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BARRIERS AS SEEN BY RET PROPONENTS POTENTIAL STRATEGIES EXAMPLES FROM BC AND CANADA Lack of demand for electricity from renewable energy sources • May be due to higher cost or lack of awareness Establish a renewable portfolio standard mandating that a certain percentage of power be generated through renewable energy resources BC Hydro has a commitment to meet 10% of its new electricity needs from renewable energy sources by 2010 about purchase of green power Lack of access to market and competition. • Energy markets in Canada are primarily Ensure non-discriminatory electricity market access dominated by public or private sector utilities serving a regulated monopoly market. Most RET proponents must enter into an agreement with the utility, and therefore can be effectively excluded from participation in the marketplace. Overly complex or unclear interconnection requirements • Can add a time and cost delay to projects, Standardized contracts for interconnections and fees proportional to size of installation. BC Hydro has developed a standardized contract for interconnection requirements. particularly for smaller projects as costs are generally fixed for all sizes of generators Obtaining an adequate price for supplying electricity • More renewable projects could be funded if Allow net billing where electricity users/providers receive a credit for the portion of electricity they feed into the electrical grid. Already used in Manitoba, Toronto, and parts of rural Ontario they could fetch market prices rather than the price paid by a utility in a non-deregulated market. Certified green power for consumers. Uncertainty about the future price of electricity. • This can affect the financial performance of the Firm and stable energy purchase price proportional to the scale of the system project and ability to obtain financing for the project. Uneven Playing Field for Competing Energy Supplies • Conventional energy supplies currently receive Eliminate subsidies to conventional energy sources Tax credits for renewable energy technologies Canadian Renewable Energy Conservation Expense provides 100% of pre-development expenses to be written off. In addition, there is an accelerated capital cost allowance for renewable energy technology projects less than 50 MW in size. superior federal taxation treatments than RETs. Some of these differences have been alleviated in the late 1990s. Environmental and Social Externalities not accounted for in the rate structure. • Many of the environmental and social costs of Internalize environmental and social costs and benefits, which would make renewable energy technologies (which are generally more environmentally benign) more competitive with conventional supplies. supplying energy are borne by society at large and are not accounted in the current price. Table 2: Market and Financing Barriers, Strategies, And Examples From BC To Micro-Hydro And Small Scale Hydro Consider emissions trading to help internalize the environmental costsPDF Image | Organisations in Different Renewables
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