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scale hydro and other small renewable projects. The relevant agencies and jurisdictions need to develop as simple and unified a process as possible, without, of course, compromising legitimate environmental and other standards which should apply to renewable energy entrepreneurs as much as others. In a current paper, Berry and Jaccard3: identify four broad policy options used by governments to stimulate development of renewables such as small-scale hydro: • Policies to increase the cost of non-renewable energy, such as subsidy reduction, pollution- based taxes, pollution technology regulation, or caps on emissions. • Direct financial support to renewables, such as capital grants, premium prices, tax incentives, or favourable loans. • Indirect support of renewables, such as demonstration projects, resource inventories and maps, training, R&D support. • Policies to enhance market share for renewables, such as voluntary agreements with producers, mandatory renewable portfolio standards (RPS), or providing "green" tariffs (i.e. product choices) for consumers. The current trend is for renewable portfolio standards to overtake direct financial measures in supporting renewables in North America. According to Berry and Jaccard4, this is because the RPS minimizes direct government involvement and ensures the attainment of policy targets, while simultaneously maintaining cost competition among renewable producers. Under this policy, the province or state plays a key role by requiring the energy market to deliver a minimum amount of electricity from specific fuels and/or technologies. This policy fosters the increased production of electricity from energy sources that may have a higher cost but is desirable from a social and environmental perspective. However, other observers5 note that at least some RPS mechanisms appear to discriminate against production methods in a manner prohibited by international trade obligations in GATT, WTO, and the North American Free Trade Agreement. A key step by governments, and other stakeholders, will be to work together to design RPS policies so that they can withstand trade challenges. Energy utility strategies to overcome barriers While government is obviously in the most powerful position to shape or reshape the market for renewable energy, energy utilities can also take significant actions to reduce barriers. Several examples are provided in the detailed tables. One of the most significant is to reduce, as much as possible, the complexity and uncertainty associated with negotiations of energy purchase and interconnection contracts. BC Hydro, for example, has developed standard contracts for interconnections to make the rules clear. Hydro has also standardized and made objectively measurable many elements in its energy purchase contracts that previously were subject to negotiation. Prospective entrepreneurs with renewable 3 Berry and Jaccard, 2001 4 Berry and Jaccard, 2001 5 Horlick, Schuchhardt and Mann, 2001PDF Image | Organisations in Different Renewables
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