Promoting Green Power in Canada - Centre for Human Settlements

Promoting Green Power in Canada Pollution Probecarry out and therefore requires governmentsupport. Once resources have been assessed,the information gained should be madepublic and can then be used to set targets,make informed investment decisions andhelp identify suitable sites for new projects,paving the way for setting aside areas whereplanning permits can be obtained moreeasily.Probably the most important barrier torenewable power deployment is its price.Figure 4.13 shows how the end consumerprice of renewable electricity can beinfluenced. The main idea is to make extramoney available to renewable electricitygenerators so they can offer their products atlower prices, gaining a bigger market share.Which method to achieve this will beselected usually depends on politicalcircumstances. Whereas all methods worktowards the goal of reducing retail prices,some measures may be unpopular or limitedin their impact, as discussed below. Whether,for example, an SBC is used to raise smallamounts of money, which is then reinvestedinto renewable power, or whether a pricesignal is conveyed by collecting larger amountsthrough a carbon or energy tax in order toinfluence buyers and encourage switching torenewable power products, depends on thescope of measures envisaged by thegovernment.Again, whether support funds are collectedfrom electricity consumers, from all energyconsumers, or simply taken from the overalltax budget, depends on the amounts to beraised and on the general policy context(e.g., the National Climate Change Strategy).The government can collect funds and directthem towards renewable power generators,or power retailers can be made to buyrenewable electricity and recover the extracost for renewable electricity from theircustomers under an RPS or feed-in tariffscheme. In California, the SBC is used toreward green power customers with acustomer credit, which reduces the price theyhave to pay. Other schemes simply try toGreen EnergyGeneratorDirectsubsidiesLoans, productionincentive,grantsFeed-in Tariffs, RPSState AgencyorMinistry of FinanceorPower RetailerCustomercreditGreen premium or green tag purchaseCarbon taxSBC,energytaxhigherprices*General taxes* due to RPS orfeed-in tariffsTaxpayersEnergy ConsumersPower ConsumersGreen PowerCustomersFigure 4.13 — Ways to Influence Green Power Market Prices101