights in the report include:

The Province should be properly recognized for doing many of the right things to encourage the development of a green economy on many different fronts throughout British Columbia. While there is much work still to be done, the foundation has been laid and businesses have stepped up and invested millions of dollars, and created thousands of jobs as a result of the Energy Plan. So, yes, a green focused economy works very well for British Columbia.

BC provides funding for 3 ocean energy projects

Good news for ocean energy development in B.C. On April 3rd, 2009, the B.C. government announced that SyncWave Systems Inc., Canoe Pass Tidal Energy Consortium, and Pacific Coast Wave Energy Corp., have each received $2 million from B.C.'s Innovative Clean Energy Fund.

The government's press release does not contain particulars of the three ocean energy projects chosen to receive funding, here's what I've been able to gather from media reports.

One report states that the Canoe Pass Commercialization Project will see two 250 kW tidal turbines installed in the tidal channel between Quadra Island and Maude Island, just north of Campbell River.

Another report indicates that the Pacific Coastal Wave Energy Corp. is partnering with the District of Ucluelet on a four-megawatt ocean-wave energy demonstration project. This report also notes that SyncWave's wave energy project will be located near Tofino. 

The Ocean Renewable Energy Group, in its press release, sounds an optomistic tone:

These new projects along with Vancouver’s Clean Current Power Systems tidal turbine commercialisation activities and the Bay of Fundy tidal energy demonstration project are reinforcing Canada’s international ranking as third in ocean energy development.

 

 

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Meanwhile...South of the Border: Introducing The American Clean Energy and Security Act

President Obama promised a commitment to green energy, and today, the United States Committee on Energy and Commerce delivered, through the introduction of new federal clean energy legislation that, according to the press release, "will create millions of clean energy jobs, put America on the path to energy independence, and cut global warming pollution."  

The American Clean Energy and Security Act of 2009 (ACESA) is still in the draft stage, but it certainly looks promising, and I must admit to a bit of envy of our American friends and their progressive legislators.  Here is the Discussion Draft Summary (click to download) which is definitely worth reading (all I can say is wow!).  The New York Times' Green Inc. blog weighs in on the reaction to the controversial legislation.

The ACESA will focus on four principle areas:

  1. Clean Energy: which includes renewable energy load requirements at 6% in 2012 and a whopping 25% in 2025, carbon capture and sequestration, clean fuels and vehicles, smart grid and electricity transmission.
  2. Energy Efficiency: which includes new building and appliance standards, energy rebates, new fuel and emissions standards, and national energy efficiency standards.
  3. Reducing Global Warming Pollution: which includes a market-based program of "allowances" and "offsets" for electric utilities, oil companies, large industrial sources and other entities (looks alot like cap and trade), steps to preventing international deforestation and the introduction of additional greenhouse gas standards.
  4. Transitioning to a Clean Energy Economy: which includes measures to ensure domestic competitiveness in the form of rebates for companies which produce commodities that are traded globally, the promotion of green jobs, consumer assistance, export of clean tech and a high level response to global warming.

In Canada, we can't even begin to compare our green energy legislation to the Americans, there is definitely nothing like the proposed ACESA, which is definitely too bad, but perhaps also a goal for our country's leaders.  For some recent Canadian context, the federal government has just invested $140M with the major oil companies for carbon-capture projects (ugh!). In addition, the feds have not renewed the very successful (and green economy stimulating) Canadian ecoENERGY for Renewable Power program

In all, it remain to be seen what will become of the surely to be ACESA, but judging by the broad reach of the proposed legislation, the Obama Administration means business when it comes to the green economy. One thing is abundantly clear - the United States sees clean energy, energy efficiency and fighting climate change as part of the new world order and critical to the future of America. This leadership is something Canadians should recognize and the smart ones will harness the momentum from south of the border and work to create our own carbon-reduced green energy economy.  The green energy technology revolution:  you can't stop it, you can only hope to contain it.

Facts on Independent Power Production in British Columbia

Yesterday, the British Columbia Government, Ministry of Energy, Mines and Petroleum Resources, issued a press release entitled "Facts on Independent Power Production" (click to download a copy), to correct misleading claims about electricity generation in the Province. It's a must read for anyone who is interested in green energy in British Columbia.  

The comprehensive press release deals with many of the falsehoods being spread by opponents to independent power producers and specifically addresses, with facts, the following topics: 

  • What it means to BC to be "electricity self-sufficient"
  • BC Hydro's on-going role in the BC Energy Plan
  • Costs to ratepayers for long-term IPP energy purchase contracts
  • The non-privatization of BC Hydro
  • Local input and environmental review of IPP projects
  • BC rivers remaining in the public's control
  • The possible future export of power by IPP's
  • The export/import debate
  • The number of current water power applications and what these mean
  • The total number of IPP's operating in BC and the investment they have brought
  • First Nations support of IPP projects

This release is very good timing given the current political climate and the unfourtunate, mostly politically motivated, backlash against the IPP industry. Hopefully, the facts will help educate the public about IPP's and we can then move to a proper dialogue on how we as a Province can use our incredible natural endowment to reduce our greenhouse gas emissions and reverse the damaging effects of climate change.  To do anything short of that would be a disgrace.

BC's Budget - Some red with just a dash of green

Today, the BC Government released its 2009 Budget. Here is a copy for your reading pleasure and the link to the BC Budget website

The Budget, which includes a $740 billion deficit over two years, provides little "news" for the green energy sector, but overall, it provides a solid economic foundation for the Province in these turbulent times.  The Carbon Tax is staying and there are some additional Climate Action incentives for low income earners.  In my view, combined with the Throne Speech yesterday, the Provincial Budget is mostly good news for the green energy industry as it confirms the BC Government's commitment to renewable power generation in a carbon-neutral economy as a cornerstone to continued economic growth in the Province.

One notable inclusion in the Budget, which is of interest to the ocean energy community is a new tax exemption.  Effective, February 18, 2009, equipment specifically designed to produce mechanical or electrical energy from ocean currents, tides or waves is exempt from the Social Service Tax. Generators, wiring, controllers, monitors, pumps, tubing, floats, water fences, aids to navigation as defined in the federal Canada Shipping Act, 2001, and devices that convert direct current into alternating current are also exempt when sold with and as part of the specifically designed equipment.

Ocean Energy Industry Forecast Published

Just last week, UK based energy business analysts Douglas-Westwood published a new study entitled "The World Wave & Tidal Market Report 2009-2013".   Media accounts have summarized the forecast as follows:

  • 86 MW of wave and tidal current stream capacity will be installed worldwide in the 2009 to 2013 period
  • with over 200 concept technologies, commercialization of leading technologies in both sectors is only just beginning
  • the industry faces many challenges, including survivability and reliability, cost reduction, attracting private investment, supply chain stimulation, and development of market mechanisms to support deployment and development activities
  • A total of 135 units are forecast for deployment over the next five years. Of these, 74 are commercial-scale units – 55% of the total
  • the UK is leading the way with 60% of the total ocean energy capacity - about 51MW. The reasons for the UK's prominence can be summarized as:
    • excellent physical conditions for ocean energy generation;
    • market mechanisms and funding is in place; and
    • the UK is home to many leading ocean energy companies (this is likely as a result of the first two factors...)

Canada is reported to have capacity of 6MW coming on stream during this period.

This report appears to be a good "state of the industry" report and is therefore a good starting point for further discussions and action on the development of Ocean Energy globally, but in particular in Canada and, with the right programs and leadership, in British Columbia.

 

Time is ripe for investment in Ocean Energy in British Columbia

I was happy to hear this morning that a joint venture of European companies has received a permit to begin investigating the viability of a wave energy project off the west coast of Vancouver Island, in the Clayoquot area. Looking at the state of the ocean energy sector in British Columbia, I feel that this latest announcement is a positive step, but more is needed.

As the global economy slows, governments are stimulating economic activity by investing in infrastructure projects. In B.C., the time is therefore ripe for the government to support clean, renewable ocean energy (both tidal and wave technologies). With a shoreline that spans somewhere near 27,000 kms (including all islands and inlets) and, according to Mike Tarbotton of Triton Consultants, an estimated 89 potential sights to develop tidal electricity generation plants, B.C. has the potential to be one of the world's most prolific producers of clean and renewable tidal and wave energy.

However...

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In the news this week - British Columbia Renewable Energy

  • In a newspaper editorial by Harvie Campbell of Pristine Power, British Columbia's massive forest industry is poised to take a leadership role in bioenergy. By using BC's abundant timber residue, bioenergy technologies can take the forest industry's "leftovers" to create renewable power that is GHG neutral. The economic and environmental benefits of bioenergy are significant.  To me, this makes too much sense and no doubt it is a welcome opportunity in many communities across British Columbia that are facing new challenges with the forest industry. The solution may just be as simple as diversification into renewable energy.
  • Terasen Gas opts for Compressed Natural Gas Vehicle Program (CNGV) to promote clean, efficient natural gas vehicles as an energy alternative in B.C.'s transportation sector. Just another example how the private sector is innovating to reduce greenhouse gas emissions.
  • BCTC files with BCUC for proposed 500 kv, 255 km transmission line from Merritt to Coquitlam, BC.  The line is needed to service the growing population of Vancouver's Lower Mainland and if approved is expected to be completed by 2014.  You can expect many more new high-voltage transmission lines to be built in British Columbia in the next decade.
  • Wind, Water, Tide and Garbage will power Vancouver Island say proponents of alternative energy on Vancouver Island.   With less than a week remaining before proposals are to be submitted to BC Hydro in response to the Clean Power Call, British Columbia can expect to see a series of clean power projects coming online in the next few years.
  • Applause for BC's Carbon Tax at the Global Climate Summit in California. British Columbia is the only jurisdiction in North America to have a carbon tax.  While it has proven to be a political lightning rod here at home, leadership at the highest political levels on reducing greenhouse gases is few and far between in North America.  Reminds me of a quote:

"We can't solve problems by using the same kind of thinking we used when we created them." Albert Einstein