Disclaimer: The views expressed are those of Paul Gipe
and are not necessarily those of the sponsor.
Disclosure: Paul Gipe has worked with Aerovironment,
ANZSES, APROMA, ASES, AusWEA, AWEA, BWEA,
BWE, CanWEA, CAW, CEERT, DGW, DSF, EECA, ES&T,
GEO, GPI Atlantic, IREQ, KWEA, MADE, Microsoft,
ManSEA, MSU, NRCan, NRG Systems, NASA, NREL,
NZWEA, ORWWG, OSEA, PG&E, SeaWest, SEI, TREC,
USDOE, WAWWG, WE Energies, the Folkecenter, the
Izaak Walton League, the Minnesota Project, the Sierra
Club, and Zond Systems, and written for magazines in
the USA, Canada, France, Denmark, and Germany.
Paul Gipe, wind-works.org
Carleton College V82, Northfield, Minnesota
Feed-in Tariffs
&
Ontario’s Green Energy Act
May 28, 2009
by
Paul Gipe
Noordoost polder, the Netherlands
Renewable Energy Has
Come of Age
Paul Gipe, wind-works.org
2008 World Wind Capacity
Megawatts (Thousands)
140
120
100
80
Europe
North America
Asia
60
40
20
0
80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Year
Paul Gipe, wind-works.org
Freiburg -- Germany’s Solar City
Paul Gipe, wind-works.org
Solar Photovoltaics Development
Total Installed MW (Thousands)
6
5
4
Spain
USA
Japan
Germany
3
2
1
0
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Year
Paul Gipe, wind-works.org
Lackawanna, New York
North Americans Have Been
Dabbling Around the Edges of
Renewable Energy Policy
Little Recognition of the Crisis
Facing the Continent
Paul Gipe, wind-works.org
Profound Issues Confront
North America’s Energy Future
• Climate Change Not Only Issue
• Transportation Fuels
Very Little Public Transit
• Domestic Supplies Declining
Paul Gipe, wind-works.org
Cowley Ridge, Alberta
Profound Issues Confront
North America’s Energy Future
• Natural Gas Production
Has Peaked
Critical for Heating
• Gore Upped the Ante (100%)
Paul Gipe, wind-works.org
Goderich, Ontario
North America
Needs Massive Reconstruction
of its Infrastructure
Renewable Energy Development
Can Reindustrialize
the North American Economy
Paul Gipe, wind-works.org
Noordoostpolder, the Netherlands
North American RE Market Growth
• Exciting, Yes
• Significant, Yes
• Not Nearly Enough
by Any Standard
Paul Gipe, wind-works.org
Buffalo Ridge, Minnesota
US Electricity Generation
~4,000 TWh/yr
Nuclear
801
2850
289
Hydro
Other
81
Fossil-Fired
Scale Needed: North America
Thermal Generation
Canada
MW
75,000
USA
1,500,000
Total
1,600,000
Paul Gipe, wind-works.org
Buffalo Ridge, Minnesota
Electric Vehicle
Charging
Paul Gipe, wind-works.org
Scale Needed: North America
Passenger Vehicle Miles
Canada
USA
Total
Paul Gipe, wind-works.org
MW
50,000
750,000
800,000
Bowling Green, Ohio
Scale Needed: North America
• ~2,500,000 MW
• ~120x Today!
Paul Gipe, wind-works.org
Ponnequin, Colorado
Can It Be Done in North America?
• 2,500,000 MW / 200,000 MW/yr
• ~12.5 yrs
• <20 years Heavy Truck Production
Thermal Generation
Passenger Vehicle Miles
• Yes, It Can Be Done
• But Not At Current Pace
Paul Gipe, wind-works.org
USA & Canada 100% Renewable?
Yes! It Can Be Done!
But Not With Current Policies
Paul Gipe, wind-works.org
Cowley Ridge, Alberta
North America is Capable
of Huge National Undertakings
Cleveland, Ohio
• TVA, BPA, WPA
• Ontario Hydro, Hydro Quebec
• Civil Rights, Anti-Smoking
Paul Gipe, wind-works.org
A Challenge
Worthy of Great Nations
Paul Gipe, wind-works.org
Vestas V110, Denmark
Aggressive Targets
Require Aggressive Measures
Ferndale, Ontario
German Renewable Energy Targets
2010
Electricity 12.5%
Paul Gipe, wind-works.org
2020
2030
2050
30%
45%
80%
Why the European Success?
• Community Involvement
Germany & Denmark
• Advanced Renewable Tariffs
18 EU Countries use Electricity Feed Laws
Paul Gipe, wind-works.org
Advanced Renewable Tariffs
• What Are They?
Payment for Generation (Feed-in Tariffs)
Political Price, Not Political Quota
• How Do They Work?
Price Differentiation
Paying for Solar, Paying for Wind
• Where?
Germany, France,
Spain . . .
. . . 18 EU countries
Paul Gipe, wind-works.org
Renewable Tariffs in North America
. . Unthinkable?
•
•
•
•
Yes--Just 4 years ago
Today? No
Now Possible
Growing Trend
in both USA & Canada
Paul Gipe, wind-works.org
Gaspé, Quebec
Market Mechanisms Status
• Renewable Tariffs Developing
Momentum
Paul Gipe, wind-works.org
Montjoyer, France
The Mood Has Changed
• Ontario Moved First
Paul Gipe, wind-works.org
Montfort, Wisconsin
Goderich, Ontario
Ontario “Gets It”
First Modern System
of Advanced Renewable Tariffs
in North America
Paul Gipe, wind-works.org
Ontario’s Green Energy
& Green Economy Act
• Multi-faceted
Affects Several Acts
• Efficiency & Conservation
• Renewable Energy
Expedited Siting Approvals
Procure Through Feed-in Tariffs
• Passed May 14, 2009
Paul Gipe, wind-works.org
Ontario’s Green Energy Act
• Changes Public Policy on Electricity
Includes Industrial & Environmental Policy
Gives Renewables Priority
• Targets Industrial Development
• Targets Job Creation
Goal: 50,000 Jobs in 3 Years
Nano Solar “Interested”
Everbrite 1/2 Billion Plant: 1,200 jobs
Paul Gipe, wind-works.org
Why Renewables A Priority?
• Addresses Coal Phase Out in 2014
Renewables Can Be Added Quickly
• Long-term Lower Costs
Avoids Fuel Volatility
• Job Creation Engine in Europe
Paul Gipe, wind-works.org
Wind Energy
A Job Creation Engine in Europe
Europe
Direct
Indirect
Total
Germany
38,000
52,000
90,000
Denmark
20,500
17,230
37,730
Spain
23,500
?
23,500
Total
150,000
2008, BWE, EWEA
Paul Gipe, wind-works.org
Enercon, Aurich, Germany
Solar PV Growing Rapidly
•
•
•
•
2008: 13,000 MW Worldwide
5,000+ MW/yr
$20+ Billion
Major Markets
Germany--1,500+ MW/yr
Spain--500+ MW/yr (2,600 MW in 2008)
Japan--250 MW/yr
California--150 MW/yr
Paul Gipe, wind-works.org
Rancho Seco, Calfornia
Renewable Tariffs &
Solar Photovoltaics in Germany
MW Total (Thousands)
6
5
4
3
2
Advanced Renewable Tariffs Launched
Renewable Tariffs Launched
100,000 Rooftops
1,000-Rooftops
(2,500 x 3kW)
1
0
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Year
Paul Gipe, wind-works.org
Solar PV in Germany 2008
•
•
•
•
•
•
•
150,000 New Systems
€6 Billion
Total of 600,000 Systems
~1,500 MW in 2008!
Total 5,000 MW
~2%Supply in Bavaria
~1%Supply in Germany
Paul Gipe, wind-works.org
German Homeowners
• ~800 MW on Home
Rooftops/yr
• ~3,000 MW+ Total
• ~2.5 TWh/yr
• ~ €2 Billion/yr Revenue
• Anyone with a Roof Can
Do Solar in Germany!
Paul Gipe, wind-works.org
German Farms--Solar PV Crop
• ~700 MW on Barn Rooftops in 2008
• ~2,000 MW Total in 2008 (€9 Billion)
• ~2 TWh/yr (€1Billion)
Paul Gipe, wind-works.org
Germany’s Renewable Tariffs
The Results (2008)
•
•
•
•
•
•
•
Renewables 15.3% of Supply
Renewables 9.6% of Primary Energy
90,000 Employed in Wind Industry
50,000 Employed in PV Industry
8,000 Employed in Biogas Industry
280,000 Employed in Renewables
€32 (~$50) Billion Turnover
Paul Gipe, wind-works.org
Ontario’s Proposed Feed-in Tariffs
•
•
•
•
Key Elements of Successful Programs
Differentiated by Size & Technology
Differentiated by Application
Tariffs Based on Cost of Generation
Plus Reasonable Profit
• No Program Cap (Bring It On!)
Paul Gipe, wind-works.org
Ontario’s Proposed Feed-in Tariffs
• No Project Cap, Excepting
Groundmounted Solar PV 10 MW
Hydro 50 MW
• Right to Connect (with Limitations)
• Obligation to Purchase (with Limitations)
• Most Renewables
Paul Gipe, wind-works.org
Ontario’s Proposed Feed-in Tariffs
• Stakeholder Engagement Complete
• Detailed Rules Proposed
• Addition of Renewables
Determines Grid Upgrades & Expansion
• Rules in Place ~June 2009
Paul Gipe, wind-works.org
Ontario’s Proposed Feed-in Tariffs
• First Offshore Wind Tariffs in NA
• First Aboriginal Bonus in North America
First NA Policy for First Nations
• First Differentiated Solar PV Tariffs
5 Tranches or Classes
• Highest Wind, Solar, Biogas Tariffs in NA
Paul Gipe, wind-works.org
Ontario’s Proposed Feed-in Tariffs
• Does Not Use Subsidies or Grants
• Costs Borne by Consumers
Not Taxpayers
• Community Wind Bonus
Third Jurisdiction in North America
Paul Gipe, wind-works.org
Ontario’s Proposed Feed-in Tariffs
Ontario Power Authority's Revised Draft
Feed-in Tariffs 2009
13-May-09
•
•
•
•
•
Wind: 2 Classes
Solar PV: 5 Classes
Hydro: 2 Classes
Biogas: 3 Classes
Biomass: 2 Classes
Paul Gipe, wind-works.org
Years $CAD/kWh
Wind
Onshore*
Offshore*
20
20
0.135
0.190
Photovoltaics
Rooftop or Groundmounted
<10 kW
Rooftop >10 kW<250 kW
Rooftop >250 kW<500 kW
Rooftop >500 kW
Groundmounted <10 MW*
20
20
20
20
20
0.802
0.713
0.635
0.539
0.443
Hydro
<10 MW*
>10 MW<50 MW*
40
40
0.131
0.122
Landfill Gas
<10 MW*
>10 MW*
20
20
0.111
0.103
Biogas
<500 kW*
>500 kW<10 MW*
>10 MW*
20
20
20
0.160
0.147
0.104
Biomass
<10 MW*
>10 MW*
20
20
0.138
0.130
Ontario Solar PV Tariffs 2009
0.802
0.69
Rooftop <10 kW
0.713
0.613
Rooftop <250 kW
0.635
0.546
Rooftop<500 kW
0.539
0.464
Rooftop >500 kW
$CAD/kWh
$USD/kWh
0.443
0.381
Groundmounted <10 MW
0
0.2
0.4
0.6
$/kWh
Paul Gipe, wind-works.org
0.8
1
Solar PV Tariffs Worldwide
Italy
South Korea
France
Ontario
Germany
Czech Republic
Spain
Austria
Washington State*
California*
South Australia*
0
0.2
0.4
0.6
$/kWh
Paul Gipe, wind-works.org
0.8
1
Ontario Wind Tariffs 2009
$CAD/kWh
$USD/kWh
0.135
Onshore
0.116
0.19
Offshore
0.163
0
0.05
0.1
$/kWh
Paul Gipe, wind-works.org
0.15
0.2
Domestic Content Requirements
• 40%-60%for Wind & Solar
To Receive Feed-in Tariffs
• Could be Stumbling Block
Effect Unknown at This Time
• Component Supply Chain
Lots of Unused Industrial Capacity
Paul Gipe, wind-works.org
Grassroots Movement Has Begun
• Explosion of Interest
• Groups Active Across Canada
• Local Groups Now Active Across US
Most Within the Past 12 Months!
• Public Out in Front
Demands Aggressive Action
• Tipping Point Reached?
Paul Gipe, wind-works.org
Ferndale, Ontario
Renewable Tariffs Are In Play
•
•
•
•
•
British Columbia, New Brunswick
Vermont, Michigan, Illinois, Indiana!
Minnesota & Rhode Island
California--Feed-in Fever
US House & US Senate
Paul Gipe, wind-works.org
Move From
A Culture of Consumption
to
A Culture of Conservation
--Ontario Premier Dalton McGuinty
Paul Gipe, wind-works.org
Montfort, Wisconsin
Ontario’s Feed-in Tariff Program
The Most Progressive Renewable
Energy Policy in North America
in Two Decades
Paul Gipe, wind-works.org
Goderich, Ontario
Feed-in Tariffs
“Turn farms, homes, and
businesses into entrepreneurs”
--Terry Tamminen, Former Chief Policy Advisor to Governor
Arnold Schwarzenegger & Policy Advisor to Governor
Charles Crist
Paul Gipe, wind-works.org
Goderich, Ontario
Ontario’s Feed-in Tariff Program
a
“Made in Ontario”
Solution
Ferndale, Ontario
Paul Gipe, wind-works.org
Hinesburg, Vermont
. . . Let’s Get to Work!
Paul Gipe, wind-works.org
Renewable Tariffs-New Policy Option
for North America
www.wind-works.org
Manawatu Gorge, New Zealand