Green Energy Ontario 2.0: Community Power

With the announcement that the Ontario Power Authority's Feed-in-Tariff Program is currently under review by the Province of Ontario, long-time blog contributor Neil Fairhead explores the value of ensuring that Community Power issues are represented in the discussions.

Now that the most recent Ontario provincial election has passed, it’s probably a good time to reflect on the government’s renewable energy policy and how we ensure it is implemented most usefully for the benefit of all citizens. Given the current economic climate, my main focus is on sustaining local communities. Our current energy system is a relic of the middle of the last century when mass production ruled - large centralized plants delivered large quantities of very similar products. Examples include the big steel mills that dominated Hamilton’s skyline and the Big 3 car plants in places like Oshawa. Even computing was subject to this model as the initial dominant form was the large centralized mainframe. Electricity has predominantly been generated in large centralized plants whether it was hydro, nuclear or coal power.

In many other industries this approach has evolved, most visibly in computing where computing devices are now ubiquitous and linked together by the Internet. Electricity is, to some extent, still battling against the prevailing winds of a more distributed model of supply and generation. We still produce it centrally and distribute it into communities from many miles away. This means that at least 75 cents of each energy dollar leaves the local economy. Less money remains to support local businesses and provide jobs for local people. In addition, the scale of centralized power plants means that only very large corporate- or government-owned entities can build and operate them. The scale drives transmission over distances which increases transmission loss. In the United States, transmission losses are estimated to be between 6 - 7% of all the power put into the grid.

Generating power close to its use reduces the cost of distribution and particularly long-range distribution power losses. It also reduces the risk due to transmission failure. Remember, the Internet was deliberately designed as a network with no single point of failure by providing many alternate routes and having no central control point. Our electricity distribution network is not. Hence, in August 2003, the failure of one generator in the FirstEnergy plant at Eastlake Ohio triggered cascading failures which eventually totaled over 500 generating units at over 250 plants. It reduced the available power by 80% over an area that ran from Sault Ste Marie to James Bay to Newark, New Jersey.

However, just distributing power generation is not enough. All energy generation incurs costs as well as benefits. If the local generator is not locally owned then the community will not get enough of the benefit to put up with its attendant costs. All wind energy projects constitute an economic development opportunity for the communities that surround the project. However, local communities may only see a small portion of the benefits from such investments. It is not uncommon for less than 15% of project-related construction expenditures to remain local. Studies undertaken in Iowa suggest that locally owned wind generation creates up to 10 times more economic activity in the local community than does wind generation owned by out-of-state companies. When the owners are local, they are more likely to purchase local construction materials and hire local residents ensuring profits stay in the community too.

Community Power is a class of sustainable energy projects that are owned, developed and controlled in full or in part (50 per cent or more) by residents of the community in which the project is located. Community Power has spurred the development of renewable energy in Europe. For instance, in the Netherlands 60% of wind turbines are owned by farmers and 5% by communities; in Germany 10& are owned by farmers, while 40% are owned by communities; and finally, in Denmark, 64% are owned by farmers, while 24% are owned by communities.

WindShare Turbine, Exhibition Place, Toronto, Ontario

Ontario initiated its experience with Community Power in 1999, when the first community-owned and North America’s first urban sited wind turbine was envisioned by Windshare (see photo). To date, there have been over 293 applications for Community Power projects under the Ontario Power Authority’s FIT Program, representing over 1,500MW of clean, renewable energy.

However, Community Power does not exist in a vacuum and is clearly in its infancy. On October 31, Energy Minister Chris Bentley confirmed a long-expected review of the FIT Program. Deputy minister Fareed Amin in conjunction with OPA CEO Colin Andersen, will lead the review. Obviously this introduces some uncertainty into the atmosphere and makes it important that supporters of sustainable energy ensure their voices are heard.

One way to learn more about the review, to discuss how to respond and to include your say in a strong and consistent voice is to join the Ontario Sustainable Energy Association for its third annual Community Power Conference. Hear about and discuss the FIT review, Green Energy Ontario 2.0, and receive practical training on how to drive community-led and community-commercial project partnerships.

~ Neil Fairhead

Ontario Sustainable Energy Association
Community Power Conference

November 14th and 15th, 2011
Metro Toronto Convention Centre South, Level 800, Hall G & Room 803
222 Bremner Blvd., Toronto, ON
http://cpconference.ca/

Sun Sets on 2nd Annual Solar & Conservation Fair

As mentioned in an earlier post, Wakulat|Law Principal Rob Wakulat teamed up with local Business Improvement Areas in the Etobicoke Lakeshore community and volunteers from the Environmental Planning Committee of the LAMP Community Health Centre to put on a one-day Solar & Conservation Fair dedicated to showcasing sustainability initiatives. A key theme was empowering local communities to explore taking on their own sustainability projects and, in particular, the opportunity presented by community power.

On Saturday September 10, 2011, the Assembly Hall played host to over 20 exhibitors, 13 speakers and over 200 attendees. Event highlights included:

Chocosol Solar Roaster

• Welcome speech by local MPP Laurel Broten who travelled the province as Minister of the Environment (2005-2007) in support of the legislative and committee process that introduced the Green Energy and Green Economy Act to Ontario;
• A prototype solar roaster built by Lorin Symington and the Chocosol team used to roast cacao beans for onsite sampling;
• The University of Waterloo's Midnight Sun Solar Race Team with last year's solar car used for competing in international solar car competitions;
• Local business owner Jim McNeil explaining why he decided to make Canclone Services the first solar-powered printer in Toronto; 
• Information from speaker Matthew Zipchen about the recently launched SolarShare initiative which allows any Ontarian to invest in $1,000 community solar bonds, with a 5-year term and 5% annual return;
• Samples of generously donated organic and locally-sourced refreshments from Front Door Organics, The Village Butcher, Fresh City Farms and Social Coffee & Tea Company; 
• Book signing by author, columnist and Cleanbreak blogger Tyler Hamilton for his new book Mad Like Tesla; and



 University of Waterloo Midnight Sun Solar Race Team

• Environmental author and speaker Jim Harris delivering the end-of-day keynote speech that explained how going green is good for business.

The Fair encouraged people who not only care about reducing their environmental footprint to gather and discuss ideas, but also those people interested in learning about how to benefit financially from taking on green initiatives. Attendees were able to check out seminars on topics such as rooftop solar technology, community power, green careers and energy conservation through landscaping. Exhibitors provided insight into their sustainable food options, solar technology, and community capacity building.

The donated delectables.

Even though Ontario has implemented the Green Energy and Green Economy Act, not all communities have easy access to the knowledge and tools required to participate in this emerging sustainable economy. The event was designed to bring useful information to businesses, residents and community groups who are normally quite busy and don’t necessarily have the time to research how they can participate in the province’s emerging green economy.

The Fair was an example of community spirit, created and planned with the participation of local business associations, dedicated volunteers and non-profit community groups who share a passion for a cleaner, healthier and prosperous future.

Key support for the event was provided from the local BIAs, TABIA, Bullfrog Power and Toronto Hydro.

Event sponsor Toronto Hydro with materials promoting energy efficiency.

Wakulat|Law Organizes 2nd Annual Solar & Conservation Fair on the Lakeshore

Following on the heels of last year's first go-round with the Solar & Conservation Fair on the Lakeshore, Wakulat|Law has become involved in organizing a second iteration of the event.  On Saturday September 10, 2011, the 2nd Annual Solar and Conservation Fair will be hosted by the local Lakeshore Business Improvement Areas. It will take place at the Assembly Hall in South Etobicoke from 11 am to 4 pm. This one-day community event will feature exhibitors, vendors and speakers on topics related to renewable energy, conservation and environmental sustainability. The event is open to residents and businesses. Admission is free.

The Fair is an opportunity for people who not only care about reducing their environmental footprint, but also want to learn how to benefit financially from taking on green initiatives. Last year, the emphasis of the Fair was on solar education. This year it is expanding in scope to meet the broader interests and needs of the community. Attendees can go to seminars on topics such as residential rooftop solar technology and community power, speak to exhibitors who are providing sustainable food options and solar technology, find out about green career opportunities, sample locally-sourced refreshments and learn how to build a community power project.

Not all communities have easy access to the knowledge and tools required to participate in this emerging sustainable economy. Small business owners and residents are busy and don’t necessarily have the time to research how they can participate in the province’s emerging green economy. This type of event is designed to bring them that information and make it more accessible to businesses, residents and community groups.

The Fair itself is an example of community spirit, created and planned with the participation of local business associations, dedicated volunteers from the LAMP Community Health Centre and non-profit community groups who share a passion for a cleaner, healthier and prosperous future. It offers members of the community the opportunity not only to learn about alternative energy from industry leaders, but also from each other. The Fair will also help the local economy by featuring several local business, giving residents the opportunity to directly support their neighbourhood business owners.

This project has received funding support from the Ontario Power Authority through the Community Energy Partnerships Program. Such support does not indicate endorsement by the OPA or the Province of Ontario of the contents of this material. The views expressed in the material are the views of the Recipient and do not necessarily reflect those of the OPA or the Province of Ontario.

Guest Post: Daniel Bida and Ontario's Biogas Market

Daniel Bida is the founder of ReGenerate Biogas, a company created in in early 2009 to foster the development of community-owned anaerobic digestion for agriculture around Ontario. Daniel has kindly shared his thoughts on the progress of the Ontario biogas market with this post.

I’m currently reading Roger Martin’s The Design of Business – a business book examining the way organizations make use of and organize knowledge to drive growth and longevity.

Moving Down the Funnel

Knowledge, it says, moves through three phases as it goes down the funnel, from the general to the specific: Mystery –> Heuristic –> Algorithm. This got me thinking about what stage the Ontario biogas industry is in, and what stage I myself am in developing community-owned biogas plants.

Biogas Plant, Pucking, Upper Austria

At the mystery phase (which Ontario was in around 2005), there are lots of facts available, but making sense of the right ones to create value is more of a challenge.  Biogas companies at this time were mostly traveling to Europe to learn from companies and communities there, and trying to figure out the best sources and combinations of feedstock in the Ontario market. They were able to come away with some inspiring examples of success such as the pilot project in Pucking, Upper Austria, which supplies the existing natural gas grid with biogas upgraded to natural gas quality. Unfortunately, the myriad of government support programs offered in Europe for these innovations did not exist in Ontario at the time. Greatly adding to local mystery was (and is) the ever-changing regulatory market, which has caused many of us to re-examine our original assumptions and attack the market in a different way.

At the heuristic phase (which Ontario has been in since about 2007), some rules of thumb have been developed – helping the industry narrow down which farms are most suitable, which feedstocks and recipes are ideal, which digester technologies work best, what size plants are most suitable, how to handle complex feedstocks (curbside organics), how to work with local stakeholders, how to speed up permitting and approvals, and how to turn a profit (sometimes). We are relying on these early rules of thumb in an effort to increase efficiency, thereby growing our businesses and the industry.

At the algorithm phase, a highly scalable formula is established and replicated hundreds or thousands of times over, greatly increasing efficiency and the total number of biogas plants from the current number (less than 50) to its full potential (between 500 and 1,500). No firms have yet entered this phase I believe, but we are very close.  Knowledge and understanding of the technology is up. Investors and lenders are taking notice. Numerous projects are up and running, some successfully, some not – providing valuable lessons to developers. (can we highlight the Niagara project?)

Stopping the Flow

The major obstacle at this point is largely political.  We are faced with continued long-term uncertainty – even short-term certainty isn’t a given at this point. The best thing the provincial government can do in the Fall of 2011l (whoever they happen to be after the election), is to establish strong protocols and practices that can stand the test of time – and then sit back and watch as the Ontario biogas industry diverts organics from landfills, reduces greenhouse gas emissions, produces better than commercial grade fertilizer, generates  readily dispatchable renewable power, and provides direct financial support to farmers.

Resources

In addition to the services of ReGenerate, parties interested in learning more about biogas opportunities in Ontario can check with these organizations:

• Ontario Ministry of Agriculture, Food and Rural Affairs;
• Ontario Power Authority Feed-In Tariff Program;
• Canada-Ontario Farm Stewardship Program; 
• Agrienergy Producers' Association of Ontario; and
• ManureNet

Thanks, Daniel!
~ Rob

Community Power Developments in Canada

Background  

In a previous post, I discussed the importance of embedding acceptance for the objectives of Ontario's Green Energy and Green Economy Act (Ontario) (the "Act") within communities. Only by developing widespread support for renewable energy would the province be able to ensure enough support is entrenched to weather future storms and transfers of political power.  Recent developments suggest the province is on track to incorporating local communities in this transformative change.

Ontario's Track Record

Developing community-owned renewable generation is an objective of the Act and a major goal of the Feed-in Tariff ("FIT") Program. Early reviews of the effort by the Ontario Power Authority ("OPA"), which administers the FIT Program, suggest it is realizing some considerable headway in this regard. It has signed contracts for 264 MW of community renewable generation and an additional 120 MW from Aboriginal renewable generation according to an October 12, 2010 report.

Energy analyst Paul Gipe has stated that once these projects are completed, "Ontario will have the largest installed base of community-owned renewable generation in North America, surpassing community ownership of renewable generation in Minnesota." This could put the province on track to have the largest installation of community-owned renewable generation outside of traditional powerhouses Denmark and Germany. However, there is still a palpable sense of uneasiness among the sector's most enthusiastic supporters who see limited financing options and low returns as two significant barriers for these groups to overcome.

Wakulat | Law to Participate at Power Conference

Thanks to the jolt provided by the passage of Ontario's Green Energy and Green Economy Act last year, a variety of newcomers have taken on leadership roles in bringing clean, green and distributed energy to the province.  Chief among these varied groups is the Ontario Sustainable Energy Association, which is a province-wide, member-based non-profit organization dedicated to supporting the development of Community Power projects and renewable energy. It includes an eclectic membership of private citizens, cooperatives, farmers, First Nations, businesses, institutions, consultants and municipalities.  Though not necessarily a "newcomer" since OSEA was a key member of the Green Energy Act Alliance, it has most definitely expanded its role and influence since the Act was introduced.

OSEA is also responsible for putting on the only Community Power-focused conference in Canada, if not the world.  The second annual Community Power Conference will take place November 14-16, 2010 in Toronto, Canada.  It will bring together approximately 600 delegates from the above-mentioned groups along with a selection of international speakers and participants from such places as Australia, Brazil, Denmark and Japan.  One of these special guests includes Fabio Rosa, who is a Brazilian social entrepreneur focused on promoting rural electrification and the use of sustainable energy sources. His inspirational story was featured earlier this year on PBS' series The New Heroes:



I am a proud supporter of OSEA and in order to demonstrate my commitment to grassroots energy generation, I have dedicated at least two days per week since mid-August to volunteering with the amazing folks planning the conference.  The commitment and passion of OSEA staff, volunteers and advisors has given me hope that despite the learning curve and challenges of developing community power in Ontario that progress will continue to be made.

Our communities are already benefiting from ground-breaking work by groups such as the Toronto Renewable Energy Co-Operative, Pukwis Energy Co-op and the Neighbourhood Unitarian Universalist Congregation, to name but a few. They have demonstrated despite the imperfections of the current Green Energy Act and Feed-In Tariff Program, that successful Community Power projects are possible in Ontario.

Thus, it is with great pleasure that I will be participating with OSEA's co-organizer, the Association of Power Producers of Ontario as a moderator for a panel in their Power Networking Centre.  APPrO is holding its conference alongside OSEA which will be the 22^nd Annual Canadian Power Conference. It will take place on November 16-17, 2010 and its theme is Making Green Sustainable: Responsibly Rebalancing the System.

If you would like to work with these groups or attend the conference, please contact me and I can plug you into the right people.  It is only by working together and supporting one another that we will truly embed an ethic of conservation and renewable generation in our communities.

Thank you,
Rob

Article: Driving Green Power via Ontario's Communities

I recently reviewed the benefits of local community buy-in to ensure the success of Ontario's green energy policies in an article for an upcoming International Bar Association newsletter.  The article, Ontario's Green Energy Act: the Answer to (Public Acceptance) is Blowing in the Wind, will be published in the October 2010 edition of the IBA's Environment, Health and Safety Law Committee newsletter (Vol 7, No 1). 

This article also works as a primer for an international audience interested in learning the basics about the province's Green Energy and Green Economy Act (GEGEA).  It highlights some key components of the GEGEA; identifies issues that have recently been raised as concerns by certain groups and canvasses the Government of Ontario's response to some of these challenges.  As is my wont, it also mixes metaphors to ensure that solar and wind energy feel as though I'm treating them as equal brothers in the province's drive to a lower carbon future.  (My apology if any bio-energy fanatics were snubbed in the authorship of this piece.)

The article is reprinted below:

IBA Environment Health and Safety Law Committee Newsletter Oct 2010

International Bar Association
The IBA was established in 1947 and works to influence the development of international law reform and shapes the future of the legal profession throughout the world.  It currently has three main objectives:

• To promote an exchange of information between legal associations worldwide;
• To support the independence of the judiciary and the right of lawyers to practise their profession without interference; and
• To promote, protect and enforce human rights under a just rule of law via its Human Rights Institute.