Environmental Fundamentals of Alternatives

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Environmental Fundamentals of Alternatives

• Presentation for CEA/NRCan WorkshopDiversifying
  the Mix - Alternatives to Conventional Generating
  Technology
• November 25, 2002
• Andrew Pape-Salmon, PEng, MRM
  andrewp_at_pembina.orghttp//www.pembina.org

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Pembina Institute

• Pembina Institute
• Policy research and analysis
• Confidential consulting services
• Public interest advocacy and intervention
• Public and school education
• Sustainable Energy Program
• Aims to shift Canadian energy policy to support a
  significant expansion of sustainable energy
  (energy efficiency low-impact renewable
  energy)
• Advocates fiscal and legislative reforms which
  provide market recognition for the social and
  environmental benefits of sustainable energy

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Environmental Issues for Canadian Energy Supplies

• Climate Change
• Ground level ozone
• Acid deposition
• Reduction of biodiversity
• Watershed and fish impact
• Land-use human and wildlife issues
• Toxic waste buildup
• Resource depletion
• Other social impacts
• Life-cycle evaluation is critical

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Greenhouse Gases

• Includes CO2, N2O, CH4, SF6, PFCs, HFCs, others
• Known link to global climate change
• Potential impacts Climate Change
• Sea level rise
• Increased intensity of weather events (rain,
  snow, wind)
• Increased forest fire events
• Arctic melt
• Reduced biodiversity
• Tropical diseases moving north
• Significant impacts on people, society, economy,
  biodiversity

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Greenhouse Gases
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Greenhouse Gases

• Kyoto Protocol Canada committed to a 6
  reduction below 1990 levels to 571 Mt
• Required reductions of about 29 or 238 Mt below
  expected levels of 809 Mt
• Climate Change Plan for Canada sets out several
  concrete measures to reduce emissions
• Immense opportunity for zero- or low-emission
  energy resources, energy efficiency and
  conservation

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Environmental Assessment

• Need to compare energy options on their
  site-specific environmental performance rather
  than arbitrary scale criteria or other
  generalizations
• Indirect and direct impacts varies by geography
• Life Cycle Value Assessment
• multi-disciplinary, systems-based business
  analysis and decision-making process
• considers the full life cycle of a project
• enhances the design-for-sustainability
• Pembina Institute service tothe private and
  public sectors

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Environmental Assessment
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Environmental Assessment

• Ground level ozone 0.03kg/MWh
• Acid deposition 0.03kg SOx/MWh
• Reduction of biodiversity minimal
• Watershed and fish impact negligible
• Land-use 1 footprint
• Toxic waste buildup none
• Resource depletion renewable
• Other social impacts visual impact, enhancement
  of agricultural income
• All categories indirect displacement of more
  impacting energy resources

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Environmental Benefits

• 100MW Wind Farm
• 300 GWh/yr, Energy for 30,000 homes
• Permanent GHG Emissions Reductions 150-300
  kilotonnes per year
• Reductions equivalent to taking up to 100,000
  small motor vehicles off the road
• Reduced smog, acid deposition, particulate
  matter, mercury, other heavy metals
• No impact on watersheds
• Reduced toxic waste
• Non-depleteable resource

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Environmental Certification

• Aims to establish a transparent standard for
  labeling energy products which protect the
  environment
• Canadian standards
• Environmental Choice Program EcoLogofor
  Renewable Low-Impact Electricity
• BC Hydro Green Criteria
• Low-Impact Hydropower Institute guidelines being
  adapted to Canadian context
• Ownership of environmental attributes under
  debate

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Drivers for Certification

• Green Power Marketing
• Consumers pay a price premium for electricity
  that demonstrates superior environmental
  performance
• Highest quality product required
• Portfolio Standards
• Legislated or voluntary targets for renewable
  energy to support environmental and social
  objectives
• Cost competitive products which satisfy
  jurisdictional objectives for environmental
  performance
• E.g., BC Hydro 10 commitment

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Drivers for Certification

• Environmental Regulations
• Investments in green power driven by greenhouse
  gas or local emission standards (e.g., Kyoto
  Protocol, Ontario emissions trading system)
• Products which demonstrate a net improvement in
  environmental quality
• Debate Role of Eco-Logo Guidelines
• Different stakeholders have presented different
  cases for the role of the eco-logo
• Need to clearly identify social purpose for
  certification

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Shades of Green Proposal

• Bright green resource
• Best overall environmental performance
• Suitable for green power marketing purposes
• Bundling many environmental attributes
• Forest green resource
• Demonstrate broad environmental benefits
• Suitable for portfolio standards for renewable
  energy
• Olive green resource
• Resource which demonstrate net reductions in GHGs
• Suitable for meeting emission regulations
• Must clearly communicate differences to
  consumers

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Differentiation

• Goal is to clearly differentiate resources based
  on their social purpose to meet emission
  regulations, contribute toward resource
  acquisition goals, or to market to consumers as a
  premium product

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Summary

• Several critical environmental issues facing
  Canadian energy sector
• Kyoto ratification could create an immense
  opportunity for alternative energy
• Evaluation of environmental attributes should be
  done on a life-cycle basis
• Certification of environmental performance should
  be driven by specific social purposes