A Vision and Strategy for BCs Future Renewable Energy Economy

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A Vision and Strategy for BCs Future Renewable
Energy Economy
This short presentation is intended to be a
consensus building tool. .around a bold
vision and strategy for British Columbias future
energy economy within the North American
context. It is an internal working document of
the BC Energy Systems Industry Working Group.
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2009
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BCs Green Energy Potential
British Columbia is one of the few jurisdictions
on earth with the potential for utility scale
energy supply from ALL classes of renewables

• Hydro
• Biomass
• Wind
• Solar
• Geothermal
• Wave / Tidal

coupled with massive energy storage capacity and
a strong base of highly qualified personnel in a
wide range of advanced energy technologies...
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A Word About Definitions
Renewable, Sustainable, Green and Clean
are ALL important descriptors of the emerging new
energy economy
renewable
sustainable
green
clean
We use Renewable and Green in this
presentation BUT we are talking about the WHOLE
ELEPHANT
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BC Industry Working Group
The BC Energy Systems Industry Working Group has
formed in order to develop and recommend
practical strategies to create the conditions
needed to realize BCs green energy potential,
in the context of a common market for
renewables with US states. In short to recommend
a best practices roadmap for renewable energy
investments .

• The Working Group comprises leaders from
• renewable energy supply
• energy transmission
• energy systems developers and operators
• and other key stakeholder groups

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Working Groups Vision

• Renewable Energy Supply and Systems becomes
• a mainstay of British Columbias export economy
• Export of energy
• Export of systems
• Advanced Energy Systems Services

..forging globally competitive industry clusters
generating total employment of over 100,000
jobs and government revenues of over 1 billion /
year by 2020.
Total employment direct (50,000 jobs)
indirect (30,000 jobs through purchase of goods
and services) induced (20,000 jobs as direct
employees spend wages in their communities)
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Global Shift to Green Energy
A Dramatic Global Shift to Green Energy is
Underway Propelled by Unprecedented Public
Sector Stimulus Packages

• Estimated Global Green Energy Stimulus
  packages
• 200 billion in short term investments /
  incentives
• US recovery package
• 50 billion for renewables
• 11 billion for smart grid
• US Goal - 100 increase in renewable energy
  supply capacity in 3 years
• US 10 Year plan - 150 billion in renewable
  energy incentives
• Massive changes in US auto industry generating
  large new markets for high efficiency green
  transportation running on electricity and clean
  fuels
• Renewable Portfolio Standards targets to 2020
  280 PJ (79,000 GWhrs) for the Pacific Coast
  States BCs total current electricity
  generation capacity is 240 PJ

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BCs Major Economic Challenge
To create new export based industry that
generates sufficient high wage employment to
offset increasing losses in the traditional
resource sectors

• BC is a small open economy that relies on
  commodity exports for its standard of living, yet
  it is running a 15 billion trade deficit with
  the rest of the world
• BC is replacing high wage export jobs with low
  wage service employment
• Dramatic drops in the US housing market and
  global commodity prices cuts to the root of BCs
  resource based, export economy

These sectors account for 98.5 of BCs Exports
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Act Decisively and Now
BC could become a major exporter of renewables to
US markets. IF BC can grasp this millennial scale
opportunity.

• The scale of the market opportunity is orders of
  magnitude bigger than anything previously
  contemplated in British Columbia
• US Capital investments in the hundreds of
  billions supply, transmission, distribution and
  advanced energy systems across-the-board
• BC could realistically target 30 billion of
  public / private capital investment over
  5-10years and generate 25,000 jobs in the short
  term and as many as 140,000 in the long term
• But BC must act decisively to access those
  markets or
• US firms, aided by massive subsidies and
  incentives, will speak for the markets, thus
  diminishing opportunities for BC exports
• US states adopting Renewable Portfolio Standards
  will close the door to imports of energy and
  technologies from BC
• Other jurisdictions are acting why not BC?...
  Hydro-Quebec wants to be a world model for the
  safe integration of wind and hydro in a major
  electricity system, said Louis-Olivier Batty
  announcing a 6.5 billion project for hydro with
  concomitant wind investment is aimed at NE US
  markets and driven by Quebec government
  leadership.

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Opportunity for British Columbia
The Potential exists to build a globally
competitive export industry in renewable energy
and advanced energy systems that could exceed the
Provinces traditional resource industries in
export revenues estimated 4 billion / year

• Massive capital investment for renewable energy
  export generates unprecedented opportunities for
  BC prime contractors and energy systems firms.
• BC can become a global centre for the commercial
  scale demonstration of advanced energy systems
  driven by renewable energy exports, smart grid
  developments, distributed energy systems and
  clean transportation
• An almost unrivalled renewable energy portfolio
  and potential
• 500 PJs of renewable electrical power
• 100 PJs of bio-fuels on a sustainable basis
• Massive energy storage capacity (heritage dam
  system)
• Massive established export system and expansion
  potential for clean natural gas
• A base of highly qualified companies and
  personnel 300 small / medium enterprises
• Proximity to some of the largest renewable energy
  markets in the world

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Opportunity for British Columbia
RENEWABLE ENERGY EXPORTS
DOMESTIC ENERGY SYSTEMS UPGRADES AND EXPANSIONS
Domestic Procurement generates markets for energy
systems
Investments in utility scale plants for export of
renewables generate markets for energy systems
Domestic Procurement drives investments in
Demonstrations
MARKETS FOR BC ENERGY SYSTEMS
Demonstrations help generate export markets for
BC advanced energy systems
COMMERCIAL SCALE DEMONSTRATIONS OF ADVANCED
ENERGY SYSTEMS
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Strategic Issues
The opportunities exist and BC has the skills and
resources. What is needed to capitalize on the
situation?

• A coherent strategy for revenue and employment
  generation
• e.g. BCs gateway industries made the case for
  3-4 billion investments in the Pacific Gateway
  driven by expanding Asia Pacific trade.
• Appropriate incentives mechanisms for investment
  in renewable energy export plant and equipment
  e.g. performance based tariffs enshrined in
  legislation, bonds backed by long term purchase
  agreements, incentives subsidies comparable to
  those in the US
• A common market for renewable energy and energy
  systems exports involving BC and US states to
  address protectionism at state level from RPSs
• Ways and means to ensure viable long term power
  purchase agreements with US customers
• a value proposition involving renewables and
  dam storage
• A crown agency whose primary mandate is renewable
  energy and systems both exports and domestic use
  and supply
• BCs forest industries, mining and oil and gas
  sectors all have specialized ministries with
  mandates to act decisively
• Appropriate revenue sharing arrangements between
  energy generators, heritage dam system and
  transmission system from exports of renewables

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Goals

• Renewable electricity supply contracts with the
  US and the rest of Canada totaling 10 billion /
  year by 2020, as a result of a value
  proposition that marries a multiplicity of
  renewable energy generators with the capability
  of BCs heritage dam system
• Renewable fuels exports totaling 1billion / year
  from cellulosic biomass and municipal wastes
• Development of a BC prime contractor base able to
  bid competitively for the advanced energy systems
  deployments necessary to meet the above export
  goals (est. 40 - 60 billion in capital
  investment)
• Establish BC as a global centre for financing
  major renewable energy supply projects Alpha
  Testing, Beta Testing, Critical Mass of HQP,
  Showcasing, Prime Contractors
• Establish BC as the go to place to test and
  demonstrate community scale and utility scale
  renewable energy generation systems
• Build advanced energy systems clusters (c.f.
  Michael Porter) on the basis of renewable energy
  exports and domestic capital investments in
  renewable energy systems and smart grid
  technologies

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Next Steps

• Develop membership of the Working Group to ensure
  necessary connectivity with all key stakeholder
  groups
• Prepare draft strategic discussion paper and
  slide presentation
• Coordinate delegation to FIT discussions in
  Seattle (April 09)
• Section 5 hearing process
• Prepare draft strategic approach for discussion
  with Working Group
• Prepare draft consensus presentation on Section
  5 hearings for discussion with Working Group
• Coordination and presentation of renewable energy
  issues at BC Business Council Outlook Conference
  (June 09)
• Develop and implement an outreach strategy to
  Beta Test recommendations
• Using strategic discussion paper convene
  necessary dialogues / take advantage of
  presentation opportunities
• Use established connections in California,
  Oregon, Washington State to ensure strategies
  developed are effective for US export markets
• Continue to develop Pacific Coast renewable
  industry collaborative and build consensus on
  Common Market for renewables agenda
• Planning and Agenda development for Major Fora /
  Dialogues to discuss strategic plans
• and recommendations with stakeholders (e.g.
  Dialogue at Wosk Centre)

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Structure
WORKING GROUP MEMBERSHIP Day 4 Energy Seabreeze Li
gnol Innovations BC Transmission Corp. TBA Globe
Foundation Sempa Atla Canadian H2 Fuel Cell
Assoc. BC Innovation Council TBA Baron
Group TBA TBA TBA TBA
BUSINESS INTEREST Solar Wind Biomass
Fuels Transmission electricity Natural
Gas International Communications /
Services Hybrid Energy Systems Run-of-river
hydro Fuel Cells and H2 Innovation Policy Prime
Contractor Finance Waste to Energy systems Ocean
energy systems Geothermal Smart Grid
Developments
Industry Working Group Chair Dr. John MacDonald
Secretariat PGEI Cascadia Institute
Keith McPherson Charles Kelly Julian Taylor
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Linkages
KEY STAKEHOLDERS BC Business Council Partnerships
BC Bio-Energy Network Solar industries Wind
industries Ocean energy industries Geothermal
industries UBCM First Nations BC Ministries
Agencies BC Utility Commission BC Hydro Testing
facilities Canadian Federal agencies Pacific
Coast US States California Centre for Energy
Efficiency and renewable Technologies Western
Governors Association WECC Other stakeholders as
may be determined
BROADER NETWORKS
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CONTACT INFORMATION
Keith McPherson. Cell 604 838 4070
e-mail factsbeforepolicy_at_telus.net Charles
Kelly. Cell 604 760 4696 e-mail
Charles.kelly_at_shaw.ca Julian Taylor.Cell 604
916-9087 e-mail jtaylor_at_intustrat.com Website
www.bcpacificgreen.org
Pacific Green Energy Initiative Cascadia
Institute
Suite 1980 1075 West Georgia Street, Vancouver,
British Columbia, V6E3C9
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