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provincial agency. The regulation of the energy sector is undergoing significant changes, as it has in other jurisdictions across North America and elsewhere in the world. BC has a history of low cost and abundant hydroelectric power, mostly large-scale, comprising over 90% of its electrical generating capacity. The bulk of the remainder is provided by natural gas. A strong demand side management program (Power Smart) has been in place since 1989. However, with a growing population and economy in the province, there is a need to obtain new supplies. On the supply side, BC Hydro is seeking to meet 10% of these new electricity sources from ‘green’ projects. On the demand side, there is also a growing interest from individuals and organizations in purchasing green energy. Small-scale hydro is one of the renewable energy technologies (RETs)1 most likely to provide a substantial share of this green energy target for new electrical generation. Barriers to Micro- and Small-Hydro Development No market exists without barriers to entry. Every entrepreneur wrestles to overcome barriers to his or her business model as an inherent part of the workings of competition. That’s normal, and fair. But in some cases the barriers are created or made worse by the form of government policy shaping the market, and in other cases there is a public interest in bringing about a transformation (re-shaping) of the market. This paper attempts to distinguish and highlight such situations where they affect the development of small and micro hydro. They are the situations in which governments and industry players can take common action to improve the public good. Each form of renewable energy faces its own set of barriers related to technology. The technology for small-scale hydro has been in commercial use for nearly a century, so new technology risks and barriers are almost non-existent. However, that does not mean small-scale hydro is free of technological limitations to its market position. Issues such as limited capacity and varying dependability (due to fluctuating water levels and blockages resulting from ice or floating debris) represent impediments, as they make it obligatory for end-users to have a backup energy source. But these limitations are normal competitive factors which do not require policy change or intervention. The most significant barriers impeding the development of small-scale hydro are in fact shared with most other renewable technologies. Such barriers include a lack of coherent and comprehensive energy policies; poor economics in terms of high unit costs; high front-end capital requirements; lack of physical and institutional infrastructure; and insufficient public awareness. In order to design a provincial-level program to stimulate RETs, the BC government recently surveyed a diverse range of stakeholders regarding opportunities and barriers2. Though their interests and experiences varied, a number of common themes emerged and important lessons were identified. The common barriers were summarized into three general categories: • Information barriers; 1 Renewable Energy Technologies (RETs) are defined as micro and small hydro, solar energy, wind energy, biogas recovery, wood residue combustion and other technologies that use hydrogen, compressed air or fuel cells to control, store and/or convert renewable energy. 2 Sheltair Group Resource Consultants, 2001, for the BC Ministry of Employment and InvestmentPDF Image | Organisations in Different Renewables
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