Posts Tagged ‘fossil fuel’

The Green Economy Is Here to Stay

Thursday, December 2nd, 2010

A recent article in the Financial Post describes growing confusion over Ontario’s green economy.  While many workers in the province upgrade their training to make the switch to careers in solar and other renewable forms of energy production, the media have sent mixed messages regarding the industry’s stability.

The main concerns that I typically read about can be summed up as follows:

  • Hydro rates are rising, and we are told that this is largely due to the Ontario government’s feed-in tariff (FIT) for green energy and the high rates the program pays to its participants.
  • A government-initiated tariff is only as stable as the initiating party’s seats in the Legislature – and an Ontario election is less than a year away.
  • The FIT’s domestic content requirements (DCRs) strangle foreign and violate international trade agreements.

The bulk of concerns regarding Ontario’s FIT, which pays producers of energy from sources like solar, wind, and biomass, center around the program’s high prices.  At its most generous, the FIT pays rates of up to 80.2 cents/kW-hour for solar power, which is many times higher than the current market price for electricity.  These general incentives have opened up new opportunities within the province, including solar energy career training for PV installers.  Opponents of the FIT ague that these sky-high prices are primarily responsible for a projected increase in residential energy costs, increases that Ontarians have already begun to notice on their bills in the last couple of months.

High Price for Solar a Small Price for Clean Energy, Careers

However, an interesting study recently prepared by ClearSky Advisors (ClearSky) suggests that the program will only increase the price that the average Ontarian sees on his or her hydro bill by about the cost of one donut per month.  That’s right, a donut.  This is after the researchers crunched numbers related to the social costs of nuclear and coal-fired energy.  The study goes on to say that if the current rate of FIT-application approvals continues for the next five years, the province will enjoy more than 70,000 extra “person years” of employment by 2015.

Of course, the FIT is a political creation, and as such, any party, including the program’s creators, could stop accepting applications at any time, but all currently-approved projects are locked into a twenty-year contract.  We can be sure that players in Ontario’s green economy would be quick to litigate any attempts to change that.  As Adam Webb, President of Ontario’s Sentinel Solar Corp., puts it, “The Ontario government and the OPA would find themselves in a class-action lawsuit brought by every manufacturer that has spent the money to come to the province and open up a manufacturing facility.”

Either way, if the ClearSky study’s findings are sound, politicians who try to rally behind contemptuous attitudes toward the FIT as part of their election platforms may have a tougher sell than they expect.  Even the most ardent capitalist is likely open to the idea that a dollar a month, more or less, is a small enough sacrifice for clean air and jobs.

Certification Criteria Fuels International Ire

Now the DCRs, they do add an unwelcome level of complexity to the issue of whether or not the FIT, and the green economy it tries to create, are “worth it.”  In order to receive FIT certification, projects must contain a certain percentage of materials and use a minimum amount of labour from within Ontario.  For PV projects, this number will top out at 60% as of 2011.

Much like the “Buy American” sloganeering in the US, DCRs make the Ontario PV, wind, and biomass industries difficult for outsiders to penetrate.  Solar panels and parts from overseas are often much less expensive than just about anything made in North America, so the criteria provide a competitive edge in the province’s rapid transition to a self-sustaining renewable energy industry.

The most glaring downside to the FIT’s DCRs is international opposition.  Japan has filed an official complaint with the World Trade Organization (WTO) alleging that the requirements basically amount to subsidies, which violate trade rules.  The complaint is backed by members of the European Union and the United States and has fuelled political debate back home.  One group, led by Mitsubishi Electric Corp. (Mitsubishi), alleges that the DCRs will actually rob 9,000 jobs from the Ontario economy and cost the province $2 billion in potential investment capital.  On the other hand, the ClearSky report found that solar power generation produces twelve to fifteen times the number of jobs per kilowatt-hour as nuclear or coal projects.

Of course, tomorrow could always bring a contradictory report, and the next day another.  The truth is that the solar industry, like every other renewable energy industry, is new by historical standards, and as such, it is inherently confused and confusing.  Politicking and editorial bluster only make a clear analysis of the situation more elusive.  But, if I squint my eyes and peek through the fog, I think I can see a light.  The future is bright and we just have to press ahead.  The green economy may as well be called “the economy,” because it is just tomorrow’s way of doing business.

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Green Energy Act Surpasses Expectations

Wednesday, November 24th, 2010

With the price of everything seeming to go up, as well as a slow economy and escalating public debt, Ontarians can be forgiven for any negative reactions they may have expressed toward the Green Energy Act and the provincial government’s commitment of public money to renewable energy generation.  However, less than two years after the Act was signed into law, it has already shown success.

Passage of the Act in May of 2009 allowed the province to introduce its feed-in tariff (FIT) program later the same year – a historic renewable energy incentive designed to help Ontario phase out coal-fired power generation in the province by 2014.  The FIT pays producers of clean energy high prices for feeding clean electricity into the power grid, prices for which hydro customers will have to foot the bill.  The trade-off, of course, is that the program has created, and continues to create, green jobs, revenue for the province, and educational opportunities such as photovoltaic training classes – not to mention the obvious benefit: clean air.  Ontario Solar Academy is an example of a successful institution whose classes prepare workers for the green jobs of the future.

Photovoltaic, Wind Energy Up, Fossil Fuels Down

Keith Stewart, who currently works for Greenpeace, predicted in 2005 that energy use in Ontario would drop 10% by 2010, while power planners predicted a 5% rise in demand.  During this period, demand dropped from 157 terawatt-hours to 140, a reduction that exceeded Stewart’s predictions.  “We think we can do a lot more to bring per capita demand down faster,” he says.  Meanwhile, renewable energy is now roughly on par with natural gas and nuclear in terms of new power brought online, thanks largely to the FIT.  In fact, rather than rushing to build more fossil-fuelled plants, the provincial government cancelled plans for a gas-fired generating station in Oakville and shut down four coal-fired plants in Nanticoke.

As for the costs, they were bound to escalate.  Ontario power rates had already begun to climb before the FIT, in response to mounting utility debt.  You might think of some of the money as long-term stimulus funding, as it creates green jobs at a time when the province, in the midst of a financial crisis and declining manufacturing sector, needs sustainable employment most.  The truth of the matter is that Ontario is doing its part to protect the environment for future generations.  We are entering a new world where solar panels are the new investment, photovoltaic classes the new education stream, and solar installers the new oil rig workers.  Thanks to the Green Energy Act, it is a sunny day in Ontario.

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4 Things You Didn’t Know about Solar Energy

Sunday, August 1st, 2010

Clean energy is the in thing these days.  You’re cool, literally and figuratively, if you can help save the Earth by being a little more efficient in your energy use.  You’re even “cooler” when you’re able to harness natural, replenishable resources for your daily energy needs.

Solar power is one such energy resource that meets these criteria – it is both 100% natural and infinitely replenishable.

If you think about it, most of the energy on Earth comes from the sun one way or another, including wind, oil, gas, coal, biomass, and biofuel.  However, many of these indirect by-products of solar energy (especially the fossil fuels) are non-renewable. Once used, they cannot be replaced. More important, energy sources like oil, gas, and coal also release huge amounts of heat and carbon into the atmosphere.  If you can harness the power of the sun through more direct means, then you minimize this pollution without depleting precious resources.

Solar Energy on the Rise Globally
For many, solar power still seems like an alien concept.  The idea of receiving boundless energy from the sun somehow doesn’t jive with our understanding of how “free lunches” are often in short supply.  However, in countries like Canada, solar power production is becoming increasingly popular among governments, businesses, and homeowners alike.  Ontario’s aggressive Green Energy Act has helped make sustainability and solar power central to the province’s economic recovery program.  So while solar energy is still an unfamiliar concept for some, it is gaining traction as people around the world begin paying greater attention to green technologies and sustainable growth.

If this post can help illuminate your own understanding of solar power and its many benefits, then it will have done its job.  Here are 4 things about solar energy that you probably didn’t know (and may prompt you to become more involved).

#1: You Don’t Need a Massive Farm to Become a Solar Power Producer
You’ve probably imagined that you’ll need acres and acres of solar panels in order to power your home.  While it’s true that some facilities (called solar parks) have thousands of solar panels, these are meant for large scale applications, like producing enough solar energy to power entire communities.  At the micro-level, however, you can install enough solar panels on your roof to partially (if not completely) power your home with free, natural, and clean energy.

#2: You Can Sell Solar Power Back Power to the Grid
Depending on where you live, you can sell excess power back to the electricity grid and make a profit.  For example, Ontario, Canada’s feed-in-tariff (FIT) program allows residential and commercial solar power producers to feed surplus electricity back into the grid at guaranteed prices.  Those who generate fewer than 10 Kilowatts of power can participate in the province’s microFIT program.

#3: Solar Power Equipment Is not As Expensive As You Think
People often assume that photovoltaic (solar) cells are incredibly expensive.  Just a few years ago, such people were usually correct.  However, solar panel prices have come down substantially thanks to rising competition and advancing technology.  What’s more, many governments offer special incentives to help finance the initial installation.  And of course, let’s not forget about the feed-in-tariffs.  Once installed, you can actually make money off of your investment.  When was the last time your gas furnace or wood stove put money in your pocket?

#4: You Can Receive Training and Certification in Solar Panel Installation
Installing solar panels isn’t rocket science.  You don’t need to have a PhD in physics or  degree in electrical engineering.  Schools like the Ontario Solar Academy provide solar panel installation training and certification in as little as five days.  You can then use this knowledge to maintain your own solar system at home or provide professional installations for clients.  Canada needs qualified solar installers (very badly), so if you’re on the job hunt, what better way to round out your resume and launch an exciting new career in a fast-growing industry?

Although “green” is becoming increasingly en vogue, many still have questions about how to get involved, what to do, and where to begin.  If only they realized how simple the process was – whether you wants to solarize your own home or launch a career helping others to make the transition.  Solar energy is clean, affordable, and safe – it’s just a matter of getting the word out.

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