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REDI also provides subsidies for the development of hybrid systems for remote communities. The agency will pay up to 40 percent to as much as C$80,000 towards the price of photovoltaic systems (REDI 2002). The Canadian government also funds modest amounts of research and development of renewables through its Renewable Energy Technologies Program. This is mostly through cost-sharing and technical assistance at a level of C$8 million per year (RETP 2002). The Canadian government has encouraged the production of biomass-based fuels by exempting biomass produced ethanol and methanol completely from the fuels tax since 1992. A number of Canadian companies are working to expand the production of biofuels. British Columbia is the only province to enact a Renewable Portfolio Standard, but Nova Scotia has introduced a voluntary effort to encourage independent power producers to make 2.5 percent of their new power facilities renewable (GOC 2002). Mexico Research being conducted in Mexico demonstrates the need to develop cleaner sources of electric power generation and cleaner vehicles to reduce the high levels of air pollution in Mexico City and other urban regions. Renewables would not only help to reduce urban air pollution but also decrease acid rain and lower greenhouse gas emissions. Moving onto a sustainable energy path at an early stage could be extremely advantageous to the long-term economic development of Mexico (Manzini and Martinez 1999). The energy laws of Mexico have been recently revised to increase the amount of distributed electricity that may be provided to the electrical grid, but they are limited to small producers. The strategic objectives of the Mexican National Energy Programme for the period between 2001 and 2006 include an increase in the efficiency of conventional power systems and an expansion of renewables. A major barrier to the penetration of renewable energy technology in Mexico is the large subsidy for conventional electricity that is provided by the government, and there is current discussion as to how to address that politically difficult issue (Secretaría de Energía 2002; Sandia 1998). Obtaining financing for renewable energy projects remains a problem in Mexico. There is a need to create a legal framework that gives investments for renewable technology access to conventional financing. Renewables would also be boosted by setting incentives that are now lacking, such as tax benefits and the establishment of Renewable Portfolio Standards. Establishing long-term prices favoring renewables and the creation and certification of green energy markets would also stimulate both domestic and foreign investment in renewables (de Buen 2002). The United States The Public Utility Reform Policy Act of 1978 opened the US electric market to production of small-scale (less than 80 MW for renewable facilities) independent power producers. The Energy Policy Act of 1992 created a production tax credit of 1.5 cents per kWh (adjusted for inflation) for the first 10 years of wind generated electricity. This tax benefit applies only to projects installed before the end of 2001, and an extension to 6PDF Image | Assessing Barriers and Opportunities for Renewable Energy in North America
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