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 40,000 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

The SGER (Specified Gas Emitters Regulation) 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 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 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 baseline emissions  (equivalent to $25.00 per total tonne CO2e).

This annual action will progressively increase emission fees which should be appropriated to advance 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 SGER 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