Prince Edward Island Energy Strategy - Securing our Future: Energy Efficiency and Conservation - Government of Prince Edward ...
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P r i n c e E d w a rd Island Energy Strate gy
S e c u r i n g o u r F u t ure:
E n e r g y E ff i c i e n c y a n d C o n s e r v a tion
one island community one island future
Securing our Future; PEI Environment and Energy Policy Series
- Volume 1: Prince Edward Island Wind Energy
- Volume 2: Prince Edward Island Energy Strategy
- Volume 3: Prince Edward Island Climate Change Action Plan
For more information contact:
Department of Environment, Energy and Forestry
Jones Building, 4th Floor
11 Kent Street, Charlottetown, PE, C1A 7N8
Telephone: (902) 368-4000
Printed on Recycled Paper
Ta b l e o f C o n t e n t s
1 . 0 I N T R O D U C TION 6
Background 6
Energy Strategy V ision 6
Energy Strategy Objectives 7
2 . 0 E N E R G Y O VER VIEW 8
World Energy Markets 8
Canadian Context 8
Regional Perspective 8
PEI’s Current Energy Profile 9
Energy Prices and Trends 9
Prince Edward Island’s Energy Future 10
By 2013 10
By 2018 11
3 . 0 E N E R G Y E FFICIENCY AND CONSER VATION 12
Overview 12
Why Energy Efficiency? 13
The Potential for Energy Efficiency on PEI 13
Office of Energy Efficiency 14
Energy Efficiency Challenges 14
Appliances and Equipment 14
Demand Side Management 15
Demand Side Resources 15
Least Cost Procurement 15
Building Code and Energy Standards 16
Space Heating Efficiency 17
Transportation Efficiency 18
Gover nment Leadership 20
Energy Efficiency Advisory Committee 20
Public Outreach and Education 20
Ta b l e o f C o n t e n t s
4 . 0 R E N E WA B L E ENERGY 22
Overview 22
W ind 22
Small W ind Developments in PEI 24
Role of Gover nment in Future W ind Development 24
Solar Technologies 24
Earth Energy 25
5.0 BIOFUELS 26
Overview 26
The Biofuel Potential in Prince Edward Island 26
Inter-Departmental Biofuels Committee (IDBC) 27
Biomass 27
Biomass Challenges 28
Liquid Biofuels 28
Pure Plant Oils 29
Biodiesel 29
Ethanol 29
Liquid Biofuel Challenges 30
Renewable Fuel Standard 30
Biogas 31
6 . 0 E C O N O M I C DEVELOPMENT 32
Overview 32
Green Technology Cluster 33
Community-Based Renewable Energy Projects 34
7 . 0 PAT H F O R WARD 35
Prince Edward I s l a n d E n e r g y S t r a t e g y
In t ro d u c t i o n
INTRODUCTION
1 . 0 INTRODUCTION
Background The outcome of this consultative approach
to the Island’s energy policy development was
The Province of Prince Edward Island has a list of 19 action items for the government
developed a North American, if not global, to pursue. Today, nearly all of these items
reputation in the development of renewable have been accomplished with significant
energy. PEI has always been viewed as an advancements made towards the incorpora-
innovator in developing, demonstrating and tion of renewable energy (wind power) into the
deploying renewable energy systems with due provincial energy mix. With the increasing costs
regard for the environment. PEI has a strong of fossil fuel and the significant impact these
reputation as a leader in the development of costs hare having on all Islanders, the timing
its wind resources with the highest per capita for a renewed vision and Provincial Energy
penetration of this renewable energy in its Strategy with specific actions is now.
provincial electricity portfolio. PEI has been
a leader in the use of biomass resources Fossil fuel energy use is having dramatic con-
converting waste into thermal energy to heat sequences for global warming and severely
municipal buildings. Despite these and other impacting the environment. The Government
accomplishments, the Province does however of Prince Edward Island has, in parallel with
continue to rely heavily on off-island sources this new Energy Strategy, developed a Climate
of imported fossil fuel-based energy. Rising Change Strategy that will help serve to protect
energy costs are having a negative impact on the Island’s environment and lead to a more
all Islanders, businesses and institutions and sustainable and economically robust future.
new measures must be put in place now to
secure the Island’s future prosperity.
New Energy Strategy
In June 2004, the Prince Edward Island
Department of Environment and Energy Maximizing the potential for the development
released its Energy Framework and Renewable of the Island’s indigenous renewable energy
Energy Strategy. Integral to the production of assets and ensuring they are developed wisely
this document was input received from requires long-term planning. The Provincial
interested stakeholders and the general public. Government has developed a renewed Provin-
P r i n c e E d w a rd I s l a n d E n e r g y Strategy
Intro d u c t i o n
Vision
To ensure a prosperous future for residents and
businesses of Prince Edward Island based on the
cial Energy Strategy that will build and expand objectives of energy security, environmental
on the success of the 2004 Strategy. In devel- sustainability and economic development.
oping this new five and ten year energy vision
for PEI, a discussion document was released
in April of this year to stimulate and solicit
feedback from the general public. Input from Energy Strategy
interested stakeholders was solicited and a
Objectives
series of public meetings were conducted
across the Island in May. This new Strategy
To support this vision, the Province of Prince
helps identify the role of the PEI Government
Edward Island has developed clear, long-term
in implementing energy efficiency and con-
and comprehensive objectives (5 and 10 years)
servation measures, promoting renewable
with specific Government Actions. Emphasis
energy and the use of biofuels, encouraging
will be placed on developing a flexible policy
new economic and development opportunities,
framework that will provide the best options
and raising public awareness and education.
for maximizing our energy independence,
This Strategy also outlines key actions for
becoming environmentally sustainable and
Government in creating a flexible energy
contributing to future economic development
policy framework that is capable of adapting and
opportunities.
reacting to market and technological chang-
es and protecting the environment. While the
above reflects the role of government, each and Energy Se curity
every Islander has a responsibility and role to
play in becoming more sensitive to, and aware • Greater Self Sufficiency
of our energy and environmental future here in • Improved Price Stability
Prince Edward Island. The ultimate success of • Diversity of Supply
this Strategy will be dependent on the actions
of Islanders and our ability to make fundamental
changes in our attitude, behavior and approach Envir onmental
to the use of energy resources.
Sustain ab ility
• Increased Energy Efficiency
E n e rg y Strategy Vision and Reduced Consumption
• Renewable Energy Development
As an Island community, PEI has unique needs • Reduced GHG Emissions and Other Polluants
and challenges in the field of energy. The Vision
of this new Energy Strategy is to address the
dangerous dependence on imported oil, which
Economic
threatens the future social, economic and envi-
ronmental prosperity of the Island, its residents
d evelopment
and businesses. PEI’s Leaders are committed • Support Growth of Local Industries
to pursuing a self-sustaining energy system and New Job Opportunities
based on achievements in energy efficiency, • Research, Development
conservation and renewable energy develop- & Demonstration of New Technologies
ment.
• Strengthen and Diversify Local Economy
Prince Edward I s l a n d E n e r g y S t r a t e g y
E n e rg y O v e r v iew
ENERGY OVERVIEW
2 . 0 ENER G Y O V ER V IE W
World Energy M arkets Regional Perspective
World energy markets are facing several Through the Council of Atlantic Premiers (CAP),
unfavorable conditions: increasing demand, the Atlantic Energy Ministers’ Forum (AEMF)
dwindling supply, and rising costs. As econo- and the Conference of New England Gover-
mies develop and populations grow, particularly nors and Eastern Canadian Premiers (NEG/
in countries such as China and India, energy ECP), the Atlantic Provinces have been working
supply is struggling to keep pace with rising together on energy issues for several years.
demand. This, along with global terrorism, Most recently, in January 2008, the Atlantic
instability in the Middle East, geopolitical Premiers released the Atlantic Energy Frame-
pressures, and commodity speculation, has work for Collaboration. The document highlights
resulted in rising energy prices. Large energy three priority areas for regional collaboration:
consumers such as Canada are especially • Enhancing energy efficiency programming
vulnerable to the effects of rising energy costs
and decreasing supply. • Increasing renewable energy development
• Assessing biofuel potential
Canadian Context The Atlantic Energy Ministers will guide the
implementation of this framework with a prog-
Energy is an important part of the Canadian ress report expected later in 2008. The NEG/
economy in terms of both production and ECP have expressed increased emphasis on
consumption. Canada is one of the largest per energy in recent years and in June of 2007
capita users of energy in the world and ranks adopted a series of recommendations for
second in the world in terms of oil reserves, the promotion and development of energy
behind Saudi Arabia. Like other countries efficiency, energy trade, renewable resources,
around the world, Canada is experiencing and improved transportation initiatives.
a number of energy challenges including
high and volatile energy prices, decreasing
conventional reserves, the need to diversify
supply, an ageing and constrained delivery
infrastructure, and growing environmental
concerns.
P r i n c e E d w a rd I s l a n d E n e r g y Strategy
E nergy O v e r v i e w
PEI’s Current Energy Profile Ten percent of energy in PEI is supplied by
biomass, which includes fuel wood, sawmill
Without a local supply of natural gas and oil residue and municipal waste. PEI Energy
resources, Prince Edward Island is heavily Systems in Charlottetown uses municipal waste
reliant on imported sources of energy. Imported and wood biomass to supply thermal energy to
oil accounts for 76 percent of PEI’s total energy commercial, residential and institutional build-
supply, with 46 percent of our dollars spent on ings in the city. Developed in the 1980s and
transportation fuels and a further 30 percent on early 1990s by the PEI Energy Corporation,
petroleum-based heating fuels. The economic the Charlottetown District Heating System is
impacts of the Province’s reliance on imported another example of the Province of PEI leading
energy are significant considering that roughly in the development of renewable energy.
half a billion dollars is spent on off-Island
energy resources annually, and this continues
to climb. Energy Prices and Trends
The current energy mix (Fig 1.) in Prince Edward As shown in Figure 3, energy prices have steadi-
Island consists of petroleum products, electric- ly increased in recent years. Electricity prices
ity and biomass. have increased over 60 percent from 2000 to
2008 while gasoline prices and home heating
Figure 1: costs increased 101 percent and 172 percent,
Prince Edward Island Current Energy Mix respectively, over this time period. Much of
the increase in fuel costs can be attributed to
Petroleum Product
10% increasing oil prices, which has experienced
76%
14% Electricity a near seven fold increase over this time
period, and a combination of increasing demand
Biomass
and decreasing supply of conventional energy
resources. While the price of oil has been
Figure 2: subject to recent fluctuations and its future
PEI Electricity Sales Breakdown prices cannot be fully ascertained, many
experts suggest that price volatility will become
1% NB Syste the norm over the longer term.
13%
Nuclear
49% Figure 3:
18% Wind Prince Edward Island Energy Costs, 2000 – 2008
18
165
19% Dalhousie 155 17
145
MECL 135 16
cents/kWh
cents/litre
125
15
115
Fourteen percent of the Island’s energy mix 105 14
is electricity. Wind resources meet approxi- 95
85 13
mately 18 percent of the province’s electricity
75
supply with the remainder tied primarily to oil 65
12
and nuclear power supplied by the New Bruns- 55 11
wick Power Corporation and imported via two 45
35 10
submarine cables connected to the mainland.
2000 2001 2002 2003 2004 2005 2006 2007 2008
Gasoline Prices Home Heating Oil Diesel Electricity Prices
Prince Edward I s l a n d E n e r g y S t r a t e g y
E n e rg y O v e r v iew
With the price of crude oil peaking near $150 By 2013
US/barrel, the need to aggressively pursue
alternatives to traditional fossil fuel based Within five years of applying significant resourc-
sources of energy has never been more es and policies to the development of the ener-
apparent for PEI. Decreasing the Island’s gy sector, the Province of Prince Edward Island
dependency on imported fossil fuel based will be less dependent on imported energy and
energy sources will help to mitigate the effect will be well on the way to a sustainable energy
of rising prices, improve the diversity of supply, future. The successful implementation of new
and increase PEI’s future energy security. programs and initiatives in energy efficiency
Pursuing and promoting energy efficiency, should lead to a 10 percent increase in effi-
conservation, renewable energy development ciency across all sectors. A goal has been set
including additional wind development and to bring a total of 500 MW of wind power on
utilization of biofuels, will provide a hedge line by 2013, of which 100 MW will be for
against rising energy costs and maintain the domestic use. A renewable fuel standard for
Island’s reputation as a leader in alternative gasoline (E5) and light fuel oil and diesel fuel
energy development. (B10 or B10 renewable equivalent) would also
be introduced. The environmental impacts of
renewable fuel development will be addressed
Prince Edward Island’s with a concurrent low carbon fuel standard.
Energy Future Developing the Province’s abundant biomass
resources should result in a 50 percent increase
Achieving the objectives of energy security in biomass use and lead to 10 MW of new
and environmental sustainability while creating electrical generation capacity for Island
economic development opportunities will utilities.
require a variety of new policies, programs
and initiatives directed at public education and
awareness, energy efficiency and renewable Figure 4:
energy development. The following Sections of PEI Energy Mix 2013
this Energy Strategy outline different courses
of Government Action that will be undertaken.
4%
The execution of these actions should lead to a Renewable 10%
number of anticipated outcomes. Electricity Energy
(Wind & Biomass) Efficiency
7%
Imported
and Oil-fired
Electricity
15% 59%
Petroleum
Biomass Products
5%
Liquid Biofuels
10P r i n c e E d w a rd I s l a n d E n e r g y Strategy
E nergy O v e r v i e w
By 2018 ing of policies and programs across all sectors.
Incremental wind developments will also be
All indications suggest that the costs for possible, most likely through community-based
fossil fuel-based energy sources will contin- projects, and will be determined by domestic
ue to climb. It is difficult to predict how high load growth. Renewable fuel standards could
energy prices will be in ten years. As such, be increased to help achieve the Island’s
the Provincial Government will continue to environmental goals and GHG reductions (E10
aggressively pursue opportunities to increase and B20 or renewable equivalent). Further
the efficient use of PEI’s energy resources. It is developments in the effective utilization or
expected that an additional 10 percent increase biomass resources could result in a 25 percent
in overall efficiency is an attainable goal and increase in use and an additional 10 MW of
will be achieved through the constant updat- electrical generation capacity.
Figure 5:
PEI Energy Mix 2018
3%
Renewable 20%
Electricity Energy
(Wind & Biomass) Efficiency 42%
Petroleum
5% Products
Imported
and Oil-fired 20%
Electricity Biomass 10%
Liquid
Biofuels
11Prince Edward I s l a n d E n e r g y S t r a t e g y
E n e rg y Eff i c i ency and Conservation
ENERGY EFFICIENCY
AND CONSERVATION
3 . 0 ENER G Y EFFICIENCY
AND CONSER V ATION
Overview Improving the efficiency in the way energy is
consumed on the Island will have direct ben-
Energy efficiency refers to programs, initiatives, efits to individuals, businesses, governments,
products, technologies and systems with the institutions and the environment. Energy ef-
goal: to reduce the amount of electricity and/ ficiency covers a broad spectrum of improve-
or fuel required to perform the same job or ments in:
better than conventional means. Energy • Building practices:
efficiency is considered to be the least costly, residential, commercial and institutional
most reliable, locally abundant energy resource • Energy-saving appliances and equipment
with the greatest potential to reduce green-
house gas (GHG) emissions and protect the • Lighting & space heating
environment. Energy efficiency can generally • Industrial & agricultural processes
be procured cheaper than producing or • Transportation
purchasing energy. For these reasons, energy
efficiency will be a key component in PEI’s There are extensive opportunities in every
transition to a sustainable low-carbon energy community across the Island to develop our
future. Conservation of energy is equally impor- energy efficiency resources. During the public
tant and this will involve changing our behaviors consultations, it was expressed by most
and using less energy. We all have a role to play participants that individuals, businesses,
and must do our part to protect the environ- institutions, government and utilities all need
ment and decrease our reliance on fossil fuels. to devote more attention and support to fully
exploit these opportunities if PEI is to achieve
a more sustainable and more cost-effective
energy portfolio. With the ever-increasing
cost of fossil fuels, energy conservation must
become a priority for all Islanders.
T h e l e a s t c o s t l y energy
i s the energy we don’t use.
12P r i n c e E d w a rd I s l a n d E n e r g y Strategy
E nergy Efficiency and Cons e r v a t i o n
W h y E n ergy Efficiency? be attained through energy efficiency initiatives,
was the primary objective of this study. By
The potential for energy savings through 2017, if implemented, the proposed programs
increased energy efficiency and conservation in the Residential and C&I sectors would reduce
have far-reaching benefits for all Islanders and forecasted electricity use by 11 percent and
ATION
the environment: non-electric use by 8 percent. This translates
into a cost savings of $148 million over the
• Reduces residential, commercial and institutional
energy bills, and in particular, reduces the impact ten-year implementation time frame and would
of high energy prices on low income families and reduce GHG emissions by nearly 132,000
individuals tonnes by 2017. This study also suggests that
• Reduces environmental footprint of our investing in cost-effective energy efficiency
communities and Province- lowers emissions initiatives could offset all forecasted electricity
of GHGs and other pollutants associated with load growth, over the next decade. VEIC also
energy production and consumption noted that in 2017, the annual peak demand
• Stimulates the PEI economy by reducing outflow savings would be equal to 17.8 MW, roughly
of consumer energy dollars 8% below 2007 peak demand. This translates
• Increases local economic development to nearly $1 million in capacity savings for the
opportunities and employment creation utility and its ratepayers.
• Enhances the reliability of our energy system
There is considerable cost-effective energy
• Improves energy supply security and helps savings potential that could be pursued on PEI.
mitigate fluctuating energy prices Several programs have been recommended for
• Avoids or defers capital expenditures for upgrades consideration in PEI and developed with the
to the electrical transmission and distribution following considerations:
infrastructure
• Promote the benefits of energy efficiency
to all Islanders
T h e P o t ential for Energy • Provide opportunity for all residential customers
to participate
E ff i c i e n cy on PEI
• Minimize barriers to participation for low income
customers
In 2008, PEI’s Department of Energy, Environ-
ment and Forestry released a study by the • Include all fuels initiative- electricity, transportation
Vermont Energy Investment Corporation (VEIC) and home heating fuels
that examined the potential of cost-effective • Strengthen relationships with on-Island product
energy efficiency initiatives that could substan- retailers, builders and contractors
tially reduce energy use and lower greenhouse
gas emissions in PEI by 2017. The study exam- Developing comprehensive programs to ad-
ined the potential in the following sectors: dress the different market and non-market bar-
riers to adopting energy efficient products and
• Residential
services has led to the formation of a dedicated
• Commercial and Institutional (C&I) agency for program delivery with regular review
• Transportation cycles to quantify the resource and update its
contribution. Dedicated agencies are able to
The analysis of achievable potential, defined as provide a “one-stop-shop” for energy efficiency
the amount of energy cost savings that could information and programs.
13Prince Edward I s l a n d E n e r g y S t r a t e g y
E n e rg y Eff i c i ency and Conservation
Office of Energy Efficiency • The lack of energy efficiency information available
to individuals and businesses
The Office of Energy Efficiency (OEE) was • The availability of energy efficient products
established in early 2008 to assist Islanders in and services in the PEI marketplace
reducing their energy consumption and mini- • The lack of experienced and qualified trades
mize the environmental footprint of our daily persons and professionals
activities.
Despite these apparent obstacles, it has been
The mandate of the Office of Energy Efficiency demonstrated in many other leading North
Program is to provide Islanders with advice and American jurisdictions that to save a unit
programs that will promote sustainable energy of energy is always more cost effective than
use and reinforce the importance of sound purchasing that same unit of energy. Partici-
energy management for the economic, so- pants at the public meetings easily understood
cial, and environmental well-being of Island this concept and there was significant support
residents and businesses. expressed for Government to devote additional
resources towards energy efficiency programs
The Office of Energy Efficiency is also a one- and initiatives in PEI.
stop center for provincial and federal energy
efficiency programs and services. In addition
to a number of current and recently announced Appliances and Equipment
residential programs, the OEE and the Depart-
ment of Environment, Energy and Forestry are The use of energy efficient appliances and
developing new programs to cover the C&I and equipment saves money and can help save the
transportation sectors. environment. Using less energy by selecting
energy efficient products means burning fewer
fossil fuels and therefore reducing GHG emis-
Energy Efficiency Challenges sions. By choosing the appliance or equipment
with the highest rating, Islanders can reduce
While there are clear benefits to pursuing en- their energy consumption and help curb the
ergy efficiency and conservation, achieving effects of climate change. Energy rating labels
these gains has its challenges. Energy is con- and minimum energy performance standards
sumed to produce a huge variety of products for domestic appliances and industrial and
and services, heat homes and businesses, commercial equipment help the consumer in
generate electricity, and power the transporta- making a more environmentally and cost effec-
tion sector. Therefore all new energy efficiency tive decision when making a purchase for new,
initiatives will attempt to address some of these or replacement products.
challenges:
• The required coordination among diverse
stakeholders- energy suppliers, utilities, Government Action
governments, regulators, builders, equipment
suppliers, and consumers (individuals and businesses)
The Provincial Government, in consultation
• The associated costs for implementing energy with the OEE, will adopt minimum energy
efficient products and services
efficiency standards for appliances, equip-
ment and other energy consuming devices.
14P r i n c e E d w a rd I s l a n d E n e r g y Strategy
E nergy Efficiency and Cons e r v a t i o n
Demand Side Management the utility for the government department or
agency responsible for the delivery of energy
The 2004 Renewable Energy Act required efficiency programs. It provides a consistent
Maritime Electric Company, Ltd (MECL) to file source of funds to support energy efficiency.
an electrical energy efficiency plan and demand Generally speaking, there was relative opposi-
side management strategy with the Island tion expressed during the public meetings in re-
Regulatory and Appeals Commission (IRAC). gards to the notion of implementing an SBC in
Demand Side Management (DSM) refers to PEI. For a smaller population, the introduction of
the planning, implementation, and monitoring an SBC may establish an artificial funding ceil-
of utility activities designed to encourage ing and may limit the reach and effectiveness
consumers to modify patterns of electricity of energy efficiency programming. To overcome
usage, including the time of day and level of this potential barrier and to institutionalize ener-
electricity demand. gy efficiency in a utility’s resource procurement
process, a least-cost procurement mandate will
MECL’s Demand Side Management and be evaluated and pursued as an alternative.
Energy Conservation Plan was first filed in 2006
and consists of six programs with elements
designed to address barriers limiting market Least Cost Procurement
transformation, public education and aware-
ness, community-based initiatives, energy The concept of least cost procurement was in-
efficient product retailers, and research and cluded in recommendations adopted in Resolu-
evaluation of program effectiveness. tion 31-1 by the Governors and Premiers at the
2007 Conference of New England Governors
and Eastern Canadian Premiers (NEG-ECP):
Demand Side Resources
The Governors and Premiers instruct regulators and
Demand side resources such as energy effi- crown corporations to prioritize energy efficiency
ciency are widely viewed as reliable, low-cost through planning and acquisition processes that let
energy resources. Repeatedly during the public efficiency compete with supply and capacity and ensure
consultations, there were comments and sug- that cost-effective and practical energy efficiency
gestions directed towards government to re- opportunities that are cheaper than prices bid for
quire utilities to increase investment in energy conventional supply or capacity are procured.
efficiency and demand side resource programs
for all customers. There was an expressed de- A least cost procurement mandate establishes
sire to see government mandate the utilities to a minimum target for electric energy efficiency
procure all cost-effective demand side resourc- savings that can be met through a flexible re-
es and energy efficiency when proven cheaper source planning process aimed at securing
than conventional supply options. It was also all cost-effective electric efficiency resources.
noted that if energy efficiency competes with Once a budget is established to capture all cost-
traditional supply options to meet demand then effective energy efficiency, typically through an
these programs should be ratepayer funded. open stakeholder process, the corresponding
amount can be assessed in utility rates to fund
System Benefit Charges (SBC) are one way to the efficiency programs. The utilities could ad-
fund efficiency programs. A small fee is added minister the energy efficiency programs and/or
to consumers’ electricity bills, it is collected by a portion of the monies could be placed in a
15Prince Edward I s l a n d E n e r g y S t r a t e g y
E n e rg y Eff i c i ency and Conservation
dedicated fund to be used by the provincial For electric energy efficiency programs to be
Office of Energy Efficiency. Regardless of successful, it is imperative that they have the
administration, it will be critical to develop an full cooperation from the utility. In order to align
accountability framework to ensure that the utility incentives with the goals of this least-cost
funds are spent in an effective manner. planning and procurement process, the prov-
ince will consider reforms to the way utilities
An essential underlying element of all of the are compensated for the services they provide.
above components for successful electric Unless utility profits are decoupled from their
energy efficiency policies, programming and volumetric sales, successful efficiency pro-
planning is a consistent and accurate means grams, and any provincial policy that reduces
of measuring and verifying the realized savings electricity use, will hurt utilities. If customers are
from the activities designed to increase energy using less energy, utilities’ profits will decrease.
efficiency. The absence of establishing clear The implementation of a decoupling mecha-
and accurate measurement and verification nism may be helpful in aligning utility incen-
protocols has been the subject of much criti- tives with the opportunity to increase energy
cism in energy efficiency initiatives. The utilities, efficiency investment and lower customers’ bills.
analysts and policy makers must have confi- This will be further explored in consultation
dence in predicting the energy cost savings between government and the individual utilities.
associated with their programs and initiatives
if energy efficiency is to be recognized as an
energy resource and compete with convention- Building Code
al supply options. and Energy Standards
Prince Edward Island is one of only two juris-
dictions in Canada without a province-wide
building code. The municipalities of Charlotte-
G o v e r n ment Actions town and Summerside do require new build-
ings to comply with the National Building Code,
The Provincial Government will establish a planning but they do not attach an energy standard to it.
process in consultation with Island utilities and IRAC The implementation of a province-wide build-
that prioritizes energy efficiency and encourages local ing and energy code would ensure that all new
utilities to procure all cost-effective energy efficiency, buildings meet minimum standards for energy
through investment in electricity energy efficiency efficiency. A region’s building stock accounts
programs, when it is cheaper than conventional supply for a tremendous amount of energy consump-
or capacity resources. tion and greenhouse gas emissions. A large
percentage of PEI’s current building stock is old
The Provincial Government will provide the legislative and inefficient and contributes significantly to
and regulatory framework that will encourage utilities the Island’s energy appetite and environmental
to implement a least cost procurement mechanism. footprint. In each of the Public Meetings con-
ducted across the province, a recurrent theme
emerged with Islanders appealing to govern-
ment to consider the adoption of a Provincial
Building Code with Energy Standards. Building
to a high standard of energy efficiency during
initial construction will help ensure that the
16P r i n c e E d w a rd I s l a n d E n e r g y Strategy
E nergy Efficiency and Cons e r v a t i o n
province is not adding to the number of inef-
ficient buildings that make up the current stock. There is a tremendous opportunity for PEI to re-
High efficiency buildings experience reduced duce energy consumption and GHG emissions
operating costs that will translate into savings associated with its residential and commercial
over the entire lifespan of the building and help buildings through the implementation of a Pro-
mitigate the effects of future energy price in- vincial Building Code with Energy Standards. It
creases. was pointed out by several participants during
the Consultations that this will require a coordi-
nated and comprehensive effort to educate the
G o v e r n ment Actions public, the building community, the appropriate
municipal and provincial divisions, train and
The Provincial Government will be adopting hire inspectors, as well as to implement sup-
energy codes and standards as part of porting administration and policing. It was also
the process towards the adoption of the felt that the introduction of a provincial building
National Building Code throughout the code with energy standard would provide addi-
province. The code, with some exemptions tional opportunities and build capacity in PEI’s
for small buildings, will provide unified trades sector and stimulate local economic de-
building standards across the province, velopment.
which will compliment standards for
energy efficiency in buildings. The Consumers Council of Canada recently re-
ported that 86% of those surveyed supported
Building standards and an implementation mandatory levels of energy efficiency for homes
timeline will be set with escalating targets and responded that energy efficiency is an im-
for energy efficiency over the next 5-10 portant factor in their decision to purchase a
years. new home. In light of these findings and vola-
tile energy prices, it is timely for the provincial
Administration, inspection, education and Government to be pursuing the introduction of
ensuring compliance will be addressed with energy efficient building code policies.
the roll out of the new Provincial Building
Code and Energy Standards.
Space Heating Efficiency
The Provincial Government will consider
mandating the energy consumption Next to the transportation sector, space heat-
labeling of houses and buildings with ing is the largest user of energy in the province,
special recognition of best practice and consuming approximately 30 percent of our
best-in-class. total energy requirements. Improvements to
existing homes and buildings to reduce energy
The Provincial Government, through the consumption for space heating include:
OEE, will continue to develop programs
• Improved efficiency of the heating source
for increasing energy efficiency for (furnaces, boilers, etc.)
Islanders that include direct incentives,
loan programs, grants and rebates. • Improved efficiency of the home or building
structure (insulation, windows, etc.)
17Prince Edward I s l a n d E n e r g y S t r a t e g y
E n e rg y Eff i c i ency and Conservation
It is important for Island residents and busi- meets these requirements. The idea of imple-
nesses to understand the most cost-effective menting California-like vehicle emission stan-
approach to increase space heating efficiency. dards was also suggested.
Increasing the efficiency of the heating source
does not necessarily lead to energy savings The Provincial Government operates hun-
if the structure is drafty and poorly insulated. dreds of vehicles in their fleet and purchas-
Greater savings can be achieved by reducing ing more fuel-efficient vehicles has been part
the energy demand of the building and main- of their strategy to reduce fuel costs and cut
taining the existing heating system i.e. seal- greenhouse gas emissions for the past several
ing drafts, adding more insulation, replacing years. The Government’s own Transportation
inefficient systems and equipment, etc. Resi- Efficiency Standard requires that fuel efficiency
dential and commercial energy audits, per- be part of vehicle procurement considerations
formed by qualified professionals, can provide for all future leased or purchased vehicles for
valuable information to consumers on the best and public use.
most cost-effective solutions for space heating
efficiency. For more information on these Public transportation, in some jurisdictions, has
audits and associated programs, please refer been shown to be an effective means to improve
to the Office of Energy Efficiency website air quality, relieve traffic congestion, and reduce
http://www.gov.pe.ca/OEE. fuel consumption and greenhouse gas emis-
sions. A public transit system was launched in
Charlottetown in 2005 and currently operates
Transportation Efficiency seven different routes across the city with plans
to expand into Stratford this year. Two hydro-
Historically, Prince Edward Island has been gen-powered buses were added to the fleet in
more dependent on automobiles than any other 2007. Several submissions in response to the
province. The Island has the most extensive Public meetings suggested the need for a sus-
network of roads and highways, limited urban tainable province-wide public transportation
transit, an automobile dependent tourism indus- system. It was purported that such as system
try and a heavy reliance on the trucking industry would further reduce greenhouse gas emissions
to move goods in, out and around the province. from personal vehicles, promote economic de-
As such, the transportation sector consumes velopment as well as address issues of social
43 percent of our energy and is the single equity and isolation.
largest source of greenhouse gas emissions.
Over 80 percent of registered vehicles on the Invariably, transit systems are a highly subsi-
road in PEI are considered light duty vehicles. dized public service. The costs of implementa-
In addition, the number of annual kilometers tion and ongoing annual operation can be signif-
traveled has increased by nearly 20 percent icant. In the absence of a critical mass of transit
since 1990. users in PEI and relevant market research data
concerning the number of daily users, it is dif-
The Provincial Government introduced a hybrid ficult to quantify what effect, if any, an expand-
tax incentive in 2004 to encourage the purchase ed transit system would have on meeting the
of hybrid vehicles. Participants in May’s Public Island’s energy and environmental objectives.
Meetings encouraged the Government of PEI The results of the VEIC analysis suggest that
not to limit this incentive to hybrids only, but to from an energy and environmental perspective,
set minimum fuel economy standards and ex- expansion of the public transit system would
pand the program to include any vehicle that not have a positive impact on meeting GHG or
18P r i n c e E d w a rd I s l a n d E n e r g y Strategy
E nergy Efficiency and Cons e r v a t i o n
other environmental goals. This does not how- Several suggestions also emerged from the
ever undermine the social issues and argument public around the need to implement smart
surrounding an expanded system. As time goes growth policies in municipal land-use planning.
on and energy prices continue to rise, more Land use decisions can significantly impact
Islanders may opt for public transportation at GHG emissions and promote more sustainable
which time the overall environmental impacts transportation practices. For example, new
may improve. developments that are pedestrian-oriented,
transit accessible and designed with active
According to the VEIC Study on the potential transportation in mind will encourage resi-
for energy efficiency in the transportation dents to make more environmentally friendly
sector in PEI, there are many initiatives that decisions about their transportation needs.
could be implemented, and are currently under This does not only impact transportation, care-
consideration by the Government of PEI: ful urban planning and land use policies may
• Anti-idling and speed reduction campaigns lead to more energy efficient development
practices.
• Telecommuting and compressed work weeks
• Traffic signal synchronization
• Efficient traffic signal and highway lighting
technologies Government Actions
• Public outreach and education Government is currently reviewing the feasibility and
cost of the transportation initiatives with a view to
G o v e r n ment Actions implementing and introducing several new efficiency
programs.
A review of the Provincial Hybrid Tax
Incentive will be conducted to expand the The Provincial Government will support a review of
program and set minimum fuel economy current land use and development policies and attempt
standards. to encourage sustainable options for future land
developments that are tailored to maximize energy
The adoption of California-like vehicle efficiency and promote GHG reductions.
emission standards was announced in
2007. The PEI Government will work with
neighboring provinces and states to
encourage adoption.
A review of the effectiveness of the
Transportation Efficiency Standard, with
a view to more stringent government
wide enforcement, will be undertaken.
Government will continue to evaluate the
feasibility of a province-wide public transit
system and determine the effectiveness of
the current system in reducing greenhouse
gas emissions and meeting provincial
energy and environmental targets.
19Prince Edward I s l a n d E n e r g y S t r a t e g y
E n e rg y Eff i c i ency and Conservation
Government Leadership land. The committee will exist in an advisory
capacity only and all regulatory approval issues
The demonstrated leadership of the Provincial will remain with the Island Regulatory Appeals
Government in recognizing energy efficiency as Commission (IRAC). In New England, Massa-
a priority resource is a crucial step in the devel- chusetts just announced such a stakeholder
opment of energy policy. The government is in a council and they are underway in Rhode Island,
unique position and will seek to develop closer Connecticut and Maine where they are proving
ties between the diverse stakeholders involved to be a highly effective means for advancing
in the administration and implementation of energy efficiency goals.
energy efficiency in PEI. There was a strong
desire expressed during the public meetings to
have government lead by example and position Government Action
the province at the forefront of energy efficien-
cy performance for publicly funded buildings Recognizing the range in diversity of energy
in PEI. efficiency stakeholders and the need to
raise awareness and educate the public,
the Government of PEI will seek to develop
G o v e r n ment Action a multi-representational Energy Efficiency
Advisory Committee.
Government will adopt advanced energy and
environmental standards for all publicly funded
buildings.
Public Outreach
and Education
Energy Efficiency Advisory
Committee There are a variety of common practices and
tools to market to and educate consumers
The suggestion of creating an energy efficiency concerning energy efficiency and conserva-
multi-stakeholder advisory board was con- tion. Several participants and submissions at
tained in several submissions to government. the Public Meetings called for more resources
Recognizing the range in diversity of energy devoted to public outreach and education. The
efficiency stakeholders and the need to raise Province is planning to work with the above
awareness and educate the public, the Govern- Advisory Committee to develop and pursue a
ment of PEI will seek to develop a multi-rep- number of the following strategies:
resentational Energy Efficiency Advisory Com- • Point-of-purchase materials
mittee. This committee will be composed of a
• Utility bill inserts
broad group of individual stakeholders from the
public, private, non-governmental and utility • Direct mail campaign
sectors that will work collaboratively to identify • Internet- central website
all cost-effective investments in efficiency as
• Booths at home shows
well as assisting to plan and design programs
for implementation. This committee will serve • Public relations events
to increase transparency and accountability as • Media outreach
well as raise awareness of energy efficiency
• 1-800 number for expert advice
needs and opportunities in Prince Edward Is-
20P r i n c e E d w a rd I s l a n d E n e r g y Strategy
E nergy Efficiency and Cons e r v a t i o n
In addition to these public awareness activities,
community-based outreach activities will also Government Action
be considered to invoke real behavioral change
amongst Islanders. Large information-based Government, through the OEE, will develop a number
campaigns are effective in promoting aware- of comprehensive public awareness and education
ness but do not often result in sustainable be- programs directed at energy efficiency for all residents,
havioral change. Recognizing that the majority businesses and institutions in PEI.
of the commercial sector in PEI is comprised of
small to medium-sized enterprises, it will be im-
portant for the Province to promote communi-
ty- and workplace-based energy efficiency and
conservation measures to this targeted group
of stakeholders.
21Prince Edward I s l a n d E n e r g y S t r a t e g y
R e n e w a b l e Energy
RENEWABLE ENERGY
4 . 0 RENE W A B LE ENER G Y
Overview Wind
Prince Edward Island is the only Canadian As a percentage of domestic use, PEI is a North
province without substantial resources in fos- American leader in the development of wind
sil fuels, hydroelectric or nuclear energy. As a energy. The Provincial Government, through
result, the province imports nearly 85 percent the PEI Energy Corporation, developed Atlantic
of its energy needs from mostly petroleum- Canada’s first utility-grade wind farm in 2001 at
based off-Island resources. This heavy reliance North Cape when the economics of large-scale
on out-of-province suppliers makes PEI con- wind within the region was not fully understood.
sumers and residents particularly vulnerable Since that time, the PEI Energy Corporation has
to fossil fuel price volatility and supply disrup- expanded its North Cape facility and developed
tions. Pursuing renewable energy development the East Point Wind Farm that has resulted in
offers an alternative to conventional sources the Province owning and operating 40.56 MW
and will provide greater control on the Island of wind power. Now that electrical genera-
of energy prices, security, and diversity of sup- tion from wind has been demonstrated to be
ply. Promoting renewable energy development competitive with non-renewable sources, there
will address many environmental issues, par- are private wind developments that have been
ticularly climate change and the reduction of completed. Several more private wind farms are
greenhouse gases. in the planning stages. In the April 2008 Speech
from the Throne, Premier Ghiz announced that
In 2004, the Department of Environment, Ener- the Province of Prince Edward Island will be
gy and Forestry oversaw the development and developing up to 500 MW of wind generation
implementation of the Renewable Energy Act, capacity in the province over the next five years
which provided a number of policy instruments in partnership with Maritime Electric Company
(e.g. net metering, feed-in tariffs, designated and private developers.
development zones, and a renewable portfolio
standard) to increase the development of re- In addition to demonstrating the economic fea-
newable energy. A Renewable Portfolio Stan- sibility of utility-grade turbines, the Province
dard (RPS) was introduced requiring utilities to has promoted wind development through regu-
acquire at least 15 percent of electrical energy latory measures. Under the Renewable Energy
from renewable sources by 2010.
22P r i n c e E d w a rd I s l a n d E n e r g y Strategy
Renewabl e En e rg y
Act, utilities on PEI must meet at least 15 per- Maritime Electric Company, Ltd. has drafted
cent of their electrical energy sales from procur- an Open Access Transmission Tariff (OATT)
ing power from renewable resources by 2010. that remains before the regulator, the Island
Presently, almost 18 percent of the electricity Regulatory and Appeals Commission. The
on PEI is acquired from wind power meaning OATT will provide nondiscriminatory access for
the renewable portfolio standard has been met wind developers and other potential users at a
by Island electrical utilities. Government feels regulated rate for service. MECL has proceed-
it is now appropriate to establish a new renew- ed with a process to determine transmission
able portfolio standard requirements for future large-scale wind projects
in PEI that will lead to increased transmission
capacity for wind power developers. Both these
initiatives will provide future wind developers
G o v e r n ment Action limited transmission capacity for their exported
power. Maximizing wind potential will require
The Provincial Government will double its
additional cable capacity between PEI and the
renewable energy portfolio standard from
mainland.
15% to 30% by 2013.
Wind energy is PEI’s most prospective renew-
able energy resource. Given its intermittent
nature, it is a challenge to incorporate a high
Prince Edward Island has a world-class wind percentage of wind into the electricity grid. The
resource and there continues to be strong in- scheduling of wind energy is also problematic
terest in locating wind farms in the province. due to the intrinsic variables of weather fore-
Most of the future development of wind must casting. Research and development (R&D)
be marketed off-Island and may be sold at a groups, particularly the Wind Energy Institute
premium to offset electricity from traditional of Canada (WEICan, formerly the Atlantic Wind
sources that release harmful air and green- Test Site) at North Cape, advance wind tech-
house gas emissions. The benefits to PEI for nology through various projects and initiatives
exported wind power are mainly accruing from with other private and government agencies.
lease payments for landowners where the tur- Pursuing a high integration of wind on PEI
bines are situated, the economic stimulus from provides R&D opportunities for WEICan that
short-term construction opportunities, a limited have application in other provinces, remote parts
number of operations and maintenance jobs, of Canada and other parts of the world. Given
and provincial revenues from the environmental our unique situation in PEI, energy storage R&D
attributes associated with green power produc- initiatives involving hydrogen fuel are also being
tion. There is an opportunity to maximize these developed to address the intermittent nature of
benefits through the promotion of additional wind power generation.
large-scale wind farm developments. During
the Public Meetings there was concern voiced
around the tangible benefits to individual
Islanders for further large-scale wind devel-
opments occurring on PEI. Islanders also
questioned why local utilities were not buying
more wind energy to meet local requirements.
23Prince Edward I s l a n d E n e r g y S t r a t e g y
R e n e w a b l e Energy
G o v e r n ment Actions
The Provincial Government will attempt to maximize
the benefits of future large-scale wind developments
for all Islanders, including developments built for both Role of Government in
the export and domestic markets. Future Wind Developme n t
The Provincial Government will work to secure The PEI Energy Corporation’s ownership of the
additional cable capacity to facilitate the export of North Cape and East Point wind farms is an in-
commercial wind power. valuable asset to WEICan. Provincial ownership
means that data for research and development
The Provincial Government will continue to provide is accessible to WEICan and has enabled the
support to WEICan and encourage R&D opportunities Corporation to be an active partner in under-
for small-, medium- and large-scale wind developments. standing and promoting wind energy develop-
ments in PEI. Having access to actual public
assets in the field is an important element to
the success of research and development op-
Small Wind Developments portunities for WEICan and PEI. In addition to
in PE I the above, significant wind farm revenues are
now being generated by the PEI Energy Corpo-
A repeated theme during the public meetings ration and flowing back to the province, thereby
was the need for the Provincial Government to contributing to the diversification of supply and
consider the benefits and encourage smaller stabilization of the cost of electricity. There was
wind developments in PEI. Several participants a strong desire by most public participants to
felt that there was too much emphasis placed see the Province of PEI continue to develop this
on large-scale projects and the benefits of resource.
smaller, more community-focused wind energy
projects deserved attention. A growing trend in
Europe has been a shift away from large wind Solar Technologies
farms to more community-based and distrib-
uted models, which has lead to significant local Solar energy technologies capture the sun’s en-
economic development benefits. ergy for practical applications. There are many
modern technologies for harnessing solar en-
ergy to produce food, heat, light and electricity.
G o v e r n ment Actions Applications span the residential, commercial,
industrial, agricultural and transportation sec-
The Provincial Government will evaluate and develop tors. The pervasive use of solar technologies
appropriate policy mechanisms, such as net-billing peaked in the 1970s and early 80s during the
and the allocation of electrical capacity, to facilitate first fuel crisis; government grants, incentives,
the development of smaller community-based wind and demonstration systems caused an explo-
and other renewable energy projects. sion of growth in Canada. PEI, at one time, had
the highest per capita residential use of solar
Government will continue to explore opportunities hot water units in the country.
for economic development in the manufacturing,
service and maintenance of small wind energy systems. Passive solar design in new construction can
provide practical lighting and comfortable tem-
Government, through the PEI Energy Corporation, peratures by tailoring building orientation, pro-
will consider developing additional wind capacity in portion, window placement, and material com-
PEI specifically for meeting on-island demand and ponents to the local climate and environment.
increasing the Island’s energy security.
24P r i n c e E d w a rd I s l a n d E n e r g y Strategy
Renewabl e En e rg y
Solar thermal applications make up the most Earth Energy
widely used category of solar energy technol-
ogy. These technologies use heat from the sun Earth energy systems, or geothermal systems,
for water and space heating, industrial process are terms used to describe a renewable energy
heat, cooking, water distillation and disinfec- alternative to traditional oil, propane, ventilation
tion. and air conditioning (HVAC) systems. This tech-
nology transfers the heat located immediately
Electricity can be generated from the sun by under the earth’s surface into a residence or
photovoltaic technology (PV). The primary ob- building in winter, and is able to provide cool-
stacle to increased use of photovoltaic systems ing functions in the summer when the outside
is their high initial cost. Continuous price re- temperature is higher than ground temperature
ductions have been occurring. In some off-grid (8-12°C). There were repeated calls from the
locations photovoltaic systems can be cost ef- public for government to provide incentives for
fective versus the costs of running power lines. geothermal heating systems during the public
With many jurisdictions now providing tax and consultations.
rebate incentives, PV installations make up
the largest part of the solar residential market Twenty percent of the average energy demand
worldwide. in a residential home is for water heating, and
most geothermal units include a component to
With increased public concern over escalating heat water for potable or sanitary use. Earth
fuel prices and regard for the environment, the energy systems are ideally suited to meet the
use of solar technologies as a renewable fuel HVAC needs of commercial, industrial and in-
source has regained momentum and is the fast- stitutional (e.g. schools and post-secondary)
est growing sector in renewable energy. Solar users. Natural Resources Canada (NRCan) and
technology maturation and the rising cost of the US Environmental Protection Agency state
fossil fuels are making solar systems a more at- that earth energy systems are the most energy-
tractive alternative to conventional sources of efficient, environmentally clean, and cost-effec-
energy. Throughout the public consultation pro- tive space conditioning systems available in the
cess, there was interest expressed by the public market today.
for Government to promote the greater deploy-
ment of small-scale renewable technologies
like solar and geothermal heating systems.
Government Action
The Province of PEI will continue to support the
installation of small-scale renewable heating
technologies like solar and geothermal heating
systems through grants, loans, tax and other
financial incentives.
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