Alberta Renewable Energy Alliance

Recommendation 1       

By 2020, power generation in Alberta provided by renewable energy should by increased from the current (2015) 10% to 20% to achieve cumulative GHG reductions of 40 megatonnes CO2e;

This action will create more than 17,000 new  local diversified jobs in a burgeoning energy sector across Alberta. 

Recommendation 2

By 2020, coal power capacityshould be reduced by 40% from 6,271 MW to 3,684 MW by closing 40 year old units to achieve a 25% reduction in electricity grid emissions from the current 53 megatonnes CO2e/year to 40 megatonnes CO2e/year in 2020 (this estimate includes GHG emissions from both coal and natural gas power generation);

This action will also yield a significant reduction in impacts to health from criteria air contaminants SO2, NOx, mercury and particulate matter.

Recommendation 3

A carbon dioxide levy on industrial emitters exceeding 50,000 tonnes CO2e per year should be escalated each year until 2020 as follows:

On January 1, 2018 a levy of $40.00 / tonne CO2e on emissions exceeding a reduction of 25% below 2007 baseline emissions  (equivalent to $10.00 per total tonne CO2e);

On January 1, 2019 a levy of $40.00 / tonne CO2e on emissions exceeding a reduction of 40% below 2007 baseline emissions  (equivalent to $16.00 per total tonne CO2e);

On January 1, 2020 a levy of $50.00 / tonne CO2e on emissions exceeding a reduction of 50% below 2007 baseline emissions  (equivalent to $25.00 per total tonne CO2e).

This annual action will progressively increase emission fees which should be appropriated to advance  energy efficiency and renewable and ecologically sound power generation.

(SGER levy in 2015 was $15.00 / tonne CO2e on emissions exceeding a reduction of 12% below baseline emissions  (equivalent to $1.80 per total tonne CO2e).

(SGER levy in 2016 was increased to $20.00 / tonne CO2e on emissions exceeding a reduction of 15% below baseline emissions  (equivalent to $3.00 per total tonne CO2e).

(SGER levy in 2017 was increased to $30.00 / tonne CO2e on emissions exceeding a reduction of 20% below baseline emissions  (equivalent to $6.00 per total tonne CO2e).

Recommendation 4 

Industrial scale renewable generation (e.g. > 1.0 megawatt) participating in the Power Pool should receive a higher price for:

• 1. the quality of the electricity (low emissions of pollutants = higher value);
• 2. proximity to load (reduced transmission costs and losses = higher value);
• 3. time of generation (on peak availability = higher value);
• 4. dispatchability (immediate response to demand load = higher value).
•     (RECs or Renewable Energy Credits could be awarded for the low emissions during generation, but should also be valued differentially for 'proximity', 'on-peak' and 'dispatchability'.  For example: roof top solar power generation should be valued more highly than a remote wind farm requiring transmission infrastructure) 

          OR

• Differential carbon dioxide 'offset' premiums, in addition to the Alberta pool price, and which reflect the above qualities;
• premiums should be set such that equity payback on technology investment is less than ten years, or yield an internal rate of return ranging  between 5% to 8%.

Premiums should be paid from a dedicated fund (similar to the CCEMF) accruing revenues through emission fees  on all final emitters exceeding 50,000 tonnes CO2e per year. 

Recommendation 5 

A '20,000 Solar Rooftops by 2020' initiative should be promoted by government/s whereby 20,000 Photovoltaic systems (average capacity of 3 kWdc) will be installed across Alberta by 2020.  The five year programme should be supported via a $1.00 per installed Watt rebate;  $60 Million over five years will foster a $200 Million investment in the nascent solar industry and create exponential job growth.    

Recommendation 6 

By 2020, the following Renewable Energy technologies should be ADDED to the electricity system:  

                                                 Capacity (MW)           Investment ($millions)

     Wind                                  2,000                           $4,000

     Solar Electricity                 800                              $2,000

     Energy Storage                 200                              $500

     Bioenergy                         150                               $600  

     Small Hydro                      50                                $250

     Geothermal                      30                                 $150

                             TOTAL       3,230                           $7,500