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UBC Theses and Dissertations

Powering the city : planning for the future Brown, Colleen F. E. 2007

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POWERING THE CITY: PLANNING FOR THE FUTURE by Colleen F. E. Brown LL.B., B.C.L., McGill University, 1998 B.A. (Hons), University of Alberta, 1993 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE in THE FACULTY OF GRADUATE STUDIES (Planning) THE UNIVERSITY OF BRITISH COLUMBIA April 2007 © Colleen F. E. Brown, 2007 ABSTRACT This study addresses a topic that receives very little attention in traditional planning circles: the reliability of the electrical supply in the Lower Mainland of British Columbia, Canada. The economic and social viability of this region is highly dependent on electrical power and while the electricity needed to supply its critical infrastructure is currently available and relatively inexpensive, research indicates that this may not be the case in the near future. The purpose of this thesis is twofold: first to make the case that the Lower Mainland would benefit from greater redundancy in electrical energy supply and, second, to investigate supply-side options available to create a forward looking, sustainable and secure electrical supply. To understand what some of the challenges to displacing conventional sources of electricity are, academics, members of industry, community-based organizations and government as well as senior employees of conventional energy providers were interviewed. Twenty-eight local experts were asked to identify both what they perceived as the principle challenges or barriers to the implementation of small-scale renewable energy, and what opportunities exist in this field. The most commonly identified challenges include: i) the relatively high price of alternative technologies, ii) the attitudes and practices of local developers and the current building environment, iii) lack of awareness of energy-related issues and alternatives, iv) the relatively low price of electricity and natural gas, v) status quo municipal land use planning, and vi) uninformed municipal officials. Areas which were identified as important to promote the proliferation of small-scale, renewable generation include: i) the provision of alternative financing mechanisms to overcome high first-costs, ii) new ways to use existing municipal tools, iii) the development of large scale demonstration projects, iv) improved marketing, and v) the enhancement of general and specifically targeted educational and training opportunities. A brief comment regarding possible implementation strategies is also presented. 11 TABLE OF CONTENTS Abstract ii Table of Contents iii List of Tables v List of Figures vi Abbreviations vii Acknowledgements ix Dedication x Chapter 1 Introduction to the Research 1 1.1 Thesis Statement & Objectives 1 1.2 Why This Research is Important & Relevant to Planning 1 1.3 Study Area ; 2 1.4 Organizational Rationale / Research Parameters 3 1.5 How the Research was Conducted - Methods 3 1.5.1 Literature Review 3 1.5.2 Interviews ••••5 1.5.3 Analysing the Interview Data 7 1.5.4 Closing the Gaps 7 Chapter 2 A Case for Greater Redundancy in the Electrical System. 9 2.1 Electrical System—Status Quo 9 2.1.1 Power Demand 9 2.1.2 The Grid and Power Trading in North America 10 2.1.3 The Power Mix 11 2.1.4 Retail Price 12 2.2 Division of Powers & Jurisdictional Issues 14 2.2.1 The Government of Canada 14 2.2.2 Provincial & Territorial Governments 15 2.2.3 Regional Energy Policy in the Lower Mainland 16 2.2.4 Municipalities in the Lower Mainland 18 2.3 Energy Security & Climate Change 18 2.3.1 Energy Availability 18 2.3.2 Eco-systemic Integrity 20 2.3.3 General Infrastructure Concerns 20 2.3.4 Critical Infrastructure 23 2.4 Alternative Sources of Energy 24 2.4.1 Renewable Energy 24 2.4.2 Sustainable Energy 24 2.4.3 Clean Energy 25 iii Chapter 3 Contextualizing the Lower Mainland 26 3.1 Energy Use (Load) Profile 26 3.1.1 Region-wide 26 3.1.2 The Residential Level 26 3.2 Overview of the Potential of Selected Renewable Energy Technologies 28 3.2.1 Brief Intro to RETs 28 3.2.2 RETs Not Included in This Analysis 29 3.2.3 RETs Included in This Analysis 33 3.2.4 Summary of Data Presented 45 Chapter 4 Challenges to Decentralizing Supply in the Lower Mainland 49 4.1 Introduction to Challenges 49 4.2 Grouping the Interviewees 49 4.3 Grouping the Challenges 50 4.3.1 Economic, Market & Financial 52 4.3.2 Institutional 56 4.3.3 Societal 63 4.3.4 Industrial 67 4.3.5 Technical • 70 4.4 Extra to Challenges 73 Chapter 5 Opportunities Relating to Selected Challenges 75 5.1 Introduction to Opportunities 75 5.2 Grouping the Opportunities 75 5.2.1 Economic, Market & Financial 77 5.2.2 Institutional 84 5.2.3 Societal 91 5.2.4 Industrial 94 5.2.5 Technical 95 5.3 Extra to Opportunities 97 Chapter 6 Conclusion and Recommendations 99 6.1 Conclusion 99 6.2 Implementation Strategy 102 6.3 Recommendations for Further Study 105 6.4 Final Thought 106 References 108 Appendix A: 2001 Census Geography Boundary Maps: GVRD & FVRD 112 Appendix B: BREB Certificate of Approval , 114 Appendix C: Typical Annual Energy Consumption of Certain AC Appliances 115 Appendix D: Inventory of GeoExchange System Installations in BC 117 Appendix E: Summary of Interviewee Data - Challenges 119 Appendix F: Summary of Interviewee Data - Opportunities 121 iv LIST OF TABLES Tab le 3.1 Mult i -Factor Ana lys is of Se lec ted Power Produc ing Techno log ies 46 Tab le 3.2 Mult i -Factor Ana lys is of Se lec ted Hot Water Producing Techno log ies 47 Tab le 3.3 Mult i -Factor Ana lys is of Se lec ted Heat Producing Techno log ies 48 v LIST OF FIGURES Figure 2.1 A Comparison of the U.S. & Canadian Power Mix 11 Figure 2.2 Canadian Residential Electricity Prices, Adjusted 14 Figure 2.3 Electricity Feedstock Commodity Pricing 19 Figure 2.4 Map of the W S C C Major Network Lines 22 Figure 3.1 Typical Daily Energy Consumption of Certain A C Appl iances 27 Figure 3.2 Solar Panel Used for Incidental Lighting at BCIT 33 Figure 3.3 Artist's Rendition of a Solar Hot Water System ....37 Figure 3.4 Artist's Rendition of a Simple, Closed E E S 40 Figure 3.5 Compressed Wood Pellets 43 Figure 4.1 Ordering Rational: Streaming the Challenges 51 Figure 4.2 Break-down of Challenges by Grouping & Relative Weighting 52 Figure 4.3 Economic, Market & Financial Challenges Identified by Sector 53 Figure 4.4 Utility Level Challenges Identified by Sector 57 Figure 4.5 Regulatory Challenges Identified by Sector 58 Figure 4.6 Political / Policy Challenges Identified by Sector 61 Figure 4.7 Societal Challenges Identified by Sector 64 Figure 4.8 Industrial Challenges Identified by Sector 67 Figure 4.9 Technical Challenges Identified by Sector 70 Figure 5.1 Ordering Rational: Streaming the Opportunities 76 Figure 5.2 Break-down of Opportunities by Category 77 Figure 5.3 Economic, Market & Financial Opportunities Identified by Sector.... 78 Figure 5.4 Utility Level Opportunities Identified by Sector 85 Figure 5.5 Regulatory Opportunities Identified by Sector 87 Figure 5.6 Political / Policy Opportunities Identified by Sector 89 Figure 5.7 Societal Opportunities Identified by Sector 91 Figure 5.8 Industrial Opportunities Identified by Sector 94 Figure 5.9 Technical Opportunities Identified by Sector 95 vi ABBREVIATIONS BC SEA B C Susta inable Energy Assoc ia t ion BCH B C Hydro BCPC B C Power Commiss ion BCUC B C Utilities Commiss ion BIPV building integrated photo voltaic CBO community based organizat ion CSA Canad ian Standards Assoc ia t ion EES earth energy system FVRD Fraser Va l ley Regiona l District GHG greenhouse gas GPC green power certificate GVRD Greater Vancouve r Reg iona l District GW gigawatt GWh gigawatt-hour HVAC heating, ventilation and air-conditioning IEP Integrated Energy P lan IPP independent power producer kW kilowatt kWh kilowatt hour m meter m/s meter per second MUD multi-unit dwell ing MWh megawatt hour NEB National Energy Board NGO non-governmental organizat ion NRCan Natural Resou rces C a n a d a NYISO N e w York Independent Sys tems Operator PTC production tax credit vii PV photo voltaic REDI Renewab le Energy Deployment Initiative REC renewable energy certificate RET renewable energy technology RPS renewable portfolio standard SFH single family house SHW solar hot water WECC Western Electricity Coordinat ing Counc i l viii ACKNOWLEDGMENTS Writing this thesis has been an exerc ise in col laborat ion: Dr. Wi l l iam R e e s has acted as my thesis superv isor and friend, throughout; Pro fessor Er ic V a n c e , an invaluable, constructive critic; Caro l ine Brown, a superlat ive editor and grammar ian; Dr. And rew Lewis, the inspiration (and perspiration) behind many of the f igures contained herein, and S tephen Brown, my eternal reality check and debate coach . In addit ion, dozens of ind iv iduals—some of whom were interviewed for this project—have volunteered literally hundreds of hours to help me understand better the issues of energy, renewable technologies and the dynamic currents that drive the province of British Co lumb ia . To you all I am grateful. ix ~ This work is dedicated with love to my brother, Steph and to those who aren't afraid to take the lead in the introduction of a new order of things ~ Chapter 1 Introduction to the Research 1.1 Thesis Statement & Objectives The economic and socia l viability of the Lower Main land of British Co lumb ia , C a n a d a , is highly dependent on electrical power. Th is electricity is generated largely from "c lean" hydroelectric sources provided, in most c a s e s , by a single central ized supplier. In an era of increasing integration of the North Amer i can grid, rising demand for energy, uncertain supply of fossi l fuels—from which much of the continent's electricity is genera ted—and growing uncertainty surrounding hydro-electricity due to cl imate change, the Lower Main land may be increasingly reliant upon green house gas producing, "dirty" sources of electricity and vulnerable to electrical energy supply disruptions. Within this context, the purpose of this thesis is twofold: first, to make the case that the region would benefit from greater redundancy in electrical energy supply and , second , to investigate selected supply-s ide opt ions that may be avai lable to create a forward looking, susta inable and secure electrical supply. Al though one way to ach ieve this in the Lower Main land might be by displacing s o m e or all of the traditional, central ized, util ity-based sources of electricity with decentra l ized, non-utility sca le , renewable energy technologies ( R E T s ) , these technologies have not proliferated throughout the region. The chapters that fol low will detail and analyze real and perceived chal lenges to their w ide-spread adoption. 1.2 Why This Research is Important & Relevant to Planning W h y is secured electrical supply a planning problem? What re levance does the topic have to a planning thes is? Isn't electrical energy planning simply a technical issue, better left to federal and provincial officials or city eng ineers? Until recently, faith in the integrity and reliability of central ized electrical mega-sys tems, the abundance and accessibi l i ty of oil and gas and the general lack of awareness of the sc ience behind global cl imate change have meant that i ssues relating to energy have not been necessary e lements of Canad ian regional and municipal planners' professional 1 repertoire. L ikewise, until recently, "sustainability" (which only in the last few years has come to include sustainable energy planning), has been a luxury d iscuss ion item for forward-looking planning departments, progressive thinkers and cutting edge planning schoo ls . Th is must change as convent ional fossi l fuels become increasingly scarce and expens ive, and their ecological and socia l impacts are better understood. There may be no quest ion that that every domain of the public and private sectors will be affected. Th is breadth of impact—from built form and land use planning considerat ions, to emergency planning, to community and socia l p lann ing—makes issues of energy supply and environment directly relevant to the entire planning profession, irrespective of practice area. Energy considerat ions must not be left, as has historically been the case , within the exclus ive purview of engineers and technic ians. If, indeed, the world is on the brink of an energy revolution, Canad ian cities and their inhabitants are ill prepared to respond. The energy conversat ion must no longer be privi leged. 1.3 Study Area I have chosen the Lower Main land of British Co lumb ia , the region surrounding and including the City of Vancouver , which stretches from the C a n a d a - U . S . border North to Horseshoe B a y and Eas t to Hope, as my study area for severa l reasons. Accord ing to the 2001 census , over two million people live in the region, and sixteen of the province's thirty most populous municipalit ies are located here. It is an area that is exper iencing rapid development, which translates materially into more buildings, more people and more products and serv ices consumed . S e e Append ix A for maps of the Greater Vancouve r and Fraser Va l ley Regiona l Districts which, together, compr ise the Lower Main land. There is an increasing interest on the part of municipal and regional p lanners, as well as policy makers and others to develop "sustainably." A key element of this 2 more sustainable development will be the minimization of how (and how much) energy is used in these new areas of growth. 1.4 Organizational Rationale / Research Parameters For reasons of scope , this thesis will not address issues of electricity demand , however, it must be noted (if not elaborated upon, here) that no conversat ion about energy security is complete without an acknowledgement of the integral and important role that conservat ion and eff iciency will play going forward. Within this narrowed scope , the pages that fol low will begin the energy-planning dialogue from a supply s ide perspect ive—that of electrical generat ion. To address my research purpose, I formulated two meta-quest ions: first, what is inhibiting energy consumers in the Lower Main land from generat ing their own heat and power and, second , what opportunities are avai lable to encourage them to do s o ? A s one (but by no means the only) way of answer ing these broad quest ions, I chose R E T s as a lens through which to shape my inquiry. Consequent ly , I gathered data by: i) surveying the literature relating to the barriers and opportunit ies for the implementation of R E T s , and ii) conduct ing a ser ies of semi-structured interviews with 28 individuals, all of whom are famil iar with R E T s and have some direct connect ion to the Lower Main land. 1.5 How the Research was Conducted - Methods 1.5.1 Literature Review The literature that I reviewed falls into four categor ies: Academic Literature - By virtue of where they have chosen to publ ish, much of the relevant literature produced by academics appears in the technical literature or public policy documentat ion, d i scussed below. Notable except ions that were reviewed for this thesis, however, include works relating to two areas in particular: i) theories of embodied energy ("emergy") deve loped by sys tems ecologist Howard T. O d u m , and ii) work on energy economics and pol icies relating to renewable energy 3 technologies (Bel l , John J . 2002; Bel l , 2003 ; C leve land et a l . 2000; F ischer and Newel l , 2004; Griffin and Stee le , 1986). Technical Literature - Th is literature dea ls predominantly with speci f ic technological aspec ts of renewable sources of energy and renewable energy technologies. Three sources of particular note include: i) Natural R e s o u r c e s C a n a d a ( N R C a n ) , which produces a large number of energy-serv ice based information circulars for the educat ion of the Canad ian public and industry, ii) industry publications, many of which specif ical ly address technical e lements of a particular product or serv ice and the cha l lenges faced by their industry members , and iii) information and reports from the Energy Information A g e n c y (EIA), a division within the U .S . Department of Energy. Whi le controversial , this last data source is important to mention, as it contains a wealth of useful , publicly avai lable, current data—not only for the United States, but many other countr ies as wel l , including C a n a d a . Domest ical ly produced, consol idated, publicly avai lable Canad ian technical data are difficult and somet imes impossible to source. Public Policy Documents (Consultants & Non Governmental Organizations) - The scope of this literature ranges from an analys is of the current state of the electrical sys tem in the province of British Co lumb ia , the sustainabil i ty implications of alternatives to the energy status quo, globally. Th is literature "c lass" provided the widest variety of content and is produced, primarily, by energy consul tants (contracted by the Prov ince, a municipality or particular utility to ana lyze a particular issue) and non-governmental environmental organizat ions ( N G O s ) . A n attempt w a s made to select materials from N G O s that are known for the quality of their research and analys is , including the David Suzuk i Foundat ion and the Pemb ina Institute. Public Policy Documents (Governments & Utilities) - Literature coming from this level form the basis for the broad-brush framework into which the renewable energy conversat ion is p laced. Here, policy directions are detai led and specif ic action items promulgated, predominantly at the municipal level. A s an organ of the Prov ince and 4 the electric utility for almost all of the Lower Main land, B C Hydro has been included in this group. Information gathered from this organizat ion ranged from (and includes) high-level policy documentat ion to speci f ic how-to manuals oriented towards the general public and industry. The chal lenge with each category of literature is to be c lear about the agenda that is being promoted, and the way in which statistics are select ively used . In most c a s e s , posit ions are clearly articulated at the outset and concepts well def ined. For each of the documents reviewed, a summary of the relevant data w a s made following a first reading which includes relevant i ssues raised by each author. Th is preliminary survey of data and issues informed the strategy of subsequent data col lection rounds—either by highlighting an area in which further reading was necessary , or by pointing to an issue that required exploration in the interview process , d i scussed below. Much of the qualitative data col lected cons is ts of direct quotes and a summary of the relevant issues. The quantitative data, on the other hand, has been used to generate f igures and tables that appear throughout this thesis. 1.5.2 Interviews1 A s a second branch of my data collection strategy, I conducted interviews with 28 people. The criteria used to select these individuals were four-fold. E a c h prospect ive interviewee w a s required to be: i) professional ly involved in a direct way with urban infrastructural development, ii) both interested in, and p o s s e s s e d of some knowledge of R E T s , iii) a potential user or installer of R E T s , and iv) likely to be impacted (or have some part of their professional life impacted) by the emergence of R E T s in the Lower Main land. 1 See Appendix B for a copy of the University of British Columbia's Office of Research Services and Administration Behavioural Research Ethics Board "Certificate of Approval" for this study. 5 Potential interviewees were se lected from a variety of sources including: i) personal industry contacts, ii) referrals by those contacts, iii) l istings found on the B C Susta inab le Energy Assoc ia t ion ( B C S E A ) webs i te , 2 and iv) referrals made by interviewees at the c lose of their interviews. Somewha t surprisingly, the combinat ion of criteria meant that the pool of local potential interviewees was , although professional ly diverse, actually quite smal l . Ultimately, the 28 individuals that I interviewed included academics , energy planners, members of community based organizat ions ( C B O s ) , public servants, engineers, architects, developers, energy consultants, R E T providers and senior level utility company employees . For the purposes of this analys is , I have clustered the 28 interviewees into 5 groups: Academ ic , Commun i t y -Based Organizat ion ( C B O ) , Energy Provider, Government and Industry. In order to acknowledge the diversity within this last group, "Industry" has been further divided into sub-groups: Consultant, Developer, P ro fess iona l 3 and R E T Provider. Whi le it is unlikely that statistically significant data can be deve loped through this analys is, good research value emerges from the direct identification of i ssues and an analys is of a reas in which there w a s broad agreement or d isagreement, or a clearly identifiable split by interviewee sector. The purpose of chapters four and five is to highlight these issues and a reas of convergence and divergence, as well as recognize the plethora of cha l lenges and opportunit ies identified. It must be noted that the group from which I col lected interview data adheres to a particular perspect ive. E a c h w a s support ive of the concept of enhanced R E T penetration, although many were unsure as to the appropriate "vehicle" to promote this in the Lower Main land. My purpose for select ing a rather phi losophical ly homogeneous group (at least as relates to R E T s ) w a s based on the expectat ion that the relative level of knowledge and energy sophist icat ion of this group might translate into independent considerat ion of the possibil ity of the use of alternative 2 3 Which includes Engineers, Architects, an Industry Association leader and a Planner. 6 energy for heat or electricity, either within the context of their personal life, or in that of their industry. G iven the general ly high quality of data returned, it appears that this select ion assumpt ion w a s val id. Averag ing 45 minutes each , interviews were structured around the following four base quest ions, with ample room for related d iscuss ion if relevant conversat ional threads emerged that warranted it (and the interviewee w a s amenable) : 1. With which R E T s are you famil iar and are you aware of any facil it ies that incorporate them as a source of energy? 2. What are the principle cha l lenges or barriers to on-site, micro-generat ion of renewable energy in the region? 3. What opportunit ies exist to el iminate or mitigate these cha l lenges? 4. How have certain projects relating to the micro-generat ion of energy moved forward in the Lower Main land? Engaging and informative, the interviews made c lear that the vast majority of interviewees were not only p leased to be involved in the a reas in which they were being interviewed as "experts", but a lso interested in communicat ing the pass ion that they feel about their work to others. 1.5.3 Analyzing the Interview Data With one except ion , 4 I took typewritten notes during the interview and s imul taneously digitally recorded each using an mp3 player. T h e s e recordings al lowed me to double check the accuracy of my note taking, and to supplement that text with verbatim quotes. By creating complete transcriptions of each interview, I coded the text in such a way that related data groups (e.g. "facilities" and "barriers to adoption") were easi ly identified. This text data w a s transferred to an Exce l workbook, where different spreadsheets were used to further ana lyze each grouping. 4 Here, the interviewee requested that I take no notes—although an audio recording was permitted during the interview. 7 1.5.4 Closing the Gaps After analyz ing the data col lected from both the literature review and the interviews, it became clear that there were certain a reas , relating particularly to Canad ian technical statistics that were miss ing. To fill these gaps , solar, geothermal and b iomass experts (from academia and industry) provided further quantitative data relating to their area of expert ise (e.g. cost per kilowatt hour (kWh), and up front capital costs of a particular technology) as this was not general ly publicly avai lable in a consol idated form. 8 Chapter 2 A Case for Greater Redundancy in the Electrical System Provide for Passive Survivability: In New Orleans—and everywhere—it makes increasing sense to that [we] can maintain liveable conditions in the event of extended power outages or fuel supply interruptions. Principle #8. New Orleans Principles, 2005 2.1 Electrical System—Status Quo It w a s not until the 1800s that people learned, on a large sca le , to harness electricity to do work. From one century to the next, electric energy has completely changed the way we live and the energy used to produce light, heat and motion is ubiquitous and deeply, if invisibly, integrated into our everyday life. 2.1.1 Power Demand Between 1850 and 1970, the number of people living on Earth more than tr ipled— yet the energy consumed rose 12-fold. Between 1970 and 2002, the population grew another 6 8 % and fossi l fuel consumpt ion 7 3 % (WorldWatch, 2004). Paral lel ing this, in both the United States and C a n a d a , electricity demand has increased, as have pr ices. B C Hydro noted in its 2006 Integrated Energy P lan (IEP) that both the Canad ian National Energy Board and the U S Department of Energy project global consumpt ion of energy to rise a further 6 0 % by 2025 and that demand for energy from As ian economies such as Ch ina and India is "going to place new pressures on how we [in British Columbia] live and work" ( B C Hydro, 2006b). Notwithstanding global demand pressures, currently, demand is exceed ing electrical supply in British Co lumb ia and for the past five years, B C Hydro has imported electricity from neighbouring jur isdict ions 5 ( B C Hydro, 2006b). B C Hydro 's current load forecast indicates that provincial electricity requirements will grow between 25 and 4 5 % over the next 20 years ( B C Hydro, 2006b). A s the Crown Corporat ion charged with the responsibil i ty of ensur ing sufficient provincial electricity supply, one 5 1,700 gigawatt-hours (GWh) in 2001, 5,200 in 2002, 1,700 in 2003, 5,100 in 2004, and 7,400 in 2005. 9 of the ways that B C Hydro is meeting current and future requirements is through power trading. 2.1.2 The Grid and Power Trading in North America Power trading occurs both inter-provincially and internationally. In 2003 , C a n a d a exported about 30 billion-kilowatt hours (kWh) of electricity to the United States, mostly from Q u e b e c , Ontario, and N e w Brunswick to N e w Eng land and New York. Sma l le r vo lumes are exported from Brit ish Co lumb ia and Mani toba to Wash ing ton State, Minnesota , Cal i fornia, and Oregon . Cons iderab le reciprocity exists between Canad ian and U .S . power markets, as the United States a lso exports smal ler vo lumes of electricity to C a n a d a (EIA, 2005a). Acknowledg ing this, the province of British Co lumb ia noted in its 2002 third energy plan, Energy for Our Future: A Plan for B.C., that " B . C . is becoming increasingly integrated with North Amer ican energy markets" 6 (Province of British Co lumb ia , 2002). Most of the gasol ine and home heating oil used in British Co lumb ia comes from Alberta, and electricity, imported from both Wash ington State and Alberta, helps meet provincial demand during periods of below-average rainfall (Province of Brit ish Co lumb ia , 2002) and other per iods when its own domest ic demand for electricity outstrips supply capabil i ty. Al though B C has become a net importer of electricity, the authors of the IEP note that "[t]he fact that B C is now a net importer of electricity may be hard for some to understand" ( B C Hydro, 2006b). Th is confusion " removes any sense of public urgency to find new sources of electricity and gives us a false s e n s e of security" ( B C Progress Board , 2005). 6 Electricity is a commodity actively traded by Powerex, BC Hydro's energy marketing subsidiary. See also: Government of British Columbia's Ministry of Mines, Energy and Petroleum Resources web page: "Energy Plan to Create Investment, Jobs, Prosperity" Last accessed, April 30, 2006. 10 2.1.3 The Power Mix In 2004, the United States generated 3,953 billion kWh of electricity, including 3,794 billion kWh from the electric power sector. Of this, coal-f ired plants accounted for 5 2 % of generat ion, nuclear 2 1 % , natural gas 16%, hydroelectricity 7%, d iesel and fuel oil 3%, geothermal and "other" 1% (EIA, 2005a) . 7 It is important to note the significant proportion (71%) of electricity generated through the burning of convent ional fossi l fuels. In 2004, C a n a d a generated 576.4 billion kWh of electricity. Of this, hydroelectricity accounted for 58.6%, coal-f ired plants accounted for 16 .5%, nuclear 14.8%, natural gas 5.2%, d iesel and fuel oil 3.4%, wood and spent pulping liquor 1.3% and other, a mere 0 .36% (Smithers, 2006). The Canad ian power mix has remained relatively constant s ince 1990, with a 4 % increase in hydroelectricity, a decl ine of 3 % in the use of natural gas for generat ion and a combined increase of 1.1% of wood and spent pulping liquor and "other" sources . Whi le it s e e m s tiny, this last group is increasingly significant, as in 1990, the wood category accounted for less than 0 .5% of the generat ion mix and "other" sources were less than 0 .02%. Figure 2.1 A Comparison of the U.S. & Canadian "Power Mix" (2004) U.S. Power Mix Canadian Power Mix 7 A n addit ional 152 bill ion k W h w a s generated in comb ined heat and power facil it ies in the commerc i a l and industrial sectors. 11 In British Co lumb ia , B C Hydro operates generating facil it ies that produce almost 11.5 billion kWh (i.e. 11,500 M W ) of electricity, approximately 9 0 % of which comes from hyd ropowerand 10%, thermal generat ion (Monk, 2 0 0 1 ) . 8 B C Hydro produces, transmits and distributes electricity over a territory that includes about 1.6 million customers, or 9 4 % of the population of British Co lumb ia (Hydro Q u e b e c , 2005). O n July 27 2006, B C Hydro announced that it had s igned generat ion contracts with 38 new independent power producers. Of these, 29 are run of the river, three are wind, two are coa l /b iomass, two are waste heat and two are b iomass . 9 A n understanding of the power mix is significant, particularly as British Co lumb ia becomes increasing reliant upon imported electricity. A s most of the electricity that the province imports from Alberta and the United States is a product of thermal combust ion, in effect, British Co lumb ia and all of its electricity consuming residents are complicit in the demand for and generat ion of "dirty" power. Th is will be d i scussed in greater detail in 2.3.2, below. 2.1.4 Retail Pr ice 1 0 In the United States, on a national level during 2004, the retail price of electricity averaged 7.57 cents per kWh , up 2 .0% from 2003. For the first six months of 2005, electricity pr ices were up another 4 .2%, to 7.69 cents per kWh (EIA, 2005a). According to BC Hydro's "Info Pages," about 65%of BC Hydro's installed generating capacity is at hydroelectric installations in the Peace and Columbia river basins with the remaining 25 hydroelectric generating stations elsewhere in the province supplying 14%of electricity production. The Burrard Thermal Generating Station contributes 7.5% (up to 950MW), and the remaining 14.5% is supplied by purchases and other transactions, which may include operation of combustion turbine generating stations at both Prince Rupert (up to 46 MW) and Fort Nelson (up to 47MW). The Prince Rupert Generating Station is primarily intended to provide short-term energy during transmission interruptions in that area, while the Fort Nelson plant both provides energy to the Fort Nelson region during transmission outages and is continuously providing energy to the system grid. See: 9 The combined total energy contracted amounts to 7,351 GWh/an. For a map and chart of successful projects, see: 1 0 All pricing information is given in the currency of the referenced country. 12 A survey done by Hydro Q u e b e c of 11 Canad ian cit ies indicated that on Apri l 5, 2005, the retail price of electricity averaged 8.59 cents per kWh , ranging from a high of 12.33 cents per kWh in Charlottetown, PEI to a low of 6.30 cents per kWh in Winn ipeg, Mani toba. The single city sampled for British Co lumb ia , Vancouver , registered 6.41 cents per kWh for the s a m e date (Hydro Q u e b e c , 2005). A s B C Hydro is a crown corporat ion with a province-wide mandate, the retail price of the electricity that it generates and sel ls is constant ac ross the province, irrespective of customer location. Figure 2.2 shows 1998, 2002 and 2005 Canad ian residential electricity pr ices in var ious cit ies. With the except ion of Edmonton, retail pr ices in every city have increased over the survey period. The expense assoc ia ted with the repair of aging infrastructure, replacement costs assoc ia ted with bringing new generat ion on-l ine and the increasing price of electricity inputs (particularly natural gas and oil) mean it is unlikely the price of electricity will go down in the near future. Indeed, all indications point to steadily increasing rates as a long-term trend. 13 Figure 2.2 Canadian Residential Electricity Prices, Adjusted for Inflation Even though pr ices are projected to rise in British Co lumb ia , they are still exceedingly low relative to other regions in C a n a d a and the world. Th is is significant, as one of the chief arguments against the implementation of R E T s , as will be seen in Chapter 4, is that local energy prices are currently so low a s to render most alternative generat ion sources uncompetit ive. 2.2 Division of Powers & Jurisdictional Issues 2.2.1 The Government of Canada The federal government has jurisdiction over electricity exports, international and 14 designated inter-provincial power l ines, and nuclear safety ( N E B , 2006). Regulat ion of international trade occurs through the National Energy Board ( N E B ) , 1 1 which w a s created pursuant to the National Energy Board Act in 1959. The Canadian Electricity Policy came into force in 1988 ( N A E W G , 2002). 2.2.2 Provincial & Territorial Governments The provinces and territories have jurisdiction over generat ion, t ransmission and distribution of electricity within their boundar ies, including restructuring initiatives and electricity pricing ( N E B , 2006). The B C Power Commiss ion ( B C P C ) , a state enterprise, began acquir ing private utility compan ies in 1945. Now, more than 9 4 % of the province's residents are served by B C Hydro, B C P C ' s s u c c e s s o r ( B C Hydro, 2005). B C Hydro 's bus iness mandate is "to generate, manufacture, distribute and sell power, upgrade its power sites, and to purchase power from, or sel l power to, a firm or person" ( B C Hydro, 2 0 0 6 a ) . 1 2 Th is mandate has been compl imented by an emerging ser ies of provincial energy plans, starting in 1980. That year, the Prov ince re leased its first energy policy, an Energy Secure British Columbia, which emphas ized security of energy supply, reduction of oil imports and conservat ion. At that t ime, direct government intervention in energy markets, from setting natural gas pr ices to building hydroelectr ic facilit ies, was the dominant policy direction. During this period, the B C Utilities Commiss ion ( B C U C ) 1 3 was created to provide independent oversight of energy utilities (Province of British Co lumb ia , 2 0 0 2 ) . 1 4 In 1990, a second policy statement, New Directions for the 1990s, w a s re leased. It set two new priorities: "efficient energy" and "clean energy." Th is document was intended to "make markets more competit ive, send better price s ignals to 1 1 The NEB also has responsibilities under the Canadian Environmental Assessment Act (CEA Act) that came into effect in 1995. 1 2 Note, that there is no suggestion that the power supply has to be procured or produced within the province. For more information on the B C U C go to: 1 4 This utility oversight extends to non-municipal utilities. 15 consumers , encourage c leaner fuels and energy eff iciency and strengthen environmental s tandards" (Province of British Co lumb ia , 2002). A third energy plan, Energy for Our Future: A Plan for BC w a s re leased in 2002. The four cornerstones of this current policy build upon the earl ier plans and are: "low electricity rates and public ownership of B C Hydro; secure , reliable supply; more private sector opportunit ies; and environmental responsibil i ty and no nuclear power sources" (Province of British Co lumb ia , 2002). Here, the government underl ines its ecological commitment by indicating that environmental responsibil i ty i ssues will "be assured through a c lean energy goa l , new price s ignals for conservat ion, c lear emiss ion standards and other strategies" (Province of British Co lumb ia , 2002). 2.2.3 Regional Energy Policy in the Lower Mainland The Greater Vancouve r Reg iona l District ( G V R D ) is the largest regional district within the Lower Main land. It is composed of 21 municipali t ies, the Electoral A r e a A (which includes the University Endowment Lands surrounding the University of British Columbia) and several First Nat ions Rese rves . In 2005, the G V R D census population was 2,155,880 ( G V R D , 2 0 0 5 ) — a figure that has more than doubled in thirty years. The Fraser Va l ley Regiona l District ( F V R D ) lies immediately to the east of the G V R D and is the district that e n c o m p a s s e s the remainder of the Lower Main land. Contain ing eight electoral a reas and six municipali t ies, the F V R D has a population of approximately 230,000. S ince 1960, the population of the Fraser Va l ley Regiona l District ( F V R D ) has approximately doubled every 20 years, and projections indicate this trend will cont inue ( F V R D , 2004). E a c h region has deve loped a policy document that outl ines its regional growth strategy. The Livable Region Strategic Plan ( L R S P ) was adopted by the G V R D in 1996 and in 2004, the F V R D re leased Choices for Our Future ( C F O F ) . E a c h provides the framework for making regional land use and transportation dec is ions, in 16 partnership with their member municipali t ies, the provincial government, and other agenc ies . Al though the L R S P extends to 2021 , providing for the growth of the region to about 2.75 million people ( G V R D , 1996) it contains no explicit reference to regional energy use or conservat ion. This , despite the fact that the average annual growth rate for electricity consumpt ion in the whole Lower Main land is 2 .2%, with consumpt ion in the Fraser Va l ley est imated 3 .5%, largely due to increased development in the region ( F V R D , 2004). L ike the L R S P , the C F O F also has a 20 to 30 year hor izon, wherein the regional population is expected to double to approximately half a million people ( F V R D , 2004). In sharp contrast to the L R S P , however, the C F O F highlights the responsible management of energy resources as one of its central g o a l s , 1 5 emphas i zes that the Fraser Va l ley regional growth strategy supports a "sustainable approach to community development that is character ized by strong support for energy eff iciency in terms of buildings, transportation, and infrastructure" and supports "maximizing the efficient use of energy resources and minimizing the need to expand energy infrastructure" 1 6 ( F V R D , 2004). Much has changed in the eight years between the writing of the two regional growth strategies and the C F O F has set a precedent for the logical extension of the definition of sustainabil i ty to include the management of energy resources, "to the extent that regional and local governments are ab le . " 1 7 1 5 C FOF - Goal #8. 1 6 C F O F indicates that the FVRD and local governments will strongly oppose the construction of additional energy infrastructure that is not in the best interest of the region and further states that the regional growth strategy encourages more responsible use of energy resources by: • Supporting green building initiatives; • Supporting energy efficient urban design and urban infrastructure; • Supporting initiatives that promote solar energy use, small scale hydro-electric generation, wind power generation, and geothermal energy as sustainable sources of energy; and • Improving public awareness with respect to the importance of energy conservation. 1 7 The C F O F acknowledges that energy policy is a federal and provincial responsibility, but notes that "actions at the local level can save energy and ultimately reduce demand for new energy infrastructure such as: dams, power lines, pipelines and energy generating plants." 17 2.2.4 Municipalities in the Lower Mainland Other than ensur ing that t ransmiss ion right of ways are in p lace and accommodat ion of infrastructural e lements is made, municipali t ies in British Co lumb ia have, historically, had little to do with energy issues within their corporate limits. Ci t ies such as North V a n c o u v e r 1 8 and N e w Wes tm ins te r 1 9 are two except ions within the Lower Main land. T h e s e cities have moved proactively to integrate e lements of energy generat ion and distribution within certain core a reas of their jurisdiction. 2.3 Energy Security & Climate Change 2.3.1 Energy Availability Internationally, much of the material converted to produce electricity c o m e s from fossi l fuels. In the United States, coa l , oil, and natural gas supply approximately three-quarters of the feedstock required to produce electricity, as noted in 2.1.3, above. Whi le this is not the make-up of the power mix in British Co lumb ia , it is still a relevant considerat ion, given that electricity is a commodi ty actively traded by Powerex and that coal , oil and natural gas continue to provide significant feed stock for the electrification of many other regions from which electricity imported into British Co lumb ia may originate. O n March 31 , 2005, analysts at the U .S . investment bank Go ldman S a c h s announced in a research report that the world energy market is in the early s tages of a "super spike" per iod—a "multi year trading band of oil pr ices high enough to meaningful ly reduce energy consumpt ion" (Energy Bulletin, 2005). Al though it is The City of North Vancouver owns and operates, through a wholly owned subsidiary, the Lonsdale Energy Corporation (LEC) which provides district heating to over half a million square feet of commercial and residential development connected to the LEC system. That space is expected to double in 2006 with twenty new Lower Lonsdale buildings connected over the next several years. See: 1 9 The City of New Westminster's wholly owned electrical utility distributes electricity to 25,000 commercial and residential customers and maintains city-wide electrical systems, including public recreation centres, arenas, pools, streetlights, traffic signals, and City Hall. See: In addition to these two cities, the City of Revelstoke (in south-eastern British Columbia) has partnered—through its wholly owned Revelstoke Community Energy Corporation and a local timber mill—to create a project which uses wood waste as an energy source to generate steam and hot water to be used in the mill's dry kilns and in institutional and commercial buildings in Revelstoke's downtown core. See: 18 unlikely that a c c e s s to relatively inexpensive oil and gas in North Amer i ca will be restricted in the very short term, it is reasonably foreseeable that significant socia l and economic impact will be exper ienced as the price of oil and g a s continue to cl imb. High oil and gas prices will have direct repercuss ions on the market price of imported electricity. It may also impact the potential availabil ity of electricity to be imported by Powerex from its Amer ican suppl iers over the longer term. Figure 2.3 shows the percentage change in price from 1998 to 2005 for three common fuels used to generate the electricity that is imported into British Co lumbia : natural g a s , 2 0 c o a l 2 1 and diesel 2 2 It fol lows, logically, that signif icant price inc reases of any of these commodi t ies will likely have an effect on the market price of electricity imported into British Co lumbia . Whether or not this rate increase is passed on to the domest ic energy consumer , however, will be a quest ion of public policy. Figure 2.3 Electricity Feedstock Commodity Pricing (1998-2005) Data used: Price of Natural Gas Sold to Commercial Consumers in the U.S. ($ per thousand cubic feet) Source: EIA Natural Gas Prices. 2 1 Data used: Average Coal Price ($ per short ton) Source: EIA Annual Energy Review. 2 2 Data used: Los Angeles, CA No 2 Diesel Spot Price FOB (Cents per Gallon) - Averaged over the year. Source: EIA - Petroleum Spot Prices. 19 2.3.2 Ecosystemic Integrity Equal ly as important as issues of secured a c c e s s , scientif ic global consensus supports the notion that unconstrained use of fossi l fuels generates greenhouse g a s e s ( G H G s ) and drives global cl imate change—someth ing that will create enormous problems, now and for future generat ions. Warn ings about sea- level r ise, increasingly severe weather patterns, droughts, food shortages, and the threatened extinction of 2 5 % of all land-based animals and plants have become increasingly urgent (World Watch , 2005). Anthropogenic emiss ions of carbon dioxide, one of the most prevalent G H G s in the atmosphere, result primarily from the combust ion of fossi l fuels for energy. Loca l energy use is an integral part of the cl imate change debate. W h y is global cl imate change relevant to this thes is? It is of utmost importance for two reasons. First, as ment ioned above, electricity imported into British Co lumb ia is generated, largely, from "dirty" sources which are responsible for large G H G emiss ions. S e c o n d , it is important because no one can predict with any certainty what the effects of a global change in temperature will be on our own environment. In particular, B C Hydro's current sys tem of electrical storage is based on large water reservoirs and a ser ies of dams located throughout the province. Th is sys tem may have water sufficient to maintain current levels of generat ion—or, it may be significantly depleted if drought or low-water condit ions occur as a result of global warming. A report prepared for the Cal i fornia Energy Commiss ion highlights this concern by noting that " [projected changes could alter the shape of B C Hydro's existing load, reducing winter peak load and increasing summer peak load. A decrease in precipitation could reduce hydropower generat ion" ( C E C , 2005). 2.3.3 General Infrastructure Concerns In addition to the frightening implications of global warming and concerns that the supply of energy may not be sufficient to meet increasing demand , a brief notation on the impact of central ized generat ion should be made. C a n a d a , the United States, and most of the industrial ized world rely upon very large electricity producers that feed the power that they produce into a vast distribution network—the grid. Al l city 20 dwellers and now most rural residents, except for those living in very remote regions, have a c c e s s to (and are expected to use) the electrical serv ice provided by these monolithic networks. O n c e "on-grid", one need do no more than flip a switch, and ant ic ipate—reasonably in most jurisdictions, it s e e m e d , until recently—that electrical power will be avai lable. A n integral component of the grid is the t ransmission lines that carry undifferentiated electrons from power producer to end-user. The western interconnection corridor directly supports the large f lows of energy between British Co lumb ia and other jurisdictions as a result of the who lesa le generat ion market, d i scussed above. No significant new t ransmission has been built in this t ransmission corridor in the last 10 years. A briefing memo produced by B C Hydro Execut ive Operat ions caut ioned in 2002 that "[bjased on U S exper ience with a deregulating electricity market over the last five years, the changing structure of the industry has introduced unanticipated reliability concerns and risk" ( B C Hydro, 2002a). It warned further that, "electricity restructuring on both s ides of the border has exacerbated an existing nonfunctioning market for t ransmission and , coupled with little new generat ion and increased market uncertainty, contribute to a rising probability of electrical interruption" ( B C Hydro, 2002a). Figure 2.4 shows a map of the Western S y s t e m s Coordinat ing Counc i l ' s t ransmission region ( W S C C ) of which British Co lumb ia is a member. 21 Figure 2.4 Map of the Western Systems Coordinating Council Major Network Lines Source: © W e s t e r n Electricity Coordinating Council, by permission. 22 2.3.4 Critical Infrastructure Whi le d iscuss ing " transmission corridors" in the abstract is interesting, what makes these l inkages literally a matter of life or death is the fact that they power critical infrastructure. A city's "critical infrastructure" is that infrastructure, which if disrupted or destroyed, would have a ser ious impact on the health, safety, security or economic well being of its inhabitants and the effective functioning of governments . 2 Crit ical infrastructure is reliant upon mass ive and cont inuous energy inputs. R e s e a r c h following widespread electrical fai lures ac ross North Amer i ca , highlights that direct effects will occur to the following critical sys tems: building maintenance, health care facilit ies and emergency serv ices, the food supply, communicat ions infrastructure, government, transportation and non-electricity producing utilities (Brown, C h a n g , McDan ie ls , 2006). Without consider ing the fai lures occas ioned by hurr icanes and winter storms, s ince 1965 there have been at least six clusters of major blackouts, one of which has directly affected residents in the W E C C . O n e such outage led the C E O and President of the N e w York Independent Sys tem Operator (NYISO) , in February of 2005, to issue a news re lease which stated unequivocal ly: "[Wjithout national mandatory reliability s tandards that are strictly enforced, our chances for another major sys tem failure will cont inue" (NY ISO, 2005). Th is is not just a problem for the Amer ican energy consumer , for as expla ined in 2.1.2, above, British Co lumb ia is well integrated into the North Amer i can energy markets and consequent ly , its t ransmission infrastructure. The Lower Main land is physical ly "tied in" and as a result, it is increasingly likely that as electrical infrastructure, including networks of power l ines and substat ions ages , without changes to the status quo, more power shortages will be exper ienced and the residents of the region will feel the effects of those fai lures. For a more expansive definition, see Public Safety and Emergency Preparedness Canada's website: e.asp 23 2.4 Alternative Sources of Energy Although most of the electrical energy consumed ac ross North Amer i ca is derived from fossi l fuels or mass ive hydro facil it ies, these are clearly not the only sources of power. There are many ways to produce heat and motion and energy from renewable sources or "fuels" that can prompt alternative ways of thinking about electrical generat ion. 2.4.1 Renewable Energy Energy sources that are " renewable" are thusly label led because they are naturally replenished and because they can be managed so that they last forever or because their supply is so enormous that they can never be meaningful ly depleted ( U C S , 2005). Whether or not an energy source may be depleted, however, is only one aspect to be a s s e s s e d when determining if a particular source would be a beneficial addition to the power mix. In spite of the benefits of using a renewable source, during the process of their manufacture, certain renewable energy-using technologies can also have negative air emiss ions , create toxic waste by-products in their production, or affect land uses , aesthet ics, or wildlife. Th is has lead one analyst to note "[t]he use of cheaper non-renewable resources in the near-term may be justified given other more pressing economic , socia l or environmental i ssues" (City of Vancouver , 2002b ) . 2 4 2.4.2 Sustainable Energy Not all renewable energy sources are "sustainable." A source 's sustainabil i ty relates to whether its production or procurement creates significant environmental , economic or socia l impacts. Whi le sustainable energy generat ion often results in low or no emiss ions of G H G s and local air pollutants, no energy resource is completely benign and the environmental impact will vary from resource to resource ( B C Hydro, 2002b). To determine relative sustainabil i ty (i.e. this source is more or 2 4 Indeed the switch from coal-based energy generation to nuclear energy in countries such as France and Scandinavia in the 1960s exemplifies this. 24 less sustainable than that), these impacts will need to be weighed one against the other when compet ing energy sources are under considerat ion. Paral le l ing the now ubiquitous Brunt land definition of "sustainable deve lopment , " 2 5 the B C S E A notes that susta inable energy "is any source or appl icat ion of energy which meets the energy needs of the present without compromis ing the ability of future generat ions of humans and other spec ies to enjoy socia l wel lbeing, a vibrant economy, and a healthy environment" ( B C S E A , 2006). 2.4.3 Clean Energy It is important to note that "sustainable" and "renewable" energy are not the s a m e as "c lean" energy. B C "c lean" electricity is a term that has been coined by the government of British Co lumb ia and "refers to alternative energy technologies that result in a net environmental improvement relative to existing energy production" (Province of British Co lumb ia , 2005). Examp les may include "micro hydro, wind, solar, photovoltaic, geothermal , t idal, wave and b iomass energy, as well as cogenerat ion of heat and power, energy from landfill gas and municipal solid waste, fuel cel ls and eff iciency improvements at existing facilit ies" (Province of British Co lumb ia , 2005). For the purposes of this thesis, susta inable energy speci f ical ly excludes severa l of the enumerated B C "c lean" sources . Energy produced by burning fossi l fuels (i.e. coa l , oi l, gas , and coal bed methane) including most natural gas fired cogenerat ion sys tems currently operating in the province, and garbage incineration (which produces dioxins when plast ics are burned) are specif ical ly exc luded. Large hydroelectr ic dams are a lso not included, although a reasonable argument could be made that existing heritage dams are now sustainable and could be grandfathered into the definition of a susta inable energy source (Dauncey, 2006). A detai led d iscuss ion of sustainable energy sources fol lows in the next chapter. 2 5 "Sustainable Development" was defined in the Bruntland Commission's Our Common Future (the United Nation's 1987 Report of the World Commission on Environment and Development) as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." 25 Chapter 3 Contextualizing the Lower Mainland Because many buildings stand for at least 50-100 years—and some last for centuries—it is essential to get them right the first time. WorldWatch Institute 3.1 Energy Use (Load) Profile 3.1.1 Region-wide The last chapter noted that B C Hydro's electric generat ion system stretches throughout the province, with 31 integrated hydroelectr ic generat ing stat ions and three gas-f ired thermal power plants ( B C Hydro, 2006b). With a total generat ing capaci ty of over 11,000 megawatts (MW), this sys tem provides electricity to approximately 1.7 million residential, commerc ia l and industrial customers. Together, all the residents of British Co lumb ia c o m b i n e d 2 6 consume approximately 16,000 G W h per year ( B C Hydro, 2006b). 3.1.2 The Residential Level The average household in British Co lumb ia uses approximately 10,000 kWh of electricity annua l l y . 2 7 Whi le , general ly, this m e a n s that a s de tached, single-family homes become bigger, there is more space to heat, cool , and il luminate, the trend in new construction in the Lower Main land is to multi-family un i ts . 2 8 Th is trend bodes well for per capita energy use, general ly, as multi family dwell ings tend to consume less energy for heating and cool ing than single-family houses , however, this benefit is not significant enough to cance l out the effects of increased population growth. The increasing prevalence of electric c lothes dryers, electronic equipment and other modern app l iances add significantly to a household 's electrical " load," irrespective of 2 6 Including the residential, commercial and industrial sectors. 2 7 A large retail outlet will consume 3.5 GWh in a year, or about as much as 350 households. A typical commercial office building of 20 to 25 stories will consume 5 GWh in a year, or roughly the same amount of electricity as 500 households. A large industrial customer might use 400 GWh in a year, about as much as 40,000 households (BC Hydro, 2006b p. 4). 2 8 In the GVRD since 2000 for example, only 3 2 % of the new residential construction built since is single, detached housing (deGuzman, 2006). 26 its s ize. H o m e appl iances are the world's second fastest-growing energy c o n s u m e r s , 2 9 account ing for 3 0 % of electricity consumed and 1 2 % of G H G emiss ions (WorldWatch Institute, 2004). The size of a home, the efficiency of its appliances and behaviour of its occupants determine how much energy is consumed by a particular residence. Each new home heated with electric baseboard heaters or containing an electric fireplace creates additional demand for electricity, forcing our electric utilities to find other sources of generation, putting additional stress on the environment. Terasen Gas, 2006 Figure 3.1 provides an example of the typical annual energy consumpt ion of speci f ic electric (AC) app l iances that might be found in a modest three bedroom single-family house. The abr idged dataset used to compi le this figure may be found in Append ix C . Figure 3.1 Typical Annual Energy Consumption of Certain AC Appliances 2000 -i r 8000 S C o Q. E 3 • C O o «j 3 C C < 1500 A 1000 500 Appliance Data Source: CanWEA After automobiles. 27 3.2 Overview of the Potential of Selected Renewable Energy Technologies Large hydro, solar and wind power are the most well known renewable sources of energy, but add to this the renewable energy r ichness found in British Co lumb ia of b iomass, micro hydro and geothermal sources and there would appear to be significant potential for growth and development in locally produced energy. G iven considerat ions of energy scarcity, ecological integrity and infrastructural securi ty outl ined in the preceding chapter, an analys is of the potential that an enhanced proportion of distributed R E T s in the energy generat ion mix play in relation to the Lower Main land is timely. 3.2.1 Brief Intro to RETs The B C S E A has identified the following 11 sources of energy a s "sustainable": Wind Photovoltaic cel ls Pass i ve solar So la r heating and solar thermal Ground source heating and cool ing W a v e energy Landfil l gas and biogas Tidal from ocean current Geothermal B iomass Biod iesel Micro hydro Within the appropriate context, all of the above renewable sources , which are d i scussed in greater detail below, have the potential to produce electricity at varying sca les . Th is distributed potential is exciting as the use of local or on-site power sources is highly desirable, for not only is the energy demand on the grid reduced general ly, but perhaps more importantly, the demand for power during peak t imes is a lso r e d u c e d . 3 0 Distributed generat ion a lso enhances energy security as it can When BC Hydro customers are making their greatest demands on the system on the coldest winter day, demand is approximately 10,000 MW at peak usage (BC Hydro, 2006b, 4). 28 "provide power in the case of a power plant failure, or serve as an alternative to large, central ized power plants" (Heves i , 2005,). 3.2.2 RETs Not Included in This Analysis Although many sustainable sources can be harnessed to produce heat or power to feed onto the grid as ment ioned above, the choice of which R E T is appropriate for use in a particular location is very site specif ic. What this means is that (depending on' the source) without a c c e s s to a t ransmission line, heating pipes or a storage facility, a susta inable energy resource may be nothing but unreal ized potential. Within the Lower Main land, as e lsewhere, renewable energy cho ices are often constrained by resource availability. Many of the following sources of renewable energy were exc luded from this study on the bas is of their s ize , i.e. they were either too large to be cons idered "micro" genera t ion 3 1 —one of the parameters of this thes is—or too smal l , as the resource is not found in sufficient quantity in the Lower Main land. However, as they may be relevant e lsewhere, a brief descript ion as well as explanat ion of why severa l well known sources have not been included fol lows. A n in depth examinat ion of the sources that are avai lable in the Lower Main land cont inues in Sect ion 3.2.3. Wind B C Hydro notes "there are great opportunities to use wind to generate electricity in B C . However, wind energy is intermittent and needs to be combined with other d ispatchable power sources or storage to be an effective source of energy" ( B C Hydro, 2002c) . Wind also has a strong variability depending on seasona l weather patterns and cit ies generate their own weather (including wind) as large buildings create their own turbulence, known as the building effect. In urban areas where sufficient wind is avai lable, the mount upon which a turbine is housed must be very tall. Here, micro-generation of power is considered to be generation that could be captured within BC Hydro's net metering limit, i.e. 50kW maximum generator size. As relates to the generation of heat, "micro" is considered anything up to and including the neighbourhood level. 29 Although the entire province has been mapped to measure utility-scale wind resource, there appears to have been little data generated to support the p lacement of m/'cra-turbines. A wind resource map, prepared for B C Hydro by TrueWind Solut ions in 2 0 0 0 , 3 2 shows that for most of the Lower Main land the predicted wind resource qual i ty—a measurement of the average wind speed at a height of 65 meters (m) over a year—is less than 4 meters per second (m/s), or "poor." Al though a place may feel "breezy", that does not mean that sufficient wind resource is present to generate power. At the University of British Co lumb ia (Point G rey Campus ) , for example , wind speeds at a sports field were measured at 3.3 m /s . 3 3 Whi le wind speeds of 5 m/s—a velocity which would make generat ion viable with a sufficiently large rotor—are possib le at that site, they are only ach ievable at heights of 115m (Caulk ins, 2006). To put this into context, to power a "green" building at the s a m e c a m p u s , 3 4 a "sweep area" of 750 m 2 or rotor diameter of 31 m would be required to produce the 111,000 kWh it needs to operate per year. A convent ional office building, which uses twice that energy, would require a rotor diameter of 44 m (Caulk ins, 2006). Ocean Energy Brit ish Co lumb ia a lso has significant ocean energy potential through the capture of tidal and wave energy. The exploitation of each of these sources would require a large investment in infrastructure, however as currently no technology exists to al low an individual or neighbourhood to harvest this energy at a smal l (or micro-utility) sca le . Whi le ut i l i ty-scale 3 5 model ing has been done along portions of the coast by consul tants for B C Hyd ro , 3 6 as with wind, it appears that very little data has been generated or is publicly avai lable to a s s e s s the viability of micro-scale appl icat ions. Available at: environment/environmentl 839.pdf 3 3 Measured at Totem Field. 3 4 For example, the C.K.Choi Building. 3 5 >10MW 3 6 See, in particular, a report prepared for BC Hydro, Engineering in October 2002 by Triton Consultants Ltd. "Green Energy Study for British Columbia Phase 2: Mainland Tidal Current Energy." 30 Of the 55 potential, utility-scale ocean energy generat ion si tes that have been identified a long the coast only three have been identified in the Lower Main land ( B C Hydro, 2002d , 58). They include the First and S e c o n d Narrows and the waters around Hamber Island. O c e a n W a v e Energy sites have been identified on the W e s t Coas t of Vancouve r Island, namely at Ucluelet and Quats ino S o u n d . 3 7 Landfill Gas & Biogas Landfil l G a s is currently harvested in the Lower Main land in several a reas including: • The City of Vancouve r Landfil l in D e l t a 3 8 where it is used to generate electricity and heat for nearby g reenhouses , • The Port Mann landfill site in S u r r e y 3 9 where it is used to run the burners that cure wal lboard in a nearby factory, • The J a c k m a n Landfi l l in Langley where it is used by an adjacent bus iness for the production of brewer's yeast and piped to enhance plant growth in a nearby greenhouse, and • The Coqui t lam Landfi l l , where the gas is used in an adjacent newspaper recycl ing facility. Landfi l l gas at the C a c h e Creek Landfi l l is currently f lared. A s the site matures, however, the gas may also be captured for alternative uses (Braman, 2006). Internationally, most b iogas that is currently used in smal l -sca le settings (including cooking and lighting) is produced through the decomposi t ion of rural organic wastes , especia l ly manure. A t a larger sca le , however, wastewater treatment plants can also use the biogas that is produced from the decomposi t ion of the influent. A n example of this in the Lower Main land is the lona Island Wastewater Treatment Plant, which runs a cogenerat ion system that provides sufficient energy to sustain the plant. Al though land fill gas and b iogas may be increasingly feasible options as one heads out into the rural a reas in the F raser Val ley, until such t ime a s urban agriculture intensifies significantly and socia l and cultural mores surrounding manure See: BC Hydro, Green & Alternative Energy Division, "Executive Report on the Green Energy Study for British Columbia Phase 1," prepared by: Power Supply Engineering. 3 8 See: "Vancouver Landfill Gas Project" at 3 9 See: "Norseman Engineering Delivers First Emission Reduction Credits to GEMCo " at 31 evolve, it is unlikely to be a viable option for urban and peri-urban a reas within the Lower Main land in terms of new sources of micro-generat ion. 4 0 Geothermal Geothermal energy c o m e s directly from the earth as very hot water or s team and can be used to make electricity. Whi le there are several p laces in British Co lumb ia that are rich in geothermal energy (particularly in p laces in which there are volcanic vents, hot spr ings and thermal reservoirs), the Lower Main land general ly, has been identified as a region with "low" geothermal potential ( B C Hydro, 2002c) . Micro-hydro B e c a u s e of its geography and cl imate, British Co lumb ia , general ly, has very good potential for smal l hydropower generat ion, which is a lso known as "run of the river" or "micro-hydro." The electrical output from a micro-hydro generator f luctuates, depending on the time of y ea r 4 1 and water levels. A s the amount of electricity produced is a function of the vo lume of water and its "head" (i.e. how far the water fa l ls) , if either is increased, the f low increases proportionally. Th is resource is currently being harnessed or under considerat ion in a few p laces in the Lower M a i n l a n d 4 2 and may have potential for further appl icat ion. Micro-hydro will not, however, be cons idered here as there is little data avai lable for the region and few working to actively promote its use in the Lower Main land. In summary, the wind, ocean , landfill and biogas, geothermal and micro-hydro resources that could potentially provide energy or generate heat are either not suitably s ized or, in some c a s e s not located within the Lower Main land in sufficient quantity, to act as a significant source of heat or power. Whi le there will be isolated 4 0 That said, the South East False Creek development in the City of Vancouver is currently contemplating the inclusion of a sewage heat capture system. This is a technology that appears to have tremendous potential, but little precedent - so will not be included in this analysis. See: cclerk/20060302/documents/csb1_000.pdf 4 1 In winter, for example, many productive streams freeze. 4 2 The District of West Vancouver has partnered with Pacific Cascade Hydro Inc. to harness water flow from the Eagle Lake water supply, downhill through the municipality's water distribution system. It is expected that 1.1 GWh will be generated annually. For more information on this project, see: 32 except ions to this general izat ion, because of availability and their ability to produce heat and or power at a micro-scale, only four R E T s are likely to have much technical traction in the region. T h e s e are: grid-tied photo voltaic cel ls (PV) as well as so lar hot water (SHW) , earth energy ( E E S ) and b iomass fueled sys tems. 3.2.3 RETs Included in This Analysis Photo Voltaic Cells - Grid Tied Photo voltaic cel ls (PVs) , a lso known as solar cel ls , are des igned to capture light from the sun and directly convert it into electricity through the use of a semi-conduct ing, s i l icon-based material. Electricity derived from solar energy has been popular s ince the 1970s for the remote power needs of cab ins and forestry camps as well as te lecommunicat ion towers, agricultural and marine appl icat ions. The use of so lar power is growing rapidly worldwide, with sca leab le appl icat ions ranging from home roof sys tems to large commerc ia l buildings to solar power plants (Heves i , 2005J. Figure 3.2 Solar Panel Used for Incidental Lighting at BCIT Cost: S tandard, grid-tied solar modules installed on a mounting structure (with no battery back-up) cost between $10,000 and $15,000 per kW of P V modules instal led. A typical residential sys tem is s ized at 2kW to 3.5 kW and some economies of sca le will result when increasing in s ize from a single home to a multi-unit bu i l d i ng . 4 3 Operat ion and maintenance costs for the modules are "virtually nil" (Smi ley, 2006). 4 3 At the low end, per Smiley: $7,000/kW for the PV modules, $1,000/kW for the inverter, $1,000/kW for wiring, protection and control and $1,0007kWfor installation. 33 The total amount of power (produced in kWh) depends on the average daily so lar radiation (kWh/m 2 /day) , the monthly average temperature, the system spec i f i c s 4 4 (Caulk ins, 2006) and the life span of the sys tem, which is typically 20 years . In British Co lumb ia , "a rule of thumb for a well or iented, grid-tied P V array is to use 1 MWh/yea r per kW of P V modules i ns ta l l ed " 4 5 (Smiley, 2006). Homeowners acting in this way would be, in effect, using the grid as a battery to store the e x c e s s power that they generate in the summer, drawing it down in the winter. Load: In an energy efficient home with no electric heating loads, grid-tied P V with net me te r ing 4 7 can meet 1 0 0 % of its annual energy use . Th is is possib le a s 2 0 0 % to 3 0 0 % of the required load could be generated during the summer , with the e x c e s s power sold back onto the grid and "banked." In the winter, the P V could generate 2 5 % to 5 0 % of the total load with the shortfall purchased (or "withdrawn") from the grid (Smiley, 2006). Labour: A l though in British Co lumb ia there is enough ski l led labour to meet current demand for P V installation, as the market for P V is increasing by 3 0 % annually, labour shor tages are predicted within five to ten years . Further, it is expected that if British Co lumb ia were to implement an incentive program such as those announced recently by On ta r io 4 8 or Washington S t a t e , 4 9 there could be immediate labour e.g. # of panels, slope of array, etc. 4 5 Therefore, a simple cost calculation is: $10,000/20 MWh = $0.50/kWh. This, however, does not account for inflation or discount rates etc., which should be factored in, as 20 years is a significant period. For a more detailed analysis see BC Hydro's 2002 Report Green & Alternative Energy Division Green Energy Study for British Columbia - Phase 2: Mainland at 4 6 Which would include things like: hot water, oven/range, baseboard heating, and clothes dryers. 4 7 Net metering is an arrangement between a utility and a customer whereby the customer generates their own electricity and uses a single meter to determine the difference between the amount produced on-site and the amount purchased from the utility. In the event customers produce more than they consume, the excess is fed back on to the grid and their account is credited, accordingly. 4 8 The Province of Ontario announced on March 21, 2006 that its new Standard Offer Program will pay $0.11/kWh to producers of wind, biomass and small hydro energy and $0.42/kWh for producers of PV energy. Homeowners, businesses and commercial energy producers will be eligible to sign 20 year contracts to feed the energy that they produce into the grid. 4 9 In May 2006, Washington State passed two bills: SB 5101 and SB 5111. The first establishes a renewable energy "feed-in" production incentive, where homes and businesses with PV and wind power systems will earn a credit of $0.15/kWh of electricity generated by their renewable energy systems (up to $2,000 per year). Economic multipliers will increase the system owner's credit if its 34 shor tages (Smiley, 2006). Building integrated PV (BIPV) B I P V moves P V technology one step beyond traditional roof or wall mounted "panel" infrastructure. B I P V is P V t h a t is integrated into a building component and can be used instead of a convent ional architectural e lement such as roof tiling, w indows or building c ladding. It is a necessary infrastructural element first, which includes a va lue-added energy-producing componen t . 5 0 Although the cost of B I P V is very high when compared with most other renewable energy appl icat ions, 5 1 the benefit of this kind of P V is that it is not an energy "add-on," rather it forms an integral part of the structure and is priced according to the architectural element that it replaces. In 2002, B C Hydro noted that while its utility-scale production capabil i t ies were limited, B I P V "could be considered as an effective energy and cost-saving measure for building owners" ( B C Hydro, 2002b, 29). Regulation: There are no relevant regulations at the munic ipal , provincial or building code levels that relates to P V specif ical ly. For individuals who are net metering, however, certain Canad ian Standards Assoc ia t ion ( C S A ) requirements, relating to the Electr ical C o d e , apply and relate particularly to the interconnection of electric power production sources to the grid and utility interconnected invertors. 5 2 In addit ion, B C Hydro requires that customers who are net metering follow certain components are manufactured in the state. This can raise the $0.15/kWh credit up to as much as $0.54. This rate would be available for a fixed 10-year period beginning July 1, 2005. The second bill provides tax breaks for renewable energy businesses that currently reside in the state or choose to relocate there. Higher tax breaks will be offered to companies that locate themselves in economically depressed areas. See: 5 0 It has been estimated that the maximum potential generating capacity from BIPV on commercial buildings in British Columbia is 160 MW. A conservative estimate of actual potential assumes an uptake of 2.5% and a system size of 2.5 kW, which leads to a potential generating capacity of 4 MW. This would produce approximately 2.6 GWh per year (BC Hydro, 2002b at 29) or enough energy to power approximately 260 average homes. Estimated at between $0.40 and $0.70/kWh for commercial application to between $0.90 and $1.10/kWh for residential applications. 5 2 C S A Standard C22.1-02, Canadian Electrical Code Part I, Nineteenth Edition: Section 50 - Solar PV Systems; Section 84 - Interconnection of Electric Power Production Sources; C SA Standard C22.2 No. 107.1-01, General Use Power Supplies Section 15 - Utility-Interconnected Inverters; IEEE Standard 929-2000, Recommended Practice for Utility Interface of Photovoltaic Systems 35 safety and technical requirements. Examples of Facilities that Incorporate PV include: Resident ia l roof-top panels throughout the Lower Main land, City of Whi te Rock Operat ions Building (White Rock) , Strathcona Communi ty House (Vancouver) , Soc ie ty Promoting Environmental Conservat ion (Vancouver) , City of Vancouve r Works Yard (Vancouver) , The Ka iser B ldg ( U B C Point Grey) , C I R S Bldg (proposed, U B C Point Grey) , British Co lumb ia Institute of Techno logy "Tower of Power" (Burnaby), B C I T Techno logy P lace (BIPV, Burnaby), T rades & Techno logy Centre at Kwant len University Co l lege (B IPV pending, Cloverdale) , Fort Ne lson Secondary Schoo l (Fort Nelson) , C la rence Fulton Secondary Schoo l (Vernon), Federa l Government Building (BIPV, Ye l low Knife), installations in forestry c a m p s as well as var ious international installations noted by persons interviewed for this thesis in: Scand inav ia , India, Saud i Arab ia (BIPV), Germany , Hol land, Dubai (BIPV), Le ipz ig, Bavar ia , Spa in , New Zea land (BIPV) and J a p a n (BIPV). Solar Hot Water Unlike P V , which converts sunlight into electricity, so lar thermal technologies use the sun 's rays to produce hea t . 5 3 There are severa l different technologies that can be used to convert sunlight in this way, including g lazed flat-plate col lectors and evacuated tube col lectors. The following paragraphs are based upon an analys is of flat plate col lectors. Although solar thermal technologies can also be used to generate electricity by heating a fluid that powers a steam generator, this application will not be discussed here. For more information on solar thermal generation, see Hevesi, 2005. 36 Figure 3.3 Artist's Rendition of a Solar Hot Water System Seasonal and year-round solar water I healing systems for your home or cabin installing a so lar hot water ( S H W ) sys tem for a single family home is approximately $5,000, including materials, labour, and start-up. The technology is sca leab le and Cost: The average capital cost of the cost of S H W installation at a multi-family dwell ing would depend on a number of factors, including the s ize of the building and the fraction of water-heating the residents w ish to come from "Solar heated water just leels better" - satisfied customer the solar sys tem. 54 Source: © Taylor Munro, by permission. A high-rise apartment building may also be plumbed for S H W , however; in this case , there may be a limit to the s ize of the system due to the lack of roof s p a c e relative to the hot water l o a d . 5 5 Assum ing , that there is enough room for an appropriately s ized sys tem and that each unit is home to one or two people, experts approximate the cost per unit to be between $1,000 and $2,000, with the average operat ing and main tenance costs of each of these sys tems, for each type of dwelling averaging approximately $0-$25/year for a single family home and $25-100/year for larger sys tems (McDona ld , 2006 ) . 5 6 In 2006, Taylor Munro, a local SHW company estimated the cost to retro-fit a 32 unit (half 3-bedroom, half 1- and 2-bedroom) housing co-op in the Lower Mainland at $40-$70,000. This works out to a cost of approximately $1,250-$2,188 per unit. 5 5 SHW may also be used to heat swimming pools and increasingly is being employed in hydronic space heating systems (i.e. in-floor radiant or baseboard hot water) and forced-air systems that use fan-coiled heat exchangers. Building integrated solar thermal applications are also possible. 5 6 This price is comprised, largely of labour costs, including time to verify that the system is operating properly and the cost of periodic replacement of parts averaged out over the years. 37 Load: The max imum load that a S H W system can supply for each type of dwell ing is usual ly expressed as a fraction of the total load over the year. It is common to design for a 50 -70% fraction (i.e. 50 -70% of domest ic hot water is generated by the S H W system) for single-family residential sys tems in C a n a d a and a 15 -50% fraction for multi-unit buildings in the Lower Main land (McDona ld , 2006). What this means is that buildings will necessar i ly need an addit ional source of hot water, which must be s ized to meet the entire load for residential appl icat ions. S e a s o n a l sys tems, such as swimming pools and seasona l water heating for a cabin are except ions to this rule and can be s ized to meet the remainder of the fraction and not 1 0 0 % of the load. Labour. There is currently enough skil led labour in the Lower Main land and British Co lumb ia to supply, install and maintain existing and projected demand for S H W sys tems (McDona ld , 2006 ) . 5 7 Regulations: Whi le , like P V , there are few regulations at the municipal , provincial or building code levels that relate to solar hot water sys tems, a newly updated C S A standard for packaged residential solar domest ic hot water s y s t e m s 5 8 is nearly complete. Anecdotal ly , some jurisdictions may see solar col lectors as an eyesore and may have restrictive bylaws in p lace (the way clothesl ines are somet imes prohibited by local ordinance) but to date, none of the S H W experts interviewed have exper ienced this (McDona ld , 2006; M c L e a n , 2006). Examples of Facilities that Incorporate SHW include: Resident ia l roof-top and pool sys tems throughout the Lower Main land, the City of Whi te Rock Operat ions Building 5 7 On March 31, 2006, BC Minister of the Environment Barry Penner announced a goal of 100,000 solar systems in B.C. (See: B.C. Launches Solar Initiative Scott Simpson, Vancouver Sun Published: Saturday, April 01, 2006 available at In order to ensure that there is enough skilled labour to meet this demand, Taylor Munro is "actively supporting a growing network of dealers and contractors across Western Canada" to help them ramp up their skills and knowledge to bring solar water heating to their communities, as well as actively developing curriculum for plumbing programs in various community colleges in B.C. so that it can meet this target. 5 8 Mostly related to the plumbing code. 38 (White Rock) , Nico-wynd Gol f Cou rse (Surrey), Vancouve r International Airport (Richmond), Communi ty Alternat ives C o - o p (Vancouver) , Soc ie ty Promoting Environmental Conservat ion (Vancouver) , Koo ' s Corner (Solar Ready , Vancouver ) , Cranberry C o m m o n s Co-hous ing (Burnaby), Hyde Creek Communi ty Centre (Coquit lam), Co-hous ing Communi ty (Solar Ready , Robert 's Creek) , O c e a n Vi l lage B e a c h Resor t (Tofino), Oak Bay Recreat ion Centre (Oak Bay), Redf ish Ranch F ish Farm (Courtenay) as well as var ious international installations identified by interviewees in: Ch ina , Spa in , N e w Zea land and Germany . Earth Energy Systems A third susta inable source of distributed micro-scale energy relevant to the Lower Main land is ground source heating and cool ing. Earth energy sys tems ( E E S s ) are not technology new to C a n a d a as there are approximately 30,000 residential E E S s in p lace ac ross the country, with an average of 1,000 new residential sys tems installed per year ( N R C a n , 2002a). A n E E S is a type of heat exchange sys tem that uses the ground or ground water as a source of low temperature heat (10-20 °C) for space heating or cool ing. Two-thirds of the energy suppl ied by an E E S comes from the earth. The other third, however, c o m e s from the electricity used to power the heat exchange pump. Whi le this electricity can be sourced from sustainable sources and can be very energy eff icient—producing four or five t imes the amount of heat energy for every unit of electrical energy n e e d e d 5 9 — t h e E E S itself should not be considered completely susta inable, unless the electricity used to run the heat pump is provided by renewable sources . There are three principal ways in which low temperature earth energy is used : i) forced air s y s t e m s , 6 0 where hot and cool air is circulated through internal ducting (much like a traditional forced air furnace), ii) hydronic heating sys tems, where heat is distributed through a hot-water sys tem such as a radiator 6 1 or in-floor tubing, and A significantly smaller footprint than a traditional heating/cooling system. 6 0 Compared to conventional systems, with this application, typical reductions in energy consumption of 30 to 7 0 % in the heating mode and 20 to 9 5 % in the cooling mode can be obtained (NRCan, 2002a). 6 1 Currently available heat pumps can heat water to no more than about 50°C, limiting choices for equipment to distribute the heat as hot-water baseboard radiators are designed to operate with water 39 iii) as a water "preheat" using earth energy, with "top-up" heating provided by traditional means (e.g. immersion heater). Figure 3.4 Artist's Rendition of a Simple, Closed EES Source: © International Ground Source Heat Pump Association, by permission. Cost: A s with traditional heating, ventilation and air condit ioning sys tems ( H V A C ) , E E S s are a capital- intensive technology, with the majority of costs occurr ing up-front (i.e. equipment and installation). Ground-source H V A C sys tems range from C $ 2 2 to $165 /m 2 , depending on the heat source, location of building and cost of drilling. In a sample of nine E E S - e q u i p p e d commerc ia l buildings done by N R C a n ac ross the country, the average installed capital cost of the E E S w a s $105 /m 2 , compared to $ 8 9 / m 2 for a convent ional sys tem (about an 1 8 % average cost premium), with economies of sca le exper ienced as the projects increased in s ize ( N R C a n , 2002a ) . 6 2 heated to at least 65 to 70°C. As a result, larger radiators—or more of them—will be needed to distribute the hot water, increasing the amount of electricity used to operate the system. 6 2 Typically, the cost of the heat pump itself is about the same as that of a conventional furnace and air conditioner. The cost of installing the heat pump may be somewhat lower, as the costs of gas line 40 The major difference in cost between an E E S and a convent ional H V A C system is the cost of the earth loop. A s noted above, this can vary significantly from one location to another and depend on whether or not the ground loops have been trenched horizontally or bored vertically. The installation of a vertical loop in soil that contains a mix of materials such as boulders, gravel and sand is three to four t imes more costly than that of a horizontal one ( N R C a n 2002b). In some c a s e s , soil condit ions and property s ize will preclude the installation of a viable sys tem. In large appl icat ions where drilling condit ions are straightforward and soil conductivity is high, the installed cost of a ground loop may start at $600/kW of heat pump capacity. In the c a s e of smal l appl icat ions where drilling condit ions are more difficult and soil conductivity is low, this installed cost may reach or exceed $2,500/kW ( G V R D 2005b). General ly , N R C a n notes that lower maintenance costs and the d isp lacement of fuel costs for convent ional sys tems by free, natural heat from a ground or water source, together with a longer equipment life, g ives E E S s a lower life cycle cost than convent ional options ( N R C a n , 2002b). Labour: There is sufficient labour in the Lower Main land to meet current demand for E E S s . The only certification program that currently exists is through the University of Ok lahoma. Th is program produces International Ground Sou rce Heat P u m p Assoc ia t ion qualif ied insta l lers . 6 3 Regulation: There are few permitting considerat ions that relate to the installation of a c losed loop E E S at the local or regional level, however federal and provincial codes and regulations (e.g. Canadian Environmental Protection Act and the connections, the chimney and a pad for the installation of the outdoor air-conditioning unit is eliminated. The cost of installing the ductwork for an EES should be similar to the cost of ductwork for a conventional system. The cost of installing the distribution system for a hydronic system may be slightly higher than that of a gas boiler, however, because the lower water supply temperatures from an EES may require the installation of more floor heat pipes or a larger radiation system. 6 3 See: 41 proposed Drinking Water Act) may affect the feasibility of open- loop sys tems as they are subject to more stringent regulatory and practical restraints as relates to water use and d i s p o s a l 6 4 ( N R C a n , 2002a). In addit ion, federal legislation does apply but, with certain excep t i ons , 6 5 is limited to mechan ica l safety requirements and performance certification under the Energy Efficiency Act. A s with P V , national s tandards for performance certification and installation must a lso be o b s e r v e d . 6 6 Examples of Facilities that Incorporate EESs include: The City of Vancouve r Works Yard (Vancouver) , 4 t h St. "Caper ' s " Bui lding (Vancouver) , Oakr idge Shopp ing Centre (Vancouver) , N R C Bui lding ( U B C Point Grey) , University of British Co lumb ia ' s Mar ine Res idence ( U B C Point Grey) and Clement 's G r e e n ( U B C Point Grey) , S imon Fraser University 's UniverCi ty Development (Burnaby), the Assoc ia t ion of Profess ional Eng ineers and Geosc ient is ts of B C Building (Burnaby), G l e n Eag les Recreat ion Cent re (West Vancouver) , the Vancouve r International Airport Terminal (Richmond), the Performing Arts Centre at Brentwood Co l lege (Mill Bay) , the Gulf Island's Secondary Schoo l (Saltspring Island), as well a s residential communi t ies like Sunr ivers (Kamloops) and S h o a l Point (Victoria). G e o E x c h a n g e B C compi led a representative listing of known and proposed commerc ia l and multi-residential geoexchange projects in British Co lumb ia in 2005. Excerpts are attached hereto as Append ix D. Open loop systems use ground or ocean water for heating and cooling. Once heated (or cooled) this water is discharged back into the subsoil, aquifer or ocean. For more information on provincial water regulation see: 6 5 These exceptions include: • When installed in buildings owned by the Government of Canada (Public Works and Government Services Canada); • Lake loops in navigable waterways or fishery habitats (Transport Canada; Department of Fisheries and Ocean); and • Installations in national parks or Indian reserves (Indian and Northern Affairs Canada). 66 CAN/CSA-C448 Series-02 Provides a design and installation standard for commercial, institutional, residential and other small buildings and underground thermal energy storage systems for commercial and institutional buildings (which applies to the intentional storage of energy in the earth for later use; CAN/CSA-C748-94 (R1999) is a standard for the performance of direct expansion ground-source heat pumps; CAN/CSA-C13256-01 provides a performance rating standard for earth energy heat pumps providing C O P (heating) and EER (cooling) data, including water-to-air and brine-to-air heat as well as water-to-water and brine-to-water heat pumps (as required by the Energy Efficiency Act). 42 Biomass T h e term "b iomass" refers to wood, straw, biological waste products such as manure, and other natural materials that contain stored energy. Th is stored energy can be re leased by burning the material directly, convert ing it into liquid fuels such as ethanol or b iodiesel , or by compost ing it to make biogas. The energy produced through the combust ion of b iomass can be transformed into electrical power, heat or a combinat ion of heat and power ( C H P ) . The simplest kind of p rocess is a plant that provides heat output only. Th is sort of plant is highly efficient, with convers ion eff iciencies in a wel l-maintained burner rising to more than 8 5 % ( U K R C E P , 2004, 30). C H P plants that use b iomass as a fuel are not common in North Amer i ca and use of the technology in C a n a d a is far behind deployment in other industrial ized regions such as Northern Europe. In British Co lumb ia , there is a growing b iomass fuel industry, which sh ips the vast majority of its product offshore. Made from "waste" wood products, compressed pellets are a G H G neutral source of renewable energy and a proven technology that has been used for many years. Pel let fuel is the b iomass source that will be considered for this thesis, as it is a readily avai lable, proven source of b iomass for which there is consistent and access ib le data. Figure 3.5 Compressed Wood Pellets Cost: A 20 kW forced air pellet furnace for an average s i zed , single detached home costs $5,000 -$6,000, including any necessary hot and cold airflow ductwork . 6 7 A multi-family dwell ing forced air pellet furnace would be s ized at 45kw, which retails for $4,500 (o r$100 /kW) plus installation (Swaan , 2006). A pellet-fired hot water boiler would cost approximately The furnace itself retails for about $3,500 - $4,000 or $200/kW while a pellet fired hot water boiler retails between $6,500 for a 45kW unit or $144/kW plus the installation. 43 $6,500, and could be used to heat both "a swimming pool and 4,000 square feet" of living through a hydronic heating system (Br igden, 2006). Calculat ing pricing for a high-rise apartment building is somewhat more difficult, as heating would occur by way of a hot water boiler and the siz ing of the boiler would be determined by the heat requirement of the building. The pr ices for boilers vary widely from one manufacturer to another and range between $75 - $85/kw (Swaan , 2006). Average operating costs would vary depending on cl imate and heating needs but, general ly the "rule of thumb" is 3 tons per 1,400 square feet per heating s e a s o n at a current cost of $180-200 per ton of pellets. For a single-family house, this would mean approximately $600 per year in fuel costs (Br igden, 2006). The addit ional power required for some pellet fired heating sys tems to run feed and fan motors add approximately $10 per year (at current electricity rates), to an average power bill. Main tenance costs for a pellet fueled heating sys tem are approximately equivalent to a convent ional sys tem, which could be as low as $100 per year for a single family r e s i d e n c e 6 8 and servicing required by pellet-fired furnaces and boilers is no different than that of a gas or oil sys tem (Swaan , 2006). Load: Pellet-f ired heating sys tems (forced air or hot water) are sca leab le and can supply 1 0 0 % of the heat and hot water loads of most buildings (Swaan , 2006). Labour: There are a sufficient number of qualif ied heating contractors that are able to install pellet sys tems to meet current demand . Al though commerc ia l pellet fueled sys tems are in their "early days" in British Co lumb ia , an increasing number of heating contractors are becoming "pellet friendly and exper ienced." A qualif ied i.e. annual service inspection and cleaning. If the flue gas vent is installed correctly only a once a year brushing is necessary. The model itself determines ash removal from the furnace or boiler. Some may require monthly attention while others may be completely automated and require no attention other than having the ash container serviced monthly or yearly. Per Swaan, 2006. 44 heating contractor must perform installation, and training courses and certification are avai lable for pellet sys tem installers (Swaan , 2006). Regulations: A s with P V and solar hot water, there are few if any regulations at the municipal , provincial or building code levels that relate to pellet fueled heating sys tems. Examples of Facilities that Incorporate Biomass Include: City of Reve ls toke (Heat, Revels toke) , Wi l l iams Lake Power Plant (Electricity, B .C. ) , Town of Ajax ( C H P , Ontario), Charlottetown (Heat, PEI) , Chapa i s Generat ing Stat ion ( C H P , Quebec ) , Ou je -Bougoumou (Heat, Quebec) , Highland Feeders Limited ( C H P , Alberta) as well as international installations identified by interviewees in the City of St. Pau l (Heat, U S A ) , the Beddington Zero Energy Deve lopmen t—BedZed ( C H P , England) , S w e d e n and Ch ina . 3.2.4 Summary of Data Presented There appear to be no publicly avai lable documents, which directly contrast technical data—at a typical residential level—for the four R E T s identified above. To that end , it is useful to summar ize a portion of the foregoing in three tables. Tab le 3.1 refers to power producing technologies, while Tab les 3.2 and 3.3 summar ize data relating to heat producing technologies. To this point, the data ana lyzed have come from R E T and convent ional sys tem providers, utilities and energy consultants. The following chapter will provide further context to the principal cha l lenges or barriers facing local ized micro-generat ion of renewable energy and heat in the Lower Main land a s identified by local infrastructure e x p e r t s . 6 9 For more information on the subjects interviewed for this thesis, see Section 1.5.2 of Chapter 1. 45 Table 3.1 Multi-Factor Analysis of Selected Power Producing Technologies (2006) Technology Capital / First Costs $/kWh On-going Fuel Costs $/kWh Life Span (yrs) Labour Availability Scaleable Operation & Maintenance7 0 Max Load Potential (%age) Grid connection Minimal 0.0633 25+ Y e s Y e s Minimal 100 P.V. Building Integrated 4,000 -16 ,000 7 1 Virtually free 10+ Now - Y e s 5 Y rs - N o 7 2 Y e s Minimal 1 0 0 7 3 P.V. Grid-tied, no battery74 1 0 , 0 0 0 -15,000 Virtually free 20+ Now - Y e s 5 Yrs - N o 7 5 Y e s Minimal 1 0 0 7 6 7 0 Note: Fuel costs are included in a separate column. 7 1 This depends on the type of module used (e.g. roofing product or glazing element) as well as the quantity ordered, exchange rate and supplier. Source: BC Hydro's 2002 Green Energy Study for British Columbia - Phase 2: Mainland Building Integrated Photovoltaic Solar and Small-Scale Wind 7 2 Constraints may be encountered if the market the Province implements incentive programs related to BIPV. 7 3 Averaged over the year with net metering in place. 7 4 Source: Eric Smiley, Malaspina University College. 7 5 Constraints may be encountered if the market for PV continues to grow at 30%/an and/or the Province implements incentive programs related to PV. 7 6 Averaged over the year with net metering in place. Table 3.2 Multi-Factor Analysis of Selected Hot Water Producing Technologies (2006) Technology Capital / First Costs ($) On-going Fuel Costs ($ / Year) Life Span (Years) Labour Available Scaleable Operation & Maintenance ($/Year) Max Load Potential (%age) Electric Water Heater (Mid-efficiency) 4 5 0 - 6 2 0 7 7 2 2 1 7 8 12+ Y e s Y e s Minimal 100 Natural Gas Water Heater (Mid-efficiency)79 8 0 0 - 1 , 0 0 0 8 0 2 0 6 8 1 1 3 8 2 Y e s Y e s Minimal 100 Solar Hot Water System83 5,000 Virtually free 2 0 - 4 0 Y e s Y e s 0 - 2 5 5 0 - 7 0 7 7 40G Tank, including installation. Source: Cheryl at Sears Canada (Capilano Mall) and UseBVCookie=Yes&gridindicator=false 7 8 Source: BC Hydro. For further fuel cost comparisons see: 7 9 Source: BC Hydro. For further fuel cost comparisons see: 8 0 40G Tank, including installation. Source: Jackie Cameron, Milani. 8 1 Terasen Gas Lower Mainland rate of $11,041 per GJ , effective April 1, 2006. 8 2 Average lifespan, per Union Gas. See: 8 3 Source: Morgan McDonald, Taylor Munro. The cost per residential unit may drop dramatically when moving from a single family detached residence to a multi-unit building (from between $1,000-2,200 per unit). This cost will depend on a number of factors, especially the size of the building, number of units ' and what fraction of their water heating they want from solar. In addition, the size of a high-rise apartment building's system might be constrained by roof space availability relative to hot water load. Table 3.3 Multi-Factor Analysis of Selected Heat Producing Technologies (2006) Technology Capital/ First Costs ($) On-going Fuel Costs ($ / Year) 8 4 Life Span (Yrs) Labour Available Scaleable Operation & Maintenance ($/Year) Max Load Potential (%age) Electric Baseboard 2 , 0 3 0 8 5 819 30+ Y e s Y e s Minimal 100 Biomass (Pellet) Forced Air 3 , 5 0 0 - 4 , 0 0 0 8 6 3 2 9 - 4 7 6 8 7 15-20 Y e s Y e s 40-60 100 Natural Gas Forced Air (Mid-efficiency) 7,957-59 ,679 6 2 8 8 8 2 0 8 9 Y e s Y e s 60 100 Ground Source Heat Pump 9 , 3 8 8 - 7 0 , 4 0 8 9 0 3 0 2 9 1 2 7 92 Y e s Y e s 4 0 5 9 3 100 B 4 Here, a heating season of 122 days is assumed. 8 5 Based on the installation of 14, 1,000 watt baseboards (rated for 75-100 sq ft) currently priced at approximately $145/unit including materials and labour. Per telephone conversation with Dan Holloway, Gescan. July 9 2006. 8 6 These costs relate to a 20kW (SFH) and 45 kW (MUD) forced air pellet furnaces, respectively. Source: John Swann, President Wood Pellet Fuel Manufacturer's Association of BC. 8 7 Rule of thumb is 3 tons per 1400 sq ft per 200-day heating season at a cost of $180-260 per ton. The number above has been adjusted to reflect a 122-day heating season. Source: Bruce Brigden, Pinnacle Pellet and Al Campbell, Sherwood Industries Pellet Stoves. 8 8 Source: BC Hydro. 8 9 "Common" life span, per Canada Mortgage and Housing Corporation See: 9 0 $22 - 165/m2 ( -18% cost premium over a conventional system) 9 1 Source: BC Hydro. Note, however, the efficiencies of different models of heat pumps vary widely. 9 2 Average life span, per Farmers' Electric Cooperative. See Chapter 4 Challenges to Decentralizing Supply in the Lower Mainland What's the driving force to say "Holy shit we've got to do something different!"? We're doing it how we've always done it—there isn't the driving force to change. Without an Event we're frogs in the pot. Interviewed Engineer 4.1 Introduction to Challenges In addition to its global re levance, the origin of this study is a lso personal . It s tems from the memory of a conversat ion that I observed severa l decades ago amongst family members who were living just outside of a smal l town six hours north of the City of Vancouver . They were in the p rocess of constructing a smal l home and were investigating off-grid options to provide it with power as well as domest ic hot water and space heating. At that time, "out of the box" technologies were scarce and general knowledge of alternatives, limited. Twenty years later, their home is entirely heated by a wood stove and powered by electricity suppl ied by B C Hydro. Wou ld they have made the same cho ices in this d e c a d e ? Perhaps , as there are still few R E T s in this region that are obv ious from the level of the street. W h y cha l lenges \p the adoption of R E T s persist, what - in speci f ic and concrete te rms- these cha l lenges are, prompted me to conduct a ser ies of semi-structured interviews with 28 experts. The quest to determine the principle barriers to the adoption of R E T s has been reported on regionally, nationally and internationally, but these results have been produced by and founded on the v iews of consultants, non-governmental agenc ies and governments, without (apparently) going into the field to ask those individuals directly involved in the industry for their perspect ive. The purpose of this chapter and the next is to a c c e s s this relevant, local knowledge to determine their perspect ive on alternatives. 49 4.2 Grouping the Interviewees W h e n planning my research, I attempted to identify as wide a c ross sect ion of individuals involved in the use or professional ly aware of R E T s as possib le. Th is , as ment ioned in Chapter 1, included individuals who are professional ly involved in s o m e way with urban infrastructural development, have some connect ion to urban sustainabil i ty and an interest in, as well as s o m e knowledge of R E T s . 4.3 Grouping the Challenges Grouping the responses given by the interviewees w a s a chal lenge, a s few of their answers fit neatly into a single category. This finding is not unique to this study. The N G O W e s t Coas t Environmental Law ( W C E L ) illustrated its take on this d i lemma in the report Cutting Green Tape where it indicated, "economic barriers may be the result of regulations, and informational barriers may combine with regulatory regimes to create a regulatory barrier. The distinction between.. .barr iers is, in many ways , artificial" ( W C E L 2002 at 3). In that report, W C E L chose to divide the cha l lenges that it identified into two groups: "regulatory" and "non-regulatory." Other authors have chosen different classif icat ion structures, including "f inancial", "structural" and "perceptual" (Moore, 1994), or have simply made long lists, without any groupings at all (Pollution Probe, 2004). In this study interviewees contributed 308 total answers . G iven these large numbers, it w a s neither practical nor useful to proceed with further analys is without some sort of further grouping sys tem. Thus , for the purposes of this chapter and the next, I have chosen to cluster the responses pursuant to the emergent theme (e.g. "Educat ion" or "Vision") and "place" that the interviewee identified the chal lenge to reside. In terms of this latter category, general ly, I found that interview responses could be further c lumped along institutional, economic/f inancial /market, technical , socia l or industry l ines. The "institutional" grouping could be further broken down into three categor ies: utility, regulatory and political. Apply ing this ordering rationale, the 308 responses were reducible to 41 consol idated themes, located within five major groupings. A d iagram of how the original responses were 50 consol idated is found in Figure 4 .1 . It demonstrates the inductive clumping method used to separate the emergent themes into five manageab le and analyzable major groupings. A spreadsheet , which outl ines the f indings of this consol idated data set, may be found in Append ix E. Figure 4.1 Ordering Rational—Streaming the Challenges Economic 8 Utility Total Interviewee Responses 308 Consolidated Themes 41 i I Y Y" \ r \ r \ f \ Institutional Societal Industrial 13 7 5 / i \ J Regulatory 6 Political 4 The d iscuss ion which fol lows is structured to begin at a supra-nat ional level, acknowledging the supremely important role that "the market" plays in shaping our l ives, moving to a supra-soc ia l level , reflecting the state, its organs, powers and issues, fol lowed by the energy consuming community and the energy goods and service providing industry. In addit ion to this quasi -soc ia l ordering, a wild-card that all c l asses of interviewees identified is "technology." I have chosen to keep it as a separate sect ion instead of folding it into any of the other categor ies a s this is, at base , a d iscuss ion about which technology is best suited to provide residents of the Lower Main land with their electrical and heat- load needs. 51 The following pie chart, Figure 4.2, shows the relative weighting of the original 308 responses in each of the c lasses . Th is figure demonstrates the situs of each of the cha l lenges, the number of responses found in each and the relative percentage that number is, of the total number of cha l lenges noted. Figure 4.2 Break-down of Challenges by Grouping & Relative Weighting Institutional - 68 22% 4.3.1 Economic, Market & Financial Challenges The Economic, Market & Financial Challenges grouping received, by far, the greatest number of noted chal lenges. Of the 308 total cha l lenges contributed by interviewees, 90, or almost 1/3, fell into this category. Here, the responses received were sub-categor ized into 8 broad themes, as shown in Figure 4.3. 52 Figure 4.3 Economic, Market & Financial Challenges Identified by Sector R1 Developers & Current Building Environment R2 Industry Norms R3 Price of Electricity & Gas R4 Price of Technology / Component R5 Uneven Playing Field Between Alternative & Conventional Sources R6 Marketing Alternative Technologies R7 Borrowing & Finances R8 Partnerships R1 R 2 R 3 R 4 R 5 R 6 R 7 R 8 Response E - R1: Developers & Current Building Environment Th is category received the second highest number of comments in this sub-sect ion (19) with participation from every sector but the R E T Providers. Th is is in sharp contrast to the 1 0 0 % of Profess iona ls , Developers , C B O s and Energy Providers who noted the importance of this a rea . Th is sub-sect ion is a cluster of comments relating to the rigidity of development schedu les and the notion that anything more than "building and sel l ing" is outside of a developer 's core bus iness. Many interviewees highlighted the fact that most buildings are built by developers who will never s e e the operat ing costs . O n e interviewee indicated that R E T s are strictly "environmental considerat ions" and that as such , "they are not money generators." Further, many interviewees noted that "the real estate market is hot," so there is no need to build in "extras" (which include R E T s or eff iciencies) and that there is a very real need for the development community to have certainty regarding design and construction r isk—something which interviewees do not bel ieve exists if they begin to incorporate R E T s . It w a s also noted that smal l subs id ies are "irrelevant" if a deve loper is on the "critical path" 53 and that the opportunity costs assoc ia ted with applying for some of the avai lable rebates/subsid ies (e.g. the Government of C a n a d a ' s REDI Program) are simply too high, compared to the expected return, to justify the filing effort. The development business is very formulaic. We don't have the human capital to innovate; we're responsive to consumer trends, styles, the latest colours, style mechanics, [the] International Color Council, latest design magazines. We pay attention to this stuff [and] what is being read by consumers.... [We] bring the technology of buildings done yesterday and focus on yesterday's goods—interiors, kitchens, granite countertops, and stainless steel appliances. (Developer) E - R2: Industry Norms Here, it is notable that only the two C B O s interviewed and a random sprinkling of four others contributed to this sect ion. Al l contributing interviewees, however, specif ical ly used the phrase "industry norm" and indicated that: i) industry looks at return on investment ( instead of return on equity) a s a bas is for their pro forma development, and ii) that working on the basis of life cycle cost ing is outside of the norm, as would be active innovation on the part of business/ industry. Economics cubed! Economics, economics, economics! Any decision to invest money, is judged on the basis of the return that you will get on that investment. Any capital project requires money. Someone—at some point—has to sign a cheque. (Consultant) £ - R3: Price of Electricity & Gas With 16 responses , this is the one category in which most sectors contributed and , all those who did, agreed that the current pricing structure set by the B C Utilities Commiss ion ( B C U C ) is far "too cheap" to induce people to change energy producing modes or conserve electricity. Severa l participants a lso noted that inexpensive pricing results from our inability to factor in non-monet ized e lements, such as G H G , which means that they are not being currently priced in the market. At the old house, our power bill was a dollar a day. My beer brand choice affects our household budget more than my electricity. (Energy Service Provider) E - R4: Price of Technology / Component The flip s ide of inexpensive energy is the relatively high capital costs assoc ia ted with a given R E T . Twenty-four of the 28 potential interviewees—the highest common area of response—indicated that the price of R E T s is a formidable chal lenge. Severa l noted that global forces, such as 54 the rapid industrial development of Ch ina and the demand for R E T s in p laces like Germany , Spa in and J a p a n have caused the price of certain R E T s to increase significantly as their supply and material components , e.g. s i l icon, is limited. Reiterating the f indings of the theme Developers & Current Building Environment here, the concept of first-cost w a s noted severa l t imes, emphas iz ing the notion that the installation of a R E T usual ly requires cash up-front by a developer who will typically not s e e the operating cost benefits that may accrue over the longer term. Further, depending on the type of technology under considerat ion, different si tes may be significantly more (or less) costly (e.g. the installation of an earth energy system into boulder till vs. sed iment ) . 9 4 It w a s also noted that in the Lower Main land, the "cost of construction has gone through the roof and we can't layer on anything more" and that consumers have very high discount rates reflecting, primarily, the constraints on their ability to borrow capital . Poor people buy less optimal things because they can't get loans to buy more expensive things. (Consultant) E - R5: Uneven Playing Field Between Alternative & Conventional Sources A single member of each of Government , C B O , Consul tant and Developer (a total of four interviewees) noted that there is a " tremendously uneven playing f ield" between convent ional and renewable sources of energy indicating that uneven tax treatment as well as direct federal spending (i.e. subsid ies) to the fossi l fuel and nuclear energy industries are still significant chal lenges to the adoption of R E T s . E - R6: Marketing Alternative Technologies Eight interviewees were blunt with their statements in this category, indicating that alternative technologies are "poorly marketed," that there is little hard data that has been circulated to promote existing projects and that as a result, consultants and developers do not know what the alternatives cost or what the potential pay-back is. It's partially the market and what it offers—toys for the boys—those things are marketed well. The alternative technologies, the efficiencies in terms of building practice? They're not marketed well right now. There's no carrot. (Government) The former being usually much more expensive. 55 E - R7: Borrowing & Finances Th is category captured the comments from nine Industry members that " lenders are mandated to make money" and "the Canad ian f inancial community is ser iously risk adverse." In addit ion, limited f inancing and borrowing opportunit ies was also noted a s a significant chal lenge to R E T adopt ion. Our financial community isn't risk taking—it's dominated by monopolistic financial institutions that do pretty good each year. They are the elephant in the room and they really like the room to themselves. This dominance in the financial world filters down to what gets funded, what gets approved, who takes risks, who thinks outside of the box. (RET Provider) E - R8: Partnerships Here, no one from Industry, but four other interviewees including an Academic , the C B O s and an Energy Provider, noted that in any "new" endeavour, it is essent ia l to develop relat ionships with organizat ions that have complementary competenc ies , but that it is very difficult to find funding and operating partnerships. Fo r those that have, managing partners and the attendant relat ionships has been an "intensive exerc ise" fraught with a large opportunity cost. 4.3.2 Institutional Challenges The Institutional Challenges grouping received the second largest number of comments , 68 of a total of 308, or slightly more than 1/5 of all responses . Th is is the only grouping that w a s divided into sub-groupings, and it was done to reflect the reality of a central ized energy delivery sys tem in British Co lumbia . The sub-groupings are: Utility, Regulatory and Pol i t ical /Pol icy. Utility In this sub-group, interviewees made speci f ic reference to B C Hydro ( B C H ) , and the cha l lenges that they perceived it, as an organizat ion, posed . Here, comments were slotted into three broad categor ies, as demonstrated in Figure 4.4. 56 Figure 4.4 Utility Level Challenges Identified by Sector R1 Net Metering R2 BCH Structure of Calls For Tender R3 BCH Bureaucracy CO cu CO c O Q. in CD £ cu E Z 10 A c a d e m i c s i C o m m u n i t y i i Ene rgy P rov ide r s G o v e r n m e n t P r o f e s s i o n a l s C o n s u l t a n t s D e v e l o p e r s R E T P rov ide r s R 1 R 2 Response R 3 /C/ - R l ' A/ef Metering Noting that net metering onto the grid is permitted for sys tems that generate electrical output of less than 50 kW, nine interviewees from each of the sectors (other than Consul tants and Academics ) indicated that they perceive cha l lenges within B C H ' s net metering program. Severa l noted that while it is a "good start," this program is not sufficiently promoted ("it is hidden") and that the wholesa le rate paid for net-metered electricity is so low as to be a disincentive. One interviewee also commented, erroneously, that net metering in British Co lumb ia is not permitted at al l . It's not BC Hydro's fault that people aren't aware of net metering. They're champions because they have a fantastic program, but the NGO and business style advocacy is lacking. (Government) IU - R2: BCH Structure of Calls for Tender Four interviewees, an Energy Provider, a C B O member, a Profess ional and R E T Provider all provided comments for this sub-sect ion. Severa l noted that while the feasibil ity of many R E T s improves with economies of sca le , in order to produce more than the net metering max imum, this next level of generat ion requires an independent power producer to apply to a B C H competit ive Cal l for Tender . It was noted that as the f requency of these Ca l l s has 57 been irregular, it is may not fit within the development schedu le of a particular company. Finally, there is a perception that the "rules of the game" are not consistent ly appl ied to all potential generators. IU - R3: BCH Bureaucracy Two interviewees, a Consul tant and a Profess iona l , expressed frustration with the proprietary nature of much of the resource data col lected by B C Hydro. Lack of a c c e s s to energy statistics for the province was noted as a significant impediment to the ability of smal ler projects to advance . In addit ion, one interviewee felt that the fact that there w a s no single p lace at B C H to deal with his quest ions /concerns—no place to "one stop shop"—was a chal lenge worth noting. Regulatory Into this sub-group, all comments that referred to rules, regulation and law were s lated. A lmost 5 0 % of the "Institutional" comments lodged here (which is c lose to 1 0 % of the total comments received). Amongs t these, six themes, as identified in Figure 4.5 were tall ied. Figure 4.5 Regulatory Challenges Identified by Sector R1 Municipal Land-use Planning, Record Keeping and Inspection R2 Regulatory Barriers to Becoming a Micro-Utility R3 Provincialization of Energy R4 Presence / Absence of Regulation R5 NAFTA Chapter 6 R6 Municipal Governments' Balanced Budgets 58 IR - R1: Municipal Land-Use Planning, Record Keeping and Inspection Of a total 33 comments received in the Institutional (Regulatory) grouping, 15 c a m e into this sub-sect ion and were contributed by every sector. Th is theme w a s cons idered, by severa l of the interviewees, to contain the key cha l lenges to the quest ion of R E T adopt ion. Here, impediments to the installation of R E T s include "arcane municipal design guidel ines and by- laws, " 9 5 inspectors that are unfamiliar with (and therefore resistant to) "new" technologies, as well as building regulations and a permitting process which adds a whole new layer of complexity to new construct ion or retrofits and zon ing. Speci f ical ly relating to the use of open- loop earth energy sys tems, the fact that there is no municipal requirement to record or register the sys tems that have been installed was f lagged as a chal lenge by severa l interviewees. They noted that this could prove to be a significant problem in the future, as adjacent sys tems may negatively interact with each other. IR - R2: Regulatory Barriers to Becoming a Micro-Utility A Developer , a Profess ional and a R E T Provider contributed to this sub-sect ion. There are very few "energy serv ice providers" in British Co lumb ia , as energy serv ice provision is an industry that is tightly regulated by the B C U C . Whi le historically this may have been appropriate, several of the interviewees noted that the "preservation of existing monopol ies" limit the ability of British Co lumb ia to decentral ize energy provision to any significant degree. The presence of such strong regulatory cha l lenges has meant that by and large, few alternative, proven serv ice models have been able to develop in the p rov ince . 9 6 Severa l respondents v iewed this lack of model ing as an impediment to moving beyond the status quo. This could, for example, restrict the placement of solar collectors or wind turbines on roofs due to noise or height bylaws. 9 6 See Chapter 2 for examples of municipalities that have instituted their own utilities in British Columbia. This has occurred, as municipalities are able to provide power to their residents pursuant to the terms of the Local Government Act. 59 The technology makes the monopolies. For example, we don't need wired phones anymore. If you go to Beijing, it's all wireless—everyone has a cell phone. But once a monopoly is a monopoly it will defend its monopoly until hell freezes over. And everyone within it will defend it for their jobs. These are secure jobs, and distributed energy wrecks the monopoly. There's a barrier to distributed energy, it's the preservation of the monopoly! (RET Provider) IR - R3: Provincialization of Energy For the last half century, the history of energy provision in British Co lumb ia has been top-down, with little involvement from local governments. A s noted in the previous response, this means that there are few local models to emulate. Al though it only received five comments , this theme does not appear to reflect the concern of a particular sector. F ive diverse interviewees noted that there is very little capaci ty at the local or community levels in British Co lumb ia to deal with energy-related issues. O n e identified the inability to determine which level of bureaucracy w a s responsib le for a speci f ic issue as a chal lenge. IR - R4: Presence/Absence of Regulation Th is theme refers to both the presence and absence of regulation and did not s e e m to be of pressing concern to the A c a d e m i c s , Developers or Energy Prov iders interviewed (as they offered no comments specif ical ly relating to it). Eight other c ross-sector interviewees noted, however, that regulation relating to ground water permitting and assessmen t as well as environmental assessmen ts , general ly, might be a chal lenge to installing certain R E T s (particularly open- loop E E S s ) . Far more important to many, however, w a s the absence of regulation or programming related to R E T s . Severa l note that a s regards heating in the City of Vancouver , for example , the "vast majority of new construction is going electric with no programs or requirements to increase efficiency." Severa l interviewees also noted that the absence of s tandards, regulation and certification pose unique chal lenges for ground source technologies and solar hot water, in particular. We have a system that was designed in the 50s that we're trying to bring into the 21 s t century.... Even the idea of saying when we built the North Shore of False Creek that all of the windows there should have been active energy collectors -something that is available now—yet we didn't. The retrofit is a far more difficult proposition. You can't do it at this point. (Government) 60 IR - R5: NAFTA Chapter 6 Chapter 6 of the North Amer i can Free Trade Agreement relates to "Energy and Bas i c Petrochemicals . " O n e interviewee, a Consul tant , expressed very strong concerns about British Co lumbia 's ability to maintain control over its electricity production, both in terms of quantity and quality, now that it is engaged in cross-border trading activities and s igned on to an international treaty which he v iews as unduly restrictive. IR - R6: Municipal Governments & Balanced Budgets Al though it may be eas ie r for public institutions, such as municipal governments, to offset the long-term benefits provided by that R E T s on the operating s ide of the ba lance sheet, an Energy Provider noted that in the case of very capital- intensive civic works, it may be difficult for a municipality to "do the right thing" as they are provincially mandated to run a ba lanced budget. Politics / Policy Th is sub-grouping is dist inguishable from the Regulatory sub-grouping, as the Politics / Policy sub-grouping attempts to capture high-level cho ices that have been made in the absence of any formal rule or regulation. Th is sub-grouping received a total of 20 comments , out of which three themes have been der ived. T h e s e themes and the number of interviewees that commented on each are listed in Figure 4 .6 . Figure 4.6 Political / Policy Challenges Identified by Sector E o B cu E 9 25 20 15 10 Academics l l Community I I Energy Providers Government Professionals Consultants Developers RET Providers R 1 R2 Response R 3 R1 Competing Political Priorities R2 Absent / Unclear Policy, Vision & Strategy R3 Lack of Capacity & Awareness of Opportunities 61 IP - R1: Competing Political Priorities Here, one interviewee w a s particularly direct: "Pol i t ics is corrupt and governments are working with private developers whose sole motivation is the bottom line." Th is individual v iewed "lack of political focus on public goods" as a fundamental chal lenge to the adoption of any alternatives to the status quo. Whi le this perspect ive w a s not shared by all seven of the interviewees who contributed to this theme, another noted that in a market-driven economy, planning of any kind is difficult (if not impossible) as a free market does not permit extensive government intervention, irrespective of the motivation. Standing on this notion of "public interest," a third interviewee noted that a municipality, in particular, "cannot be too far ahead of what the market has avai lable." Severa l others a lso remarked that short election cyc les at all levels of government encourage short term decis ion making on the part of e lected officials. A s a result, many compet ing issues a s s u m e a higher priority than R E T adopt ion. When you have a hammer all you see is nails. If you're a government whose connections and industry are, in a big way, industry elites—folks that are entrenched, invested in the non-renewable energy business—it becomes very difficult to break in if you are not one of them. (Community) IP - R2: Absent/ Unclear Policy, Vision & Strategy T e n diverse interviewees contributed to this sub-sect ion, including all three members of Government . Many agreed that a c lear policy, v is ion and strategy relating to energy general ly (and R E T s specif ical ly) is lacking at all levels of government. Interviewees noted that this has manifested itself as a lack of gu idance, incentive and leadership and has been reflected in the fact that most municipali t ies have no identifiable "green strategy" relating to development. The lack of a c lear policy on G H G emiss ions at provincial and federal levels was noted as a compounding chal lenge and the lack of strategy and initiative at the provincial level was identified as one factor leading to B C ' s exclusion from federal matching funds that could assist with the local development of the R E T industry. Interviewees queried why other provincial governments (namely Q u e b e c and Ontario) have been much more adept at seek ing out partnerships with the federal government. The perceived lack of local political will to move the "energy 62 agenda" forward by developing energy-related goals or metrics and forge consensus amongst utility providers, policy-setters and cities as to the importance of energy was highlighted as particularly lacking. The re is no strong champion... i t ' s tended to be a d v o c a c y dr iven. Ove r the years , onesey- twosey, a program ' s rolled out - but there ' s not really a congea l ing of an a genda like say ing ' energy i ndependence is whe re w e want to go.' (Government ) T h e principle barrier is v i s ion. Not only is it difficult to find peop le with v is ion, but when you find them, enunciat ing that v is ion attracts huge negat ive response. In a political s y s tem, that negativity st icks in terms of votes. (Developer) IP - R3: Lack of Capacity and Awareness of Opportunities Only three individuals contributed to this theme but, perhaps significantly, the interviewees were: a member of Government , a Developer and an Energy Provider. They identified lack of capaci ty and awareness of opportunit ies at the political level as a key chal lenge, noting that as a result of limited awareness of energy issues (from the cabinet to city hall), opportunit ies to explore alternatives to the "energy status quo" have—and are—being m issed . Further, inability or unwi l l ingness to engage with academia "as a legitimate source of ideas" w a s noted as one of these missed opportunit ies. Another gap, highlighted by severa l interviewees, w a s that no ass is tance has been forthcoming from the province to develop community energy sys tems. Finally, it was noted by one interviewee that it is particularly difficult for municipal energy planners to build their own capacity, understanding and skil ls as "they have no one to talk to in B C . " It is part of the mandate of gove rnance of the prov ince to be awa re of this: a re w e us ing our electr ical energy in the best w a y pos s ib le ? Heat ing cit ies with electr ic ba seboa rd heat is the u se of an extraordinari ly high va lue re source in an extraordinari ly low va lue way. That isn't an i s sue that Hydro is cha rged to deal with. Th i s isn't a quest ion that is yet at the gove rnance level . W e ' v e been living off the v i s ions of the founders of our heritage electr ical r e s o u r c e s — t h e men and w o m e n who p lanned and built our heritage hydro s y s tem have handed us a l egacy that is of very high value. W e ' v e c o m e to a point whe re w e may not be handl ing that l egacy in the best w a y poss ib le. W e may be at a point that w e a re squander ing that l egacy through really inappropr iate use. (Energy Se r v i c e Prov ider) 4.3.3 Societal Challenges This grouping elicited virtually the s a m e number of responses as the consol idated "Institutional" chal lenges sect ion. Of the 308 total cha l lenges noted, 67, or a lmost 63 1/5, fall into the Societal Challenges category. Here, the comments received were slotted into seven themes, with the sub-grouping "Awareness of Issues, Opportunity and Current Capaci ty" receiving the largest number of responses , as may be seen in Figure 4.7. Figure 4.7 Societal Challenges Identified by Sector 25 R1 Consumer Expectations R2 Perceptions of Excess R3 Momentum Barriers R4 Alternate Energy Models R5 Energy Champion R6 Awareness of Issues, Opportunities & Current Capacity R7 Public Perception & Process o Q. CO 0) cu - 0 2 0 ^ 15 -H Academics Community Energy Providers i i Government I B H Professionals I B H Consultants Developers • H RET Providers R 1 R 2 R 3 R 4 R 5 R 6 R 7 Response S - R1: Consumer Expectations Th is theme garnered seven responses , of which six were contributed by Industry members . Rang ing from, bluntly, "consumers want things that are bad for the environment," to "people simply buy what the market provides," the interviewees from all sectors (except the C B O and A c a d e m i c ) 9 7 clearly identified the fact that energy issues are simply "not part of the buying decis ion." Three interviewees noted independently, verbat im, that what people are interested in are "stainless steel app l iances and granite counter tops." This is a story of a man who came into a million dollars. Every day for a long period of time he gave away one hundred dollars bills to anyone he would meet on the street. When he stopped, the people in his neighbourhood raised a hue and cry—they hated him! But hey, they'd had nothing before; he didn't owe them anything, right? But people had built their lifestyle and their expectations around his gift. In BC, our mega-project developments from the past have done the same thing. We've been given a legacy of heritage power for very cheap. Because of this, people have come here, expectations have been set and business has grown up around it. (RET Provider) 97 Who offered no opinion here 64 S - R2: Perceptions of Excess Th is sub-sect ion received cross-sector support from c lose to 5 0 % of the interviewees. "We live in a society where there s e e m s to be an e x c e s s of everything," noted one interviewee. Others identified that people aren't taking energy issues ser iously as a consequence of this mind-set. Energy s e e m s to be limitless and is invisible, it is a serv ice that is provided by others and "where it c o m e s from doesn' t matter." The predominant chal lenge identified in this grouping was that people are complacent within this excess—other interviewees identified this comp lacency as "greed." We live in pig heaven!... The mindset and the paradigms that we live by, in terms of our consumption and expectations around energy, affect how we look at things. Most of us didn't grow up thinking "Oh Honey, let's move to an apartment and raise one kid!" (RET Provider) Energy appears to be limitless and is cheap - there is no driving force to do it unless you are some sort of zealot or you are on an island and don't have any alternatives. The economics are really, really tough. (Industry Engineer) S - R3: Momentum Barriers Two members from each of the Developer, Government and Profess ional sectors identified "momentum barriers" as a chal lenge to the adoption of R E T s in the Lower Main land. Chang ing the way in which energy is del ivered, particularly if that means that individual consumers must take extra act ion, w a s identified as an issue. Peop le are resistant to change, and adoption of something new takes t ime, severa l interviewees noted. A s long as the system appears to be functioning, a pervasive sense that "this is how we have a lways done it—and it's working" is a formidable chal lenge to the adoption of R E T s . People are more concerned about the cost of energy, global warming issues. It's all stirring around and people are becoming more aware of their footprint. This is not translating into purchases, though. (Developer) S - R4: Alternate Energy Models The lack of easi ly identifiable, proven, local energy mode ls (both in generat ion and serv ice provision) w a s identified by seven interviewees from across most sectors as a chal lenge, but notably, by three of the four Deve lope rs . 9 8 The notion that some R E T s require a col lect ive, rather than 9 8 Collectively, the 28 Interviewees were able to identify 84 different RET containing facil it ies— located locally, in British Columbia, in Canada and internationally. Individually, however, an 65 individual "flick the switch," approach w a s identified as problematic by one interviewee. "Peop le here have no exper ience with community." Oil and gas, you buy it, you burn it. Renewables don't work this way! Ground source heat pumps, you set a certain temperature and it moves there over time -you can't just crank the temperature. It's a different way of doing things. (Industry Professional) S - R5: Energy Champion Paral lel ing the f indings of Institutional Challenges, above , seven interviewees noted that without a "driving force to do it," it is difficult to find a strong leader or energy champion. In particular, the Developers identified the lack of a strong community leader as a chal lenge to the adoption of R E T s at a community level. Some people do things because they think it's the right thing to do - I drive a Prius because I think that it's the right thing to do, not because I'm going to save any money. Most people don't. (RET Provider) S - R6: Awareness of Issues, Opportunities & Current CapacityThis theme accounts for 2 5 % of the responses receive in the Societal Challenges category. Al though there w a s a strong contribution across nearly all sectors, 1 0 0 % of the members of the C B O s , the Energy Providers and Government bel ieve this a rea to be a ser ious barrier to the widespread adoption of R E T s . Paral lel ing Institutional Challenges, here it w a s also noted that individuals in the Lower Main land lack the capaci ty to deal with energy issues and that there has been little or no (recent) history of energy serv ice provision or generat ion at the local level. Interviewees identified a c lear knowledge gap at the local level relating to energy options, including benefits and limitations of R E T s . Severa l c a u s e s of this were identified, including the fact that local environmental advocacy has, until recently, focused largely on wi lderness, not energy issues. Further, the fact that "houses and condos aren't st ickered" in the way that, for example , an Energy Star rated appl iance is, interviewee's ability to identify many facilities, which contained RETs, was poor. One participant was unable to identify any facilities, with 50% of the rest able to identify between 1 and 4. Thirty-two percent of the group (9 respondents) was able to identify between 5 and 10 facilities and only 5 Interviewees were able to list 11 or more, with the highest identifying a total of 18. Perhaps not surprisingly, the RET Providers were able to identify the largest number of facilities with the Developers and traditional Energy Providers, the smallest. 66 leaves consumers in the dark (so to speak) as to the energy profile of their potential purchase. A lack of case studies and difficulty finding c ross system compar isons were also highlighted as contributing to this chal lenge. Who's our greatest competitor? Granite countertops! People don't want to invest in high quality heating and cooling - it's not flashy. People don't appreciate the benefit or potential. It's tough to appreciate. It's not visual, the impact isn't immediate, it's complicated AND it costs a lot of money. (Industry Engineer) S - Rl: Public Perception & Process Al though 10 interviewees across most sectors contributed to this theme, C B O s and Consul tants, in particular, identified public perception and public p rocess as cha l lenges to the local adopt ion of R E T s . P iggy-backing the chal lenges noted in Momentum Barriers and Consumer Expectations sub-groupings, severa l interviewees noted that public p r o c e s s — a s much as any of the other chal lenges—ki l ls new projects and initiatives. N I M B Y i s m was highlighted as an issue as the perception persists amongst the public that certain technologies are unhealthful or dirty, are unduly noisy, dangerous, cause bird deaths or will create terrible visual impacts. 4.3.4 Industrial Challenges The "Industrial Cha l lenges" grouping col lected less than half the number of cha l lenges noted in the Social Challenges grouping. Of the 308 total cha l lenges noted, 41 , or approximately 1/8, fell into this category. Here, the comments received were slotted into five broad clusters, as noted in Figure 4.8. Figure 4.8 Industrial Challenges Identified by Sector Academics Community Energy Providers Government Professionals Consultants Developers R1 Local Trade Competency, Knowledge & Training Ops R2 Integrated Design R3 Industry Awareness R4 Momentum Barriers R5 "Sexiness" Factor R1 R2 R3 R4 R5 Response 67 / Ind - R1: Local Trade Competency, Knowledge & Training Ops Whi le most sectors agreed that this sub-sect ion is an issue, 12 of the 15 responses received were from Industry. Severa l interviewees indicated that there is not enough des ign and engineer ing knowledge in the local community and that a lack of competent t rades people, contractors and knowledgeable technology suppl iers is hindering the adoption of R E T s . A lack of formal training opportunit ies and the relatively limited number of knowledgeable persons in North Amer i ca from whom to receive feedback and mentoring were also highlighted as issues. Lack of a formal ized certification system locally or nationally (e.g. for E E S s ) and failure to incorporate s tandards into the building and plumbing literature for certain R E T s (e.g. S H W ) , were also identified as chal lenges. To innovate in this industry is a challenge. That's why developers don't do it—they can't even think about it. People don't know how to do it. It's a new do-loop in the critical path that they don't understand. They don't have the ability to call up three people to get competitive bids. The engineers aren't able to design it, it introduces a whole new step. I don't blame the developer for not wanting to do it. (Developer) Ind - R2: Integrated Design The lack of integrated building des ign practice in the Lower Main land was highlighted by five interviewees (two Deve lopers , two C B O s and a R E T Provider) a s a significant chal lenge to the inclusion of R E T S in new construct ion. That many development teams work in discipl inary si los (e.g. architects speak only with architects, mechanica l engineers to mechan ica l engineers) has created an environment in which severa l interviewees suggested that inefficient or "inappropriate engineer ing" is rife. Interviewees also noted that R E T s are often not included in the building planning s tages, resulting in cha l lenges that often mean that the technology in quest ion is unable to be incorporated, or perhaps worse, is inappropriately integrated into the structure. People aren't asking for it. Developers don't know how to do it. Technical folks who should have the expertise are falling down on the job.... The game is to do your drawings last, not first, as you'll have to keep changing them for, for example duct work. They don't coordinate or talk to each other. Take this building—they started installing sprinklers down the [other] end. I said, "Hasn't it occurred to you that the big pipes like sewage, ducts and earth loops have to go in first!?" They told me they didn't give a damn—the following week they all had to be ripped out for the big loops. (Developer) 68 Ind - R3: Industry Awareness Th is theme receive the second highest number of responses in this sect ion, with 13 of 14 respondents coming from Industry. Most noted that there is a dec ided lack of awareness of energy related issues amongst the architects, engineers, developers and builders with whom they work. That, coupled with the fact that " insurance compan ies won't or don't know how to insure [RET containing] projects", and a limited s e n s e as to which (if any) lenders are amenab le to f inancing such projects, means that the incorporation of R E T s is an addit ional hurdle (and potential cost) in an already compl icated process . In addit ion, one interviewee noted that misinformation spread by non-experts is a ser ious chal lenge that has directly impacted projects in the Lower Main land. The lack of c ross-sys tem compar isons and information relating to alternative costs and payback avai lable to industry w a s a lso identified as a significant barrier to the adoption of R E T s by Industry, at large. Is the technology out there? Can we access it? Last month at one of our meetings, one engineer was promoting "no-energy" buildings. "It's about the envelope!" he said. Now, I understand what he's saying, but it's too theoretical. Talk to my mother-in-law who's freezing if the fire's not cranked. (Developer) Ind - R4: Momentum Barriers S ix interviewees, including Developers and Profess iona ls , echoed the notion that "this is how we 've a lways done it, it works, why change? ! " A n educat ional pol icy and programming void was identified a s a chal lenge: "No one is helping the developer do the right thing." People do their jobs and operate within the frame of the known. If you are a 60-year-old senior engineer, all of this stuff is new. New is risky. Engineers are risk adverse. Only by politically pushing them do they begin to adapt and learn. When, lo and behold, they are recognized for it, they become proponents! (Government) Ind - R5: "Sexiness" Factor O n e interv iewee—an architect—noted that incorporating R E T s into a new project is a chal lenge for architects in particular: "It's not a sexy part of the profession; it won't get your project publ ished." 69 4.3.5 Technical Challenges Finally, and perhaps surprisingly, the "Technical Cha l lenges" grouping received the s a m e number of comments as the "Industrial Cha l lenges" grouping—which is to say, less than any of the other groupings d iscussed above. R e s p o n s e s , except where indicated below, were contributed ac ross most sectors, without distinction. The eight themes identified in this grouping are shown in Figure 4.9. Figure 4.9 Technical Challenges Identified by Sector R1 Expectations & Efficiency R2 Siting Issues / Availability of Resource R3 Technology Unproven 2 0 R4 Installation „ 8 R5 Availability of Easy to _ Use, Suitable "Out of the g_ 15 Box" Products _ R6 Data Availability 2: R7 Hard Infrastructure Constraints R8 R&D Timeline R1 R2 R3 R4 R5 R6 R7 R8 Response 7 - R1: Expectations & Efficiency One of the six interviewees who contributed to this theme perceived "convers ion efficiency" to be the ongoing technological chal lenge to widespread adoption of R E T s . Another noted that in certain c a s e s , R E T s have not performed as promised, leading to annoyance and expense (as well as reversion to convent ional systems). Conce rn was also expressed by an Energy Provider that certain t echno log ies , " in place of minimizing grid load, will actually add excess ive load on the annual "peak day." •H Academics I I Community I I Energy Providers I I Government Hi Professionals i^ H Consultants Developers Hi RET Providers 9 9 In particular, ground source heat pumps. 70 T-R2: Siting Issues / Availability of Resource A n obvious chal lenge named by severa l interviewees, including a majority of the Consul tants, is that R E T s are reliant upon speci f ic renewable resources which may be intermittent or unavai lable in certain areas e.g. water, wind or sun . In addition to this, in the case of E E S s , different substrate condit ions will impose widely varying costs. Ground source heat pumps are very prevalent—but you need space to put in a field. In places like the Lower Mainland, you don't always have space to put in a horizontal field. Vertical fields are much more costly because you have to drill bore holes. Once you move to vertical—in the Lower Mainland drilling conditions may be a challenge and expensive, as you're drilling into combinations of boulder and till. Richmond is very cheap because it's sediment, the west side of Vancouver is also good, but that's because it's largely just granite. (Consultant) T- R3: Unproven Technology Th is chal lenge, articulated by five interviewees of whom two were Developers , is related to the perceived lack of R E T models in the region. The technologies ' low profile, led some to note that R E T s (without distinction) are still "emergent technologies," which engenders the fear that "early adopters" will bear the downside of an unproven technology. T - R4: Installation Th is chal lenge is the f l ipside of the notion that the R E T , itself, is problematic. Three interviewees indicated that in their exper ience, the technology has not been a key issue, rather the chal lenge ar ises from three other a reas : i) when an inappropriate system has been chosen for a site, ii) when an inappropriate design has been implemented or iii) when an installation has simply been improperly carried out. T - R5: Availability of Easy to Use, Suitable "Out of the Box" Products S ix interviewees contributed to this theme. The majorities of respondents are members of Industry and noted that there is a lack of commerc ia l ready (out of the box) R E T products suitable for the Lower Main land. One suggested that this chal lenge is further compounded by the fact that those that do exist are not easy for an average consumer to install and use without expert ass is tance. 71 T - R6: Data Availability Th is issue was only ment ioned by four interviewees however, each w a s from a distinct sector. Severa l emphas i zed that comparat ive data on R E T sys tems and potential siting information is not readily avai lable and it has been difficult for respondents to find information in order to do c ross-sys tem compar isons. Moreover, where it is avai lable, data is inconsistently presented using different, and difficult to reconci le, units. T - R7: Hard Infrastructure Constraints Nine interviewees, including at least one individual from most sectors, highlighted hard infrastructure constraints as an issue. The members of the C B O s and Consul tants particularly emphas ized cha l lenges relating to infrastructure. Interviewees noted that retrofitting most conventional ly built infrastructure to incorporate R E T s can be time consuming and expens ive and that convert ing certain structures to R E T s may not be feasible at a l l . 1 0 0 In addit ion, for individuals not interested in or able to net meter, storage of electricity generated by P V or C H P sys tems poses a chal lenge. Finally, one interviewee noted that, with a few except ions, R E T community solut ions work best (or, in some c a s e s only work) where there is a dense population able to benefit from adjacent uses . Current land use patterns in the Lower Main land, in which land uses are often separated and populat ions d ispersed, pose a significant chal lenge to certain R E T s . District energy in a real dense situation would be best. Where you locate is very important - we want to be where one particular use has a different load at a different time of day, coupling commercial and residential, for example. (Developer) It doesn't make sense to transport heat long distances. Micro heat technologies have to coincide with a reasonably close host. Long distances kill the economics. (Consultant) T -R8: R&D Timeline A single Profess ional noted that research and development of new, site-appropriate R E T s takes time. Th is poses a significant chal lenge for those developers and consumers who are looking for immediate energy solut ions. E.g. those buildings that have incorporated electric base-board heating 72 4.4 Extro to Challenges When all of the interviewees' comments were tallied, it was clear that some were of more immediate concern than others. Fifteen or more of the 28 interviewees noted six particular themes. In order of number of comments received, these predominant themes are: • Price of Technology (24) • Developers and Current Building Environment (19) • Awareness of Issues, Opportunities & Current Capacity (17) • Price of Electricity & G a s (16) • Municipal Land Use Planning, Record Keeping & Inspection (15) • Local Trade Competency, Knowledge & Training (15) These comments highlight concerns in the Economic, Institutional (Regulatory), Societal and Industry realms. The way in which challenges were emphasized by each of the interviewee sectors broke-down as follows: Academics: There was very little consensus amongst these interviewees. The single area in which both agreed there was a challenge, however, was with regards to the Price of Technology/Component subsection. CBOs: There was great consensus amongst this group, with 14 themes noted in common, the majority of which resided in the Economics and Societal groupings. This high level of concurrence is likely to have occurred as a result of the fact that this was the only "joint-interview" that was run at the same time, in the same place. What is interesting to note are the areas in which there was no agreement. P lease see Appendix E for this breakdown. Energy Providers: These interviewees agreed on the importance of three areas of challenge to the wide-spread adoption of R E T s in the Lower Mainland: i) issues with the Developer & Current Building Environment, ii) the Price of Electricity and Gas and iii) societal Awareness of Issues, Opportunities & Current Capacity. 73 Government. Respondents here agreed that two areas constituted a particular blockage: i) the Absent/Unclear Policy, Vision & Strategy of political leadership and ii) societal Awareness of Issues, Opportunities & Current Capacity. Industry Professionals: Of this group, four or more of the six Industry Professionals agreed that four themes were of particular issue: i) Developers and the Current Building Environment (100% consensus), ii) the Price of Technology / Component, iii) Local Trade Competency, Knowledge & Training Opportunities and iv) Industry Awareness of energy issues. Industry Consultants: There was no area in which all of the Consultants registered a common concern. Two areas that were highlighted by four of the five as challenges, however, are i) the Price of Technology / Component and ii) Public Perception & Process. Industry Developers: The Developers interviewed had very few concerns regarding the Technology or Institutional groupings, however, there was strong consensus surrounding several areas including: i) Developers & the Current Building Environment (100%), ii) the Price of Technology / Component (100%), iii) Industry Awareness (100%), iv) Perceptions of Excess, v) lack of availability of Alternate Energy Models, vi) lack of an Energy Champion and vii) Awareness of Issues, Opportunities & Current Capacity amongst the public at large. Industry RET Providers: There was only one area identified by all R E T Providers as a challenge, with two other areas receiving comments from three of the four interviewed. These areas are: i) Price of Technology/Component (100%), ii) Price of Electricity & Gas and iii) Local Trade Competency, Knowledge & Training Ops. The following chapter is similarly structured and will address the flip side of the challenges question—looking instead to the opportunities that are available to overcome the barriers identified in this chapter. 74 CHAPTER 5 Overcoming the Challenges—Opportunities for Change Let's make a dent in the Universe! Steve Jobs, Apple Computer 5.1 Intro to Opportunities In Chapter 4, interviewee responses to the quest ion "What do you view as the principle chal lenges/barr iers to on-site micro-generat ion of renewable energy and heat in the Lower Ma in land?" were ana lyzed. Wel l in advance of the data col lection process, a local Energy Consul tant (who later became an interviewee) sa id : Understanding the barriers is important—but from a marketing perspective, understanding the drivers is what is ultimately key to overcoming the barriers. Asking the complimentary set of questions is equally important. What are the opportunities? What are you going to do about them? By incorporating this w isdom, an attempt to capture s o m e of the ways to overcome the barriers and cha l lenges—the opportuni t ies—was structured into the interview process . The flip s ide of the "chal lenges" quest ion w a s posed to each interviewee: "How can the cha l lenges and barriers to the w idespread adoption of R E T s — t h a t you have just identif ied—be el iminated or mit igated?" Answers given by interviewees to this quest ion will be ana lyzed in this chapter. 5.2 Grouping the Opportunities A s in the last chapter, grouping the opportunities was difficult. Here aga in , few answers fit neatly into a single category. In this sect ion, the interviewees contributed 190 answers . A s with the responses d iscussed in Chapter 4, in order to better manage the data, I have chosen to group the responses pursuant to the "place" that the interviewee identified the opportunity to reside (i.e. a long institutional, economic/f inancial /market, technical , soc ia l or industry l ines). Aga in , the "institutional" grouping was further broken down into 3 categor ies: utility, regulatory and political. Apply ing this ordering rational, the 190 original responses are bundled 75 into 28 consol idated groupings. A diagram showing how the original responses were consol idated is found in Figure 5.1. Figure 5.1 Ordering Rationale—Streaming the Opportunities Total Interviewee Responses 190 f \ Consolidated Themes i J T f Economic 8 Institutional 10 Societal 5 Industrial 2 Utility 3 Regulatory 4 Political 3 A spreadsheet of this consol idated data set can be found in Append ix F. The following pie chart, Figure 5.2, shows the relative weighting of the interviewee responses in each of the categor ies, demonstrat ing the kind of opportunity identified by the interviewees, the number of responses directed towards each category and the relative percentage that number is, of the total number of opportunit ies noted. Pe rhaps not surprisingly, respondents v iewed Economic, Market and Financial opportunit ies as the area of greatest opportunity for change. Th is was , after all, the a rea that had posed the greatest chal lenge (with 2 2 % of the total noted barriers in Chapter 4). Institutional and Societal opportunit ies received the second and third largest number of responses , respectively, a lso parallel ing the study results descr ibed in Chapter 4. Here, however, the Institutional opportunit ies captured 76 interviewees' imaginat ions, as the proportion of the pie that it represented increased by 1 0 % over the cha l lenges earl ier identified. The last two categor ies, Technical and Industrial, invert their order. In the last chapter, 1 3 % of the cha l lenges expressed related to the Industrial sect ion. Here, only 7% of the responses reflected perceived opportunities in that a rea . Finally, the 14% of the barriers noted in Chapter 4 related to the Technical sector, only 6% of the opportunit ies, however, fall into this category. Figure 5.2 Breakdown of Opportunities by Grouping & Relative Weighting Technical -12 5.2.1 Economic, Market & Financial Opportunities Paral lel ing the data in Chapter 4, the Economic, Market & Financial Challenges grouping received, by far, the greatest number of noted opportunit ies. Of the 190 total opportunit ies contributed by in te rv iewees, 1 0 1 66, or about 3 5 % , fell into this category. The responses received were sub-categor ized into 8 broad themes, as shown in Figure 5.3. This number reflects the total number of comments (relating to opportunities) received. For example, 18 interviewees noted that further investigation of alternative financing mechanisms could provide enhanced opportunities for wide-spread RET adoption. 77 Figure 5.3 Economic, Market & Financial Opportunities Identified by Sector 25 CO CD 2 0 ^ Academics Community Energy Providers Government Professionals Consultants Developers RET Providers R4 R 5 R 6 R e s p o n s e R1 Making it Pencil R2 Rethinking the Financing Model R3 Marketing & Market Acceleration R4 Increasing Technological Competitiveness R5 Subsidies & Incentives R6 Alternative Financing Mechanisms R7 Levelling the Playing Field R8 Partnerships E - R1: Making it Pencil The phrase "making it penci l" is used in the bus iness and development community to refer to whether or not a bus iness c a s e can be made for a particular proposal . If a project "penci ls," transact ional economics are expected to be positive. Th is grouping received input from 10 of the interviewees, and 3 5 % of this category 's responses , reflecting the strong sent iment exp ressed in the preceding chapter that a bus iness c a s e must be made in order for R E T s to be adopted at a significant sca le in the Lower Main land. Interviewees indicated that all sectors need to make an effort to identify where (and when) the economics of a particular R E T "penci l ." Th i s ? It will be a far from susta inab le p ro jec t—bu t it will be a g lobal e xamp le of a road map. P e o p l e don ' t want the kind of deve lopment s that are be ing built in their ne ighbourhood anymore. T h e y want deve lopment s that re spond to the environment, that c reate soc ia l just ice and that m a k e money. I don 't have any bones about say ing we ' r e mak ing m o n e y f rom doing the right thing. I think that 's good. (Developer) E - R2: Rethinking the Financing Model In order to be able to make a sound bus iness case , two of the 28 interviewees (a Profess ional and a 78 Developer) indicated that current f inancing models need to be "reworked." t h e y noted that a more "appropriate" method of f inancing would be to adopt a long-term view, and that that would necessar i ly implicate the incorporation of Life Cyc le Ana lys is tools. E - R3: Marketing & Market Acceleration Th is theme received c lose to 2 0 % of the total comments received in this category. Twelve interviewees, including three of the four Deve lopers and two of the three Government interviewees, noted that marketing R E T products and serv ices is an area in which there is substantial room for growth, and that there exists t remendous potential for a comprehens ive market transformation strategy. You want both carrots and sticks. You want the market transformation strategy where you've got information, education and regulation. I think depending on where a specific product is in the innovation cycle, you apply the necessary tool. (Energy Consultant) O n e of the "necessary tools" in the transformation to a future, which includes R E T s , is assist ing consumers to make the connect ion between their perceived needs and their lifestyle cho ices . To do this, one participant felt that the "green" marketing advantage should be s t ressed and that R E T promoters should capital ize on the "Fee l G o o d " of green power. Why would people buy a $5 cup of coffee when a $1 cup is available? It's completely irrational from an economic standpoint. It's the "Feel Good Factor." The feel good on green power is immense! (Government) Other interviewees indicated that the government has a strong role to play in advertising and promoting technologies, as this level of endorsement confers an immediate sense of trustworthiness and ser iousness that might otherwise take much longer to generate were similar promotion to come from other sectors. In addit ion, severa l s t ressed the need for N G O involvement in the process of market accelerat ion and commercia l izat ion of a particular product or serv ice. A "combinat ion of N G O and bus iness style advocacy" which uses , in addition to traditional marketing techniques, socia l marketing models w a s identified as necessary . Two projects that were noted as having done this successfu l ly are the 79 B C S E A So la r Hot Water Heat ing Accelerat ion P ro j ec t 1 0 2 and the Vancouve r Renewab le Energy C o - o p . 1 0 3 In addit ion, the "rock star effect" (i.e. promotion by respected, local industry leaders such as Peter B u s b y 1 0 4 and R a y C o l e 1 0 5 ) was suggested as one element that could be incorporated into a positive strategy. Marketing? They'll independently research an mp3 player—but with sales centres, it's about dreams. The girls that work there are picked to fit with the fridge—it's selling a dream, it's an intriguing business. (Developer) Finally, to overcome s o m e of the issues related with N I M B Y i s m , one participant indicated that in every c a s e language choice needs to be actively cons idered, a s certain words or phrases like "incineration" and "combust ion" raise red f lags for an uninformed pub l i c . 1 0 6 £ - R4: Increasing Technological Competitiveness In Chapter 4, most interviewees noted that un less (or until) the relative price of R E T s dec reases in relation to products that provide the s a m e serv ice (e.g. so lar hot water heaters vs . convent ional natural gas boilers), wide sca le adoption is unlikely to occur. In this sub-category, eight interviewees from across most sectors noted that are many ways to make existing R E T s more economical ly competit ive, and that the opportunity exists to do so . Three concrete suggest ions include: i) an emphas is on B IPV, so that the energy producing component is an integral part of the building's architecture (rather than an energy producing add-on) and priced accordingly, ii) the See: 1 0 3 See: 1 0 4 Peter Busby is a prominent, progressive Vancouver-based architect who has incorporated RETs into his local and international projects. See: 1 0 5 Ray Cole is a professor in the School of Architecture at the University of British Columbia who has achieved critical acclaim in the areas of green building and design. See: 1 0 6 This interviewee suggested, that in the context of biomass using technologies for example, instead of using the words "combustion" and "incineration" the producers and marketers could say "gasification." "Combustion" and "incineration" bring to mind images of industrial smokestacks and burning garbage. "Gasification" on the other hand, may be more 'safe', as consumers are more likely to associate it with their current system of natural gas heating. 80 introduction of a Product ion Tax C r e d i t 1 0 7 ( P T C ) to dec rease the competit ive d istance between convent ional and alternative sources of electricity and heat, and iii) the introduction of a provincial, mandatory Renewab le Portfolio Standard ( R P S ) . 1 0 8 E - R5: Subsidies & Incentives Nine interviewees in this sub-category identified the need for a s teady subs idy stream to be actively provided by the public sector for the technological research and development, manufacturing and delivery of R E T s . In addition to existing incentives, one interviewee noted that the time is ripe to "devise more 'carrots' for alternative technologies and building eff iciencies." Another participant noted that the propensity of an individual consumer to have a high discount rate, means that the provision by the government of easi ly access ib le and understandable homeowner subs id ies and rebates for the purchase and use of R E T s would be a relatively effective way to introduce products and serv ices that might otherwise be cons idered prohibitively expens ive . £ - R6: Alternative Financing Mechanisms Bui lding on notion of defraying first c o s t s — a strong chal lenge identified in Chapter 4—almost a third of interviewee responses in this category related to the development of alternative f inancing mechan isms as one way R E T market penetration could be bolstered. Al l of the R E T Providers, A c a d e m i c s and C B O s , as well as the majority of Developers , Energy Consul tants and Government officials interviewed indicated that there are significant opportunit ies to be had in this a rea . 1 0 7 A typical PTC provides a specified cent per kilowatt-hour benefit for the specified period (e.g. the first ten years) of a renewable energy facility's operation. The Union of Concerned Scientists note that in the United States, a federal PTC provides a 1.5-cent/kWh credit for wind, solar, geothermal, and closed-loop EESs. Other technologies, such as open-loop EESs, biomass, incremental hydropower, small irrigation systems, landfill gas, and municipal solid waste, receive a lesser value tax credit. See: 1 0 8 In 2002, the provincial government proposed that 50% of all new capacity come from "B.C. Clean Electricity" (see Section2.4.3) by 2012 as a voluntary goal, with no legislation to backstop this target. A legislated RPS would require generators in the province to secure a percentage of their electrical needs from renewable energy sources. According to the Canadian Wind Energy Association, RPS' are being actively developed, but are not yet implemented, in Alberta, Ontario, New Brunswick, Nova Scotia and Prince Edward Island. 81 Severa l interviewees s a w an opportunity on the part of federal and provincial governments to underwrite, buy-down or take over upfront capital expenses . Th is was rational, the respondents noted, on the basis of the genera l ized socia l benefit including a reduction in G H G emiss ions and "grid re l ie f that would flow from the prioritized inclusion of R E T s into the generat ion mix. Other suggested alternative f inancing opportunities include the development of private venture capital incubators which would provide capital to invest in R E T "start-ups." Alternatively, several interviewees noted that increasingly, including here in British C o l u m b i a , 1 0 9 municipali t ies are becoming micro-utility operators and , in other jurisdictions, private micro-utility operators are stepping up to deal with the hurdle posed by up-front capital costs. Terasen said to us: we will buy every energy and water system in your building up to x$, we'll just buy it. We'll run it as a utility and you pay us back on an annualized capital charge over the lifetime of each piece of equipment. It's a life cycle approach on the capital budgeting side, it's an integrated approach and it breaks the capital/operating barrier—so we completely bridge that gap. And this was their idea. Selling molecules of gas is a low margin business, selling utility services is high margin. That's their future. They see [us] as a massive opportunity, as their lever into the City. They see a whole market emerging and they want a piece of it! (Academic) Co-operat ive ownership of a particular R E T , as has been done successfu l ly in the P e a c e Energy Cooperat ive in Northern British Co lumb ia and the Windshare Cooperat ive in Toronto, w a s also suggested as a viable way of generat ing funds. Alternatively, in the Lower Main land, particularly where E E S s have been involved, at least one developer has taken out an "energy loan" which w a s ultimately passed on to the strata or end user through maintenance f e e s . 1 1 0 Still other interviewees suggested that R E T sys tems could easi ly be built into mortgage f inancing as part of the sa le price, something which is currently cons idered by only a limited number of f inancial institutions in the Lower Main land, including VanCi ty . Interviewees noted that the opportunity for greater institutional f inancing of R E T s f lows logically from the 1 0 9 See Section 2.2.4. 1 1 0 An example of this is the Cornerstone Building in UniverCity at Simon Fraser University, Burnaby. This project, developed by SFU Community Trust, has installed a ground source heat pump and passed its cost on to new residents through this form of developer "energy loan." 82 premise that the inclusion of a R E T in a particular project means that funds, which would normally be used for s p a c e (or water) heating and cool ing, will be freed-up, al lowing for more money to be avai lable for mortgage purposes. O n e interviewee suggested that the s a m e logic could be extended to al low owners to tack R E T retrofits onto an existing mortgage. How does this work? The building, which will be taken over by the residents, will be given a prime plus 1 or 2% loan to fund marginal costs—almost like an equipment loan. Condo fees will end up paying for this—60 units, add an extra $500,000. In effect, each unit is $6-8 thousand more [than a 'RET free' unit], which will be repaid through the low cost loan. Our assumption is that the payments would be less than if you were paying the incremental costs that you'd be paying were you to [buy into] a normal project. If you were spending $40 on the loan, you'd be spending $60 on your energy bill. Here, the upfront costs are covered by [a] VanCity loan.... (Developer) Finally, two interviewees noted that G r e e n P o w e r Cert i f icates ( G P C s ) 1 1 1 and Renewab le Energy Cert i f icates ( R E C s ) 1 1 2 should be more actively promoted. In the later case , the Vancouve r Renewab le Energy C o - o p distributes the only R E C s that support local renewable energy projects in the Vancouve r a rea . Whi le this is currently a limited initiative, one interviewee noted that with proper promotion and accreditat ion, there is an opportunity to convert the local R E C s into a market-tradable commodity. E - R7: Leveling the Playing Field Of the five interviewees who noted that the "playing field" required level ing, four were members of Industry and one w a s a Government employee. Here, interviewees noted that once it is acknowledged that the market playing field in which the " renewables and natural gas and oil sectors" operate is uneven, and "vested interests, in particular oil and car compan ies" are a problem, the need to take proactive measures becomes more apparent. One 1 1 1 BC Hydro purchases "green power," at a premium. The purchase of GPCs goes to off-set this additional cost, so theoretically, the more GPCs that are purchased, the more green power BC Hydro will continue to buy and add to the grid. Each GPC represents the green attributes from one-megawatt hour (MWh) of electricity generated at EcoLogo certified green generation facilities located in British Columbia. See: 1 1 2 RECs are tradable units that represent the commodity formed by unbundling the environmental attributes of a unit of renewable energy from the underlying electricity. Under most programs, one renewable energy certificate would be equivalent to the environmental attributes of one MWh of electricity from a renewable generation source. See: =2 83 proactive opportunity severa l interviewees suggested includes amending the tax system to accord benefits to renewable energy producers that are similar to those received by producers in the convent ional energy sector. If the private sector isn't innovating, then it has to be the provincial and federal governments. If the Province is looking at investing in the gas fields...they should also be making a serious investment to look at renewable technologies. (Industry Association) E - R8: Partnerships In Chapter 4, two interviewees noted that in any new endeavour, it is essent ia l to develop relat ionships with organizat ions that have complementary competenc ies . T h e s e s a m e interviewees, an A c a d e m i c and a C B O , noted that although it is often a chal lenging process , appropriate partnering has the potential to spin-off significant opportunit ies that would not be avai lable were an individual (person or organization) to be proceeding solo. In particular, the creation of synergist ic partnerships often al lows the leveraging of f inancing provided by partners, enabl ing others to secure addit ional f inancing from sources that would not otherwise be access ib le . 5.2.2 Institutional Opportunities In the last chapter, the Institutional Challenges grouping received the second largest number of comments . Here, the Institutional Opportunities grouping paral lels that, receiving 60 of a total of 190 comments , or slightly more than 3 2 % of all responses tendered. A s in the preceding chapter, this is the only grouping that w a s divided into sub-groupings. Th is w a s done to reflect the reality of the energy delivery sys tem in British Co lumb ia . The sub-groupings are: Utility, Regulatory and Pol i t ical /Pol icy. Utility In this sub-group, interviewees made reference specif ical ly to B C H and the speci f ic opportunities that it, as an organizat ion, offered. In addit ion, although utility rates are an area governed by the B C U C and not B C H , responses relating to rates are a lso included here. In this sub-group, comments were slotted into three broad themes, as demonstrated in Figure 5.4. 84 Figure 5.4 Utility Level Opportunities Identified by Sector R1 Net Metering R2 BCH Structure of Calls For Tender R3 Utility Rates • CO c o a CO CD tr CD a E Z 2 5 20 15 10 ••1 Academics l 1 Community i Energy Providers i i Government • • i Professionals • • i Consultants • • i Developers ••1 RET Providers n R 1 R2 Response R3 IU - R1: Net Metering Ten interviewees from all groups (except Academ ic , who offered no opinion) indicated that the price paid by B C H for net metered electricity should and could be substantial ly increased above current market rates in order to encourage non-utility sca le producers to contribute to the grid. There is a t remendous opportunity to introduce a sort of feed in tariff or Standard Offer Contract, similar to those that were introduced by the Prov ince of Ontario in March 2006 1 1 3 and Wash ington State in M a y 2 0 0 6 , 1 1 4 to support the rapid development of renewable, decentral ized generat ion throughout the province. T h e feed in tariff is a mag ica l s c h e m e - it's amaz ing . It has s p a w n e d huge growth in the who le P V industry in G e r m a n y wh ich [in 2004] g rew 6 2 % in one year! It's a s c h e m e that, in effect, transfers the subs idy for P V from the taxpayer to the ratepayer. It's imp lemented by law and has two parts: if you have a renewab le energy source.. . and hook it up to the utility grid, the utility is obl igated by law to pay you a h a n d s o m e tariff for the electricity you sel l them. T h e second facet is that the utility has to guarantee the rate for 20 years. This.. .al lows them to be funded by domest ica l ly funded investment trusts. (Industry R E T ) IU - R2: BCH Structure of Calls for Tender Three interviewees, including the C B O s and a R E T Producer indicated that there is an opportunity to improve the B C H Ca l l for Tender process. O n e way in which this could be done is by creatively reworking 1 1 3 S e e sect ion 3.2.3 (PV-Labour ) , above. For a backgrounder on Ontar io ' s S tandard Offer P rog ram see: =2 1 1 4 S e e 3.2.3 (PV-Labour ) , above. 85 definitions of "firm" and "non-firm" power so that smal ler power producers are not definitionally exc luded from competit ive cal ls up-front. A s many R E T s generate power intermittently, they are cons idered "non-firm" power producers and so had, until recently, been exc luded from the competit ive p r o c e s s . 1 1 5 Interviewees indicated that in addition to utility sca le independent power producers (such as wind energy producers), with a bit of creativity on the part of B C H , the participation of smal l , non-firm power producing generators who are producing above 50kW could a lso be included. IU - R3: Utility Rates In Chapter 4, the low cost of energy in British Co lumb ia w a s v iewed by s o m e interviewees as a chal lenge to the proliferation of R E T s throughout the province. Here, five interviewees v iewed an increase in utility rates as the solution to this chal lenge. Opportunit ies that have been implemented successfu l ly e lsewhere and could be implemented here amongst all energy consumers include tiered usage r a t e s , 1 1 6 which have been used in relation to B C Hydro 's large customers s ince Apri l 2006, and t ime of use pricing mechan isms, where power used at different t imes of the day and year would be charged at a more or less expens ive rate. Policy drives the market. What influences policy? Really expensive power... (Industry RET) Regulatory Here , 25 comments that referred to rules, regulation and law are tall ied. Amongs t these comments , four themes, as identified in Figure 5.5, were identified. 1 1 5 This is changing, however, as in 2005, BC Hydro issued a call that sought to acquire up to 800 GWh of firm energy and up to 800 GWh of non-firm energy from large IPPs connected directly to the transmission system as well as approximately 200 GWh of energy from smaller projects connected to the system. 1 1 6 Here, the price per unit of the energy is fixed, regardless of the amount of energy used. With a tiered or "stepped" rate, the last e.g. ten percent of energy used by the customer (based on historical usage), is charged at an amount that equals BCH's purchase price to acquire energy. The customer is incented to reduce their consumption of energy by this same percent as their billed saving will be at the higher Tier 2 rate. See for more information on how BCH's program works. 86 Figure 5.5 Regulatory Opportunities Identified by Sector CO cu 1 C o a. ai E Z 2 5 20 15 10 Academics Community Energy Providers i i Government Professionals U H Consultants H U Developers H U RET Providers R1 Municipal Tools R2 Building Code R3 Building Rating System R4Global Agreement R 1 R 2 R 3 R4 Response IR - R1: Municipal Tools In this sub-category, 13 interviewees, including all of the Developers and at least a single representative from most other sectors indicated that key enablers to the wide-spread use of R E T s , locally, include the proactive development and enforcement of municipal pol icies and green building strategies. Interviewees note that the creation of a comprehens ive municipal green development strategy is an opportunity to strongly encourage (and perhaps mandate) the use of energy efficient technologies. In addit ion, amending zoning to encourage increased density and mixed use would a lso ensure that the physical mass ing and ad jacenc ies required to make certain R E T s feasible, e.g. C H P produced through b iomass combust ion exist. Severa l of the Developers noted that there is a lso an opportunity for a municipality to require certain energy eff iciencies when they request a zoning var iance. Th is group indicated unanimously that, in the absence of positive economics , to induce a change in development behaviour, mandatory legislation and regulation would be required to move their sector to adopt R E T s and eff iciencies at any sca le . 117 1 1 7 O n e Deve loper noted that the adopt ion of access ib i l i ty by laws had taken " s o m e getting u sed to," but now it is a s tandard, wh ich is incorporated without quest ion. 87 IR - R2: Building Code Paral lel ing the last response, severa l of the nine interviewees who contributed to this theme suggested that in addition to enact ing mandatory legislation and municipal regulation, the opportunity should be se ized to modify the existing building code . Responden ts from all sectors, including three of the four R E T Providers, indicated that changes to building code and des ign guidel ines which could, for example , require that buildings be constructed to certain energy standards (without being prescriptive as to how this is done) would provide significant opportunities for the R E T industry while benefit ing society, at large. Further, given the difficulties assoc ia ted with retrofitting convent ional structures with R E T s , one interviewee a lso recommended that regulations be crafted to ensure that all new construction is built select ively " R E T ready," thereby providing owners with the opportunity to install an appropriate R E T in the future, if they so desi re. Changing the rules is all that matters. Change the rules and sustainability will sweep the planet! It's almost that simple. Technology is SO dynamic and when you read Avery Lovins and Natural Capitalism, it's naive at one level and it ignores a deep critique of capitalism as a cultural and social phenomenon, but what it has right is our incredible capability to adapt—if the RULES are right! The rules support this path, not that path. Change the rules! (Academic) IR - R3: Building Rating System Two interviewees, a member of Government and an Energy Consul tant , indicated that one way to raise awareness of energy issues and incentivize efficient building practice would be through the legislation of a "building rating sys tem, a la Energy Star," similar to what currently exists for some electrical appl iances. Th is would give potential purchasers the ability to compare between building "products," enabl ing them to objectively project what the energy-related operat ing costs of a particular location would be. We live in a society that rates electronic appliances by energy efficiency. We need to do the same with our buildings. We need to say, there's a marginal premium to move into this building but the cost of living here will reduce by x% over each year.... It would be far easier if there were a provincial or federal rating on properties. Then same trip-switches that come into play when you are buying a washing machine would be in place. (Government) IR - R4: Global Agreement Here, one Energy Consul tant had a slightly different take on things, suggest ing that real opportunities for R E T s like S H W and E E S s will ar ise once there is a "global col lective agreement" which would both cap (similar to 88 the Kyoto Protocol) and price carbon emiss ions . Assum ing that it were possib le to achieve buy-in and compl iance with this sort of agreement, the interviewee noted that three particular benefits would follow: i) a new system of pricing s ignals (which could impact R E T s positively) would develop, ii) the "free rider syndrome" which is created as a result of G H G not being currently priced into the market would be minimized or el iminated, and iii) benefit would accrue not only to those who cut their emiss ions , but also to the public at large. Politics / Policy A s in Chapter 4, this sub-grouping is dist inguishable from the Regulatory sub-grouping, as the Politics/Policy f rame tends to capture high-level cho ices that have been made in the absence of any formal rule or regulation. The three a reas of opportunity identified by interviewees: "educat ion," "purchasing policy" and "vision" are listed in Figure 5.6. Figure 5.6: Political / Policy Opportunities Identified by Sector R1 Education R2 Purchasing Policy R3 Vision, Definition & Priorities R1 R 2 R 3 Response IP - R1: Education In Chapter 4, an Energy Provider, a Profess ional , an Energy Consul tant , a Developer and a R E T Provider noted that there is a lack of awareness of energy-related and RET-spec i f i c educat ion at the level of the provincial cabinet, and that without this, opportunit ies to innovate will be m issed . T h e s e s a m e five interviewees noted that direct educat ion of those s a m e polit icians on i ssues relating **— O I 10 E 3 5 • M Academics i i Community I I Energy Providers I I Government BHI Professionals ••1 Consultants • H Developers • M RET Providers • 89 to energy, would provide them with both an opportunity for personal growth, as well as potential for spreading awareness top-down and encouraging alternatives. The regulators, those that shape and influence building regs and by-laws, that group of people is growing more aware. It's on the radar. It doesn't mean that as yet they've digested this and determined how to be proactive in enabling things that may improve the efficiency of the system. It's a complex mix. (Consultant) IP - R2: Purchasing Policy Three members of Industry and a Government official noted that one way to encourage wide-spread use of R E T s is to include their purchase as a priority in governmental purchasing pol ic ies. O n e respondent a lso commented that a critical e lement of this would be to "require transparent and susta inable reporting of [RET containing] projects," from which " lessons learned" could be used to inform the larger community. Most interviewees noted that in this a rea , the city (or other level of government) "needs to be a leader in order to prove it works to developers" and the general public. More and more projects like we're doing here make it possible—a lot of people think we're crazy—but we're demonstrating that it can work. We have to be honest about it, report on it. We're going to do sustainable reporting. This is what we promised, this is what we delivered on, this is where we screwed up, this is how we are going to fix it. (Developer) IP - R3: Vision, Definition & Priorities Of the 28 interviewees, 17 contributed to this sub-sect ion, with almost 5 0 % of the comments for the Institutional/Political category concentrated here. A lack of "government with v is ion" was identified in Chapter 4 as an impediment to the adoption of R E T s . Here, an interviewee noted that one way in which this situation can be "nudged to change" is by "def ining] B . C . a s an Energy Prov ince, [thereby] making it as e a s y as possible for I P P s to exist." Others emphas ized that it is crucial within local governments to integrate those people who have vision with those who can implement it. W h e n this is in p lace, "energy eff iciency and security [becomes] a strategic priority" that will filter down to the local level. Acknowledg ing that we need to "politically push people," the 90 opportunity for municipal i t ies to play a role in the provision of energy serv ices becomes a "public policy pr ior i ty." 1 1 8 [We] sat down with Park ing and P lann ing and Approva l s and Susta inabi l i ty all together. A n d they we re all going "No parking, wow..." and "A c ode exempt ion, wow...." But the interesting thing was , they cou ld all s a y "Counc i l sa id w e were to work with these guys...." But it wasn ' t a s if counc i l directed them to do so. It g a ve them permission to work with us. Y o u need the top for permiss ion, but it's the wanting to at the work ing level that w a s key. W h a t ' s the permiss ion they a re getting? Pe rm i s s i on to do more work! They a re wil l ing to but can ' t justify it at their own level. G i v e peop le permis s ion from the top and they will do more b e c a u s e it 's excit ing and interesting, it's n ew and novel and it's contributing to betterment. That ' s the real benefit! "Oh, in my job a s a by law officer, I'm contributing to a better world." W h o wouldn ' t want to do that?! (Academic ) 5.2.3 Societal Opportunities W h e n the interviewees were asked to identify cha l lenges to the adoption of R E T s in the Lower Main land, the Societal Challenges grouping elicited virtually the s a m e number of noted chal lenges as the consol idated Institutional Challenges grouping. Th is is not the case with the Societal Opportunities category. Of the 190 total cha l lenges noted, only 38 (22 fewer than the consol idated Institutional grouping), or 2 0 % , fall into this category. Sti l l , there is diversity amongst these comments and they are slotted into five broad groupings, as may be seen in Figure 5.7. Figure 5.7 Societal Opportunities Identified by Sector R1 Vision R2 Education R3 Modeling R4 Program Delivery R5 Community Solutions CO CD CO <=. Q CO-CO CD • Academics ~3 Community I I Energy Providers Z ] Government • Professionals • Consultants • Developers • RET Providers S 10 1 1 8 T w o new forms of "P3 " ! R 2 R3 R 4 Response 91 S - R1: Vision Paral lel ing the comment that "government needs vision," in the Institutional (Political) Opportunities sect ion above, four interviewees indicated that an opportunity exists to foster "c lear understanding and vis ion" of energy i ssues and R E T s amongst members of society at large. You have to envision a kind of a different society, and how businesses and communities work, how people live. It has to be different when you talk about sustainability. It's a revisioning of how we actually live. It requires an ongoing radical rethinking of how we live our lives. Now, we are living a lifestyle that's taken hold since the Second World War—but before that, it was markedly different. (Industry Association) S - R2: Education E leven interviewees, including three of the four Developers , noted that educat ion of the public "as consumers" is imperative in order to foster increased understanding and adoption of R E T s . Severa l noted that "great space" and educat ional opportunit ies have been created through programs such as the Government of C a n a d a ' s (now defunct) "One Tonne Chal lenge, " the City of Vancouver ' s "30 Days of Sustainabil i ty" and "One Day" programs as well as educat ional activities sponsored by the B C S E A 1 1 9 and severa l utilities through their conservat ion and energy awareness programs. Education in this area could help shape people's expectations. It would also teach recognition of our limits. A mature person knows their limits and with respect to energy, we have to have a mature outlook. (RET Provider) S - R3: Modeling The chal lenge, noted in Chapter 4, relating to the paucity of concrete models for individuals and bus inesses to observe and to learn from, opens the door to a t remendous opportunity. Th is sub-sect ion generated 3 4 % of the responses received in the Societal category. Thirteen interviewees, including a majority of Deve lopers and Profess ionals , supported the notions that i) c a s e studies should be publ ic ized and easi ly avai lable, and ii) that R E T s should be incorporated into " showcase buildings" to "show people (including developers) how this will work." "We need to make it real!" exc la imed one interviewee. Including the "Climate Change Game" 92 The reality of the human experience in built form is real. You have to contextualize it at every level. We're into knowing where the dishwasher and the sink is. (Developer) S - R4: Program Delivery Th is category w a s contributed to by s e v e n interviewees representing most sectors, and relates specif ical ly to the way in which educat ional programming is del ivered. Responden ts noted that a great opportunity exists for more creative engagement and select ive and limited use of "top-down program promotion." Respond ing to the chal lenge posed by confusing or unavai lable data, one interviewee indicated strongly that one solution lies in improved a c c e s s to energy statistics. Th is group echoed the notion expressed above, that no matter what format program delivery ultimately takes, it must "make electricity tangible." S - R5: Community Solutions Three Industry members suggested that the cha l lenges must be pushed down to the local level. O n c e this happens, severa l opportunit ies for change may be taken advantage of. First, "big box stores [will have] to carry more do-it-yourself packages . " S e c o n d , depending on the type of R E T and use cons idered, individuals may have to be more proactive in getting to know their neighbours. Adjacent homeowners may contemplate shar ing a sys tem or individuals may come together to investigate the notion of forming a co-op to purchase a R E T . Even beginning this conversat ion ensures that some degree of "community" will be fostered. O n e Profess ional noted that there is "a gueri l la movement going on in Wes t V a n ! " He indicated that "the real underground solution is a l ready occurr ing" and that people in that city are a l ready beginning to se i ze the opportunit ies that R E T s offer in terms of significantly dec reased energy costs . This interviewee indicated that the owners of the residential installations to which he was referring had paid no mind to building regulations or B C H net metering regulations. Instead, they "just did it." There will be all sorts of problems with siting from the public point of view—less so if [it is as in] Denmark where many of the wind turbines are community owned. [There,] complaints evaporated. People are much less likely to complain if it is something that they own and they are getting the financial benefits from it. As soon as private ownership is brought in, people get upset. (Energy Consultant) 93 5.2.4 Industrial Opportunities This grouping col lected less than half the number of opportunit ies noted in the Social Opportunities grouping. Of the 190 total opportunit ies logged, 14, or approximately 7% of the total opportunities listed in all categor ies, fell into this sub-sect ion. Here, the comments received were slotted into just two broad themes, as noted in Figure 5.8. Figure 5.8 Industrial Opportunities Identified by Sector 25 20 CD I CD E • • I Academics i i Community i i Energy Providers i i Government • • I Professionals Consultants Developers • • i RET Providers R1 Education & Training R2 Integrated Communication Response Ind - R1: Education & Training The principle opportunity identified by approximately 8 0 % of interviewees who responded to this theme, including a majority of R E T Providers and Developers, relates to the educat ion and training of t rades-people and convent ional technology suppl iers (e.g. H V A C system installers), building inspectors, by-law officers and realtors. Many interviewees indicated that that the current gap in standards, training and awareness could be (relatively) easi ly filled with targeted programming, noting that this is a l ready beginning to occur in certain sectors at the British Co lumb ia Institute of Techno logy (Burnaby) and , in the fall of 2007, at Ma lasp ina University Co l lege (Nanaimo). In addit ion, it was noted that industry assoc ia t ions such as G e o E x c h a n g e B C , the Canad ian G e o E x c h a n g e Coal i t ion and the International Ground Source Heat Pump Assoc ia t ion in the United States are a lso, in some c a s e s , providing a valuable continuing educat ion and credential ing serv ice to their members . O n e Developer noted that in his industry, further 94 educat ion about R E T s (which are still perceived by many in the development community as risky and new) might go a long way to promote their adoption in that sector. I'm interested to see Dockside and anxious to see how it and the Okanagan project go. Things like that, where people are starting to use technology, bring it mainstream so that it won't be as much of an issue [are significant]. If there is a quality product available that is economically feasible, then it's likely that our organization will pick it up. (Developer) Ind - R2: Integrated Communication In Chapter 4, participants noted that integrated design w a s not occurr ing and that interdisciplinary communicat ion w a s negligible. Th is chal lenge highlights a t remendous opportunity identified by Developers and a Consultant, to begin dialogue amongst all of the project-members early in the building design phase, which—they expect—would enhance communicat ion outside of the s i los and foster discipl inary integration throughout the remainder of the project. 5.2.5 Technical Opportunities Aga in parallel ing Chapter 4, finally, and perhaps not surprisingly, the Technical Opportunities grouping received less input than any of the other groupings d i scussed above. Interviewees, representing most sectors without distinction, contributed twelve responses . The three themes deve loped in this grouping are shown in Figure 5.9. Figure 5.9 Technical Opportunities Identified by Sector Rt Material Efficiency R2 Quality, Ease and Availability of Product R3 Focus on R&D 20 O £ m E Z R 1 R2 Response R3 • Academics i i Community l i Energy Providers i i Government B B Professionals Consultants • M Developers U H RET Providers T - R1: Material Efficiency Two interviewees reiterated a chal lenge that they had noted in Chapter 4, namely the inefficiency of a particular R E T to convert energy to work (electricity) or heat, and reframed it as an opportunity. They noted that there is a t remendous opportunity for someone to improve a material 's eff iciency and create products that have a higher eff iciency rating and that this sort of innovation is starting to occur locally, with Day4 Energy Inc . 1 2 0 being an example ment ioned by both interviewees. If you look at a normal panel, over 5 0 % of the cost of the panel is the silicon, since stuff is sold by the watt. If you can reduce silicon/watt ratio, you change the economics of the thing. (RET Provider) T - R2: Quality, Ease and Availability of Product Here, five interviewees noted that there are currently gaps (and therefore opportunities) in terms of the quality and availability of certain R E T s . Paral lel ing a comment in Community Solutions, above, one respondent noted that this is an opportunity for big box retailers to "get on board." Another interviewee indicated that if R E T s were to be truly access ib le , there would need to be a "cookie-cutter approach to installation." Th is would be of benefit to not only the retail consumer , but a lso professional installers. Why doesn't Canadian Tire or home depot carry this stuff? It is becoming more common—their flyers include solar panels to charge laptops. But it's a chicken and egg problem: stores don't carry it because people won't buy it, people can't buy it because stores don't carry it. (Consultant) T - R3: Focus on R&D Th is sub-sect ion received the s a m e number of comments from as diverse a number of interviewees as the preceding sub-sect ion. Here, however, all five interviewees shared one thought: in British Co lumb ia , we must focus our efforts on technical research and development and that British Co lumb ia can , and should be crafting itself as an "Energy Prov ince." From a political point of view, to motivate governments to do what they need to do we've focused too much on the costs and far too little on the opportunities. I know that there are people, particularly in the federal government, who are trying to figure out our niche in terms of the climate change "business" to come. As crass Day4Energy is a Vancouver-based solar-energy company that is "dedicated to producing affordable and efficient PV solutions." Day4 Energy reports that it has developed new PV technology that will significantly reduce the cost of PV to the end-user, "making future technology today's reality." See: 96 as that may sound, and as much as there is painful personal adjustment that is required, there are some brilliant opportunities in manufacturing, here, on the coast where we are rich with resources and able to make the change. We really do need to be doing it here. (Community) 5.3 Extro to Opportunities W h e n responses to the quest ion of how to eliminate or mitigate the barriers identified by the interviewees were tal l ied, six c lear a reas of opportunity emerged . The opportunities for change that were mentioned most often are, in order of responses received: • Alternative F inancing Mechan i sms (18) • Municipal Too ls (13) • Model ing (13) • Market ing & Market Accelerat ion (12) • Educat ion (11) • Industry Educat ion & Training (11) T h e s e six themes were in the Economic, Institutional (Regulatory), Societal and Industrial groupings. Unl ike the f indings in Chapter 4, there w a s little consensus within sectors a s to the most significant a reas of opportunity. In only a handful of c a s e s were there unanimity of response, with most themes receiving a few support ing comments from across many sectors. W h e r e it w a s possib le to identify, the areas in which opportunit ies were emphas ized by each of the interviewed sectors fol lows. Academics: A s with chal lenges, there w a s very little convergence on what opportunit ies are avai lable between the A c a d e m i c s interviewed in this sect ion. The one area upon which they did agree, however, was that of the need for Alternative Financing Mechanisms. CBOs: Aga in , likely as a result of the interview dynamic mentioned in Chapter 4, there is significant agreement amongst the C B O s on the importance of eight themes. For more information on this breakdown, see Append ix F. 97 Energy Providers: Energy Prov iders agreed that there are significant opportunit ies to be had in the areas of Marketing and Market Acceleration and in developments surrounding Net Metered Electricity. Government. There w a s no consensus in this group as to which opportunit ies were most significant. Four themes, however, including i) improved Marketing & Market Acceleration, ii) the need for Subsidies and Incentives, iii) Alternative Financing Mechanisms and iv) the availabil ity of Municipal Tools were a reas identified a s important to develop by two of the three Government respondents. Industry Professionals: There were two themes upon which this group of interviewees substantial ly agreed: i) the need for Vision, Definition and Priorities to be set at a political level and ii) the need for greater Modeling of R E T s . Industry Consultants: There w a s only one area that three of the five Industry Consul tants collectively identif ied—the opportunity to develop Alternative Financing Mechanisms, as this is currently an area that is lacking. Industry Developers: Here again, Developers were a more cohes ive voice than any of the other individually interviewed respondents. In this chapter, three or more of the four interviewees supported six themes, including: i) the opportunity for local governments to use Municipal Tools more effectively (100% consensus) , ii) the importance of Making it Pencil, iii) the opportunity to improve Marketing & Market Acceleration of R E T s , iv) the need for Alternative Financing Mechanisms, v) Education at all levels and vi) more obvious R E T Modeling. Industry RET Providers: The R E T Providers identified three a reas of opportunity in which they substantial ly agreed. T h e s e areas are: Alternative Financing Mechanisms (100% agreement) , the need to amend the Building Code, and a requirement for enhanced Education & Training within the industrial sector. 98 Chapter 6 Conclusions & Recommendations There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. Niccolo Machiavelli, The Prince 6.1 Conclusion The purpose of this study is to address a topic that receives very little time in traditional planning circ les: the supply of electrical energy to the Lower Main land of British Co lumbia . Present ly, this region is not in cr is is. Electr ical power needed to supply its critical infrastructure is avai lable in sufficient quantity and at a relatively low price (through a combinat ion of provincial generat ion and inter-regional trade). R e s e a r c h indicates, however, that this may not be the c a s e in the near future. A s the Lower Main land 's population cont inues to grow unabated and as disruptions exper ienced in the deregulated and technical ly overst ressed portions of the grid to the south of the C a n a d a - U . S . border result in mass ive rolling blackouts, residents of the Lower Main land will be required to purchase ever increasing amounts of "dirty" power from Alberta a s well as "dirty" power and potentially unreliable t ransmission from the United States. Therefore, for reasons of both regional security and cl imate change, policy makers must be looking to dec rease the demand p laced on the grid through both conservat ion measures , such as decreas ing the electrical load used to produce heat by substituting sustainable fuels and actively search ing for and promoting susta inable alternatives to bolster domest ic electrical generat ion. A s severa l interviewees noted, research and the development of new forms of electrical generat ion that are in the best interests of the region—whether it is in the form of a wind farm, community energy system or a Site C (a proposed hydro-electric dam)—take time. The F V R D has indicated in its regional growth plan that it supports the responsib le use of energy resources, which extends to support ing initiatives that promote solar energy use, smal l -sca le hydro-electr ic 99 generat ion, wind power generat ion, and geothermal energy as susta inable sources of energy. Words of support for increased sustainable generat ion are necessary but not sufficient to motivate act ions that will help dec rease the anticipated electricity supply deficit. To ensure there is enough power to meet both the growing need of residents of the Lower Main land and the gaps left by aging infrastructure, action to vigorously encourage conservat ion, promote R E T s , and increase distributed generat ion, general ly, must begin immediately. Whi le B C Hydro has begun very posit ively to implement change through the inclusion of a wide variety of new sources of renewable power in its 2006 call for new power, more needs to be done. Th is study demonstrates that on a micro sca le , a variety of sustainable opt ions to both generate power and provide heat exist. O n the electrical production s ide, P V and B I P V are establ ished techno log ies—even on the wet W e s t Coas t . In the case of P V , with a net metering regime in place, individuals can produce power for their own consumpt ion and bank that which they do not use in the grid. By producing e x c e s s in summer and drawing upon convent ional sources in winter, with a sufficiently s ized P V array or B I P V product, individuals could reduce their net draw on B C H to zero. In terms of heat, E E S s provide significant heating and cool ing to buildings in which they are located. So la r hot water sys tems can be sca led to meet a significant portion of residential, commerc ia l and institutional hot water loads. B iomass- fue led furnaces and water heaters provide sufficient energy to heat both s p a c e and domest ic hot water. Comb ined heat and power sys tems are a lso avai lable, if there is an adjacent use for the excess heat produced. In each case , these R E T s operate with a sustainable and readily avai lable fuel supply. Al l of these technologies replace conventional s p a c e and water heating 100 sys tems that are increasingly, in the Lower Main land, "going electric." Accord ing to interviewees in the development community, electric baseboard heaters and water tanks are replacing natural gas furnaces and boilers. E E S s , S H W and b iomass sys tems can be used to dec rease the pressure on the grid that would otherwise be caused by an electric heat-generating appl iance. A long with B I P V and P V , these technologies provide reliable alternative source of energy, which dec rease the vulnerability of their user to the vagar ies of increases in the market price of fuel and potential instability of supply. S o why isn't w ide-sca le implementat ion of R E T s being quickly rea l ized? In Chapter 4, interviewees identified six major impediments to the adoption of R E T s in the Lower Main land. T h e s e are, in order of s igni f icance: i) the high price of R E T s as compared with their convent ional counterparts, ii) the attitudes and pract ices of developers and the current building environment, iii) lack of awareness at the consumer level of energy-related i ssues and alternatives, iv) the relatively low price of electricity and gas , v) arcane municipal land-use planning, and municipal officials who are unfamiliar with new technologies or resistant to them, and vi) lack of R E T awareness amongst local t rades and individuals in the development industry. In Chapter 5, interviewees identified areas in which there w a s opportunity for change and ways in which the barriers or cha l lenges listed in the previous paragraph could be overcome. Many novel ideas were elicited. The top six opportunit ies identified include: i) ideas relating to alternative f inancing mechan isms to off-set the high first costs assoc ia ted with R E T s , ii) ways in which existing municipal tools (such as by- laws and zoning) might induce progressive energy pract ices, particularly amongst developers, iii) an eagerness to see a large sca le model or demonstrat ion projects deve loped which would serve a s both marketing and teaching tools, iv) the identification of speci f ic ways in which improved marketing can help consumers connect their needs with appropriate R E T "product," v) general educat ional strategies about energy use and 101 conservat ion, and vi) specif ical ly targeted educat ional and training opportunit ies about R E T s for members of industry. 6.2 Implementation Strategy Interviewees identified general strategies they felt responded to the cha l lenges they had generated earlier in the study. G iven the brevity of the interviews, concrete ways in which to implement the identified opportunit ies were less deve loped. A brief considerat ion of how these ideas might take shape and move forward s o m e of the recommendat ions identified in the "top six" category fol lows. Alternative Financing Mechanisms: Here, a c c e s s to capital is key. Th is could take the form of: • Increased low-rate private lending opportunities for the installation of R E T s or conservat ion technologies. VanC i t y Sav ings Credit Union is one local lender that is currently engaged in this through its support of R E T -containing projects (e.g. Docks ide Green (Victoria) and UniverCi ty (Burnaby)), • Col lect ive or co-operat ive purchase of an energy sys tem—so that the costs and risks are spread, • Provis ion of up-front f inancing for R E T s by Convent ional utilities (e.g. Corix) who are keen to engage in the alternative energy serv ice bus iness in exchange for a long-term contract for serv ice provision, • Support solicited from the Federat ion of Canad ian Municipal i t ies ( F C M ) for municipal infrastructure. The "greening" of the City of Whi terock 's Operat ions Facil ity w a s supported by the F C M , • Targeted grants from var ious levels of government. Th is is happening now in the c a s e of domest ic solar hot water sys tems e.g. the Prov ince has al located $20,000 for the installation of 50 units, and • Addit ional grants from Susta inab le Development Techno logy C a n a d a to individuals and organizat ions (such as Docks ide and the U B C C I R S Building) to support the "development and demonstrat ion of c lean technologies." Existing Municipal Tools: Here, existing municipal tools (such as by- laws and zoning) can be used to induce progressive energy pract ices. Implementation mechan isms here could include: • The establ ishment of minimum municipal energy standards for all new construction and substantial retrofits, 102 • Requi rements that energy-saving technologies such as motion detectors be installed in all new construction (as has occurred in the area of water conservat ion with the requirement that all new construct ion have low f low toilets), and • The permitting condit ion that all new construction and substantial renovations be required to install R E T - r e a d y (e.g. so lar ready) features. Modelling or demonstration projects: S ince this study began, two projects, Windmil l Development 's Docks ide (Victoria) and the Pos t Ca rbon Institute's Energy Farm ( U B C ) have taken shape . E a c h is intending to employ R E T s under real operat ing condit ions, which will be a s s e s s e d for technical and economic viability. Other ways model ing could be implemented include: • The installation of R E T S in real houses or suites with real fami l ies—so that the technologies could be tested under real operat ing condit ions and could be monitored over time to determine if the technologies work in a cost-effective manner, • Demonstrat ion facilit ies that currently exist, such as the Soc ie ty Promot ing Environmental Conservat ion 's "Environmental Resou rce Centre" , could be regularly profiled in the media , • Educat ional and public institutions could be encouraged to explore alternatives, as they—increas ing ly—have i) a mandate to "go green," ii) a longer discount rate and iii) general ly, more money for capital construct ion. Improved marketing: O n e interviewee noted that alternative energy is s imply "not sexy." M a n y people v iew a conversat ion about electricity a s uninteresting, o ld-news or overly compl icated. To improve the "flash-factor" that many interviewees noted is miss ing: • Serv ices of organizat ions, such as Renn ie Marketing S y s t e m s — a top real estate marketing group that has promoted projects such as the Woodwards Bui lding (Vancouver) , Haney 's Land ing (Maple Ridge) and Waterstone P ie r (R ichmond)—could be cal led upon to rebrand energy related issues, and • Loca l celebrit ies who care about energy-related issues could be identified and encouraged to be electricity "spokespeople . " General educational strategies: Everyday, many people in the Lower Main land are already using R E T s or energy conserv ing dev ices unconsciously . W a y s to increase public awareness could include: 103 • S ignage . For example, in a reas in which R E T s or conservat ion measures are currently being used like the Vancouve r International Airport (solar hot water) or the Te lus Bui lding (BIPV), and • Addit ional educat ional campa igns . In the past, success fu l campa igns have used milk cartons (to promote awareness of child abduction) and schoo l programs to promote important m e s s a g e s to chi ldren, who often pass on he information to their famil ies (e.g. S imon the Safety Bea r and reduce-reuse-recyc le; stop, drop and roll). The B C S E A ' s "Cl imate C h a n g e G a m e , " is presently being used in the Lower Main land and could be used as a model for energy issue educat ion e lsewhere. Specifically targeted educational and training opportunities for members of industry. Th is could include: • Secur ing enhanced provincial funding for training, including scholarsh ips or bursar ies to become "RET- ready , " • The integration of energy-related content into real estate l icensing courses , • Munic ipal l icensing requirements for the installation of particular R E T s , e.g. E E S s , prior to the issuance of other general development permits, and • Coord inated exchanges between local industry sector professionals and those in areas that are using/ implementing particular energy alternatives and conservat ion measures . In addition to the six a reas of opportunity highlighted above, research also indicates that inclusion of non-convent ional energy features in projects in the Lower Main land has occurred often as a result of an "Energy Champ ion . " Th is issue was highlighted as a chal lenge by industry developers in Chapter 4, who noted that it is rare to find Champ ions in their f ield. In the c a s e of success fu l projects, while institutional Champ ions were occas ional ly identified, more often, speci f ic individuals are cited as the true catalyst. A few examp les provided by interviewees: i) B I P V w a s installed in the Te lus Bui lding (Vancouver) following an enthusiast ic architect's proposal , ii) Docks ide G r e e n (Victoria) is being constructed by a developer with t remendous vision and environmental pass ion , iii) the C I R S Building ( U B C ) is being advanced by a dynamic, sustainabil i ty-aware project champion, iv) a micro-hydro initiative in W e s t Vancouve r is occurr ing as a result of one city staff member identifying and championing that opportunity, and v) the C a p e r s Building (Vancouver) w a s built through the results of a motivated and visionary developer. 104 Although most RET-conta in ing projects will require s o m e sort of Energy Champ ion , none of the proposed solut ions preclude any others from being undertaken, independently. There is no hierarchy and while one will support the other, there is not necessar i ly any one option that should first be exerc ised. Rather, in the s a m e way that overcoming energy security and cl imate change cha l lenges requires a distributed mix of generat ion from a variety of sources (as no one alternative fuel is sufficient to meet every need) so , too, does overcoming resistance to the wide-sca le adoption of R E T s . 6.3 Recommendations for Further Study The study of the adoption of R E T s is necessar i ly multi-disciplinary and creates exciting potential for further research in a myriad of f ields. Apart from obvious technical and economic follow up, the following five areas warrant further study: a . It is surprising that the theme of subs id ies and incentives is not higher on the list of priorities for R E T Providers, while alternative (non-governmental) f inancing is noted by every single one. Th is is not the outcome I had been led to expect through my review of the literature. G iven this, a comprehens ive survey of those things R E T providers (specifically) think would best promote the disseminat ion of their product/service would make a useful contribution to understanding the field. b. A comprehens ive inventory of the kinds of alternative f inancing arrangements occurr ing both nationally and internationally—including the type of project, c lass of lender and terms of f inancing—could be a helpful first step in crafting local alternatives. c. Project and technological model ing is strongly supported as a potential lever for change. Non-comprehens ive lists of project have been completed by certain organizat ions (such a s G e o E x c h a n g e B C ' s inventory sited in Append ix C) , but there is no easi ly access ib le , comprehens ive inventory of 105 R E T containing projects in the province. What would be required to create such an inventory? O n c e establ ished, what would be the best/most compel l ing way to present this information to the public at large and members of industry? d. At the municipal level, all of the Developers indicate that local regulatory intervention is required in order for there to be wide-sca le adoption of new techniques and technologies. W h y is this information not motivating public pol icy and pract ice? e. At the international level, what are the implications of taking s teps to secure British Co lumbia 's electrical supp ly? A re there any provisions under N A F T A or other international treaties that would preclude us from doing s o ? f. Finally, and as grounds for a very different kind of study, it is interesting to note that 25 of the 28 individuals interviewed for this study were men. Th is w a s in spite of a proactive attempt to recruit female respondents. Wha t are the reasons for such a low representation by w o m e n in energy and R E T -related f ie lds? What are the socia l implications of this lack of representat ion? 6.4 A Final Thought O n e of the interviewees, a representative of Government , indicated in his interview: " 8 0 % of Canad ians live in cit ies. Ci t ies are no longer the 'little p layers '—we're now the majority and our c lamour will only get bigger. . . . Peop le live in cit ies, this is where the viability, the livability of our world is determined." For the more than 2.3 million residents of the Lower Main land, as we approach a period of potential energy gap—between what we have and what we think we need—this historic moment represents an opportunity to ana lyze both how electricity is generated and how it is used. It takes a long time for change to occur. The longer we wait, the less time we will have to implement thoughtful 106 strategies to e a s e the transition. A s planners, it would behoove us to begin to immediately address the systemic, societal and economic barriers identified above. Integrating sustainable energy sources and building upon the opportunit ies identified by participants in this study will bolster energy-securi ty and resi l iency strategies in the Lower Main land. Th is will require that we begin to integrate cl imate change mitigation considerat ion into every level of our planning practice. W e have the opportunity to guide development so that new form does not detract from the quality of the environment that remains. Moreover, in the case of redevelopment, we have as a second chance to avoid the mistakes of the past by developing better, more resilient communi t ies and ecosys tems as a result. 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WorldWatch Institute (2005)Sfate of the World 2005 Trends and Facts — Changing the Oil Economy [online] Available from: / Last accessed 30 April, 2006. * 111 APPENDIX A 2001 Census Geography Boundary Maps: GVRD & FVRD Source: Copyright © Province of British Columbia. All rights reserved. Reprinted with permission of the Province of British Columbia, 112 CO Fraser Valley Regional District CO 7} O (D Legend Census Subdivision Type I I Regional District Electoral Area _ | Municipality ~J Reserve • Designated Place Locality Highway Prepared by B C STATS Source: 2001 Census fflitiHIri [itmm APPENDIX C Typical Annual Energy Consumption of Certain AC Appliances Appliance / Equipment Typical Power Rating (Watts) Typical Annual Electricity Used (kWh) Refrigerator: 450 litres (16 ft3) standard 440 450 litres (16 ft3) high eff iciency 200 113 litres (4 ft3) standard 350 113 litres (4 ft3) high eff iciency 60 Freezer: 540 litres (19 ft3) standard 500 540 litres (19 ft3) high eff iciency 440 113 litres (4 ft3) standard 250 113 litres (4 ft3) high eff iciency 120 Dishwasher, excluding hot water 1300 292 Clothes Dryer 4000 500 Stove 800 Block Heater 500 180 Clock 2 18 Clothes Washer (excluding hot water): Automatic 500 100 Coffee Maker 900 100 Computer: Portable desk top 200 200 Laptop 15 16 Printer 10-300 2-100 Drill 300 3 Fan, portable 120 70 Furnace fan 350 1100 Hair dryer 1000 20 Iron 1000 140 Lighting: 60 watt incandescent bulb 60 110 24 watt compact f luorescent (75 W incandescent equiv) 24 44 f luorescent 15 cm single ended 9 17 115 Oven, microwave 1000 100 Radio, transistor 5 10 Saw, circular 400-1000 5 Stereo, portable 30 22 Telephone, portable 3 26 Answering machine 6 52 Television: 14" black & white 40 29 14" colour 90 65 Toaster 1100 40 Vacuum cleaner, portable 800 40 VCR 30 10 Source: Canadian Wind Energy Association 116 APPENDIX D Inventory of GeoExchange System Installations in British Columbia This is a listing of 73 known commerc ia l and multi-residential geoexchange projects in the Prov ince of British Co lumb ia , compi led by G e o E x c h a n g e B . C . It is current to March 2005. Prof i les range from projects that have been in ex is tence and operation for up to 12 years, to those currently under design and development. G e o E x c h a n g e B C caut ions that this list should not be considered as a complete representation of all existing and new installations in B C . Rather, it "provides an excel lent sample cross-sect ion of the var ious appl icat ions and variat ions of geoexchange sys tems in B C . " 100 MILE H O U S E R E C R E A T I O N C E N T R E , 100 Mile House A B B O T H O U S E , Ke lowna A P E G B C B U I L D I N G , Burnaby B E A V E R F L A T S , Whist ler B E U L A H G A R D E N , Vancouve r B E S T W E S T E R N , Kamloops B L U E R I V E R R E S O R T , B lue River B O B M C M A T H S C H O O L , R ichmond B O W - M E L C H R Y S L E R , Duncan B R E N T W O O D C O L L E G E , Mill B a y B U R N A B Y M O U N T A I N S E C O N D A R Y S C H O O L , Burnaby B U R N S I D E G O R G E C O M M U N I T Y C E N T R E , Victor ia C E I L O C O N D O M I N I U M , Vancouve r C I T Y O F V A N C O U V E R W O R K S B U I L D I N G , Vancouve r C O P C A N C O N T R A C T I N G , Nana imo C O R N E R S T O N E D E V E L O P M E N T , Burnaby D I S C O V E R Y B A Y R E S O R T , Ke lowna E X E C U T I V E INN, Kamloops F I R S T L U T H E R A N C H U R C H , Ke lowna F O R T R O D D HILL V I S I T O R ' S C E N T R E , Victor ia G L E N E A G L E S C O M M U N I T Y C E N T R E , Vancouve r H A L C Y O N M E A D O W S , Chi l l iwack A I R P O R T H A N G A R , Campbe l l River H E R I T A G E W O O D S S E C O N D A R Y S C H O O L , Port Moody ICE B O X A R E N A , Kamloops INN A T B I G W H I T E , Ke lowna K I C K I N G H O R S E R I V E R L O D G E , Go lden K I T S I L A N O C O N D O D E V E L O P M E N T , Kitsi lano K R I S T A L R E S O R T , Vernon 117 L A N G A R A C O L L E G E , Vancouve r L IVING W A T E R S C H U R C H , Fort Langley M A L A S P I N A C O L L E G E S C I E N C E B U I L D I N G , Nana imo M A S O N B L O C K , Vancouve r M I S S I O N O F F I C E C E N T E R , Ke lowna M I S S I O N S P O R T S C E N T R E , Ke lowna N A T U R E C E N T R E T O D E L K A T W A , Masse t , Q u e e n Char lot tes N E S T O R S C H O O L , Coqui t lam NITA L A K E L O D G E , Whister N K ' M I P I N T E R P R E T I V E C E N T R E , O s o y o o s O C E A N F A R M S , Duncan O K A N A G A N G E O T H E R M A L W A R E H O U S E , Enderby O L I V E R C U R L I N G C L U B , Ol iver O R C H A R D S W A L K , Kamloops O U T B A C K R E S O R T , Vernon P A C I F I C G A R D E N S , Nana imo P A C I F I C S A N D S T O F I N O , Tofino P E A C E A R C H V I S I T O R C E N T R E , Surrey P O E T ' S C O V E , Pender Island Q U A R R Y S T O N E L A K E S I D E V I L L A S , Mara R I V E R S T R E E T W A T E R T R E A T M E N T , Kamloops R O C K R I D G E C A N Y O N Y O U T H C A M P , Pr inceton R U T L A N D E L E M E N T A R Y S C H O O L , Ke lowna S A L T S P R I N G E L E M E N T A R Y S C H O O L , Saltspr ing Island S A R S O N S C O R N E R , Ke lowna S A T U R N A I S L A N D C O M M U N I T Y C E N T R E , Saturna Island S E A P O R T P L A C E , Sydney S E A V I E W S C H O O L , Coqui t lam S E R E N E L E A F A R M S , Mara S E Y M O U R / C A P I L A N O F I L T R A T I O N P L A N T , Burnaby S H O A L POINT , Victor ia S K ' E L E P S C H O O L O F E X C E L L E N C E , Kamloops S M I T H E R S A R E N A , Smithers S P R U C E G R O V E F I E L D H O U S E , Whist ler S T . M A R G A R E T ' S J U N I O R S C H O O L , Victoria S T O : L O N A T I O N M E D I C A L B U I L D I N G , Chi l l iwack S U M M E R L A N D R E S O R T , Vancouve r S U N R I V E R R E S O R T , Kamloops S U N D A N C E L O D G E , Ke lowna T E K M A R C O N T R O L S Y S T E M S , Vernon T E L K W A FA ITH R E F O R M E D C H U R C H , Te lkwa T H E C O V E R E S O R T , Wes t Bank W E S T V A N C O M M U N I T Y C O M P L E X , Vancouve r W E S T W O O D S C H O O L , Port Coqui t lam 118 A P P E N D I X E Summary of Interviewee Data Re: Challenges Developers ft Current Building Environment Industry Norms Price of electricity 8. Gas Price of Technology / | Component Uneven Playing Field Between Alternative & Conventional Sources Marketing Alternative Technologies Borrowing & Finances Partnerships Net Metering BCH Structure of Calls for Tender BCH Bureaucracy Total Total Total Indust Indust Indust Indus* Indust Indust Comm Comm Comm EP EP EP Gov Gov Gov Cov Arch Arch Assoc Enq Enq Plan I TOTAL l lndust Indust Indust Indust Indust ZntflM* Indust Indust Indust Indusl Consl Consl Const Consl Consl CHWrt-JDvlpr Dvlpr Dvlpr Dvtpr TOTAL l lndust Indust Indust Indust lnduM • — B R E T RET RET RET WET J Institutional (Utility) Institutional (Regs) Municipal Land-use planning, record keeping and inspection Becoming a micro-utility ProvinclalUatlon of Energy Presence / Absence of Regulation NAFTA Chapter 6 Municipal Governments required to run balanced budgets Institutional (Political) Competing Political Priorities Absent / Unclear Policy, vision & Strategy Lack of Capacity and Awareness Societal Consumer Expectations Perceptions of Excess Momentum Barriers Alternate Energy Models Opportunities 8. Current Capacity Public Perception & Process • I • Acid • Academic; Comm = Community Based Organization; EP • Energy Prouder, Gov = Government, Indust = Industry; Arch = Architect; Assoc = Association, Eng - Engineer; Pt»n » Planner; Prof = Professional; Consl = Consultant; Dvtpr = Developer; RET = BET Provider APPENDIX E (Continued) Summary of Interviewee Data Re: Challenges TOTAL Local Trade Competency, Knowledge & Training Ops Integrated Design Industry Awareness Momentum Barriers "Sexiness" Factor Technical Expectations & Efficiency Siting Issues / Availability of Resource Don't want to have to "prove" technology Installation Availability of Easy to Use, Suitable "Out of the Box" Products Data Availability Hard Infrastructure constraints R&D Timeline Total Total Total Indust lndust Indust Indust Indust Indust Conwn EP EP EP Gov Gov Gov Coy Arch Arch Assoc Enq Enq Plan Indust Indust Indust Indust Indust Sftdttrt indust indust Indust Indus! ImhMt Indust Indust Indust Indust Boons! Consl Cons! Consl Consl iDvtpr Dvlpr Pvlpr Dvl Pvlpr RET RET RET RET 1 1 1 ' ficid = Academic, Comra - Community Based Organization; EP = Energy Provider; Gov = Government, • Industry; Arch - Architect; Assoc = Association; Eng - Engineer; Plan = Plinner; • Professional; Consl • Consultant; Dvlpr = Developer; BET = RET Pi ro o A p p e n d i x F Summary of Interviewee Data Re: Opportunities Total Acad Acad A c a d Comm Comm Tota l Total Indust Indust Indust Indust Indust Indust EP EP EP Gov Gov Gov 6 o v Arch Arch Assoc Enq Eng Plan T O T A L Indust Indust Indust Indust Indust IW<|fcM Indust Indust Indust Indust Consl Consl Consl Consl I M11•• I ______|Dvlpr Dvlpr Dvlpf Dvlpr T O T A L (Indust Indust Indust Indust ! Indust T O T A L T O T A L I I RET RET RET RET RET Induct Group j Making it Pencil Rethink Financing Model Marketing & Market Acceleration Increasing Technological Competitiveness Subsidies & Incentives Alternative financing Mechanisms Leveling the Playing Field Partnerships ro Municipal Tools Building Code Building Rating System Global Agreement Institutional (Political) Purchasing Policy Vision, Definition & Priorities Material Efficiency Quality, Ease and Availabiitly of Product Focus on R&D 1IIBUUHIVMDI ywuilLJ J Net metered electricity Call for tender process Utility Rates u 0 • i i i i 2 2 1 1 2 0 1 1 1 0 0 0 0 1 Institutional (Regs) 0 0 1 2 • I 0 0 0 I 1 0 0 1 1 Vision Education Modeling O i l Program Delivery O i l Community Solutions 0 0 * ' 2 2 0 0 1 4 0 t 1 0 1 1 0 1 t 0 0 ; Industr ial Education ft Training O i l Integrated Communication 2 0 1 1 0 1 1 0 1 Technical I 2 1 .'-MM 0 0 T O T A L S O C i T O T A L INDUS; 0 T O T A L TEjCJe,: 1 Acad = Academic; Comm ' Community Based Organization; EP = Energy Provider; Gov - Government; Indust - Industry; Arch - Archnect; Assoc = Association; Eng - Engineer; Plan - Planner; Prof • Professional; Consl " Consultant Dvlpr - Developer; RET = RET Provider 


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