Improving Energy Performance in Canada – Report to Parliament Under the Energy Efficiency Act For the Fiscal Year 2010-2011

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Chapter 5 Renewable Energy

Renewable Energy Use

In 2009, renewable sources accounted for approximately 64.5 percent of Canadian electricity generation and 61.8 percent of total electricity-generating capacity (see Table 5-1). Most of the renewable energy used in Canada comes from either hydroelectricity or thermal energy from biomass, such as wood-waste sources, although the contribution of wind power and solar photovoltaic, the fastest growing sources of electricity in Canada, is becoming increasingly important in the national energy mix (see Table 5-2).

TABLE 5-1
Electricity-Generating Capacity From Renewable Sources (Includes Hydroelectricity)

Year	Renewable electricity generation capacity (megawatts)	Total capacity (percent)	Percent change
1990	59 557	58.0	-
1991	61 116	58.0	3.0
1992	62 895	58.0	2.9
1993	63 114	56.0	0.3
1994	63 175	56.0	0.1
1995	66 542	57.0	5.3
1996	67 101	59.0	0.8
1997	68 202	61.0	1.6
1998	68 340	62.0	0.2
1999	68 614	61.8	0.4
2000	69 031	62.0	0.6
2001	68 845	61.2	-0.3
2002	71 032	61.8	3.2
2003	72 275	61.8	1.7
2004	72 947	60.4	0.9
2005	74 368	61.2	1.9
2006	75 812	61.3	1.9
2007	76 890	61.8	1.4
2008	78 371	62.4	1.9
2009	80 658	61.8	2.9
Source: Statistics Canada, Electric Power Generating Stations (Cat. No. 57-206-XIB).

TABLE 5-2
Renewable Energy Technologies Used in Canada

Electricity – Commercial	Mechanical power
Hydroelectric dams	Wind water pumps
Tidal barrages	Thermal energy
In-stream current devices
Biomass (e.g. wood waste)	Biomass (e.g. roundwood, pellets, wood chips)
Biogas (e.g. methane from landfill sites)	Ground-source heat pumps (i.e. earth energy)
Wind turbines	Solar air-heating systems
Photovoltaic systems	Solar hot water systems
Electricity – In development	Transportation
Wave systems	Biodiesel
Tidal systems	Ethanol from biomass

Hydroelectricity

Hydroelectricity is a renewable form of electricity generated from a system or technology that uses a mechanical method to capture and convert the kinetic energy of water.

Hydro is the main source of electricity in Canada, accounting for approximately 62 percent of the electricity generated in 2009. Canada’s hydro supply is dominated by large-scale projects developed by electric utilities. Of the 76 648 megawatts (MW) of installed hydro capacity, 3 372 MW come from small hydro sites (capacity less than 50 MW), representing 2.6 percent of Canada’s total installed electricity capacity. Significant potential remains for additional large and small run-of-river hydroelectric development in most provinces and territories.

Biomass

Biomass provides a renewable source of energy derived from the conversion of matter from living organisms or metabolic by-products. Canada has an abundant supply of many types of biomass, which is important for the production of energy, biofuels, materials and chemicals. The two largest sources of biomass supply in Canada are forestry and agricultural operations.

Biomass supply typically takes the following forms:

• forestry – mill or pulp-and-paper residues, black liquor from the pulping process, forest residue, forest management thinnings and short-rotation crops
  
  
• agriculture – agricultural crops, crop residue, processing residues, algae and aquatic biomass
  
  
• other organic waste – animal waste, such as manure from feed lots, municipal solid waste and industrial wastes

Approximately 4.5 percent of Canada’s total energy supply comes from bioenergy, second only to hydro power (which generates 12.4 percent of Canada’s energy). Most of the bioenergy produced is in the form of industrial process heat, electricity and residential space heating.

The pulp and paper and forest industries are Canada’s major producers and users of bioenergy. In 2009, 673 MW of biomass generating capacity came from spent pulping liquor used in the pulp and paper industry. This amount represents approximately 40 percent of the total biomass generating capacity, while 51 percent of the capacity (853 MW) came from wood refuse used in the forestry industry.

Heat and electricity produced by industry, electricity generated by independent power producers and residential wood heat are considered commonplace in Canada’s energy mix. For example, approximately 3 million Canadian households use wood for home heating. Roundwood is typically used but alternatives include wood chips and pellets. Wood for home heating is usually burned in stand-alone wood stoves, wood furnaces with hot water or forced-air systems, fireplaces with advanced combustion inserts, high-efficiency fireplaces or high-thermal-mass masonry heaters.

Use of biogas and landfill gas (methane-rich gases that are derived from manure, animal processing wastes, other agricultural residues and municipal waste) for energy production is just emerging.

In 2009, the biomass installed generating capacity was 1 671 MW, of which 8.7 percent was from landfill gas plants (110 MW) and municipal solid waste plants (35 MW). Approximately 200 million litres (L) of fuel ethanol are produced annually in Canada from cereal grain and corn. Biodiesel is also produced in small quantities, but production is increasing. Canada has the potential to increase its bioenergy production in a sustainable manner.

Earth Energy

As a result of the sun heating the surface of the planet, and because of the insulating qualities of the earth itself, the temperature 1 or 2 metres below the surface remains fairly constant – between 5°C and 10°C. This temperature is warmer than that of the air during the winter and cooler than that of the air in the summer.

Geothermal energy can be used as a heat source or sink for heating or cooling applications, such as ground-source heat pumps (GSHPs). GSHPs are electrical systems that use the relatively constant temperature of the ground to provide heating, cooling and hot water for homes and commercial buildings.

For this reason, a GSHP is also known as an earth energy system (EES). During winter, EES installations remove heat from the earth using a liquid, typically an antifreeze solution or water that circulates within an underground loop. The EES then upgrades the heat with a conventional heat pump and transfers it to indoor space or the water-heating system. During summer, the system reverses this process to operate as an air conditioner. EES installations supply less than 1 percent of the market for space and water heating and cooling in Canada.

In 2009, 15 643 GSHP units were installed in Canada. This compares with 14 879 units installed in 2008 and 9 284 units installed in 2007. As of December 31, 2009, there were approximately 83 000 GSHPs representing about 1 000 megawatts of thermal energy (MW_th) of installed capacity and producing an estimated 1 370 gigawatt-hours equivalent annually.

Wind Energy

Wind turbines convert the kinetic energy of wind into electrical or mechanical energy. Canada’s land mass and coastal waters combine to provide a wind resource with potential estimated at more than 100 000 MW.

As of December 31, 2009, 3 319 MW of wind power had been installed in Canada. This makes Canada the country with the ninth largest installed wind energy capacity. As of March 31, 2011, there were 4 825 MW of wind power in operation in 133 wind farms in all provinces in Canada.

The best year in terms of wind power installations was 2009, with 950 MW of new wind power generating capacity installed across the country, representing a 40 percent increase from the 2008 level (2 369 MW) (see Figure 5-1). Federal and provincial policies continue to spur growth in the Canadian wind industry.

FIGURE 5-1
Canadian Wind Power Cumulative Capacity, 1993 to 2010

Wind energy also provides mechanical power. Several thousand wind-powered water pumps are used throughout Canada, mostly in the Prairie provinces. As well, Canadians use small, residential-sized wind turbines to power cottages and remote houses.

Solar Energy

Three main technologies use energy from the sun:

• passive solar technologies – buildings are designed and located to maximize their reception of solar energy
  
  
• active solar thermal systems – solar radiation is converted into thermal energy for heating air or water in residential, commercial and industrial applications
  
  
• solar electric (photovoltaic [PV]) systems – solar radiation is used to produce electricity

The Canadian active solar thermal installed capacity in 2010 was 1 025 600 square metres (m²), or approximately 712 MW_th. The domestic market increase has averaged 13 percent annually since 1998. In 2010, the solar thermal collector market in Canada was 179 360 m², 38 percent more than the installations in 2009 (130 000 m²).

Solar PV energy also experienced high rates of capacity growth – about 38 percent average growth rate annually between 1992 and 2010 – even though it started from a low baseline. So far, 2010 has been the best year for solar PV, with an estimated total installed capacity of 290 MW, representing an increase of 196 MW from the previous year. This significant growth was spurred primarily by two programs from the Government of Ontario: a renewable energy standard offer program launched in 2006 and the new feed-in tariff program launched in 2009.

Ocean Renewable Energy

Ocean renewable energy refers to the use of ocean waves, current and tides to generate electricity. Devices that capture ocean or tidal currents can also be deployed in rivers and streams.

Since 1984, Canada has had the only commercial tidal energy facility in North America — the 20-MW plant in Annapolis, Nova Scotia. However, like wave and current devices, the next generation of tidal power generators is in an early stage of development, and as yet no commercial facilities have been proposed.

British Columbia and Nova Scotia are taking steps to support the development of the next generation of ocean renewable energy technologies, which use waves, ocean currents and tides to generate electricity.

In 2010, the Fundy Ocean Resource Centre for Energy, a technology demonstration facility, started testing three technologies with a total capacity of 4 MW. Wave and tidal-current technologies are also being tested off the coast of British Columbia, and a commercial facility for generating electricity may be feasible within the next decade.

Canada is well poised to become a leader in global technology development and deployment. Canadian technology developers are planning and testing devices, and several demonstration projects are underway.

Pulp and Paper Green Transformation Program

Objective

The Pulp and Paper Green Transformation Program (PPGTP) was created to fund projects resulting in demonstrable environmental benefits at Canadian pulp and paper mills, leading to improved environmental and commercial sustainability of the sector.

Description

The $1-billion PPGTP was launched in June 2009. It supports innovation and environmentally friendly investments in Canada’s pulp and paper industry in areas such as energy efficiency and renewable energy production. In October 2009, credits were allocated to 24 companies, based on black liquor production ($0.16/L) at 38 pulp and paper mills. Companies have until March 31, 2012, to invest their credits at any of their Canadian pulp and paper mills in approved green capital projects that lead to measurable environmental benefits. Renewable energy generation and energy savings from energy efficiency improvements associated with PPGTP projects signed as of March 31, 2011, are shown in Figure 5-2.

FIGURE 5-2
Achievements Resulting From PPGTP Investments

Key 2010-2011 Achievements

• As of March 31, 2011, contribution agreements had been signed for 75 projects with 22 companies, with funds requested totalling $844 million. Approximately $388 million was expended in 2010–2011 under these agreements.
  
  
• As of March 31, 2011, PPGTP projects with signed agreements were expected to support the creation of 185 MW of renewable electrical capacity and save 6.9 million gigajoules of energy per year.
  
  
• These projects were also expected to reduce mills’ greenhouse gas (GHG) emissions by 336 000 tonnes per year.

For more information:
www.cfs.nrcan.gc.ca/subsite/pulp-paper-green-transformation

Investments in Forest Industry Transformation

Objective

The Investments in Forest Industry Transformation (IFIT) program supports Canada’s forest sector in becoming more economically viable and environmentally sustainable through targeted investments in innovative technologies.

Description

IFIT is providing $100 million over four years for projects that implement new technologies leading to non-traditional, high-value forest products and renewable energies. By building on the success of previous federal investments in research and development, IFIT ensures that promising breakthrough technologies in the forest sector continue to evolve toward full commercial viability.

Key 2010-2011 Achievements

• Successful program development and launch in summer 2010, followed by a call for proposals that attracted more than 60 applications from companies across Canada representing various forest industry subsectors, company and project sizes, and technology types.
  
  
• Signed the first round of contribution agreements worth $6.6 million for projects focusing on waste heat recovery and methanol purification; the latter is the first application in the world of this particular technology.

For more information:
forest-transformation.nrcan.gc.ca

Natural Resources Canada carried out two initiatives to increase the use of renewable energy in Canada: ecoENERGY for Renewable Power and ecoENERGY for Renewable Heat. The two programs are outlined below.

ecoENERGY For Renewable Power

Objective

To encourage the production of 14.3 terawatt hours of electricity from low-impact renewable energy sources (about 4 000 MW of new capacity), such as wind, hydro, biomass, solar PV and ocean energy. The program was launched on April 1, 2007.

Description

The ecoENERGY for Renewable Power program provides an incentive of one cent per kilowatt hour to an eligible low-impact renewable energy project for up to 10 years. Eligible recipients include businesses, institutions/organizations, independent power producers, public and private utilities, and co-operatives that install qualifying renewable power systems. Qualifying projects must have a total rated capacity of 1 MW or greater. The program had authority to sign contribution agreements with renewable energy developers until March 31, 2011, but many projects with contribution agreements will continue to receive payments as outlined in contribution agreements and up to March 31, 2021.

Key 2010-2011 Achievements

• As of March 31, 2011, 104 contribution agreements had been signed with proponents, representing about $1.4 billion in federal funding over 14 years and 4 458 MW of renewable power capacity.
  
  
• The GHG emission reductions from full-year operations for the 104 projects are expected to be about 6 megatonnes per year.

For more information:
ecoaction.gc.ca/ecorp

ecoENERGY For Renewable Heat

Objective

To increase the use of renewable energy technologies, develop thermal energy industry capacity and contribute to the reduction of harmful emissions. This four-year program was launched April 1, 2007.

Description

The ecoENERGY for Renewable Heat program supported renewable thermal technologies used for space heating and cooling and water heating, through a mix of deployment incentives, residential pilot projects and industry capacity-development funding:

• deployment incentive – providing a financial contribution to encourage the deployment of solar thermal units in the industrial, commercial and institutional sectors
  
  
• residential pilot projects – providing financial contributions to test, through collaborative ventures, various approaches to the large-scale deployment of solar water-heating units in the residential sector
  
  
• industry capacity-development – providing financial contributions to develop technology standards and certification processes for solar thermal technologies, human resources skills and tools and to provide public information for renewable thermal energy technologies

Key 2010-2011 Achievements

• Installed 523 solar thermal systems in the industrial, commercial and institutional sectors.
  
  
• Coordinated the federal program with complementary programs in British Columbia, Saskatchewan and Ontario.
  
  
• Through contribution agreements with 14 partners (utilities, developers and buyers’ groups, tested large-scale methods to deploy solar-heated water in the residential sector. Under these agreements, 575 solar water-heating systems were installed in the fiscal year.
  
  
• Completed, through the Association of Canadian Community Colleges, national curricula for solar thermal and PV installers and designers.
  
  
• The estimated GHG reductions from systems installed under the program during 2007–2008, 2008–2009, 2009–2010 and 2010–2011 are 3.3, 5.1, 8.2 and 9.5 kilotonnes (kt), respectively. The cumulative annual GHG reductions from the program from these installations are 25 kt.

For more information:
ecoaction.gc.ca/heat

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