A Look at Manitoba Renewable Energy in the Future

April 7, 2011

by Eugene Boittiaux

INTRODUCTION

Today, the province of Manitoba shows great potential toward further development in renewable energy generation and production. The province has a wealth of resources to provide alternatives to non-renewable fossil fuels: feedstocks for biofuels (ethanol, biodiesel, pelletized grass); a climate suitable for geothermal/earth energy residential/commercial heating and cooling; it supplies solar photovoltaic hardware and design and may emerge further yet in the realm of solar photovoltaic; and it possesses significant wind resources province-wide.

 According to Government Manitoba (n.d.):

Manitoba is positioned to become a Canadian leader in renewable-energy production and consumption through decreasing reliance on non-renewable fossil fuels and rising in use of geothermal heat pumps. Today, Manitoba is internationally recognized as a clean-energy leader, ranked as the #1 province in Canada in energy efficiency. Manitoba is leading the country in geothermal heat pump installations, has made dramatic investments in wind power and has the most aggressive biodiesel strategy in Canada.

In Budget 2007, Canada's New Government allocated $2 billion over seven years to support the production of renewable fuels (Agriculture and Agri-Food Canada, 2007). That same year, Premier Gary Doer announced that Canada's New Government intended “to provide Manitoba with $53.8 million as part of the new Canada ecoTrust” (Environment Canada, 2007) to support and stimulate development and expansion towards energy efficiency and green energy production. However, such financial support is just the beginning, and Manitoba has potential to become a bigger player in renewable/green energy production in coming years.

BIOFUELS

An April 13, 2007 release from Agriculture and Agri-Food Canada stated:

The Government of Canada is committed to requiring 5 percent average renewable fuel content in transportation fuels by 2010 and intends to regulate a 2 percent requirement for renewable content in diesel fuel and heating oil by 2012.

With initiatives such as the above-mentioned Manitoba may be needed as a producer of feedstocks, technology, and biofuels to fit increasing market need.

Manitoba has expertise in producing non-toxic, renewable biodiesel fuel made from a variety of sources such as vegetable oilseed crops, animal fats and tallow and it burns cleaner than traditional diesel and requires little or no engine modifications. This material comes from crops such as canola, corn, sunflowers, soybeans as well as tallow oil, derived from wood pulp waste. Manitoba is Canada’s third largest producer of oilseed crops, especially canola. Manitoba has potential sources of feedstock that would support larger scale biodiesel production. (Government Manitoba, n.d.)

Besides biodiesel expertise and a wealth of feedstocks available for biodiesel:

There is huge opportunity in Manitoba for the newest idea in biofuels. It explores the potential of an alternative heating fuel, the combustion of pelletized grass using efficient “gasifier” technology. Using of this fuel source will not only provide alternate markets for farmers, but a much cleaner combustion process than conventional fuels. The most favourable species of grass for this is a Manitoba perennial plant known as “switchgrass.” As a native species, this grass is well adapted to the Manitoba landscapes and requires no energy-intensive annual cultivation.

Currently, Manitoba has well-established technology to pelletize grasses, and much of the transport and storage infrastructure for grain suits biomass energy production. The fuel can be used in commercial and residential boilers and recent figures show that grass-based pelletized biofuels cost about half as much as natural gas. (Government Manitoba, n.d.).

If pelletized grasses come to see demands similar to pelletized wood, which has the same uses, applications, and high demand as an overseas export, Manitoba’s ideal conditions for producing switchgrass may figure highly in the province’s future.

GEOTHERMAL HEATING AND COOLING

Manitoba is a leader in Canadian geothermal heating and cooling. It has ideal conditions - it makes a great deal of sense in Manitoba’s climate provided the initial installation cost is affordable - and financial incentives exist to support that affordability, for both residential and industrial/commercial/institutional installations.

The benefits of geothermal heating and cooling are many. Geothermal as opposed to fossil fuel-based heating/cooling systems can be shown to cut down buildings’ total greenhouse gas emissions in the energy needed to run a building by upwards of 60%. One building makes a difference and multiples of buildings using geothermal even more. One of the most important factors, however, in making geothermal system use a reality for any building is the affordability. Once installed these systems are almost free to run, the only cost being the electricity used to run the heat pump. Systems pay for themselves over time but many potential buyers may find the initial installation cost impractical without financial assistance or incentive. To help, Manitoba has financial incentives available.

The Province of Manitoba offers financial incentives for the installation of geothermal systems, through a refundable tax credit which is retroactive to April 2007; and a provincial grant program effective since January, 2009:

For geothermal installations in new homes, Manitobans can receive up to $3,000 in incentives including a refundable Green Energy Equipment Tax Credit worth about $2,000, and a $1,000 grant for homes in natural gas serviced areas of the Province.

For conversions to geothermal in existing homes, Manitobans can receive a refundable Green Energy Tax Credit worth about $2,000 from the Province of Manitoba.

Owners of commercial buildings and apartments may be eligible to receive up to 10 per cent of the value of their installed systems.

Building owners who install new district geothermal service systems may be eligible to receive up to $150,000.

Manitoba heat pump manufacturers can receive up to 5 per cent of the price for heat pumps made and sold for use in the province. (Government Manitoba, 2008)

Manitoba Hydro offers The Residential Earth Power Loan to support the installation of geothermal heating/cooling systems in Manitoba residences, with financing up to $20,000 available for new installations and retrofits (Manitoba Hydro, n.d.). For industrial/commercial/institutional installations, Manitoba Hydro has the Commercial Earth Power Program, offering feasibility assistance and similar financial incentives (Manitoba Hydro).

As well, it is possible to obtain funding from private institutions such as banks through loans and other similar means.

SOLAR PHOTOVOLTAIC

As a supplier of hardware, “one Manitoba company, ‘Solar Solutions’ is mid-North America's largest designer and supplier of commercial and residential solar energy product solutions for today's growing solar market place and for tomorrow's energy demands” (Government Manitoba, n.d.).

For electrical generation, Manitoba has had some photovoltaic growth, though solar photovoltaic installations do not have the same backing and support (namely feed-in tariffs) within the province as have been put in place throughout other countries around the world, and in recent years Ontario.

Likely, if the FiT and microFiT programs in place in Ontario are as successful as the European counterparts they were based on, solar photovoltaic for electricity production will spread to Manitoba and other parts of Canada with the same boom seen in Ontario based on the successful strategies of countries such as Denmark and Germany.

WIND

One of many aspects the prairies may be known for is their winds, which are vast and ideal for wind turbine electrical production. Vic Schroeder, chair of the Manitoba Hydroelectric Board has stated, "Adding another source of renewable energy, wind power, to our existing clean energy portfolio is a good choice,” and David Kerr, director, AirSource Power Fund GP calls Manitoba: “arguably the best wind resource in Canada” (Government Manitoba, 2004).

Manitoba possesses a great number of fundamentals that support large-scale wind farm development, including:

Southwest Manitoba has a world-class wind regime that makes wind projects commercially viable and competitive with hydrogeneration.

Virtually all of the province's electricity is generated by water. A hydraulic system can store energy in reservoirs when the wind is blowing and release water to generate electricity when the wind is calm.

Manitoba has accessible transmission so the power can be sent to markets when it is needed.

The land and terrain in southwestern Manitoba lend themselves to large-scale wind farm development. Turbines complement the farming community because they only occupy a small footprint of land.

Wind turbines provide landholders an additional source of income.

Wind turbines also provide municipalities an additional source of revenue.

Wind generated electricity provides diversity to our renewable energy mix. (Government Manitoba, 2004)

 The province of Manitoba has undertaken several studies to determine potential wind power generations, with plans to have approximately 1,000 MW of wind power capacity (Government Manitoba, n.d.). Manitoba Hydro has very good firming and shaping capabilities and very good transmission capabilities, making wind power electrical generation easy to integrate into the grid, which can also help Manitoba's electric energy exports to the U.S., in turn displacing tons of greenhouse gases formerly from coal-burning thermal plants (Government Manitoba). The St. Leon wind farm and Manitoba Hydro agreed on a Power Purchase Agreement whereby Manitoba Hydro agreed to purchase wind power for up to 25 years from the province’s first wind farm - one of the largest wind farms in Canada at 99 MW (Manitoba Hydro, n.d.).

CONCLUSION

Though government support has been slightly higher in supporting initiating Manitoban biofuel projects in the past than it is today, Manitoba’s biofuel role may come to increase in coming years, due to: rising fossil fuel prices; the availability of feedstocks; existing technological, industrial infrastructure, and expertise; and possible growing demand for pelletized switchgrass.

The number of Manitoban geothermal installations is increasing with increasing affordability. The hardest part about instituting geothermal for a building is the affordability, but the incentives from Manitoba Hydro and the Manitoba government can lower expenses greatly.

Solar photovoltaic design and supply is high in Manitoba, but Manitoban solar photovoltaic energy generation has further to go before reaching the success levels of other regions. Ontario is following the lead of overseas models successfully. Operating with similar tariffs, and with local content laws and strategies for local economic growth, the Ontario solar industry is expanding rapidly. The same strategies are likely to be adopted by other provinces and territories including Manitoba within the next decade or two, maybe sooner.

Manitoba has been shown to have a great deal of wind power that is just beginning to be harnessed. The wind industry is worth following and has great potential for growth.

The above-mentioned renewable industries will further grow in Manitoba. Going forward, worth noting are successful strategies in other regions. Successful countries have often operated with tariffs for wind, solar & biogas (Gipe). It has often been argued that operating with tariff-like systems is more sustainable and stimulating to industry than incentives such as grants, subsidies, loans, rebates, or tax deductions. Also, European countries have often integrated community involvement, targeting of job creation, and stimulus of local economy (Gipe, 2011), encouraging conservation and efficiency, and keeping money and financial rewards local (Cunningham, Lafond, & Mazier, 2010). The province of Ontario has bonuses and policies for rural, Aboriginal and First Nations peoples (Gipe). Outside of more populous centers – that is, further from the electrical grid’s distribution - rural areas may be interested in pursuing renewable energy options and can benefit through employment, training, and/or financial gains. Rural areas depending on fossil fuel-based generators for example, could see it suitable to seek alternatives. One of the great things about renewable energy is the ability to use it in areas urban or rural. Such policies may be worth looking into for further Manitoban development. For any and all of these energy alternatives, a very important key is that solutions have to be viable, that is to say worth the initial investment, and over the long run in order to be economically sustainable. With this in mind,  Manitoba's progression and development of environmentally responsible and economically viable ventures will benefit not only her citizens, but the future of all Canadians.

REFERENCES

Agriculture and Agri-Food Canada. (2007). Canada's New Government Invests $575,000 in Manitoba's Renewable Energy Industry  Retrieved from http://www.marketwire.com/press-release/Canadas-New-Government-Invests-575000-in-Manitobas-Renewable-Energy-Industry-645516.htm

Canada’s Government Fuels Renewable Energy Production in Manitoba. (2007). Retrieved from http://terrystratton.ca/environment/canada-s-new-government-fuels-renewable-energy-production-in-manitoba

Cunningham, C., Lafond, L., & Mazier, D. (2010). Building a Community Power Program in Manitoba – Creating a Sustainable Future for Manitobans [PowerPoint slides]. Retrieved from http://www.eltonenergy.org/pdf/Building_a_Community_Power_Program_in_Manitoba_2010-06-28.pdf

Environment Canada. (2007). Canada’s New Government Announces Ecotrust Funding for Manitoba – Manitoba’s Investment to Deliver Real Results to Fight Climate Change. Retrieved from http://www.ec.gc.ca/default.asp?lang=En&n=714D9AAE-1&news=71C62F4F-1EC3-4FB4-9BC4-ECF67CD81317

Gipe, P. (2011). Bringing the Renewable Revolution to Manitoba [PowerPoint slides]. Retrieved from http://www.wind-works.org/FeedLaws/Canada/Gipe%20Winnipeg%20Public%20Library%2020110309.pdf

Government Manitoba. (n.d.). Manitoba’s Environmental Advantages – Alternative and Renewable Energy. Retrieved April 1, 2001, from http://www.gov.mb.ca/trade/globaltrade/environ/energy.html

Government Manitoba. (2004). Manitoba Harnesses Wind Power with First Wind Farm to Be Built Near St. Leon. Retrieved from http://www.gov.mb.ca/chc/press/top/2004/11/2004-11-24-03.html

Government Manitoba. (2008). Incentives for Installing Geothermal Systems – Manitoba Geothermal Energy Incentive Program.  Retrieved from http://www.gov.mb.ca/stem/energy/geothermal/incentives.html

Manitoba Hydro. (n.d.). Commercial Earth Power Program. Retrieved April 1, 2011, from http://www.hydro.mb.ca/earthpower/for_your_business.shtml

Manitoba Hydro. (n.d.). Earth Power Program Residential Earth Power Loan.  Retrieved April 1, 2011, from http://www.hydro.mb.ca/earthpower/loan.shtml

Manitoba Hydro. (n.d.). St. Leon Wind Farm. Retrieved April 1, 2011, from http://www.hydro.mb.ca/projects/wind_st_leon.shtml