Taking charge – By Canadian Renewable Energy Association

Taking charge

By Robert Hornung

ELECTRICITY CONSUMERS WANT MORE RENEWABLE ENERGY

Wind energy, solar energy, and energy storage, working together, will be at the core of Canada’s energy transition. One key reason for this is the fact that electricity consumers—corporations, governments, households, and small businesses—have an increasing interest in renewable energy. Why renewables? They offer a mix of low costs, important environmental benefits, and increased energy independence.

CORPORATIONS: AN EMERGING DRIVER OF RENEWABLE-ENERGY GROWTH

A growing number of corporations are prioritizing the reduction of greenhouse-gas emissions within their environmental, social and governance (ESG) strategies and taking steps to ensure the electricity they use is generated by non-emitting sources, like wind and solar energy.

To that end, companies are signing power-purchase agreements (PPAs) with renewable-energy providers. PPAs are long-term agreements through which commercial or industrial customers buy renewable power from renewable generators at an agreed-upon price. “Renewable power,” in this case, can include both the renewable attribute (either an offset or a credit) and the electricity itself.

Where there is no option to purchase renewable energy, corporations may purchase renewable attributes produced elsewhere, and by doing so, enable more renewable power production.

In 2015, corporate PPAs facilitated the deployment of 4.7 GW of new renewable energy worldwide. By 2020, that number had increased to 23.7 GW – more than Canada’s total installed wind and solar energy capacity.

Globally, more than 300 leading companies have come together as RE100 to signal their commitment to 100 per cent renewable electricity. According to Bloomberg New Energy Finance, these RE100 members will need to purchase 93 GW of renewable energy in 2030 just to meet their existing commitments.

THIS TREND IS EVIDENT IN CANADA, BUT ON A SMALLER SCALE

Since 2020, Alberta’s deregulated electricity market has seen a flurry of new deal announcements, including PPA contracts involving CanREA members, stimulating about 1,500 MW of new wind and solar energy development, according to Business Renewables Centre-Canada.

Regulated electricity markets are also responding to growing corporate demand for renewables. The Green Choice Program in Nova Scotia, for instance, will enable government, businesses, and institutions to purchase new wind and solar energy.

Indeed, a growing number of utilities are now offering renewable-energy options for consumers in different parts of the country.

In addition to corporations, a growing number of municipal, provincial, and federal governments are also looking to sign PPAs for renewable energy. For example, the City of Edmonton is now looking to sign such agreements

to meet its electricity needs with wind and solar energy.

MORE POTENTIAL FOR GROWTH: DISTRIBUTED ENERGY RESOURCES

Distributed energy resources are poised to provide increased opportunities for homeowners and small businesses to demand onsite renewable-energy generation. Indeed, such consumers have already enabled 190 MW of net-metered solar photovoltaics (PV) to be deployed across Canada.

While consumers may show an interest in distributed energy resources (DERs) for their economic and environmental benefits, these technologies can also enable them to become “prosumers.” By PRO-ducing the energy they con-SUME, they can take charge of the way they power their households and technologies, including electric vehicles. This can increase their energy, security, and independence. Governments and utilities are also exploring the potential opportunities for DERs to provide system benefits as well. DER technologies, such as rooftop PV systems, heat pumps, electric vehicle (EV) chargers and batteries, can all be bundled into virtual power plants (VPPs) that can provide valuable grid-balancing services, in addition to meeting the needs of on-site consumers. This can help reduce the need for investments in new generation and transmission and distribution infrastructure, reducing the cost of the electricity system as a whole.

Consumer interest in wind and solar energy is emerging as an important driver for renewableenergy deployment. Increasing public concern about climate change coupled with the economic and environmental benefits of these technologies ensure that consumer demand for these technologies will only accelerate going forward.

CanREA’S VISION

In a series of posts on CanREA’s 2050 Vision, we have argued that wind energy, solar energy and energy storage will be at the core of Canada’s energy transition for five key reasons: 1. These technologies represent the most affordable path forward for

Canada’s electricity system.

2. They offer many important economic benefits, such as good stable jobs and investment in rural communities.

3. They enable Canada to combat climate change, the most significant environmental challenge of our time.

4. They will help provide reliable solutions for Canada’s energy future.

5. Consumers are increasingly demanding them.

Read the full series at CanREA’s 2050 Vision at www.renewablesassociation.com.