The Alliance for Renewable Energy

Status of FITs in Nova Scotia

Electric Power System: Nova Scotia Power provides 95% of the generation, transmission and distribution of electricity in the province.

Nova Scotia has become the second Canadian province after Ontario to adopt Feed-inTariffs. The Province unveiled its new Renewable Electricity Plan on April 23, 2010.The plan outlines an “orderly transition to new, local, renewable energy sources” with aggressive new targets of 25% by 2015 and a goal of 40% by 2020. In 2011, Nova Scotia set a feed in tariff specific to communities, the COMFIT. For more information visit:http://nsrenewables.ca/feed-tariffs.

Separate COMFIT rates are set for wind projects above 50 kW, wind projects 50 kW and below, run-of-the-river hydro, in-stream tidal (below 0.5MW), and biomass combined heat and power. Projects must be connected to the distribution grid and be less than the minimum load in its respective distribution sub-stationed. As a result, maximum renewable power generation in each zone is 1 to 5 MW. Ownership of the projects has to be at least 50% community ownership. Those groups eligible for the COMFIT program has been limited to one or a combination of:

• a university;
• a municipality or a wholly owned subsidiary of a municipality;
• a Mi’kmaw band council;
• a co-operative or not-for-profit of which a majority of members reside in the Province and at least 25 members reside in the municipality where the generation facility is located; or
• a community economic-development corporation of which at least 25 shareholders or members reside in the municipality where the generation facility is located. (Nova Scotia Electricity Act, c. 25, s. 20, 2010).

An exception exists for biomass combined heat and power projects for which any entity that demonstrate a use for the heat, known as a ‘steam host,’ is eligible for the COMFIT.A program review has been scheduled for late 2012.

A FIT for tidal projects above 0.5 MW has been legislated and will be established shortly.  

600 MW of new large scale renewable power projects will still be procured using a bidding process.

Many observers have congratulated Nova Scotia on the introduction of feed-in tariffs and for the leadership and example that this provides to other smaller provinces. Others are disappointed that feed-in tariffs will not be used for all renewable power procurement as they are in Europe and Ontario. Individuals and businesses wanting to invest in renewable power projects are offered only “enhanced net metering” - payment for power produced at the same price as they pay for power used. The absence of solar from COMFIT effectively rules out investment in solar photovoltaic power systems in Nova Scotia.

Farmer developed projects are also not currently defined as ”community” projects and are therefore also not eligible for the feed-in tariff as they are in Ontario. To ensure renewable power is developed sustainably, biomass power generation has been limited to 700 GWh/yr and tidal power will be developed “safely”.

The Province will review all of the components of the Plan in 2012, including the possibility of expanding the use or feed-in tariffs.

For more on renewable energy issues in Canada visit the Canadian Renewable EnergyAlliance at http://www.canrea.ca.

Status of FITs in New Brunswick

Electricity System: Electricity generation in New Brunswick is generated and distributed by an independent provincial corporation New Brunswick Power.

On February 9, 2010 New Brunswick announced a new Community Energy Policy and a special tariff that will pay 10 cents/kWh for power generated from new community power projects of all types. Many observers agree that this price is far too low to encourage investment in renewable energy projects, and is not a true feed-in tariff like those used inOntario, Nova Scotia and in Europe, as it is not based on providing a reasonable rate of return to investors.

The new policy also does not guarantee access to the grid as a true feed-in tariff program should. The initial phase of the will consist of 75 MW, of which 50 MW will be assigned to community-owned projects and the other 25 MW to First Nations projects.To qualify under the policy, projects must not be larger than 15 MW in capacity. They must be majority-owned by First Nations, municipalities, co-operatives, not-for-profit organizations or institutions. New Brunswick-based private corporations and investors may be minority partners.

“Feed-in tariffs are supposed to be based on the cost of the electricity produced plus a reasonable return for the producer” said David Coon, Executive Director of theConservation Council of New Brunswick. “The proposed price is too low to enable communities to develop renewable energy projects. They just won’t be able to afford it.”In Ontario, wind power projects are paid between 13 cents and 19 cents/kWh and solar between 40 cents and 80 cents /kWh. These prices have resulted in contracts for 2500MW of new renewable power projects in less that a year.

In September 2010, the Conservation Council of New Brunswick joined with CanREA member Falls Brook Centre and many other organizations to publish a Greenprint –Towards a Sustainable New Brunswick. On energy, the Greenprint recommended thatNew Brunswick:

1. Revise the provincial feed-in tariff policy by adjusting the rate structure to ensure that projects can be economically feasible and by expanding the program’s eligibility beyond community-based projects (to individuals, businesses, etc.). Double NB Power’s requirement to supply new renewable energy from 10 to 20%.

2. Provide tax incentives for cooperative and community ownership of renewable energy.

For more on renewable energy issues in Canada visit the Canadian Renewable EnergyAlliance at http://www.canrea.ca.

Status of FITs in British Columbia

Electricity System: Generation, transmission and most distribution electricity capacity in BC is owned and operated by provincially owned utility BC Hydro. Fortis BC distributes power in the Kootenay/Okanagan region.

Much of the province’s power already comes from renewable sources (hydro-electricity). At the same time, pockets of high cost fossil fuel supply exist, while other forms of renewable power are effectively shut out of the market.

The British Columbia Ministry of Energy, Mines and Petroleum Resources announced its intention to introduce a Feed-In Tariff Regulation under Section 16 of the 2009 Clean Energy Act to support fulfillment of British Columbia’s Energy Objectives.  A Consultation Paper was produced in 2010 and proposed a very limited FIT program:

• The FIT should not be used as a general power procurement tool
• Annual expenditures should be limited to $25 million limit above the cost of acquiring the power through BC’s existing Standing Offer Program
• Size should be limited to 5 MW and the FIT contract to 5 years
• The FIT should be only for on-grid to biomass, biogas, geothermal, instream hydrokinetic, and ocean energy.
• Off-grid solar or wind might be included.

The BC Sustainable Energy Association input to the consultation paper noted that the opportunities for renewable power development will be severly restricted by the 5-year contract limit and will not give developers sufficient time to make a return on their investment. BCSEA also notes that the 5 MW limit may rule out geothermal developments. Limiting solar and wind to off-grid applications means they would have to compete in the Standing Offer Program.

As of January 2012, BC has not introduced a feed-in tariff.

For more on renewable energy issues in Canada visit the Canadian Renewable Energy Alliance.

 

CIVIL SOCIETY INSTITUTE STUDY: U.S. COULD ACHIEVE OVER $80 BILLION IN LOWER ENERGY COSTS BY FOCUSING ON SAFER, RENEWABLE ENERGY

Civil Society Institute

WASHINGTON, D.C. – November 16, 2011 – It is a myth that switching to safe, renewable energy would mean an unreliable U.S. power supply that also is too expensive to afford. That is the major conclusion of a new Synapse Energy Economics report prepared for the nonprofit Civil Society Institute (CSI) that details a future with more energy efficiency and renewable energy and less reliance on coal and nuclear power. Titled "Toward a Sustainable Future for the U.S. Power Sector: Beyond Business as Usual 2011," new Synapse/CSI report outlines a realistic transition to a cleaner energy future that would result in a net savings of $83 billion over the next 40 years. The Synapse report also details other major benefits, including: the avoidance of tens of thousands of premature deaths due to pollution; the creation of hundreds of thousands of new jobs; sharp cuts in carbon pollution; and significant cuts in water consumption for power production.

Read the 11.16.11 Civil Society Institute news release here.
Read the 11.16.11 Synapse Energy Economics report here.
After 5 p.m. EST on 11.16.11, listen to the streaming audio of the CSI news event.
Read about the related 11.3.11 CSI national opinion survey here.

How Germany Became Europe’s Green Leader

Cyclists on Freiburg's car-free Wiwili bridge. The bridge was closed

to cars in the early 2000s and is now open only to cyclists and

pedestrians. Photo by Ralph Buehler.

October 24, 2011

Ralph Buehler, Arne Jungjohann,

Melissa Keeley, Michael Mehling

This article examines how German environmental policymaking over the last 40 years transformed Europe’s economic engine into the international driver of green growth. By examining Germany’s environmental policy development in the energy, infrastructure and transportation sectors, transferable lessons are gleaned that may help the US pave its own green policy agenda.

Feed-in Tariffs Best to Deal with Climate Change Says IPCC Working Group III Renewables

FITs Least Costly--Most Competitive Mechanism Says Climate Researchers

November 8, 2011

By Paul Gipe

The 135-page report by the Intergovernmental Panel on Climate Change , especially Chapter 11 on Policy, Financing and Implementation, makes it clear that the overwhelming weight of academic studies conclude that feed-in tariffs--or fixed-price mechanisms--perform better at delivering renewable energy quickly and equitably than quota systems, such as Renewable Portfolio Standards in the US or the Renewable Obligation in Britain. This is not the unsurprising conclusion from a surprising source: the IPCC's Working Group III on Renewables.

Below are selected excerpts illustrating the theme that runs through the report.

Page 5

Several studies have concluded that some feed-in tariffs have been effective and efficient at promoting RE electricity,

Snapshot of Feed-in Tariffs around the World in 2011

Updated Tables of Feed-in Tariffs Worldwide

Summary of Prices for Wind, Solar, Geothermal, & Other Technologies

October 5, 2011

By Paul Gipe

Feed-in tariffs are the world's most popular renewable energy policy mechanism. Despite the economic recession, more and more jurisdictions are turning to feed-in tariffs to spur not only renewable energy development but also industrial development and the attendant jobs that it creates.

The following article is a snapshot of places where feed-in tariffs are being used, and the prices that are being paid. While extensive, this article is not comprehensive. It does not include every tariff for every technology in every jurisdiction, but it does give a flavor for the widespread use of this policy mechanism with the odd name.

More than 80 jurisdictions around the world now use or have used feed-in tariffs to pay for new renewable generation, according to a recent report by REN 21. These vary from former Eastern Bloc countries, such as Slovenia and Bulgaria, to developing countries, such as Uganda and Mongolia, to the more well known examples of Germany and France.

According to the Renewables 2011 Global Status Report, feed-in tariffs now dominate policy for renewable energy worldwide. There are 60% more jurisdictions (states, provinces, and entire countries) using feed-in tariffs than are now using quota systems (Renewable Portfolio Standards, Renewable Energy Standards, and so on).

Rhode Island Posts Proposed Tariffs--Meets Deadline

October 3, 2011

By Paul Gipe

In record time, the government of Rhode Island and Providence Plantations has posted proposed feed-in tariffs for renewable energy.

Only signed into law by Governor Lincoln Chafee on 29 June, 2011, Rhode Island determined a methodology for calculating the tariffs, held four public hearings, and posted their findings by the statutory deadline at the end of September.

Rhode Island's fast action should allay any further hand wringing by North Americans that calculating feed-in tariffs is difficult and time consuming.

Rhode Island becomes only the second state in the Northeast to implement a feed-in tariff program and one of the few states in the US to do so.

The Rhode Island Office of Energy Resources managed the expedited process and filed their recommendations September 27, 2011 in compliance with the law.

• Docket No. 4288 - RI Office of Energy Resources - Report and Recommendation Regarding Classes and Ceiling Prices for 2011 submitted pursuant to "The Distributed Generation Standard Contracts Act" (filed 9/27/11)
• Rhode Island Rapidly Implementing Feed-in Tariffs for Distributed Generation

 

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