While approval of the Keystone pipeline may be the critical US Canadianenvironmental issue today, renewable energy (RE) holds promise for tomorrow RE creates jobs and its environmentally friendly
How can EneREgionalism and eventually Energy Continentalism evolve from…. Canada’s Provincialism America’s Entrepreneurism Mexico City Mexico’s Centralism
Potential Wind Solar Vast untapped RE potential exists in US Canada and Mexico BiomassGeothermal
Canada A Renewable Energy Powerhouse• Massive supplies of water, wind and biomass– the raw materials to produce green energy.• Canada has 20% of the worlds fresh waterproviding nearly endless water resources.• Long coast lines and huge land mass give itsome of the best wind resources on the planet.• ‘The land of the midnight sun’ is a natural forsolar power.• Forests cover 35% of Canadas land mass,(the largest on earth) -steady supply for bio-energy.
Mexico Massive RE as Oil declines• Among the best potential for solar power in the world. “The scope for solar electricitygeneration is unlimited from a technological point of view“ (WEC).• Mexico has an estimated geothermal electricity potential of at least 8,000 MWe,second in the world only to Indonesia (WEC).• Bioenergy currently supplies 8% of the countrys primary energy consumption, andthere is a raw potential for up to 10 times as much (Sener 2005).• Several border states also offer good wind power potential
United States RE growing apace• Over 14 % of electricity produced in US in thefirst 6 months of 2011 from RE• In 2009 worlds largest producer of electricityfrom geothermal• Solar and wind power abundant• Second only to China in production of RE Solar Potential
Using RE means generation and transmission to the markets.Why does the EU and even Latin America have well developed interconnectionswhen North America still struggles with electrical integration?It can be done
European Network of Transmission System Operators for Electricity (ENTSO-E)• Members from 34 different countries collaborating• Recognition of the emergence of the internal electricity market within the EU• Plans for a SuperGrid HVDC Interconnections in EU
Latin American Grid ( SIEPAC) Panama Costa Rica Honduras Nicaragua El Salvador Guatemala• Create a competitive energy market• Alleviate periodic power shortages• Reduce operating costs• Optimize shared use of HEP• Attract foreign investment
Renewable energy can get around the intermittency problem by… • Having big enough sources and markets • Bundling of RE generation sources • Working with lower emission Natural Gas Turbines • Developments in storage technologyRE lends itself to Smartening the grid, with improvements in forecasting and planning.
Selected U.S. Energy OptionsThe size of each bubble represents one view of how much energy the option could deliver (or offset) in 2025 given a modest policy driver.
U.S. Electricity Imports / Exports to Mexico and Canada, 1998 – 2009 (MWhr) 2,500,000 2,000,000 MWhr 1,500,000 1,000,000 Imports Exports 500,000 0 2009 2008 2007 2006 2005 2004Mexico 2003 2002 2001 2000 Year 1999
U.S. Electricity Imports / Exports to Mexico and Canada, 1998 – 2009 (MWhr) 60,000,000 50,000,000 40,000,000 MWhr 30,000,000 IMPORTS 20,000,000 EXPORTS 10,000,000 0 2009 2008 2007 2006 2005 2004Canada 2003 2002 2001 2000 1999 Year
Government as a driver for new technologies?• Government involvement in aerospace technology has had much success (i.e. Air Force to Commercial Airline Industry)• Government pushes, finances, develops, and deploys demonstrably successful technologies.• Industry then adopts proven technologies DOD pledged to draw 25% of its energy from RE by 2025 Navy will purchase enough clean energy capacity to power 250,000 homes a year
RE is a Growth SectorRecent US statistics show 8.3% unemployment (Jan 2012)Solar Power•2009 to 2010 100% increase in jobs. 50,000 to 100,000.•2011 expected increase 26%.GeothermalIn 2011 500 to 700 MW of new geothermal projects in the country.3,000 jobsBiofuel:Jobs created in 2nd and 3rd generation biofuels will be 29,000 in 2012(190,000 by 2022)*Comprehensive data on ‘green jobs’ available from DOL in 2013
Protecting Persian Gulf oil costs U.S. $50 bn. annually (est.)In other words a $50 per barrel subsidy
Economic Benefit of Targeted Subsidies and Regulation RE Research Subsidy RE Production Subsidy RPS Carbon Tax 0 0.5 1 1.5 2 2.5 3 Economic Benefit of Targeted Subsidies and Regulation* Fischer Newell (2007)
CEC examines air pollution from North America’s 3,000 fossil-fuel power plantsFossil fuel-burning power plants produce 2/3 of the region’s electricityAnd emit more GHG than any other industrial sector.
People’s Current Perceptions on Different Fuels Solar Wind Good for Environment CoalNuclear 0% 20% 40% 60% 80%
Peoples Concern over Climate Change Serious Problem 36% Action Now 35% More Research 21% Dont believe 7%
People’s willingness to pay for Carbon Reductions35%30%25% 3% extra for 4% CO2 Decrease20%15% 9% extra for 9.5% CO2 Decrease10% 21% extra for 9.5% CO2 Decrease5%0%
Is Jobs vs. Environment a conflict when we consider RE? NIMBY Challenges Local municipalities, environmental groups, and others may oppose RE sites and transmission lines Can lead to costly delays that potentially impact grid reliability Overall regional or national benefits may be obscured These group’s concerns need to be addressed during the pre-application phase in order to ensure a smooth process
Grid BlackoutsMore Than 2 Million Without Power AfterEarly NE SnowstormOctober 31, 2011Texas weathers rolling blackouts as mercury dropsFebruary 2, 2011Mass blackout hits California, Arizona and MexicoMajor power outage cuts electricity to up to 5 million people, bringing San Diegoand Tijuana to standstill Sept 9 2011
In light of recent blackouts is it now time to invest in a robust Smart Grid? Current and possible grid connections in SW U.S. & NW Mexico
Canada – U.S. Electricity Grid OverviewThe North American electricity market is deeply integrated across national bordersElectricity flows between Canadian provinces and U.S. exceed interprovincial power transfersImportant for balancing loads and managing reliability in both countriesA trading relationship exists where both countries benefit from seasonal differences inelectricity demand and a more widely diversified generation resource mixSubstantial integration also in management and oversight of the electricity systemCommon interest in understanding and addressing key policy and market trends, including:increasing supply of clean energy and associated transmission; load management, demandresponse, and energy storage; and smart grid technologies.
Smart GridPOWER SYSTEM FACTSToday’s electricity system is 99.97% reliable.Yet power outages and interruptions cost at least $150 billion annually— about $500 for every U.S. man, woman and child.
Smart Grid POWER SYSTEM FACTSAVERAGE COST FOR 1 HOUR OF POWER INTERRUPTION INDUSTRY AMOUNT Cellular communications $41,000 Telephone ticket sales $72,000 Airline reservation system $90,000 Semiconductor manufacturer $2,000,000 Credit card operation $2,580,000 Brokerage operation $6,480,000
Smart Grid POWER SYSTEM FACTSIn the US, the average generating station was built in the 1960susing even older technology.Today, the average age of a substation transformer is 42,2 more than their expected life span.
Smart GridUpdating early 20C technology that is overtaxed and growing in size,scale and complexity every day.Computerized grid, two-way digital communicationCentralized control and automationTitle XIII of the Energy Independence and Security Act of 2007 (EISA)• DOE leads grid modernization efforts
Smart GridStakeholder Objectives•Operating resiliently against physical and cyber attack•Self-healing•Participation by consumers in demand response•Accommodating all generation and storage options•Enabling new products, services, and markets•Optimizing assets and operating efficiently
Smart Grid CanadaHighly interconnected with the U.S. system (33 high voltage power lines)-- need for further collaborationGrowing number of highly specialized Canadian & U.S companies present in the market.-- need for standardization and coordination of the regulatory framework with other markets, especially North America
Smart Grid (cont’d)
“Short term: A smarter grid will function moreefficiently, delivering high levels of service affordably, in anera of rising costs. Offering considerable societal benefits –such as less impact on our environment.Longer term: The Smart Grid will spur the kind oftransformation that the internet has already brought to theway we live, work, and learn.” (DOE)
Specific collaboration on the Smart Grid started in 2009 amongEFC Electro Federation Canada (Canada)NEMA National Electrical Manufacturers Association (U.S.)CANEMA (Mexico).
Regional and InternationalCollaborations and Initiatives
NAEWG Canada-US-Mexico• Cooperation in energy-efficiency policies• Reduce the costs of compliance with standards• Transform regional market for energy-efficient products• Identifying opportunities for long-term harmonization• Analyzing the commonalities and differences• Cooperation in voluntary endorsement labeling programs (e.g., Energy StarÂ®)
United States Brazil Canada Chile Costa Rica Mexico Peru Trinidad and Tobago Argentina Colombia DominicaFoster partnerships across the Americas to achieve low carbon economic growth anddevelopmentGovernments may lead on a voluntary basis, multi-country or bilateral initiatives • Public Private Partnerships (P3) • Organization of American States (OAS) • Inter-American Development Bank (IDB) • Latin American Energy Organization (OLADE) • World Bank • Academia
InitiativesEnergy Efficiency: Best policy practices in developing building codes and other standards, energy audits.Renewable Energy: Project Support Policy Dialogues, Scientific Collaboration,best practices on land use management.Energy Infrastructure: Foster modernized, integrated, and more resilient energyinfrastructure, particularly electrical grids and gas pipelines.Energy Poverty: Promote sustainable urban development and improve access to modern cleanenergy services in rural areas.Sustainable Forests and Land Use: Reduce emissions from deforestation and forestdegradation, and enhance carbon sequestration in the land use sector, including through theconservation and sustainable management of forests.Adaptation: Assist vulnerable countries and communities with strategies to understand andreduce their vulnerabilities to the impacts of climate change.
CEDA President Barack Obama and Prime Minister Stephen Harper agreement that a newClean Energy Economy is a key element of joint broader economic recovery andreinvestment efforts between the United States and Canada.Expanding clean energy R&D, developing and deploying new technology, building amore efficient electricity grid based on clean energy and REEnergy trade between the countries is a pathway to achieving RE and GHG emissiongoals.Working Groups will focus on the following:U.S.-Canada Carbon Capture and Storage (CCS) CollaborationA More Efficient Electricity Grid based on Clean and Renewable GenerationClean Energy Research, Development and Deployment Framework and Roadmap
Council of State Governors2011 CSG met to promote interstate compacts that will accommodate all playersin the siting process for electrical transmission• Streamline and standardize application ,filing, review and decision making process• Allow States to consider regional benefits• Promote regional collaboration and public input in siting applications• Preserve state sovereignty under EPACT 2005• Create forum for federal agencies and tribes to become involved early in the process
Est. May 2008 WREZ Zones) (Western Renewable Energy 2 Canadian provinces1. Identify Quality Resource Areas (QRA)2. Strengthen economic growth3. Promote energy price stability4. Mitigate environmental impact 11 U.S. states.5. Maximize reliability6. Diversify energy supplies Areas in N. Mexico.