Energy Plan - Government of Newfoundland and Labrador

POLICY
ACTIONS
Gas–to–Wire
The Government of
Newfoundland and Labrador will:
• Explore options for gas-towire
generation and delivery.
POLICY
ACTIONS
Other Generation
Technologies
The Government of
Newfoundland and Labrador will:
• Pursue other generation
opportunities when they
are technologically and
economically feasible.
• Develop and implement a
net metering policy for small
generation developers.
• Encourage exploration and
development of our uranium
resources.
Gas–to–Wire
(Natural Gas–Fired Generation)
When natural gas is produced from our offshore it could be transported to
customers, either as gas in a pipeline, as gas in a Compressed Natural Gas
(CNG) tanker, or as a liquid in a Liquefied Natural Gas (LNG) tanker. Landed in
the province, it could be used to make electricity, which can then be transported
to domestic and external markets by transmission lines. This process is known
as gas-to-wire. Natural gas-fired generation can be significantly more efficient
than systems fuelled by coal or, like Holyrood, heavy fuel oil and produce far less
GHGs and other emissions. If natural gas can replace these other fuels, it will
yield significant environmental benefits. Section 3 of this Energy Plan stated
that the Provincial Government will request companies complete an analysis of
landing gas options prior to submitting a Development Plan.
The economic feasibility of gas-to-wire will depend on a variety of factors, such as
the total cost of producing, delivering and converting gas to electricity, compared
to the current market value of electricity in the targeted marketplace.
Other Generation Technologies
A number of other technologies, including gas cogeneration (using natural
gas from offshore or, on a smaller scale, methane recovered from landfills),
cogeneration, biomass (wood), peat, tidal, small-scale wind, solar power and
micro-hydro, might be able to contribute to our electrical supply. Some of
these, notably cogeneration, are mature alternatives. Others are still in the
developmental stages. Long-term business cases are required to support their
use and they are highly sensitive to the sale price of the electricity. Together,
they offer the potential to supplement our renewable electricity portfolio.
Some homeowners and small business operators have requested permission
to install small generation units to produce power for themselves with the
ability to feed some back into the system when they can produce more than
they need. The Provincial Government will ensure that regulatory support is in
place for customers who wish to develop these alternatives themselves on a
small scale, through a net metering policy. NLH and Newfoundland Power have
told Government they will make a joint proposal to the PUB to implement net
metering for small-scale renewable energy sources, with due regard for safety,
the environment and the community.
Since electricity prices, and therefore the economic feasibility of these other
generation technologies, will be strongly influenced by the availability of power
from the Lower Churchill, Provincial Government support for these alternatives
will be limited until certainty for the Lower Churchill Project is achieved and the
long-term supply situation is known.
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No role is foreseen for nuclear generation in the province. Even if provincial
legislation prohibiting nuclear generation were not in place, more cost-effective
and flexible hydro alternatives are already available to us and are well understood.
This does not diminish the value of the province’s uranium deposits for export.
Nuclear generation is enjoying a renaissance and can be more attractive than fossil
fuel generation in many markets. New nuclear plants are under consideration in
many parts of the world, driving ongoing demand for uranium ore.