Alternative and Renewable Energy Framework
NOW THEREFORE BE IT RESOLVED THAT the Alberta Urban Municipalities Association urge the Province of Alberta to prioritize the implementation of the green energy purchase strategy and an alternative and renewable energy framework that specifically identifies municipalities as unique consumers and empowers and equips municipalities to exercise choice within the market-based electricity system.
WHEREAS municipalities in Alberta are concerned about economic, social, and environmental sustainability;
WHEREAS these same municipalities commonly wish to show leadership and responsibility in acting sustainably;
WHEREAS energy purchase to heat, operate, and power facilities is one of the significant costs facing municipalities;
WHEREAS economic strength is dependent on innovation, business and manufacturing diversity and is part of municipalities’ sustainability strategies;
WHEREAS municipalities may wish to consider sustainability relating to their energy purchase choices, commonly referred to as “greening” energy purchases;
WHEREAS municipalities may have limited expertise, awareness of options, and background knowledge about green energy or renewable energy options;
WHEREAS The Province of Alberta has jurisdiction over the management, exploration, development, and conservation of non-renewable resources;
WHEREAS municipalities need to respond to different pressures, expectations, and regulations than independent consumers in considering their purchasing decisions, and must act responsibly and prudently with limited public resources;
WHEREAS renewable energy options are often available only at a premium cost or at a tremendous upfront investment with an unrealistic pay-back period;
WHEREAS Renewable Energy Certificates (RECs) do not credit municipalities as a purchaser with any benefit from the associated carbon credit offsets which in turn can limit the appeal or the direct/tangible benefit;
WHEREAS consumers must rely on third party certification as a means of ensuring the are RECs appropriately sourced and accounted for and funds from REC purchases are returned to renewable energy producers to further stimulate investment on a voluntary basis;
WHEREAS municipalities may need support to understand and frame options around the purchase of renewable energy in Alberta beyond the primary means of purchasing RECs;
WHEREAS The Government of Alberta reports that in the recent past renewable energy sources were more expensive sources than non-renewable, but the rising prices of fossil fuels has leveled the playing field, municipalities may not be experiencing this leveling of costs as they try to purchase green power;
WHEREAS there is a specific need for Provincial leadership in renewable energy certificate purchase or a renewable energy strategy involving municipalities;WHEREAS other provincial governments including Quebec and Ontario have developed renewable energy strategies;
WHEREAS the release of the Province of Alberta’s renewable and alternative energy policy framework continues to be delayed;WHEREAS many municipalities have been investing time and resources into local sustainability plans and initiatives to reduce their environmental footprint, and put significant effort and pride into building more sustainable communities, but would benefit from a solid provincial framework on renewable energy in which municipalities are key stakeholders in developing; and
WHEREAS the current choice to purchase of Renewable Energy Certificates (RECs) seemingly pits higher monetary “premium” costs against environmental costs, or in other words municipalities are often forced into a decision between fiscal restraint and environmental responsibility.
Alternative and Renewable Energy Framework
- The electric system in the Province of Alberta is made up of power generation, transmission and consumption. Over 80% of Alberta's power generation is met through coal and gas fired plants. Renewable energy (predominantly wind) makes up 14%(6)
- Municipalities are interested in green energy purchase. For instance, in 2012, the City of Edmonton spent $38.4 million on electricity to run all City of Edmonton buildings. However, they announced a new contract in January 2014 with ENMAX commercial services. Under this contract, the City will be able to pursue green energy strategies, such as self-generation alternatives to providing electricity. This contract will also allow the City to call on industry experts, in a cost-effective manner, to explore opportunities such as energy alternatives, conservation and utilization(7).
- When a green electricity plan is purchased from a renewable energy company, it's not as though the purchaser actually has wind or solar electricity pumped directly to their outlets. Instead, the supply purchased from renewable energy companies is simply added to the giant pot that is the energy grid. Purchasing a green energy plan means that amount of energy use will be offset in the grand scheme of things because an equivalent to your usage was produced by a renewable energy company(8).
- Green Energy electricity plans are often purchased at a higher cost or premium over non-green plans(9).
- The province has experience in green energy purchase. Alberta Infrastructure began using electricity from renewable sources in 2006 and its commitment to using renewable energy was instrumental in helping establish some of Alberta's first Wind Farms. Since 2009, Alberta Infrastructure has supplied government owned facilities with 100% 'Eco Logo' certified electricity. The government website reports that purchasing Green Power reduces their carbon footprint by an estimated 150,000 Metric Tonnes of CO2 per year - the equivalent to taking over 40,000 vehicles off Alberta's road.(10)
- Renewable energy options are growing in range and complexity. Many municipalities will have heard of the popular types of green energy, such as a solar energy or wind energy, but there are other emerging options. In the near future these many include harvesting oils from algae or waste or putting new types of buoys offshore to capture energy of tides, and there is a wide variety of clean energy companies experimenting with new sources of energy.11 A provincial framework on renewable energy would help municipalities to navigate this emerging industry.
- The need for a comprehensive plan governing wind, solar, and geothermal electricity generation in Alberta has been discussed since 2007 in Alberta and was recently identified within the throne speech of the current Government. But the role of municipal green energy purchase has not been specified.12 The goal of such a framework has previously been recommended as helping to increase Alberta's supply of and demand for renewable and alternative electricity sources.
- Some experts have called for Alberta to hasten the introduction of 'an alternative and renewable energy framework that empowers consumers to exercise choice within the market-based electricity system.'
- The Pembina Institute reports that Alberta has significant renewable energy potential - including wind, bioenergy, geothermal and hydro - but requires the implementation of strong provincial policies designed to support renewable energy and energy efficiency deployment in the province. As these policies are developed municipalities need to have a distinct and clear voice to ensure that specific needs and supports are met.(14)
- The Alberta Municipal Services Corporation (AMSC), a wholly owned subsidiary of the Alberta Urban Municipalities Association (AUMA), provides energy services. The AMSC Energy Program was launched at the time Alberta deregulated its electric utility industry in response to members' needs. The AUMA membership participating in the program has benefited since the program's inception in 2001 through the cost effective supply of aggregated energy including optional Green Power. The 2014 AMSC Energy Program is the RIGHT PRODUCT, the RIGHT PARTNERSHIP, and the RIGHT PRICE to Municipalities, Municipally Related Organizations and Not for Profit Organizations in Alberta for Natural Gas, Electricity and Green Power. (15)
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(1) City of Edmonton. 2014. http://www.edmonton.ca/city_government/news/2014/city-of-edmonton-plugs-in-new-electricity-contract.aspx
(2) Government of Alberta, Alberta Energy. "Alberta's Provincial Energy Strategy" page 7.
(3) http://www.epa.gov/greenpower/gpmarket/rec.htm
(4) Government of Alberta, Alberta Energy. "Alberta's Provincial Energy Strategy" page 10
(5) Edmonton Journal. "Long-awaited Alberta renewable energy strategy still in limbo" http://www.edmontonjournal.com/Long+awaited+Alberta+renewable+energy+strategy+still+limbo/9683671/story.html
(6) AUMA, Energizing Municipalities: Alberta Urban Municipalities Association "Draft Energy Reference Guide"- page 4. http://www.auma.ca/live/digitalAssets/65/65867_Energy_Reference_Guide.pdf
(7) http://www.edmonton.ca/city_government/news/2014/city-of-edmonton-plugs-in-new-electricity-contract.aspx
(8) http://www.albertaenergyproviders.com/renewable-energy-alberta.html
(9) http://www.pollutionprobe.org/whatwedo/greenpower/consumerguide/alberta.htm
(10) Government of Alberta, http://www.infrastructure.alberta.ca/3813.htm
(11) http://www.albertaenergyproviders.com/renewable-energy-alberta.html
(12) Calgary Herald. "Wind, solar proponents have high hopes for Alberta renewable energy framework Policy promised in throne speech." By Amanda Stephenson, March 4, 2014
(13) Calgary Herald. "Wind, solar proponents have high hopes for Alberta renewable energy framework Policy promised in throne speech." By Amanda Stephenson, March 4, 2014
(14) Pembina Institute, http://www.pembina.org/re/work/provincial-policy May 2014
(15) http://www.auma.ca/live/digitalAssets/70/70898_Template_-_2014_AMSC_Energy_Program_-_Council_
Alberta Energy – June 22, 2015
The ministry did not respond to the specific suggestions in this resolution and instead indicated that Environment and Parks is renewing the provincial climate change strategy and is looking at reducing emissions via energy efficiency, technology and innovation.
AUMA rejects this response.