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Emerging Technologies in Electricity
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21 March 2006
Emerging Technologies in Electricity
One of the goals of the National Energy Board is to keep Canadians up to date on energy matters. Canadians have a growing concern about future electricity supplies, air quality and climate change. That's why we prepared a report on Emerging Technologies in Electricity Generation [PDF 4334 KB]. This report assesses emerging energy sources and takes an objective look at the ways we might be able to fuel future generations with power that is cleaner and greener.
Observations
Emerging technologies make up only a small percentage of our power generation.
Canada is a giant in electricity generation, the fifth largest in the world, but emerging technologies only account for about three per cent of the generation capacity.
The time is ripe for rapid growth in emerging technologies.
Thanks to advances in technology, green energy is becoming less expensive; the cost of wind energy, for example, has dropped about 80 per cent in the last 20 years. Combined with climbing fossil fuel prices and concerns about global warming, the stage is set for growth.
Governments can play a role in the development of emerging technologies.
Governments are in a unique position to support the growth of emerging technologies. There are currently several incentives in place, such as the Wind Power Production Incentive.
Emerging technologies face barriers to development.
These technologies face challenges, such as difficulties connecting to the grid, sometimes burdensome regulatory requirements and electricity prices that tend to favour cheaper, conventional, power sources.
Options for Action
If Canadians choose to support the development of emerging technologies, their governments could consider the following options for action:
- Develop rules for access to the power transmission grid that are transparent and offer emerging technologies some measure of certainty.
- Establish clear regulatory guidelines that are appropriate for a project's size
and scope.
e.g. Small hydro projects must often meet the same regulations as large projects. - Continue to support research into emerging technologies.
- Encourage regional cooperation in order to share resources and develop solutions that promote the growth of emerging technologies.
- Continue providing incentives that improve financial certainty.
- Allow electricity prices to reflect their true market value.
- Where appropriate, guarantee minimum prices to green energy developers.
| Technology | Challenges | Opportunities |
|---|---|---|
| Wind Power The fastest growing energy source in the world, Canadian wind power capacity almost tripled from 2001-2005. |
- Obtaining access to the grid can be a challenge - Wind does not always blow - Most wind farms operate at 25-35% capacity |
- No fuel cost - No emissions or waste - Commercially viable source of power |
| Small Hydro Canada's largest contributor to the green power sector, small hydro stations use the energy in falling water to generate up to 25 MW of power. |
- Regulatory approval can be costly and time consuming - Local opposition to new development |
- Low capital costs - Many potential sites in Canada - Well established technology |
| Biomass When located near fuel supplies such as a pulp and paper mill, biomass units have the potential to compete with conventional energy sources. |
- High start-up costs - High operating costs - Produces some emissions |
- Uses landfill gas and waste products to create electricity - Reduces greenhouse gas - High availability of sites |
| Geothermal Energy Steam is harnessed from the earth's core to power a turbine and generate electricity. |
- High capital costs - Connecting to the grid can be difficult - Few potential sites in Canada |
- Reliable source of power - Low fuel and operating costs - Clean and renewable source of energy |
| Solar Photovoltaic In 20 minutes, the amount of solar energy falling on the earth could power the planet for one year. |
- Restrictive and unclear grid connection standards - Not cost competitive - Sun does not always shine |
- Fuel is free - Suitable for areas where fossil fuels are expensive or where there is no connection to the grid |
| Fuel Cells Fuel cells combine hydrogen and oxygen to produce electricity and heat. |
- Technological breakthroughs are needed for fuel cells to be commercially viable | - Fast start-up time - Very low emissions - Wide range of applications |
| Ocean Energy Industry proponents suggest Canada is in a good position to get in on the ground floor of tidal current and wave power. |
- Potentially intrusive to marine life - Investment is needed to promote research and development |
- Costs are expected to decline as technology develops - Intermittent, but predictable source of green energy |
| Clean Coal Clean coal technologies reduce emissions from coal combustion. |
- High capital costs - Lengthy start-up period |
- Highly efficient - Potential for reduced greenhouse gas emissions |
| Demand Management Part conservation and part efficient demand-response; demand management includes the programs and technologies that enable "smarter" energy consumption. |
- If the cost is high, consumers may not perceive potential benefits - Participation by industry is not universal |
- Could be a least-cost option - Postpones the development of new power plants - Improves energy efficiency |
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