Promoting Green Power in Canada - Centre for Human Settlements

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Promoting Green Power in Canada Pollution Probe6.2 Other Government-FundedSupport MeasuresR&D support should be given in similaramounts as is happening in other countries.The United States provides an annualresearch budget of US$420 million forrenewables. The U.K.’s annual R&D budget isabout C$50 million a year, and Germany’sabout C$90 million (see Table 4.11). Basedon population, Canada should strive to havea budget of between $25 and 40 million ayear for renewable power technologies tomatch the countries leading the renewablepower field. Chapters 4.5.2 and 4.7.2 alsoconsider fiscal changes, such as the inclusionof capital investments in the CanadianRenewable Conservation Expense. As it isreasonable to assume that no significantinvestments would take place without anincentive, the incentive should not beviewed as a tax loss; rather, it will yield taxincome in the long run, after the incentiveruns out.152
Promoting Green Power in Canada Pollution Probe7. Greenhouse Gas Reduction Relevance ofProposals MadeTable 7.1 shows how the RenewablePortfolio Standard discussed in this studycould contribute to Canada’s national GHGreduction goals. Based on Table 4.17, thebaseline scenario assumes that newgeneration will be added with a share ofabout 50% for natural gas, one-third for largehydro and 10% for coal-based technology.Taking into account that the Wind PowerProduction Incentive is supposed to bring1,000 MW of wind power generation on-lineover the coming 5 years, and assuming thattwice this capacity of new non-large hydrorenewables will be added due to voluntaryinitiatives, such as Hydro Québec’s 1,200MW program, and green power programs, itis assumed that 3,000 MW of newrenewables are added to the grid by 2010under the base scenario, and another 4,000MW by 2020. For the RPS scenario, therenewables shares given in Table 4.23 wereused. For both scenarios, they are assumedto displace all conventional projects equally,weighted according to their share of addedgeneration in Table 4.17. For more data andassumptions used for this table, seeAppendix G.Whereas total CO 2emissions under the RPSscenario would still increase due to growingelectricity demand and the fact that morethan half of newly added capacities will benatural gas-based, the accelerated growth ofnon-large hydro renewables can reduce theTable 7.1 — Expected Reduction in CO 2 Emissions from the Implementation of theProposed RPSYear 2000 2010 2020Projected Electricity Demand [TWh] 600 705 820Base Scenario Electricity Hydro 61 56.7 53background Coal 17 16 15mix [%] Oil 7 6 5Natural Gas 3.6 10.5 16Nuclear 10 8.5 7.3Renewables 1.4 2.4 3.7Electricity Sector CO 2emissions 145 Mt 178 Mt 212 MtRPS Scenario Electricity Hydro 61 55.6 49.6background Coal 17 15.6 14mix [%] Oil 7 6 5Natural Gas 3.6 8.9 10.8Nuclear 10 8.5 7.3Renewables 1.4 5.8 13.5Electricity Sector CO 2emissions 145 Mt 171 Mt 187 MtCO 2Emission Reduction 0 Mt 7 Mt 25 Mt153
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