1	Manitoba Sustainable Energy Association Part I Mandate and Activities Presented by: Dave Therrien Les Routledge
2	Mission To promote the use and production of renewable, sustainable, environmentally friendly energy sources within Manitoba The organization has been developed at the request of several groups that have been working in the renewable energy field to bring a unified voice to the policy makers of the province Will work in collaboration with partner organizations outside of Manitoba
3	Mandate (1 of 4) Act as an Advocate for Manitoba Stakeholder Groups Landowners Municipalities / municipal development organizations Sustainable energy producers Sustainable energy consumers
4	Mandate (2 of 4) Advocate for Improved Zoning, Assessment and Incentive Policies Clarify permitting and development approval process to provide more certainty in process Work to ensure Manitoba offers competitive property tax rates Identify opportunities to provide incentives that stimulate investment in the production and use of renewable energy
5	Mandate (3 of 4) Encourage the development of a business environment that maximizes investment in renewable energy in Manitoba Reduce complications and uncertainty associated with producing and marketing renewable energy Streamline environmental assessment permitting process Avoid duplication Promote adoption of Advanced Renewable Tariffs
6	Mandate (4 of 4) Expand information available to stakeholder groups Host conferences and public education events Create wind data resource models like Minnesota and Ontario Model contracts for land owners Encourage public-private partnership models for municipalities Certify branded sustainable energy products for consumers
7	Part II Advanced Renewable Tariffs (Standard Offer Contracts)
8	Advanced Renewable Tariffs Can Power Manitoba Renewable Energy Development
9	Renewable Tariffs The Philosophical Context
10	1. Do We Want Renewables? Peak Oil, Peak Gas Marginal Costs Higher Than Embedded Costs Nuclear Problematic Ontario, New Brunswick? Coal, Kyoto, Climate Catastrophe France & Italy, 2003; 25,000 Dead Public Support High Large Crowds of Farmers in Ontario Desire for New Manufacturing Jobs
11	2. If Yes, Then What Works Best? How To Get Contracts Negotiated Tendered Standard Offers (Open) Who Gets Contracts Elite Few, or All Who Want Them? How To Pay For Them RECs/ROCs/Green Tags Capital or Production Subsidies PTC or WPPI Renewable Tariffs
12	3. If We Use a Market Model, Then You Get What You Pay For If You Want It You Must Pay For It Difference Between Cost & Price The Margin Determines Rate of Growth High or “Premium” Prices Deliver More Generation More Quickly More Manufacturing . . . And Jobs
13	Why the European Success? #1 Public Involvement Germany & Denmark #2 Advanced Renewable Tariffs 16 EU Countries use Advanced Renewable Tariffs
14	What Has Worked in Europe What Works Advanced Renewable Tariffs (ARTs) Proof is in the Market ARTs Markets = Many Players Quota Markets = Few Players RFP Markets = No Manufacturers
15	Benefits of Advanced Renewable Tariffs Creates Dynamic Markets Ensures Price Stability Encourages Manufacturing Offers Opportunity to Many Players Farmers (New Cash Crop) Communities Co-ops Wind Companies
16	Mechanics of Advanced Renewable Tariffs What Are They? Political Price, Not Political Amount/Quota Simple Contracts How Do They Work? Simple & Comprehensible Little Administration Where?
17	Renewable Energy Tariffs Status
18	Political Price-Political Amount Markets
19	Political Price (ARTs) & Political Amount (RPS)* for Fossil Fuels Renewables Fuel is Commodity Priced on World Market Generation Costs Are a Function of Fuel Price Efficiency of Operation
20	Renewable Tariff Design Simple, Comprehensible, & Transparent Simplified Interconnection Prices Sufficient to Drive Development Lengths Sufficient for Profitability Prices Differentiated by Technology Prices Differentiated by Resource Wind, biogas, biomass, small hydro, solar, etc
21	Advanced Renewable Tariffs Momentum in North America Prince Edward Island (Canada) Washington State (PV) Minnesota C-BED Oregon PUC California (PV) Ontario (<10 MW) Desire for Manufacturing Jobs Awareness That ARTs Deliver
22	Ontario Market Example
23	Advanced Renewable Tariffs in Canada Ontario Liberal Party Nov, 2004 Ontario Premier Dalton McGuinty September 14, 2005 Ontario Green Party Oct, 2005 National Farmers Union, 2004 Great Lakes United (NGO) BCWEA, CanWEA, CanSIA, BCSEA
24	Ontario Market Example OSEA study of Advanced Renewable Tariffs “The maximum cost to Ontario ratepayers is expected to be $.00050 (approx. five one hundreth of a cent) per kilowatt-hour from 1,000 MW of wind generating capacity in year 20.” Recommended tariffs for wind, small-hydro, bio-mass and solar Recommended interconnection to the distribution grid and a maximum size of 10 MW
25	OSEA Price Estimates
26	German Market Example
27	German Market Example Markets Work Best When Many Transactions Transactions Transparent Free Flow of Information Many Suppliers Many Buyers
28	German Market Example Thousands of Transaction per Year Many Magazines & Public Reports Turbine Prices Public Performance Public 4 Major Suppliers, 4+ Minor Suppliers Farmers, Co-ops, & Wind Cos
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30	Germany’s Renewable Tariffs The Results (2 of 2) 110,000 PV Installations 1,600 Biogas Plants 6,000 Hydro Plants 15,000 Wind Turbines Total of 130,000 Generators!
31	Renewable Tariffs & Solar Energy in Germany
32	German Wind Tariffs Reference Yield Method
33	French Wind Tariffs Profitability Index Method
34	Wind Energy Prices Paid in Europe Highest Initial Prices Not Always from Renewable Tariffs Britain, Italy Spain’s Renewable Tariff Low Relative to Quota Markets Britain, Italy
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36	Why Community Power? More Acceptance More Money Locally More Jobs Locally A September 2004 US study found that local ownership of wind systems would generate an average of 2.3 times more jobs and 3.1 times more local dollar impact compared to "out of area" ownership. For example, a single 40 MW project built in Pipestone County, Minnesota, would generate about $650,000 in new income for the county annually. In contrast, 20 locally owned projects at 2 MW each (40 MW total) would generate about $3.3 million annually in the same county.
37	Increasing Acceptance #1 “Your Own Pigs Don’t Stink”
38	Danish Co-ops (Vindmølleaug or Fællesmølle) 1/4 Capacity Nationwide ~ $1.7CAD Billion 100,000 Households Own Shares 5% of Population
39	German Co-ops (Bürgerbeteiligung) 1/3 Total Capacity ~$7CAD Billion 300,000 Own Shares 2/3 Schleswig-Holstein 4/5 Nordfriesland Amt
40	Minnesota Minwind Initially 4 MW Farmer’s cooperative $5000/share 66 owners 85% farmers, 100% local Individuals limited to <15% ownership Success led to 11.5 MW expansion and 200 additional local owners
41	Sydthy Kabelaug Denmark 16 km of Buried Cable Direct to HV Network 26 x V27s (225 kW) ~1 Million kWh/unit Mostly Pig Farmers
42	Middelgrunden Co-op København 20 x 2 MW Off-shore 1/2 Owned by Co-op 1/2 Owned by Utility 8,500 Investors ~$1,000CAD per Share Visible from Folketing
43	Paderborn Co-op Germany 4 Wind Plants 17 Companies 80 x 1.5 MW 110 MW $240CAD Million 780 ha (2,000 ac) All Companies Local All Pay Local Taxes
44	Wieringemeer Noord Holland 5 x 600 kW Co-owned 1/2 by Two Farmers 1/4 by Manufacturer 1/4 by Utility
45	Toronto WindShare First Urban Turbine in N.A. Co-Owned WindShare Co-op Toronto Hydro Prominent Location Highly Visible Highly Popular
46	ManSEA ART Approach (1 of 3) Start with projects under 10 MW Initially allocate 50 MW Interconnect with distribution grid Cost of network upgrades paid for in general tariffs (implemented in Alberta, proposed in Ontario) Expand over time Differential by technology Wind, small hydro, bio-gas, bio-mass Encourage local investment / participation Capture externalities in tariff rate Environmental, social, economic What cost is social conflict?
47	ManSEA ART Approach (2 of 3) Commission a policy discussion paper by electrical energy experts to examine ARTs in Manitoba Identify policy options to expand sustainable electrical energy production in Manitoba Examine successful models from other jurisdictions Identify made-in-Manitoba opportunities E.g. bio-gas capture from livestock production and processing linked with new Pork plant announced for Winnipeg Serve as a base to form a policy development agenda for the organization Coordinate with other provinces and organizations CANWEA, Quebec, BC, C-BED/Minnesota
48	ManSEA ART Approach (3 of 3) Capture externalities in the tariff rate Example – biogas capture Environmental benefits Improved air quality, decrease nutrient load of surface waters Social benefits Decrease conflict associated with new facility permitting process Economic Reduction of value of neighbouring residential properties
49	Moving Forward ManSEA invites other organizations to partner with us to commission research efforts Manitoba provincial government MEIA and other industry organizations AMM / municipalities / municipal development corporations KAP, Manitoba Pork, MCPA, Dairy Producers
50	For More Information www.mansea.org Please join us to create a sustainable energy future in Manitoba