POLICY BRIEFING The Hill Times • Monday, July 11, 2005 ALTERNATIVE ENERGY Is the Martin government up to the challenge of seriously developing more alternative sources of energy now in a world threatened by climate change? His government says yes. His critics say no. Read what the players have to say. John Efford, Stephen Owen, Stéphane Dion, Bryon Wilfert, Glen Murray, Marc Renaud, Stephen Harper, Jack Layton and Serge Cardin. Inside. Pages 13-25 Photograph by Jake Wright, The Hill Times Hello: Prime Minister Paul Martin entering the National Press Building on Wellington Street on June 29 in Ottawa at about 2 p.m. 14 THE HILL TIMES, MONDAY, JULY 11, 2005 POLICY BRIEFING - ALTERNATIVE ENERGY Energy Minister Efford says hydrogen and fuel cell industries hold ‘enormous potential,’ promises to invest more ■ Energy Minister John Efford “•to expand energy sources through means recognizing that humans are part of particularly true given that other jurisdic- the Wind Power Production Incentive; an ecosystem that must be respected to tions like the United States, Japan and defends his government’s leader- “•to design and implement the ensure our future well-being. But the devel- Europe are increasing their investments.” ship on alternative energy, but he Renewable Power Production Incentive opment of natural resources is also neces- defends Canada’s reliance on coal, program for other types of renewable sary to ensure our economic prosperity. My How important is the hydrogen fuel-cell energy sources, such as biomass, landfill role, as Minister of Natural Resources Cana- industry? oil, oil sands and natural gas, too. gas and small hydro; da, is to ensure the sustainable development “Fuel cell and hydrogen technologies “•to continue providing incentive pay- of natural resources. For instance, our econ- will provide both economic and environ- ments to organizations that install renew- omy needs energy to flourish, but not at the mental benefits. It is a technology that has THE HILL TIMES able energy technologies for heating and expense of the environment. So, our energy the potential to truly transform the way we cooling technologies under the Renewable policy framework promotes development, produce and use energy.The industry is anada’s Energy Minister says the hydro- Deployment Incentive Program; and but our programs and regulations ensure growing at a phenomenal rate worldwide Cgen and fuel cell industries hold “enor- “•to continue to expand and support that the environment is protected and that and Canada is well positioned to take mous potential from both an economic and the development of biofuels and emerging we develop climate-friendly ways to produce advantage of that. In Canada, there are environmental perspective,” promises to and established renewable energy sources and use energy.” more than 80 companies across the country invest more money into R&D in the fuel cell for Government of Canada facilities.” focused on these technologies and associat- and wind energy industries, says the govern- The federal government has recognized ed services. So I think hydrogen and fuel ment wants to develop a wind energy manu- Mr. Efford, you said in your speech on April the potential of wind power with some cells hold enormous potential from both an facturing base here in Canada and says 6 to the Americana 2005 Conference in new financial incentives in your most economic and environmental perspective.” solar power will become an important con- Montreal that there’s “an inherent and fun- recent budget. But how much of a priority tributor to Canada’s electrical grid. damental link between the natural is wind energy? Do you think solar power will ever “I see solar power becoming an impor- resources sector and building strong, sus- “The Government of Canada recog- become a major contributor to Canada’s tant contributor to Canada’s electrical grid. tainable communities.” What do you mean? nizes that all forms of renewable energy, electrical grid, even though it’s expensive? Some analysts have even drawn parallels “For starters, natural resources devel- including wind and solar, play a signifi- “The costs of solar power worldwide, between the prospects and perceived bene- opment is a key economic driver in many cant role in diversifying Canada’s energy particularly photovoltaics (PV), have been fits of PV as a form of micropower [decen- communities, so developing resources in a supply mix and in contributing to Cana- falling at about five per cent a year in real tralized electrical network] with recent way that is sustainable for the economy da’s climate change and sustainable devel- terms over the past 20 years following a well revolutions in the telecommunication and and the environment is critical. opment objectives. As well, the Govern- established curve. As the experience base of computer industries,”said Mr. Efford in an “But it is important for all communities ment invested an additional $920-million manufacturers grows and technological email interview with The Hill Times for this to develop and use our energy, mining and to quadruple the Wind Power Production improvements from R&D labs are imple- week’s “Alternative Energy Policy Briefing” forest resources in efficient and sustainable Incentive program, as well as close to mented, costs will continue to drop signifi- while Environment Minister Stéphane ways. So we work with communities on $900-million for other emerging renewable cantly, and I see solar power becoming an Dion turned down requests for an indepth planning. For example, we support district energy sources such as biomass, landfill important contributor to Canada’s electrical interview on Canada’s vision and leader- energy systems for institutions or commu- gas and small hydro. One of our chal- grid. Some analysts have even drawn paral- ship on alternative energy. nities; these systems might generate elec- lenges for the future will be investing in lels between the prospects and perceived Mr. Efford defended his government’s tricity through natural gas, and use heat R&D for wind energy and developing a benefits of PV as a form of micropower leadership and vision on alternative energy. from that process to meet hot water needs. manufacturing base here in Canada.This (decentralized electrical network) with Declared Mr. Efford: “In the 2005 budget, We work with communities, businesses and is something we’ll be working on over the recent revolutions in the telecommunication the Government of Canada invested an addi- individual homeowners to promote energy coming months.” and computer industries. tional $200-million over five years, and a efficiency through a variety of programs.” “To illustrate the potential of PV, there total of $920-million over 15 years, to expand The Globe and Mail recently ran a piece are almost seven million detached residen- the Wind Power Production Incentive. In How much has the federal government (May 27) on how there’s a “fuel cell tial houses in Canada, consuming about 62 addition, the budget introduced the Renew- invested in alternative energy in the last fatigue”over the whole “commercializa- terawatts of electricity at a cost of $6-billion. able Power Production Incentive to encour- budget and is the alternative energy sec- tion is around the corner”mantra and that If a 30-square-metre PV array were to be age the development of emerging renewable tor a good investment and good for the there’s been a lot of disappointment over installed on the roof of a typical Canadian energy sources, such as biomass, landfill gas economy? the years in the fuel cell industry. How house, it would supply approximately 4,000 and small hydro.The budget will provide a “In the 2005 budget, the Government of much did the federal government put into kilowatt-hours of electricity a year, or 45 per total of $886-million over 15 years.” Canada invested an additional $200-mil- its research and development budget in cent of the electrical load. By comparison, As well, Mr. Efford said biodiesel produc- lion over five years, and a total of $920- the fuel cell industry and do you think it the Waterloo Green Home, part of NRCan’s tion in Canada is expected to grow million over 15 years, to expand the Wind should be pumping in more? Advanced Houses program, uses only 4,340 “immensely” this year “from nearly zero pro- Power Production Incentive. “The Government of Canada has invest- kilowatt-hours, so the same PV system on duction to approximately 100 million litres.” “In addition, the budget introduced the ed more than $200-million and has been a this house would be able to meet almost the Mr. Efford’s interview follows. Renewable Power Production Incentive to key supporter of the fuel cell industry in entire electrical load on an annual basis, encourage the development of emerging Canada since 1983.These investments have assuming that the heating system is not What are the top five priorities you’re renewable energy sources, such as bio- helped position Canadian firms as world electric. So combining energy-efficient working on in the renewable energy mass, landfill gas and small hydro.The leaders. Examples include Ballard Power lights and appliances with an aggressive PV sources front for Canada? budget will provide a total of $886-million Systems, Dynetek Industries, Hydrogenics program has the potential to meet all the “My primary mandate as Minister of over 15 years. and Stuart Energy Systems. We can be electricity needs in residential housing.” Natural Resources Canada, and that of my “The budget also proposed to acceler- proud of our industry’s progress. department, is to ensure the sustainable ate the Capital Cost Allowance rate for “Fuel cells are a truly transformative How about biodiesel? development of Canada’s energy renewable energy generation equipment. energy technology, one that could funda- “Biodiesel production in Canada is resources, minerals, metals and forests, as “From an economic perspective, support- mentally change the way we use energy.