The Competitiveness of Geothermal Technology as Microgeneration by Gustavo Hernandez Henry Dakurah Anne Denman Andrei Nikiforuk Alberta Energy Electricity Division 6th fl Petroleum Plaza North Tower 9945 108 St, Edmonton, AB 2nd National GeoExchangeTM Business & Policy Forum A Presentation outline 2 Microgeneration in Alberta MG technologies Benefit of MG technologies Geothermal technology as MG Future evolution of GT as MG in Alberta Conclusions December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Microgeneration in Alberta - Policy MG policy offers market diversification, business opportunities and supports green electricity generation MG is defined as EcoLogo qualified distributed generation up to 1MW of electricity generation 0 Housing Small MG 150 kW Small Business 1 MW Large MG Microgenerators sized to customer load Microgenerators will receive credit for excess energy The process is simple, efficient and microgenerator friendly 3 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Available microgeneration technologies Photovoltaic Solar Heating – Electricity Geothermal Electricity Micro hydro Micro wind Biomass Cogeneration Fuel Cells Source: www.qub.ac.uk Source:http://www.ausra.com http://www.epa.gov Source: Source: Source: Source: http://cr.middlebury.edu http://www.nrel.gov http://p2library.nfesc.navy.mil Source:http://www.photonenergy.co.uk Source: Wikipedia 4 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Where MG can benefit Alberta Residential Energy Use by End-Use Residential Energy Use by Energy Source Space Cooling * Other 3.01 0.94 Lighting Heating Oil 5.276.19 Wood Appliances 12.81 8.82 WaterElectricity Heating ** 15.71 36.82 Space Heating * Natural Gas 63.21 47.23 % % % 5% 10 % 10 %%2015 %% 20 30 % 25 % 40 % 30 %%35 50 % 40 % 60% 45 % 70 50 Primarily * Main areaGeothermal of benefit Direct Source: Statistics Canada, Report on Energy Supply-Demand in Canada, 1990–2005, Ottawa, May 2007 5 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Advantages - Cost evolution for MG 6 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Microgeneration – Benefits: jobs Renewable energy Construction & installation Ratio per [MWp] Operation & maintenance ratio per [MWp] Wind 7.5 0.2 Hydroelectrics 18.6 1.4 Geothermal 10.75 1.7 Solar— Photovoltaic 17.4 1.3 Solar—thermal 5.7 0.7 Solar-thermoelectrics 44.4 2 Biofuels 1.5 1.7 Sources: - The benefits of a Brazilian agro-industrial symbiosis system and the strategies to make it happen, Journal of Cleaner Production - The expansion of renewable energies and employment effects in Germany, Energy Policy Journal - Use of economic instruments in the German renewable electricity policy, Energy Policy Journal - Implementation of energy-conservation policies: the case of electric heating conversion in Denmark, Applied Energy Journal - The effect of renewable energy on employment. The case of Asturias (Spain), Renewable & Sustainable Energy Reviews Journal - Brazilian waste potential: energy, environmental, social and economic benefits, Energy Policy Journal 7 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A GHG - Canada Framework A framework: 20% (~150 MT) decrease from estimated 2006 GHG Supported Kyoto: 6%by reduction recent NRTEE from 1990 analysis levelsand = 220 PMMT Harper’s reduction speeches from to levels by 2020 estimated APP and UN, 2006the GHG Federal levels Government by 2012 proposes: 60% to 70% reduction from 2006 levels by 2050 Source: Statistic Canada 8 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A GHG - Alberta Framework Alberta has GHG emission regulation. Different programs (Me First, Alberta Solar Municipal Showcase & etc) Starting July 1, Alberta facilities that emit more than 100,000 tonnes of greenhouse gases a year will be required to reduce their emissions intensity by 12 per cent under the Climate Change and Emissions Management Amendment Act. Industry has been given three options to meet the 12 per cent reduction in emissions intensity. Facilities can: make operating improvements, buy Alberta-based credits or contribute to the Climate Change and Emissions Management Fund Sources: Alberta Energy http://www.gov.ab.ca 9 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A GHG emission by technology Technology g/kWh Coal 975 NG Thermal 608 NG Combined Cycle 519 PV 120 Geothermal 40-115 Solar PV 53 Biomass 0-40 Wind 29 Hydro-electric 19 Sources: http://www.cna.ca Geothermal energy technology and current status: an overview, Renewable & Sustainable Energy Reviews 10 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Geothermal technology in Alberta Geothermal Direct Use Heating and cooling Available always and everywhere Competitive technology, but with a high capital cost High energetic and exergetic efficiency Supported by the Federal Government 30,000 heat pump units have been installed (www.iseee.ca) Geothermal Electricity Will be competitive with classical generation technology in future years Widespread geothermal potential Available always and everywhere Availability of around 100,000 abandoned wells of the O&G industry Geothermal available always and everywhere in Alberta Source: http://www.iseee.ca 11 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Future of Microgeneration $/MWh 360 320 301 275 200 150 100 50 0 LP PP Retail Retail Retail Retail PV 2007 2015 2020 2030 Biom Geoth Wind Geoth Ht (*) El Microgeneration, except (*) MG prices: CERI, EDC Associates Ltd., Chase Energy Canada Ltd, others Retail Price include administrative, distribution and transmission charges 2007 Reference numbers: DOE Alberta, RRO regulated base, AESO, Direct Energy, ENMAX, EPCOR LP: the lowest price, represented by coal, w/o CO2 taxation PP: wholesale price taking into consideration the technology evolution and CO2 taxation but excluding Nuclear technology 12 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Competitiveness of MG in Alberta SomeFuel MG Celltechnologies may need support in order to be competitive Solar PV Need support Cogeneration “Support” could mean: Geothermal Electricity Advertising promotion Solar Heating Electricity Need some Cap-and-trade regulatory systems support Geothermal Direct * Taxes in various forms Heating * Solar Incentives and subsidies in various forms Micro Hydro Programs (energy efficiency, local development, Don’t need Micro Wind support others) Etc.Biomass 2010 * Not MG 13 December 10-11, 2007 2020 2030 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Competitiveness of MG in Alberta Fuel Cell Solar PV Need support Cogeneration Geothermal Electricity Solar Heating Electricity Need some support Geothermal Direct * Solar Heating * Micro Hydro Don’t need support Micro Wind Biomass 2010 * Not MG 14 December 10-11, 2007 2020 2030 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Conclusion Geothermal can be used anywhere in Alberta and is not weather dependent As part of MG, Geothermal can: Diversify the generation mix in Alberta and help meet increased energy demand Help fulfill the provincial and federal targets for GHG emission Enhance regional economies through local investment Generate jobs throughout Alberta’s economy Improve stability of electricity cost for users Help with the efficiency of the electric system, decreasing transmission losses There is a strong scenario for MG to participate in the deregulated electricity market in Alberta 15 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Questions, remarks, discussions Gustavo Hernandez Policy Integration Analyst DOE, Electricity Division Government of Alberta (780) 644.2279 gustavo.hernandez@gov.ab.ca Henry Dakurah Senior Analyst DOE, Electricity Division Government of Alberta (780) 427-1687 henry.dakurah@gov.ab.ca Andrei Nikiforuk Senior Manager DOE, Electricity Division Government of Alberta (780) 422-9210 andy.nikiforuk@gov.ab.ca 2nd National GeoExchangeTM Business & Policy Forum Anne Denman Executive Director DOE, Electricity Division Government of Alberta (780) 422-9212 anne.denman@gov.ab.ca A MG – Capacity share market % 100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 99.4 98.3 97.5 0.6 1.7 2.5 2010 2015 2020 Microgeneration 17 December 10-11, 2007 92.6 7.4 2030 Non-microgeneration For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Evolution of average GHG emission tCO2e/MWh More probable scenario 18 December 10-11, 2007 Worst scenario 20 37 20 35 20 33 20 31 20 27 20 29 20 25 20 23 20 21 20 19 20 15 20 17 20 13 20 11 20 09 20 07 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Better scenario For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Proposed generation in Alberta by 2011 Energy Source type add by 2011 5% Coal 19% 2007 2011 49.7 39.4 35% Gas 37.2 39.4 Wind 4.2 14.8 Hydro 7.3 5.3 Biomass 1.5 1.1 Renewables Gas Coal Interconnection 41% •• The wind generation capacity is 32%capacity today and 70%will by increase 2011, ofof The renewable electricity generation is will 13%increase today and renewable energy capacity 21% by 2011 in Alberta Source: DOE, Alberta 19 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Price evolution – MG heating $/kWh 0.18 0.16 0.14 0.12 0.1 GT-H SH-H BM CG 0.08 0.06 0.04 0.02 20 07 20 09 20 11 20 13 20 15 20 17 20 19 20 21 20 23 20 25 20 27 20 29 20 31 20 33 20 35 20 37 0 20 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Price evolution – MG electricity $/kWh 0.3 0.3 0.3 0.3 Coal Coal Coal Gas Coal Gas Gas Coal WD Coal Gas WD Gas Coal WD PV WD Gas Coal PV PV WD Gas HY WD Gas PV HY PV GT-E BM CG BM GT-E Retail GT-E Retail SH-E BM Retail GT-E SH-E Retail GT-E SH-E Retail GT-E Retail GT-E Retail Retail 0.25 0.25 0.25 0.25 0.2 0.2 0.2 0.2 0.15 0.15 0.15 0.15 0.1 0.1 0.1 0.1 2 2200000 0 777 2 2200000 0 999 2 2200011 1 111 2 2200011 1 333 2 220001 11555 2 2200011 1 777 2 2200011 1 999 2 2200022 2 111 2220002 22333 2220002 22555 2220002 22777 2220002 22999 2220003 33111 2220003 33333 2220003 33555 2220003 33777 0.05 0.05 0.05 0.05 21 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Potential of Alberta - Solar Source: http://www1.agric.gov.ab.ca 22 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Potential of Alberta - Biomass Source: http://www1.agric.gov.ab.ca 23 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Potential of Alberta - Wind Source: http://www.retscreen.net 24 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Potential of Alberta – Micro Hydro Source: http://www.retscreen.net 25 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Potential of Alberta – Geothermal Source: http://www.iseee.ca 26 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Photovoltaic and Solar heating 27 Barriers Benefits Market and economic - Not cost competitive. - High start-up costs. - Not a developed market, lack of competition. - Missing market infrastructure. - Lobby of electricity companies. - Lack of promotion and public interest. - Average capacity factor of 17%. Financial - Lack of financial feasibility. Infrastructural - Sun does not always shine. - Lack of regulatory/legal framework. - Produce DC then the inverter lost around 8% of energy. Perceptual - Visual contamination. - Lack of information and awareness. Integration - Restrictive and unclear grid connection standards. Competition with different sectors - Lack of policy integration with other sectors. - Planning policy and building regulations both provide opportunities but can act as constraints. Environmental - Visual contamination. - No fuel cost. - Suitable for areas where fossil fuels are expensive or where there is no connection to the grid. - Low cost maintenance. - Reduces greenhouse gas. December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Wind Barriers Benefits Market and economic - High start-up costs. - Most wind farms operate at 25-35% capacity - Negative effect on tourism. - Missing market infrastructure. - Lobby of electricity companies. - Lack of promotion and public interest. - Inadequate promotion of the availability. Financial - Lack of financial feasibility. Infrastructural - Wind does not always blow. Perceptual - There is not legislation for noise, visual contamination and other risks. - Lack of information and awareness. Integration - Obtaining access to the grid can be a challenge Competition with different sectors - Lack of policy integration with other sectors. Environmental - Noise, visual contamination, death of birds are the problems. - Not fuel cost. - No emissions or waste. - Commercially viable source of power. - Reduces greenhouse gas. 28 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Biomass Barriers Barriers Market and economics - High start-up and operating cost. - Competition within biomass sectors. - The relative price among electricity and crop. - Difficulty to compete with electricity from fossil fuels. - Negative effect on tourism and business. - Bioenergy consumption is greatest in countries with heavy subsidies or tax incentives. - The world focus is putting in biodiesel where Biomass can compete. Financial - Lack of financial feasibility. Infrastructural - The farmers must work with rapeseed crops. Perceptual - The farmers need to be convinced. - The people in general oppose, the local government must involve. - Lack of information and awareness. Integration - High availability of sites but the place to install the factory it is very important to decrease the cost; it is a problem with the population, because they consider the contamination (waste incineration), odour, noise, truck traffic, risks. - There is not legislation for Biomass, noise, truck traffic, risks, odour, waste incineration, etc. Competition with different sectors - With wood, must be controlled the production and sowed. It can have problems with pulp and paper industries. - It compete with biodiesel industry - Planning policy and building regulations both provide opportunities but can act as constraints. Environmental - Environment contribution of the biomass are not yet well understood at the local level - Produces some emissions. - Waste incineration. - Negative impact to wildlife and ecosystems, water and weather. 29 December 10-11, 2007 Benefits - Uses landfill gas and waste products to create electricity. - Net zero greenhouse gas. - High availability of sites. - Community integration. - It can produce heating, electricity, gas and biodiesel. - Economical regional development. For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Geothermal 30 Barriers Benefits Market and economics - High capital costs. - Not developed market, lack of competition. - Missing market infrastructure. - Inadequate promotion of the availability. Financial - Lack of financial feasibility. Infrastructural - Few potential sites in Alberta. - Lack of regulatory/legal framework. - Lack of people know-how. Perceptual - Lack of information and awareness. Integration Competition with different sectors - Planning policy and building regulations both provide opportunities but can act as constraints. Environmental - Reliable source of power. - Low fuel and operating costs. - Clean and renewable source of energy - Reduces greenhouse gas. December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Cogeneration 31 Barriers Benefits Market and economics: - Medium capital costs. - Very small market. Financial - Lack of financial feasibility. Infrastructural Perceptual - Lack of information and awareness Integration Competition with different sectors Environmental - Difficulty to define it as renewable - Improve the emissions. - Depend of primary generation. - Improve installed systems. December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Hydro 32 Barriers Benefits Market and economics - Regulatory approval can be costly and time consuming. - Small market. - Inadequate promotion of the availability. Financial - Lack of financial feasibility. - Lack of regulatory/legal framework. Infrastructural Perceptual - Lack of information and awareness Integration - Obtaining access to the grid can be a challenge Competition with different sectors Environmental - Modify the thread of water. - Low capital costs. - Potential sites in Alberta. - Well established technology. December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Fuel Cells 33 Barriers Benefits Economics: - Not cost competitive. - Not developed market, lack of competition. - Missing market infrastructure. Financial - Lack of financial feasibility. Infrastructural Perceptual - Lack of information and awareness. Integration Competition with different sectors - Technological breakthroughs are needed for fuel cells to be commercially viable. Environmental - Fast start-up time. - Very low emissions. - Wide range of applications. December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A The geothermal source Source: Ground-source heat pumps systems and applications, Renewable & Sustainable Energy Reviews Journal 34 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Geothermal Process Source:Geothermal energy technology and current status: an overview, Renewable & Sustainable Energy Reviews 35 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Power plant exergy flow diagram Source: A key review on exergetic analysis and assessment of renewable energy resources for a sustainable future, Renewable & Sustainable Energy Reviews Journal 36 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Efficiency of the technologies Source: Exergy analysis of renewable energy sources, Renewable Energy Journal 37 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Geothermal Power Plant - schema Source:Geothermal energy technology and current status: an overview, Renewable & Sustainable Energy Reviews 38 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Geothermal for Electricity - Binary Source: http://www.greencarcongress.com 39 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A DoE1 Electricity generation - Approaches Dry Steam Flash Steam Binary Cycle Source: http://www.energyamericainc.com 40 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Slide 40 DoE1 Department of Energy, 11/22/2007 Example of temperature vs depth in ground Source:Ground heat exchangers—A review of systems, models and applications, Renewable Energy Journal 41 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Geothermal Source:Ground heat exchangers—A review of systems, models and applications, Renewable Energy Journal 42 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Geothermal heating/cooling Source: Ground-source heat pumps systems and applications, Renewable & Sustainable Energy Reviews Journal 43 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Diagram of a phase change heat pump Source: Ground-source heat pumps systems and applications, Renewable & Sustainable Energy Reviews Journal 44 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Status of O&G wells in Alberta Source: APEGGA 45 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Oil wells for geothermal electricity Source: http://www.gns.cri.nz/ 46 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Oil wells for geothermal electricity Source: http://www.gns.cri.nz/ 47 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A CO2 emission for Goethermal Source:Geothermal energy technology and current status: an overview, Renewable & Sustainable Energy Reviews 48 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A The Lindal Diagram Source:Ground heat exchangers—A review of systems, models and applications, Renewable Energy Journal 49 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Three options for the industry in Alberta Improvements to operations Facilities can make improvements to their operations that will result in reductions. For example, a facility could install a more efficient boiler. Alberta-based credits A facility can purchase credits from large emitters that have reduced their emissions intensity beyond their 12 per cent target. They can also purchase credits from facilities whose emissions are below the 100,000-tonne threshold but are voluntarily reducing their emissions. This includes projects in the forestry, agriculture and transportation sector. The projects must have legitimate greenhouse gas reductions in the province. Alberta has released draft protocols that outline how to quantify and verify emission reductions for different types of projects. For example, the protocol will specify how reducing cultivation of farm land can help store more carbon in the soil. Climate Change and Emissions Management Fund A third option would be for companies to pay $15 for every tonne over their reduction target. The money will be put into the Climate Change and Emissions Management Fund, which will be directed to strategic projects or transformative technology aimed at reducing greenhouse gas emissions in the province. The Alberta government will determine a process for how the fund is allocated to projects that qualify. It will not be a holding account for companies to deposit money they could later withdraw. 50 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A GHG emission reduction variation – 2006 ba % 20 10 -20 -30 -40 -50 -60 More probable scenario 51 December 10-11, 2007 Worst scenario For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum Better scenario A 20 37 20 33 20 35 20 29 20 31 20 27 20 23 20 25 20 19 20 21 20 17 20 13 20 15 -10 20 09 20 11 20 07 0 GHG emission reference taxation $/tCO2e 30 25 20 15 10 5 20 07 20 09 20 11 20 13 20 15 20 17 20 19 20 21 20 23 20 25 20 27 20 29 20 31 20 33 20 35 20 37 0 52 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Generation and consumption evolution MW 25000.0 20000.0 15000.0 Capacity Consumption Non-Micro Capacity Micro-Capacity 10000.0 5000.0 20 07 20 09 20 11 20 13 20 15 20 17 20 19 20 21 20 23 20 25 20 27 20 29 20 31 20 33 20 35 20 37 0.0 53 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Electricity generation and environment 54 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Source:http://www.renocombi.com 55 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Alberta Energy Conservation and Efficiency Programs All new government buildings to be LEED Silver standard; Audit and retrofitting of all government-owned buildings; Per capita interest-free loan program to encourage 56 municipalities to move to energy efficiency practices; Built Green program: promotion of energy efficient new homes. Climate Change Central rebate program for furnaces and washing machines; OnFarm energy efficiency audits $1 million program to support 100 energy efficiency audits for dairy, swine and poultry producers; Municipal Energy (ME) First $30 million in interest free loans for 60 projects to increase energy efficiency in municipal buildings; Alberta Energy Strategy currently under development. EcoTrust Clean Air and Climate Change Fund: $155.9 million December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A MG share in electricity generation % 40 % 35 % 30 % 25 % 20 % 15 % 10 %5 % Wind PV GT 2010 57 December 10-11, 2007 SH 2020 BM HD CG 2030 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Renewable share 60 50 40 30 20 10 0 Wind PV GT SH 2010 58 December 10-11, 2007 2020 BM HD CG 2030 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Available microgeneration technologies Photovoltaic Solar Heating Solar Heating – Electricity Hydro Wind Geothermal Cooling/Heating Geothermal Electricity Fuel Cells Cogeneration Biomass Source: www.rainbowtradingpost.co.uk Source: www.qub.ac.uk Source:http://www.ausra.com http://www.epa.gov Source: Source: Source: Source: http://cr.middlebury.edu http://www.nrel.gov http://p2library.nfesc.navy.mil Source:http://www.photonenergy.co.uk Source: Wikipedia Source: http://www.geo-exchange.ca 59 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Alberta GHG emission Source: Statistic Canada 60 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Process Regulation development is in progress We expect early next year the regulation become law 61 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Principles Support customer choice Safety and reliability will not be compromised Distribution system planned to accommodate Microgenerators will receive credit for exported energy Microgenerator will be sized to customer load Processes should be simple, efficient and microgenerator friendly 62 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Key Proposals MG is defined as 1 MW or less connected to the distribution system generator sized to the customer’s load and using renewable or alternative technology Two sub-classes of MG are proposed: Less than 150 kW (Small) and greater than 150 kW but less than 1 MW (Large) For MG’s less than 150 kW the Retailer who supplies electricity to the MG will be required to manage a net billing arrangement for the MG, and will invoice the AESO to recover amounts paid to the MG 63 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Key Proposals (Cont) Small MGs will be metered using a bi-directional cumulative energy meter. Net generation will be credited to the MG at the same rate that the MG purchases energy. The Retailer will invoice the AESO for the amount of the credits and AESO will be allowed to recover that cost through its tariff or charges For the larger category of MG, bi-directional interval meters will be used. Net generation will be credited to the MG at the hourly pool price. Excess credits will be carried over and paid out periodically 64 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A Key Proposals (Cont) Installed and ongoing costs for meters meter installation meter data management and load settlement will be at the DWO’s expense and recovered through its tariffs. The Alberta Utilities Commission (AUC) will convene processes to simplify the approvals process and standardize interconnection agreements A review of the policy is proposed when there are 300 MG sites or a total of 25 MW of installed MG 65 December 10-11, 2007 For discussion – does not represent Government Policies 2nd National GeoExchangeTM Business & Policy Forum A