Alberta's Solar Future
Content
Canadian Solar Industries Association
www.cansia.ca
Public Seminar in Edmonton
Alberta’s Solar Future:
Industry Status, Market Obstacles and Policy Proposals
If there was only one message that I could leave with you all…..
Alberta’s electricity sector is on the cusp of a major paradigm shift,
Economic, environmental and social opportunities are colossal,
Leadership needed to enact this change cannot be underestimated,
If you support this change - make your voice heard!
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
2
About CanSIA
Who we are:
National trade association representing the solar energy industry throughout Canada
Since 1992, worked to develop markets and create opportunities for our Members
Why we are:
Trade associations exist to represent the interests of their Members
CanSIA exists to maximize the benefit of the solar industry to Canada
Where we will be in 2020:
Solar as mainstream energy source, integral part of Canada's diversified electricity-mix
Ensure solar industry will be sustainable with no direct subsidies
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
3
About Me
Patrick Bateman
CanSIA Director of Market Intelligence & Research.
Almost a decade in the Renewable Energy sector.
With CanSIA since 2009, during build-out of >2 GW.
Solar policy and market development professional.
Current role includes Western Canadian markets
and lead on Utility & Regulatory Affairs Network.
Prior to CanSIA, consulting in England for municipal government clients to integrate
supportive policy for renewable energy into their local development plans.
Hold an MSc in Renewable Energy from School of Construction Management &
Engineering in England (evenly split between the engineering, policy and business).
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
4
About what I do
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
5
Presentation Outline
1. What is the current status of solar electricity industry activity in Canada?
2. What misperceptions about solar electricity are being overcome in Alberta?
3. What could the future of renewable energy policy look like in Alberta?
Scale, Pace and Policy Principals.
Renewable Portfolio Standard (RPS).
Standing Offer Program (SOP).
4. What can Albertans do to support these policy outcomes?
5. Conclusion and Summary.
6. Solar West 2015.
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
6
Presentation Context
CanSIA has been engaging with the Government of Alberta for the past decade.
Period was characterized by “policy supply” being in excess of “policy demand”:
“Policy Supply”: Several formal industry consultations but no significant change.
“Policy Demand”: Seven Ministers of Energy (average of 1.25 years per mandate).
Premier Notley and her Government now deeply committed to accelerating the
deployment of renewable energy and transitioning from coal-fired generation.
In 7 – 9 weeks, policy announcements from the Government of Alberta are
anticipated in advance of COP 21 that will give indication of level of ambition.
These announcements have the potential to transform Alberta in many ways
including global branding and perception, environmental impact, electricity
supply-mix and industrial strategy.
This is a pivotal time of boundless opportunity coupled with uncertainty as global
energy policies and markets evolve and shift.
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
7
Current status of solar electricity industry activity in Canada (1/6)
During 2015, the cumulative installed capacity in Canada surpassed 2,000 MW:
An annual average of 250 MW was added nationally in 2010, 2011 and 2012.
445 MW added in 2013, 635 MW in 2014 (Canada’s record-year to date).
Cumulative Installed Capacity (MWDC)
2,000
1,500
1,000
500
0
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
National
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
8
Current status of solar electricity industry activity in Canada (2/6)
More than 99.2% of this installed capacity is in the province of Ontario:
Solar fleet meets ~1.5% of Ontario’s total annual demand (generates >2 TWh per year).
Reduces provincial summer peak load by ~8% (peak is 20% lower today than in 2006).
Cumulative Installed Capacity (MWDC)
2,000
1,500
Ontario installed >1 GW in 2013 and 2014
1,000
500
0
2016
2015
2014
2013
2012
2011
2010
2009
2008
|
2007
Canadian Solar Industries Association
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
National
Ontario
Alberta's Solar Future: Policy & Market Considerations
9
Current status of solar electricity industry activity in Canada (3/6)
Solar has contributed to Ontario’s phase-out of coal (~6 GW):
Ontario’s electricity sector will emit ~20% in 2015 of what it did in 2010 (from 20 to 4 Mt).
Phase-out equivalent to displacing >50% of Alberta’s annual electricity sector emissions.
50
45
40
1,500
Annual GHG Emissions (Mt)
Cumulative Installed Capacity (MWDC)
2,000
35
30
1,000
25
20
15
500
10
5
0
0
2016
|
2015
Canadian Solar Industries Association
2014
2013
2012
2011
2010
Cumulative Installed Capacity
Ontario Electricity Sector Emissions
Alberta's Solar Future: Policy & Market Considerations
10
Current status of solar electricity industry activity in Canada (4/6)
Alberta represented ~42% of the cumulative installed capacity outside of Ontario by
the end of 2014 (and was the only province with more than 5 MW):
Alberta market is also growing faster year-on-year.
7
Cumulative Installed Capacity (MWDC)
6
5
4
3
2
1
0
YT
NL
NU
NB
NT
Canadian Solar Industries Association
MB
|
PE
QC
NS
BC
SK
Alberta's Solar Future: Policy & Market Considerations
AB
11
Current status of solar electricity industry activity in Canada (5/6)
The national average rate of deployment in Canada is ~52 watts per capita:
About twice the global average of 25 watts per capita.
Deployment Rate (Watts per Capita)
500
400
Alberta would need ~100 MW of cumulative installed capacity
in 2014 to meet the global average deployment rate.
300
200
100
0
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
12
Current status of solar electricity industry activity in Canada (6/6)
When Ontario is excluded, the national average is ~1.5 watts per capita:
Alberta ranks 4th with a deployment rate around the national average.
This should be viewed as future potential and not a slow start.
8
Deployment Rate (Watts per Capita)
7
6
5
4
3
2
1
0
QC
NL
NB
MB
Canadian Solar Industries Association
BC
|
NS
YT
NU
AB
PE
SK
Alberta's Solar Future: Policy & Market Considerations
NT
13
What misperceptions are being overcome in Alberta?
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
14
What misperceptions are being overcome in Alberta?
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
15
What misperceptions are being overcome in Alberta?
One-by-one, many long-held misperceptions that have served as obstacles to solar
and renewable energy are being overcome:
Misperception #1: Renewable and Solar Energy is Too Expensive
Misperception #2: AIES cannot manage High Penetrations of Solar
Misperception #3: Carbon Pricing Alone is Sufficient to Level Playing-Field
Misperception #4: Wholesale Markets are Incompatible with Solar
Misperception #5: Solar Will Increase GHG Emissions
....................Others?
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
16
What is the future of renewable electricity in Alberta?
Renewable electricity should not be “forced” onto the grid:
Targets should reflect electricity demand growth and coal phase-out schedule.
With limited load growth, coal phase-out would be the key enabler of new renewables.
How should the Government of Alberta set renewable energy targets?
Targets: TWh (percentage of electricity)?
Timelines: 2020, 2025 and 2030?
Example scenario:
• 17% (2020), 27% (2025), 40% (2030)?
• Others……………?
What role (%) should solar play in those targets?
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
17
How can that future for renewable electricity be realized?
The low cost of power and volatile energy-only market makes it difficult to finance any
new generation assets in Alberta, especially those with high upfront capital costs and low
ongoing fuel and operational costs.
The key obstacles for renewable electricity in Alberta are:
The absence of creditworthy long-term PPAs.
Pricing which reflects the true value that solar brings to the grid.
An inability to obtain full value for GHG attributes.
Small-scale renewables also face additional unique benefits.
CanSIA and CanWEA have entered into a partnership to jointly develop and advocate for
a common suite of policy options that would overcome these obstacles:
Broadened Carbon Price application and incremental increases in price over time.
A Renewable Portfolio Standard (RPS) for utility-scale; and a complimentary
Standing Offer Program (SOP) for Distribution-Connected.
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
18
Definitions
Renewable Portfolio Standard:
Standing Offer Program (SOP):
“A regulatory mandate to increase production of energy from renewable sources. In most RPS, an
explicit annual goal for renewable generation is defined as either a percentage of total electricity
generation (for example 15 percent of generation must come from renewable generation by 2020),
or as new generating capacity (for example 1,000 MW of new renewables must be added by 2020).
The goals typically increase annually and are informed by projections of load growth and the
retirement of existing generation.”
“An on-going “call for power” that offers long-term contracts (PPAs) to eligible applicants. A
common trait of SOPs is that they are exclusive to small-scale zero-emissions generators.
Application, technical and interconnection requirements are typically standardized to streamline and
reduce the burden on proponents to a level that is proportionate to the size of the project.”
Distribution-Connected Solar:
“Electricity generation assets using solar photovoltaics connected to the distribution system. In
Alberta, the majority of the distribution network has a line voltage of 15 and 35 kVA. As a result (and
due to additional technical considerations such as interconnection capacity at distribution
substations and thermal and short circuit capacity) solar assets which connect to the distribution
network are limited to typically 5 MW in capacity (some projects could be as large as 15 MW). This
scale of project has several unique characteristics related to system benefit, ownership and the
ability to deploy rapidly which differentiates it from larger utility-scale assets.”
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
19
How do these proposals relate to global solar policy experience?
Approximately two thirds of solar globally was procured through a policy that results
in a Power Purchase Agreement (PPA) for the generator:
RPS have been important in the United States, present in 33 jurisdictions.
2014 Market Incentives and Enablers and Historic Market Incentives and Enablers
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
20
US RPS Policies
ME: 40% x 2017
WA: 15% x 2020
NH: 24.8 x 2025
MT: 15% x 2015
MN:26.5%
x 2025 (IOUs)
OR: 25%x 2025
VT: 75% x 2032
MA: 15% x 2020(new resources)
6.03% x 2016 (existing resources)
31.5% x 2020 (Xcel)
(large utilities)
WI: 10%
2015
IA: 105 MW
NV: 25% x
2025
IL: 25%
x 2026
CO: 30% by 2020
(IOUs) *†
CA: 33%
x 2020
MI: 10% x
2015
NY: 29% x 2015
RI: 14.5% x 2019
CT: 27% x 2020
OH: 12.5%
x 2026
NJ: 20.38% RE x 2020
+ 4.1% solar by 2027
PA: 18% x 2021
MO:15% x
2021
MD: 20% x 2022
NC: 12.5% x 2021 (IOUs)
AZ: 15% x
2025
DE: 25% x 2026
DC
DC: 20% x 2020
NM: 20%x 2020
(IOUs)
TX: 5,880 MW x 2015
U.S. Territories
HI: 100% x 2045
NMI: 20% x 2016
PR: 20% x 2035
USVI: 30% x 2025
Renewable portfolio standard
Renewable portfolio standard with solar/distributed generation provision
29 States + Washington
DC + 3 territories have a
Renewable Portfolio
Standard
22 States + DC have an RPS
with solar or DG provisions
Adapted from: www.dsireusa.org / June 2015
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
21
What key Considerations need to be made for RPS design?
Solar “Carve-Outs” have been essential for solar and distributed generation in US:
76% of United States jurisdictions with an RPS have these provisions.
Adapted from: www.dsireusa.org / June 2015
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
22
Why a different policy approach for
distribution-connected assets than for utility-scale?
Distribution-connected solar electricity generation (typically <5 MW but could be
as large as 15 MW) has several unique characteristics related to system benefit,
ownership and the ability to deploy rapidly which differentiates it from larger
utility-scale assets.
In addition to the unique benefits, small-scale generation also have different
relative cost considerations and process requirements due to their size and cost
relative to larger projects.
The SOP would address these differences with a tailored program:
Provide eligible generators with a “bundled” PPA (i.e. electricity plus environmental
attributes)
Pricing would need to deliver an appropriate rate-of-return and reflect true value of
solar.
Program would be largely funded through wholesale market and the REC market.
Electricity generated through the SOP would contribute toward the province’s RPS
mandate but would not bid into pool (i.e. net-load).
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
23
Conclusion
This is a pivotal time of boundless opportunity coupled with uncertainty as global
energy policies and markets evolve and shift.
In 7 – 9 weeks, policy announcements from the Government of Alberta are anticipated
in advance of COP 21 that will give indication of level of ambition.
CanSIA is advocating for:
Broadened Carbon Price application and incremental increases in price over time.
A Renewable Portfolio Standard (RPS) with a “Solar Carve-Out”; and for
A Standing Offer Program (SOP) for distribution-connected solar.
Demonstrated public support for new policies are essential to enable action. CanSIA
will be undertaking polling and media relations to demonstrate this support.
I hope that all of you will be taking a pro-active role in communicating to the Leach
Panel, your Elected Official and your Friends and Family that this is good for Alberta.
I hope to see you all at www.solarwestconference.ca at the Westin Calgary from
October 7th to 9th.
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
24
Contact Details
Patrick Bateman
Director of Market Intelligence & Research
Canadian Solar Industries Association (CanSIA)
– Email:
[email protected]
– Phone:
(613) 736 9077 ext 227
– Linkedin:
https://ca.linkedin.com/in/pdbateman
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
25
CanSIA’s Board of Directors
Bob Waddell,
Centrosolar
Utilia Amaral,
SunEdison
Bonnie Hiltz,
GDF Suez Canada
Jon Kieran,
EDF EN Canada
Canadian Solar Industries Association
John Rilett,
ENMAX
Thomas Timmons,
Gowlings
Nigel Etherington,
Planet & Company
Ivano Labricciosa,
Oshawa Power and
Utilities Networks Inc.
Robert Leah,
Recurrent Energy
Greg Scallen,
SunEdison
| Alberta’s Solar Future: Industry, Market and Policy
26
www.cansia.ca
Public Seminar in Edmonton
Alberta’s Solar Future:
Industry Status, Market Obstacles and Policy Proposals
If there was only one message that I could leave with you all…..
Alberta’s electricity sector is on the cusp of a major paradigm shift,
Economic, environmental and social opportunities are colossal,
Leadership needed to enact this change cannot be underestimated,
If you support this change - make your voice heard!
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
2
About CanSIA
Who we are:
National trade association representing the solar energy industry throughout Canada
Since 1992, worked to develop markets and create opportunities for our Members
Why we are:
Trade associations exist to represent the interests of their Members
CanSIA exists to maximize the benefit of the solar industry to Canada
Where we will be in 2020:
Solar as mainstream energy source, integral part of Canada's diversified electricity-mix
Ensure solar industry will be sustainable with no direct subsidies
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
3
About Me
Patrick Bateman
CanSIA Director of Market Intelligence & Research.
Almost a decade in the Renewable Energy sector.
With CanSIA since 2009, during build-out of >2 GW.
Solar policy and market development professional.
Current role includes Western Canadian markets
and lead on Utility & Regulatory Affairs Network.
Prior to CanSIA, consulting in England for municipal government clients to integrate
supportive policy for renewable energy into their local development plans.
Hold an MSc in Renewable Energy from School of Construction Management &
Engineering in England (evenly split between the engineering, policy and business).
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
4
About what I do
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
5
Presentation Outline
1. What is the current status of solar electricity industry activity in Canada?
2. What misperceptions about solar electricity are being overcome in Alberta?
3. What could the future of renewable energy policy look like in Alberta?
Scale, Pace and Policy Principals.
Renewable Portfolio Standard (RPS).
Standing Offer Program (SOP).
4. What can Albertans do to support these policy outcomes?
5. Conclusion and Summary.
6. Solar West 2015.
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
6
Presentation Context
CanSIA has been engaging with the Government of Alberta for the past decade.
Period was characterized by “policy supply” being in excess of “policy demand”:
“Policy Supply”: Several formal industry consultations but no significant change.
“Policy Demand”: Seven Ministers of Energy (average of 1.25 years per mandate).
Premier Notley and her Government now deeply committed to accelerating the
deployment of renewable energy and transitioning from coal-fired generation.
In 7 – 9 weeks, policy announcements from the Government of Alberta are
anticipated in advance of COP 21 that will give indication of level of ambition.
These announcements have the potential to transform Alberta in many ways
including global branding and perception, environmental impact, electricity
supply-mix and industrial strategy.
This is a pivotal time of boundless opportunity coupled with uncertainty as global
energy policies and markets evolve and shift.
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
7
Current status of solar electricity industry activity in Canada (1/6)
During 2015, the cumulative installed capacity in Canada surpassed 2,000 MW:
An annual average of 250 MW was added nationally in 2010, 2011 and 2012.
445 MW added in 2013, 635 MW in 2014 (Canada’s record-year to date).
Cumulative Installed Capacity (MWDC)
2,000
1,500
1,000
500
0
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
National
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
8
Current status of solar electricity industry activity in Canada (2/6)
More than 99.2% of this installed capacity is in the province of Ontario:
Solar fleet meets ~1.5% of Ontario’s total annual demand (generates >2 TWh per year).
Reduces provincial summer peak load by ~8% (peak is 20% lower today than in 2006).
Cumulative Installed Capacity (MWDC)
2,000
1,500
Ontario installed >1 GW in 2013 and 2014
1,000
500
0
2016
2015
2014
2013
2012
2011
2010
2009
2008
|
2007
Canadian Solar Industries Association
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
National
Ontario
Alberta's Solar Future: Policy & Market Considerations
9
Current status of solar electricity industry activity in Canada (3/6)
Solar has contributed to Ontario’s phase-out of coal (~6 GW):
Ontario’s electricity sector will emit ~20% in 2015 of what it did in 2010 (from 20 to 4 Mt).
Phase-out equivalent to displacing >50% of Alberta’s annual electricity sector emissions.
50
45
40
1,500
Annual GHG Emissions (Mt)
Cumulative Installed Capacity (MWDC)
2,000
35
30
1,000
25
20
15
500
10
5
0
0
2016
|
2015
Canadian Solar Industries Association
2014
2013
2012
2011
2010
Cumulative Installed Capacity
Ontario Electricity Sector Emissions
Alberta's Solar Future: Policy & Market Considerations
10
Current status of solar electricity industry activity in Canada (4/6)
Alberta represented ~42% of the cumulative installed capacity outside of Ontario by
the end of 2014 (and was the only province with more than 5 MW):
Alberta market is also growing faster year-on-year.
7
Cumulative Installed Capacity (MWDC)
6
5
4
3
2
1
0
YT
NL
NU
NB
NT
Canadian Solar Industries Association
MB
|
PE
QC
NS
BC
SK
Alberta's Solar Future: Policy & Market Considerations
AB
11
Current status of solar electricity industry activity in Canada (5/6)
The national average rate of deployment in Canada is ~52 watts per capita:
About twice the global average of 25 watts per capita.
Deployment Rate (Watts per Capita)
500
400
Alberta would need ~100 MW of cumulative installed capacity
in 2014 to meet the global average deployment rate.
300
200
100
0
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
12
Current status of solar electricity industry activity in Canada (6/6)
When Ontario is excluded, the national average is ~1.5 watts per capita:
Alberta ranks 4th with a deployment rate around the national average.
This should be viewed as future potential and not a slow start.
8
Deployment Rate (Watts per Capita)
7
6
5
4
3
2
1
0
QC
NL
NB
MB
Canadian Solar Industries Association
BC
|
NS
YT
NU
AB
PE
SK
Alberta's Solar Future: Policy & Market Considerations
NT
13
What misperceptions are being overcome in Alberta?
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
14
What misperceptions are being overcome in Alberta?
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
15
What misperceptions are being overcome in Alberta?
One-by-one, many long-held misperceptions that have served as obstacles to solar
and renewable energy are being overcome:
Misperception #1: Renewable and Solar Energy is Too Expensive
Misperception #2: AIES cannot manage High Penetrations of Solar
Misperception #3: Carbon Pricing Alone is Sufficient to Level Playing-Field
Misperception #4: Wholesale Markets are Incompatible with Solar
Misperception #5: Solar Will Increase GHG Emissions
....................Others?
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
16
What is the future of renewable electricity in Alberta?
Renewable electricity should not be “forced” onto the grid:
Targets should reflect electricity demand growth and coal phase-out schedule.
With limited load growth, coal phase-out would be the key enabler of new renewables.
How should the Government of Alberta set renewable energy targets?
Targets: TWh (percentage of electricity)?
Timelines: 2020, 2025 and 2030?
Example scenario:
• 17% (2020), 27% (2025), 40% (2030)?
• Others……………?
What role (%) should solar play in those targets?
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
17
How can that future for renewable electricity be realized?
The low cost of power and volatile energy-only market makes it difficult to finance any
new generation assets in Alberta, especially those with high upfront capital costs and low
ongoing fuel and operational costs.
The key obstacles for renewable electricity in Alberta are:
The absence of creditworthy long-term PPAs.
Pricing which reflects the true value that solar brings to the grid.
An inability to obtain full value for GHG attributes.
Small-scale renewables also face additional unique benefits.
CanSIA and CanWEA have entered into a partnership to jointly develop and advocate for
a common suite of policy options that would overcome these obstacles:
Broadened Carbon Price application and incremental increases in price over time.
A Renewable Portfolio Standard (RPS) for utility-scale; and a complimentary
Standing Offer Program (SOP) for Distribution-Connected.
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
18
Definitions
Renewable Portfolio Standard:
Standing Offer Program (SOP):
“A regulatory mandate to increase production of energy from renewable sources. In most RPS, an
explicit annual goal for renewable generation is defined as either a percentage of total electricity
generation (for example 15 percent of generation must come from renewable generation by 2020),
or as new generating capacity (for example 1,000 MW of new renewables must be added by 2020).
The goals typically increase annually and are informed by projections of load growth and the
retirement of existing generation.”
“An on-going “call for power” that offers long-term contracts (PPAs) to eligible applicants. A
common trait of SOPs is that they are exclusive to small-scale zero-emissions generators.
Application, technical and interconnection requirements are typically standardized to streamline and
reduce the burden on proponents to a level that is proportionate to the size of the project.”
Distribution-Connected Solar:
“Electricity generation assets using solar photovoltaics connected to the distribution system. In
Alberta, the majority of the distribution network has a line voltage of 15 and 35 kVA. As a result (and
due to additional technical considerations such as interconnection capacity at distribution
substations and thermal and short circuit capacity) solar assets which connect to the distribution
network are limited to typically 5 MW in capacity (some projects could be as large as 15 MW). This
scale of project has several unique characteristics related to system benefit, ownership and the
ability to deploy rapidly which differentiates it from larger utility-scale assets.”
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
19
How do these proposals relate to global solar policy experience?
Approximately two thirds of solar globally was procured through a policy that results
in a Power Purchase Agreement (PPA) for the generator:
RPS have been important in the United States, present in 33 jurisdictions.
2014 Market Incentives and Enablers and Historic Market Incentives and Enablers
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
20
US RPS Policies
ME: 40% x 2017
WA: 15% x 2020
NH: 24.8 x 2025
MT: 15% x 2015
MN:26.5%
x 2025 (IOUs)
OR: 25%x 2025
VT: 75% x 2032
MA: 15% x 2020(new resources)
6.03% x 2016 (existing resources)
31.5% x 2020 (Xcel)
(large utilities)
WI: 10%
2015
IA: 105 MW
NV: 25% x
2025
IL: 25%
x 2026
CO: 30% by 2020
(IOUs) *†
CA: 33%
x 2020
MI: 10% x
2015
NY: 29% x 2015
RI: 14.5% x 2019
CT: 27% x 2020
OH: 12.5%
x 2026
NJ: 20.38% RE x 2020
+ 4.1% solar by 2027
PA: 18% x 2021
MO:15% x
2021
MD: 20% x 2022
NC: 12.5% x 2021 (IOUs)
AZ: 15% x
2025
DE: 25% x 2026
DC
DC: 20% x 2020
NM: 20%x 2020
(IOUs)
TX: 5,880 MW x 2015
U.S. Territories
HI: 100% x 2045
NMI: 20% x 2016
PR: 20% x 2035
USVI: 30% x 2025
Renewable portfolio standard
Renewable portfolio standard with solar/distributed generation provision
29 States + Washington
DC + 3 territories have a
Renewable Portfolio
Standard
22 States + DC have an RPS
with solar or DG provisions
Adapted from: www.dsireusa.org / June 2015
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
21
What key Considerations need to be made for RPS design?
Solar “Carve-Outs” have been essential for solar and distributed generation in US:
76% of United States jurisdictions with an RPS have these provisions.
Adapted from: www.dsireusa.org / June 2015
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
22
Why a different policy approach for
distribution-connected assets than for utility-scale?
Distribution-connected solar electricity generation (typically <5 MW but could be
as large as 15 MW) has several unique characteristics related to system benefit,
ownership and the ability to deploy rapidly which differentiates it from larger
utility-scale assets.
In addition to the unique benefits, small-scale generation also have different
relative cost considerations and process requirements due to their size and cost
relative to larger projects.
The SOP would address these differences with a tailored program:
Provide eligible generators with a “bundled” PPA (i.e. electricity plus environmental
attributes)
Pricing would need to deliver an appropriate rate-of-return and reflect true value of
solar.
Program would be largely funded through wholesale market and the REC market.
Electricity generated through the SOP would contribute toward the province’s RPS
mandate but would not bid into pool (i.e. net-load).
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
23
Conclusion
This is a pivotal time of boundless opportunity coupled with uncertainty as global
energy policies and markets evolve and shift.
In 7 – 9 weeks, policy announcements from the Government of Alberta are anticipated
in advance of COP 21 that will give indication of level of ambition.
CanSIA is advocating for:
Broadened Carbon Price application and incremental increases in price over time.
A Renewable Portfolio Standard (RPS) with a “Solar Carve-Out”; and for
A Standing Offer Program (SOP) for distribution-connected solar.
Demonstrated public support for new policies are essential to enable action. CanSIA
will be undertaking polling and media relations to demonstrate this support.
I hope that all of you will be taking a pro-active role in communicating to the Leach
Panel, your Elected Official and your Friends and Family that this is good for Alberta.
I hope to see you all at www.solarwestconference.ca at the Westin Calgary from
October 7th to 9th.
Canadian Solar Industries Association
|
Alberta's Solar Future: Policy & Market Considerations
24
Contact Details
Patrick Bateman
Director of Market Intelligence & Research
Canadian Solar Industries Association (CanSIA)
– Email:
[email protected]
– Phone:
(613) 736 9077 ext 227
– Linkedin:
https://ca.linkedin.com/in/pdbateman
Canadian Solar Industries Association
| Alberta’s Solar Future: Industry, Market and Policy
25
CanSIA’s Board of Directors
Bob Waddell,
Centrosolar
Utilia Amaral,
SunEdison
Bonnie Hiltz,
GDF Suez Canada
Jon Kieran,
EDF EN Canada
Canadian Solar Industries Association
John Rilett,
ENMAX
Thomas Timmons,
Gowlings
Nigel Etherington,
Planet & Company
Ivano Labricciosa,
Oshawa Power and
Utilities Networks Inc.
Robert Leah,
Recurrent Energy
Greg Scallen,
SunEdison
| Alberta’s Solar Future: Industry, Market and Policy
26
