STUDY NO. 187 JULY 2020 OPPORTUNITIES AND CHALLENGES FOR DISTRIBUTED ELECTRICITY GENERATION IN CANADA 3512 - 33 Street NW, #150, Calgary, AB T2L 2A6 350 Sparks Street, #805, Ottawa, ON K1R 7S8 403.282.1231 | www.ceri.ca | [email protected] @ceri_canada Canadian Energy Research Institute OPPORTUNITIES AND CHALLENGES FOR DISTRIBUTED ELECTRICITY GENERATION IN CANADA Opportunities and Challenges for Distributed Electricity Generation in Canada Authors: Ganesh Doluweera, Victor Gallardo, Hamid Rahmanifard, Eranda Bartholameuz Recommended Citation (Author-date style): Ganesh Doluweera, Victor Gallardo, Hamid Rahmanifard, Eranda Bartholameuz. 2020. “Opportunities and Challenges for Distributed Electricity Generation in Canada.” Study No. 187. Calgary, AB: Canadian Energy Research Institute. https://ceri.ca/assets/files/Study 187 Full Report.pdf Recommended Citation (Numbered style): G. Doluweera, V. Gallardo, H. Rahmanifard, E. Bartholameuz, 2020 “ Opportunities and Challenges for Distributed Electricity Generation in Canada.” Study No. 187. Calgary, AB: Canadian Energy Research Institute. https://ceri.ca/assets/files/Study 187 Full Report.pdf Copyright © Canadian Energy Research Institute, 2020 Sections of this study may be reproduced in magazines and newspapers with acknowledgment to the Canadian Energy Research Institute Acknowledgments: The authors of this report would like to extend their thanks and sincere gratitude to all CERI staff involved in the production and editing of the material. The authors of this report acknowledge the following for providing helpful insights for this study. Responsibility for any errors, interpretations, or omissions lies solely with CERI. • Abbas Ali Beg, ATCO • Richard Laszlo, Laszlo Energy Services (LES) • Rob Sinclair, EnerStrat Canada ABOUT THE CANADIAN ENERGY RESEARCH INSTITUTE Founded in 1975, the Canadian Energy Research Institute (CERI) is an independent, registered charitable organization specializing in the analysis of energy economics and related environmental policy issues in the energy production, transportation, and consumption sectors. Our mission is to provide relevant, independent, and objective economic research of energy and environmental issues to benefit business, government, academia, and the public. For more information about CERI, visit www.ceri.ca CANADIAN ENERGY RESEARCH INSTITUTE 150, 3512 – 33 Street NW Calgary, Alberta T2L 2A6 Email: [email protected] Phone: 403-282-1231 Opportunities and Challenges for Distributed Electricity Generation in Canada iii Table of Contents List of Figures .............................................................................................................................................. vii List of Tables ................................................................................................................................................ ix Acronyms and Abbreviations ....................................................................................................................... xi Executive Summary .....................................................................................................................................xiii Chapter 1: Introduction ................................................................................................................................ 1 1.1 Scope & Objectives ............................................................................................................................. 3 Chapter 2: Review of Distributed Generation Programs, Policies and Regulations ..................................... 5 2.1 British Columbia.................................................................................................................................. 5 Electricity System ................................................................................................................................. 5 Customer-owned and Central Energy Procurement DG Policy Framework ........................................ 7 Residential and Commercial Rate Structure ........................................................................................ 8 2.2 Alberta ................................................................................................................................................ 9 Electricity System ................................................................................................................................. 9 Customer-owned DG Policy Framework ............................................................................................ 11 Residential and Commercial Rate Schedules ..................................................................................... 12 2.3 Saskatchewan ................................................................................................................................... 13 Customer-owned and Central Energy Procurement DG Policy Framework ...................................... 15 Residential and Commercial Rate Schedules ..................................................................................... 16 2.4 Manitoba .......................................................................................................................................... 17 Customer-owned and Central Energy Procurement DG Policy Framework ...................................... 18 Residential and Commercial Rate Schedules ..................................................................................... 19 2.5 Ontario .............................................................................................................................................. 20 Customer-owned and Central Energy Procurement DG Policy Framework ...................................... 21 Residential and Commercial Rate Schedules ..................................................................................... 22 2.6 Quebec .............................................................................................................................................. 22 Electricity System ............................................................................................................................... 22 Customer-owned and Central Energy Procurement DG Policy Framework ...................................... 25 Residential and Commercial Rate Structure ...................................................................................... 26 2.7 New Brunswick ................................................................................................................................. 26 Electricity System ............................................................................................................................... 26 July 2020 iv Canadian Energy Research Institute Customer-owned and Central Energy Procurement DG Policy Framework ...................................... 28 Residential and Commercial Rate Schedules ..................................................................................... 28 2.8 Nova Scotia ....................................................................................................................................... 29 Electricity System ............................................................................................................................... 29 Customer-owned and Central Energy Procurement DG Policy Framework ...................................... 30 Residential and Commercial Rate Schedules ..................................................................................... 31 2.9 Newfoundland and Labrador ............................................................................................................ 31 Electric System ................................................................................................................................... 31 Customer-owned and Central Energy Procurement DG Policy Framework ...................................... 33 Residential and Commercial Rate Schedules ..................................................................................... 33 2.10 Prince Edward Island (PEI) .............................................................................................................. 34 Electric System ................................................................................................................................... 34 Customer-owned and Central Energy Procurement DG Policy Framework ...................................... 35 Residential and Commercial Rate Schedules ..................................................................................... 36 2.11 Provincial Summary Tables ............................................................................................................. 36 Chapter 3: Assessment of Technology Options for Distributed Generation .............................................. 41 3.1 Selection of DG Technologies for the Assessment ........................................................................... 41 3.2 Solar PV for Distributed Generation ................................................................................................. 42 Solar PV Assessment Procedure ......................................................................................................... 43 Solar PV DG System Assessment Results ........................................................................................... 45 3.3 Biomass and Municipal Solid Waste for Distributed Generation ..................................................... 51 Biomass