Shades of Green

October 1, 2009

Canada’s power generation sector is a complicated mix of manufacturing, politics, and economics, and there are champions and naysayers for each type of energy-creating technology.

Hydroelectric power generation is so ingrained in the daily life of most Canadians that electricity bills are commonly referred to as “hydro” bills. However, emerging technologies, especially the so-called “green” technologies, are poised to enter the market and, more importantly, enter the grid.

In Ontario it’s hard to point to an energy source that is more important than nuclear. In Quebec, however, the same can be said for hydroelectric power. When wind and solar energy enter the equation, we get the opportunity to take advantage of yet more of our country’s natural resources.

The Nuclear Question

Is nuclear energy green? Short answer: No.

Nuclear power generation is reliant on a raw material (such as uranium) that will eventually run out, produces waste, and is potentially hazardous. This means it cannot be viewed as a truly green energy source.

Yet, while many can question how the industry will deal with the disposal of radioactive waste materials, none can question its output. And, according to the World Nuclear Association, radioactive wastes account for less than 1 percent of the total industrial toxic waste produced in countries that use nuclear power.

In addition, the nuclear process emits no pollutants into the atmosphere as occurs during power generation from the burning of fossil fuels.

According to the Centre for Energy™, the nuclear industry in this country is responsible for 21,000 direct jobs, 10,000 indirect jobs, and 40,000 spinoff jobs.

In addition, for every CANDU (CANada Deuterium Uranium) reactor that is exported, the country gains $1.75 billion in GDP growth and what the Organization of CANDU Industries (OCI) calls the equivalent employment impact of an auto plant.

OCI is an industry association whose membership comprises companies that supply goods and services to the nuclear industry both domestically and globally.

“The opportunities in nuclear are very interesting for the nation,” said OCI President Neil Alexander. “In the nuclear industry we are creating a much smaller number of much higher-value components.”

This type of work is easier to source locally than it is from suppliers on the other side of the world.

“Our mandate is to work on behalf of the membership to encourage a healthy industry in Canada,” added Alexander. “We are active in lobbying in a variety ways to provincial and federal governments as well as other potential customers worldwide.”

Some of these customers are the who’s who of nuclear power in this country. Atomic Energy of Canada Limited (AECL), Ontario Power Generation (OPG), and Bruce Power are the major customers in Ontario along with NB Power and Hydro Quebec in those jurisdictions.

According to Alexander, one of the big challenges in the nuclear industry is getting the vendors in touch with the buyers. Because this is nuclear technology, security issues in this industry can be a major hurdle.

“By breaking down some of those barriers we can help vendors get their message across and also allow the buyers to update the industry to what their needs are,” said Alexander. “This year we also started trying to help our membership explore export opportunities to both the existing CANDU plants around the world, but also to other nuclear markets as well.”

Locally, OCI’s membership tends to cluster around the major buyers of the industry.

“Because the buyers are sourcing small quantities of high-quality parts, they want to be able to easily visit their suppliers in order to satisfy themselves that the correct quality is being produced,” explained Alexander.

In addition, more inspection and auditing generally occur at these plants to ensure the correct quality is met. This means that the buyers and suppliers must work very closely together, and the tendency usually is that buyers will source these parts from suppliers that are nearby. It’s not only more cost-effective, but easier from a logistics standpoint.

Canada Versus the World

With 50 percent of its generated power coming from nuclear plants, Ontario has more nuclear capacity than most countries in the developed world. However, when you expand that focus to include the rest of the provinces, Canada falls well short. France, for example, gets 90 percent of its energy from nuclear power.

With hundreds of new nuclear plants currently in the planning stages around the world, there is a huge opportunity for Canada not only as a nuclear plant vendor, but also as a nuclear-capable nation to sell goods and services for other reactor designs.

“The issue is very much whether or not we are going to stay in a leadership position in the world in this field,” said Alexander. “Around the world we are seeing a renaissance taking place in the nuclear industry following a very quiet period, in terms of new plant orders through the 1980s and 1990s.”

While the barriers to entry into the nuclear industry are fairly high, a commitment to effort and investment can help open the doors.

“Once you are in the industry and have the buyers’ trust, you have a competitive advantage because there are not a lot of companies doing this work,” he added.

Record Year for Wind

Prior to its annual conference, the Canadian Wind Energy Association (CanWEA) announced that 2009 will be a record year for wind energy development in Canada with new capacity from wind energy projects totaling 790 MW.

By year’s end, Canada will have 3,159 MW of installed capacity – with wind developments operating in every province for the first time ever.

Canada ranks 12th in the world for installed wind energy capacity and percentage of electricity generated from wind. Wind currently supplies about 1 percent of Canada’s electricity demand, enough power to meet the needs of 860,000 homes.

“We are proud that wind energy development has been able to provide economic stimulus to the Canadian economy at a record rate during a time of economic challenge,” said CanWEA President Robert Hornung. “Canada’s wind energy industry is one step closer to reaching its goal of providing 20 percent of the country’s electricity needs by 2025. Achieving this goal will generate about $80 billion in investment, create more than 50,000 new jobs, and provide economic development opportunities for rural communities throughout Canada.”

Ontario’s provincial government has plans to proceed with major transmission system upgrades across the province, in support of both the Green Energy and Green Economy Acts.

This plan will greatly enhance the ability for wind energy projects to be integrated into Ontario’s grid and allow for more green energy to be distributed across the province. It will also create an estimated 20,000 jobs and $2.3 billion in investment over the next three years, according to CanWEA.

“We welcome the Ontario government’s plan to upgrade this province’s electricity grid,” said Hornung. “This is a huge boost to the continued development of wind energy as a viable renewable energy source in Ontario. This plan opens the door for the wind industry to grow and create new green economy jobs.”

Solar Power

When it comes to power generation, solar power is one of the least understood providers.

Still in its infancy, solar power is a growing industry both within Canada and worldwide.

“Just because we are a cold country doesn’t mean that we don’t have a great solar resource,” said Elizabeth McDonald, president of the Canadian Solar Industries Association (CanSIA). “We have a better solar resource than many of the European nations that have a much deeper interest in this technology.”

CanSIA represents the interests of the solar industry across Canada in solar photovoltaic (PV), solar thermal, and solar air technology. The principal roles of the organization are to grow the industry and act as a lobbyist in relations with governments and foreign trade representatives.

According to McDonald, at the end of 2008 there were 37.5 MW of solar power generated in Canada, and this number will rise to 137.5 MW by the end of this year. By the end of 2010 we can expect that number to be around 337.5 MW.

Solar energy is very flexible energy source. Not only can it create electricity, but it also can be used to heat water.

Like nuclear and wind power, having local solar power companies provide goods and services to the market is a necessity.

“It’s essential because, at the end of the day, that’s what will help create jobs in this country,” said McDonald. “Obviously, the installer jobs are critical, but the manufacturing jobs are the types of jobs that governments, particularly in this economy, are looking for because they are long term-jobs.”

While there are a few companies that manufacture solar panels and inverters in Canada, more installations here and worldwide will attract more companies.

“Everybody is holding their breath right now, but I know that there are a lot of global manufacturers in this sector looking at Canada, particularly Ontario, as a place to manufacture,” said McDonald. “By having major solar suppliers locating here we can help grow the industry. Also, our proximity to the U.S. market is attractive, too, as a number of states are looking at renewable-energy sources.”

Currently the principal jobs in the solar industry are on the installation side. As acceptance grows, so too will the size of solar installations.

Everyone is familiar with the standard rooftop installation, but solar farms are also popping up around the country. For example, the solar farm in Arnprior, Ont., will produce 40 MW of power and will be one of the largest solar installations in North America. This installation alone will provide enough power for more than 2,000 homes.

In Ontario, Sarnia, Windsor, and Kingston also have plans for solar farm installations.

As the cost of electricity rises, people will be looking at new ways to produce energy and new ways to make money in this industry. Available feed-in tariffs will likely mean that more solar installations will be created.

Feed-in tariffs provide money to those who create an excess of energy from their solar installation and feed that energy back into the grid.

“People think that Canadians are very educated when it comes to understanding energy. But, because we are energy-rich, we often don’t think about it very much,” said McDonald. “The cost of electricity is going up, and this is causing many Canadians to re-examine their energy consumption and choices.”

In the long term, for a flexible energy supply that is local, solar can solve a lot of problems because it can both provide small, unique power solutions and, at the same time, be used to create significant amounts of electricity through solar farms.

“It’s also a nonintrusive technology, and I think it’s where the future will be,” said McDonald.

For more information, visit www.oci-aic.org, www.canwea.ca, and www.cansia.ca.