The European Wind Industry Association (EWEA) recently analyzed provisional EUROSTAT energy data and showed that the EU as a whole met its 2010 renewable energy targets.  In a separate analysis EWEA predicted that the EU will surpass its 2020 targets by 20%.

There were of course differences among countries, with some exceeding their 2010 targets and some falling short, but overall the EU is still showing that a transition to renewable energy is both practical and beneficial.

Watch an interview with Falck Renewables CEO Willie Heller on how well the EU is doing and the cost reductions expected in solar and wind over the next 8 years.

CanREA member Matthew McCarville from Eco-PEI has produced an excellent YouTube video “Powering Canada and the World Using Wind, Water and Sunlight” based on the research of Mark Jacobson at Stanford University.  Jacobson’s  major study “A Plan for a Sustainable Future – How to get all of energy from solar, water and wind power by 2030” was published in 2009. It showed that there is more than enough renewable energy available globally to meet all of our energy needs. McCarville’s video describes the reneweable resources available in Atlantic Canada and accross North America, and shows how each resource could play significant role by the middle of this century.

The review looked at the reductions in the cost of renewable power systems in Ontario since the FIT Program was introduced in 2009, and is recommending lower feed-in tariff rates for new contracts signed in 2012 to match these cost reductions. This is the way the feed-in tariff concept works. It is also adjusting some of the Program rules. These rule changes will favour community owned projects that are just starting to take off as renewable energy cooperatives and non-profit ownership groups are established. 

The review report released on March 22, 2012can be viewed at http://www.energy.gov.on.ca/en/fit-and-microfit-program/2-year-fit-review/ and the draft rules for the new programs can be obtained from http://fit.powerauthority.on.ca/

These rule changes were the focus of the Ontario Sustainable Energy Association’s 3rd annual Community Power Conference held in Toronto November 14 and 15, 2011. Another key topic was the artificial “cap” of 12,000 MW that has been placed on new renewable power additions through government directives. This will only serve to limit green energy manufacturing in Ontario just when it is getting started. Right now, Ontario is leading North America.

The recent Ontario provincial election showed that the media and many consumers do not fully understand what feed- in tariffs are and how they work. Political parties were able use this to discredit the FIT Program. Several useful tools explaining feed-in tariffs were put together during and after the election. They could be used by those in other jurisdictions promoting feed-in tariffs. Here are a few of them:

First check out the Climate Action Network’s Clean Energy Ontario and the solar industries Stand Up for Solar websites.

The Ottawa Renewable Energy Coop has produced a list of Frequently Asked Questions about Feed-in Tariffs.

The Pembina Institute’s report “Behind the Switch- Pricing Ontario’s Electricity Options” shows that the Green Energy and Economy Act and its feed-in tariffs will have little impact on future electricty prices in Ontario.

“Maximizing Jobs from Clean Energy” from the Institute of Local Self Reliance  shows that the “buy local” provisions in the Ontario FIT program could lead to 43,000 new jobs in the Province.

A report by Clear Sky Advisors for the Canadian Solar Industries Association ”Economic Impacts of the Solar PV Sector 2008 – 2018” estimates the private sector investment, job creation, and consumer price impacts of solar PV under the the Ontario FIT Program.

http://www.canwea.ca/media/release/release_e.php?newsId=118

First the good news. Over 3500 MW of new renewable power capacity has been installed or approved for connection since 2009. As early as April 2010, the Ontario Power Authority (OPA) had awarded contracts totally 2500 MW for solar, wind and hydro power under the FIT program. This was in addition to 112 MW of small scale (<10 KW), mostly solar, MicroFIT projects announced in March, 2010.  Forty (40) more new FIT contracts for more than 872 megawatts (MW) were awarded in February 2011. These new contracts include 257 MW of solar projects and 615 MW of wind projects and are located across the province. 

FIT and MicroFIT applications amounting to an additional 3500 MW are in the OPA pipeline awaiting connection capacity.  See our Ontario pages for more information.

Ontario’s solar PV capacity is now second only to California in North America with a total 215 MW installed or about 10% of North America’s total. This will rise again in 2011 as new approved capacity comes on line – from households, commercial shopping chains, and rural ground mounted solar farms. 

While manufacturing and installation companies are still setting up to meet demand from the FIT and MicroFIT programs, several hundred new jobs can already be attributed to the Green Energy and Economy Act. These include many at new solar PV manufacturing plants. Grid upgrades are underway to absorb higher amounts of renewable power. Smart grid and storage research could make renewable power a viable base load source. A recent report by the Pembina Institute showed that investment in renewable energy and energy efficiency creates far more jobs than nuclear or coal with carbon capture.

The Community Energy Partnership Program (CEPP) has been established to provide grants, loans, and capital resources for community owned power systems. For those who would rather invest in community power instead of owning their own systems, renewable energy coops are springing up in  Toronto, Burlington, Waterloo, Milverton, Ottawa, North Bay, and other cities across Ontario. 

While the Liberal Government that introduced the Green Energy and Ecomomy Act still stands squrely behind it, a number of unfortunate political decision by the government has undermined investor and public confidence in renewable energy. Opposition Tory and NDP parties have taken advantage of this and are wrongly blaming renewable power for electricity price increases and encouraging local opposition to new wind farms.

The Liberals began by allowing the Ontario Power Authority to tinker with FIT and MicroFIT rates and rules instead of waiting for the full two year review period. This included changing the tariff for small ground mounted systems and disqualifying non-property owners from owning MicroFIT systems. Then came a reversal of a previous decision to include off shore wind systems in the FIT program and the cancellation of a large number of MicroFIT contracts because of perceived grid capacity limitations. This has gradually reduced overall confidence in the FIT program, as well as provided opposition parties with ammunition to criticize the Green Energy Act itself.

All this has occurred in a period of rising electricity prices due to grid upgrades, nuclear power plant refurbishment, time of use rates, and an 8% HST sales tax added to all energy sales. The Tory and NDP opposition parties have been quick to blame renewable energy for these increases even though they were approved before the new capacity came on line. Gordon Miller, Ontario’s environmental commissioner, recently illustrated on TV Ontario that renewable energy and energy conservation account for only 0.4 cents per kWh of current power costs. In Germany, after over a decade of using feed-in tariffs, new renewable power sources now provide over 16% of the country’s power supply, yet contribute only 15% to electricty prices. This capacity has also made a net positive economic impact on the German economy.

Supporters of the Green Energy and Economy Act and the feed-in tariff program are now mobilizing to make sure the public gets the truth about the Province’s power system, and that debate during next fall’s provincial election campaign is not based on half truths and mis-information. Active supporters include Stand Up for Solar, the Green Energy Act Alliance, and the Ontario Clean Air Alliance.

Here are some of the basic truths about current power development in Ontario:

• The feed in tariff policy has already created hundreds of jobs and is helping to wean Ontario off of coal power.
• The Green Energy and Economy Act has made Ontario a leader in North America in renewable power deployment and the province is poised to become the centre of the North American solar manufacturing industry. 
• This leadership will allow Ontario to be one of the first states or provinces to deploy energy storage and smart grid technology that will make base load renewable power a reality.
• Renewable power development is entering a crucial phase as the limiting factor becomes grid capacity. A stable investment environment and grid development strategy is essential for at least the next 5 years.
• Any new power source, including new nuclear or coal with carbon capture, will cost as least as much as renewable power.
• The only practical way to limit future electricity costs to consumers is through major efficiency and conservation gains.
• Properly installed off-shore wind and acceptable set backs for on shore wind will not affect peoples health, livelihoods or enjoyment of their property.
• The feed in tariffs for solar appear very high, but they are still less than the Province pays for power during the summer peak - just when solar is delivering its power. The feed-in tariff policy is also driving the cost of solar down through economies of scale so that the tariff can be gradually decreased over time.

This graph illustrates how the tariffs paid for solar PV power under the Ontario FIT (44.3 – 71.3 cents/kWh) and MicroFIT (64.2 – 80.2 cents/kWh) programs are less than the cost of meeting the summer peak in Ontario. Note $500/MWh = 50 cents/kWh.

The Ontario Clean Air Alliance estiamtes that the average cost of peak power during a typical six hour peak is $1,360/Mwh or $1.36 per kWh.

The report along with a slide presentation and back-up appendices can be downloaded from http://www.pembina.org/pub/2178

The report is also quite definitive about how Canada is falling behind in the creation of green jobs. “We estimate that the federal government’s economic stimulus funding for infrastructure could have created nearly three times as many jobs if it had been invested entirely in clean energy.” says the report’s author Clare Demerse in her blog.  Demerse goes on to say that “If the government wants to make the right choices for Canadian workers and the environment, the 2011 budget won’t see the end of popular and effective clean energy programs. Instead, a green jobs budget would cut fossil fuel subsidies and offer strong new support for clean energy and energy efficiency.”

See our Provincial Update pages for more details.

Federal ecoEnergy efficiency programs that have provided strong support for efficiency investment in all sectors for the past 5 years end in March 2011. It is very important that new support measures replace these programs. Energy efficiency is our most valuable energy resource and must be one of the cornerstones of our national enviromental and economic policy for the next decade.

Download the letter to the PM.

Download the budget 2011 energy efficiency recommendations.