NRC Document: Canada Must Boost Renewable Energy

Posted by david on Aug 14, 2012 in Blog | 0 comments

Two planetary megatrends – rapid growth of emerging economies, in particular China and India, along with the gradual transition to low-carbon energy – will dramatically affect Canada’s economy and global demands for resources and energy, stated newly declassified internal briefing notes from Natural Resources Canada to Minister Joe Oliver.  While richly endowed with fossil fuel resources, Canada nonetheless needs to diversify its energy sources to meet growing domestic demand in an environmentally sustainable way, the briefing notes advised.

The notes point out that Canada ranks 13^th in the world and last among G8 countries in clean energy investments while the US, China, Germany, and other countries are making major headway to become low-carbon leaders. 

The Harper government claims to have invested more than $10 billion in programs to reduce greenhouse gases, build clean energy infrastructure, promotes energy efficiency, and support new technologies and fuels.  But, in actuality, its record has seen fits and starts, reports Postmedia News.  After its election in 2006, the Harper government cancelled $billions in climate change and clean energy programs but announced new initiatives under different guises a year later following public criticism.  

Forming a majority government last year, it again terminated a number of funding programs for wind, solar, and other renewables.  This is in spite of setting a goal of generating 90% of Canada’s electricity from zero-emitting sources by 2020.  Currently, renewable energy sources generate 17% of Canada’s total primary energy with hydropower accounting for over 60% of electricity production.  (Invest in Canada and Centre Flow)

The Pew Environmental Group’s annual report on clean energy investment around the world has Canada growing by 4% to total $5.5 billion, putting it 11^th among G20 countries last year.  56% of Canadian investment went into wind with the remainder into residential and commercial solar (19%), geothermal, biomass and small hydro (13%), biofuels (8%), and energy efficiency and low carbon technologies (4%).  Canada has 9.6 gigawatt (GW) of installed renewable energy capacity – 5.4 GW of wind, 2 GW of small hydro, 1.8 of biomass, and 0.47 GW of solar. 

The United Nations Environment Program (UNEP) in its June report has China leading the world in renewables investment with $52 billion (20% of the world total) followed closely by the US with $51 billion (developers rushed in to take advantage of a series of government incentive programs before they expired in 2011-2012).  China led in wind turbine installations with generation increasing more than 48%.  It was also tops in hydropower and the leading manufacturer of photovoltaic modules.  Germany, Italy and India rounded out the top five with India’s investment surging 62% to $12 billion spurred by its National Solar Mission.  Also impressive was Brazilian investment at $7 billion. 

Chinese national and provincial governments have big plans for solar (see July 22 post on solar farms spreading in Xinjiang), targeting a 40% increase in installed capacity to 21 GW by 2015.  Northwest Gansu province, for instance, plans to install 5000 megawatts (MW).  As for Chinese solar panel makers, in addition to foreign markets, Yingli Green Energy, a leading manufacturer, hopes to sell 900 MW (35% of production) in panels on the domestic market this year going forward. This is big spike from 2010 when it sold a paltry 6% at home. 

“Growing demand for natural resources and the long-term transition towards a low-carbon economy will affect the whole of Canada’s economy…How Canada develops and uses its assets, from its resource base through to its skilled labour force and emerging clean tech sector, will be a deciding factor in strengthening its overall competitiveness in today’s uncertain world”, concluded the Natural Resources Canada document.