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New Technology in Electricity Generation Provides Options for the Future

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06/06
For immediate release
21 March 2006

CALGARY - The National Energy Board (NEB) today released an Energy Market Assessment (EMA) that focuses on power generation from non-conventional sources. "Emerging Technologies in Electricity Generation," provides comprehensive information on the status and prospects of non traditional technologies, related issues and regional perspectives.

Kenneth Vollman, NEB Chairman and CEO said, "This report identifies for the Canadian public, the barriers to growth in 'greener and cleaner electrical generation' and gives suggestions on how those barriers can be overcome."

Examples of the most widely used emerging technologies include wind power, small hydro and biomass, which are already competitive with conventional electricity generation in some locations. Other emerging technologies like fuel cells, photovoltaics and clean coal need additional technological improvements and cost reductions before they're more competitive. The report includes an assessment of demand management measures that could reduce the need for additional generation.

According to 2003 statistics, Canada's emerging technology industry generated about 17 terawatt hours (TW.h) of electricity which is about three per cent of the country's total electricity production. Put into perspective, 17 TW.h roughly equals the entire Canadian demand for electricity for 11 days. With improved conditions, the emerging technologies' output could, by some estimates, increase by up to 15 per cent by 2025.

While there are currently a number of government incentives and industry initiatives promoting the growth of emerging technologies, there are also several barriers to growth including:

The lack of a coordinated strategy for research and development;
The lack of access to the transmission grids;
The regulatory process can be burdensome and small project developers often lack the expertise to handle the regulatory process; and,
The need to allow electricity prices to reflect true market values, and capture the environmental benefits of emerging technologies.

In addition to proposing options to directly address these barriers, the report notes that emerging technologies could be helped by encouraging the opportunities to combine generation from different sources. For example, electricity generated by large hydro electric facilities could be supplemented by wind power.

Another option is enabling fossil fuel based systems to trade or purchase emissions credits to achieve air quality goals more efficiently. This option would encourage jurisdictions with green technologies to expand production.

Mr. Vollman added, "Diversifying our electricity generation capabilities would make our economy more flexible and increase protection for our environment."

This EMA was produced following an extensive stakeholder consultation process that involved technical experts and facility operators, as well as onsite visits and literature reviews. The market assessment also took into consideration such factors as Canada's geography and resource diversity.

The NEB is an independent federal agency that regulates several parts of Canada's energy industry. Its purpose is to promote safety and security, environmental protection, and efficient energy infrastructure and markets in the Canadian public interest, within the mandate set by Parliament in the regulation of pipelines, energy development and trade. As part of its mandate, the NEB monitors the supply of all energy commodities in Canada and reports its findings. The NEB Internet site is regularly updated with new energy information for the Canadian public.

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For further information:

Bob Modray
Team Leader, Energy Markets
National Energy Board
E-mail: bob.modray@neb-one.gc.ca
Telephone: 403-299-3157
Telephone (toll free): 1-800-899-1265
Telecopier: 403-292-5503
Telecopier (toll free): 1-877-288-8803
TTY (Teletype): 1-800-632-1663

Carole Léger-Kubeczek
Communications Officer
National Energy Board
E-mail: carole.leger-kubeczek@neb-one.gc.ca
Telephone: 403-299-2717
Telephone (toll free): 1-800-899-1265
Telecopier: 403-292-5503
Telecopier (toll free): 1-877-288-8803
TTY (Teletype): 1-800-632-1663

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