Our energy future

On the weekend, I was reading an article in the National Post about a new subdivision in Calgary - one that hopes to be the first truly energy self-sufficient community in Canada. Two developers, in partnership with the federal government, are spearheading this initiative.

The major parts of this scheme call for houses to be R-2000 compliant, and for each garage roof to be covered by an array of solar panels.

Developments in solar panel technology, from the advent of the photovoltaic cell, to new manufacturing methods, are making solar more and more affordable. While the cost of solar electricity generation is still far and above what we pay for traditional sources, the price is about 20 percent of what it was a decade ago. Like computers, advances in technology and mass marketing, are leaving us with systems that are more powerful and less expensive. Probably within the decade we will see solar power systems that no more expensive than mainstream technologies.

This, of course, leads to the question of whether or not Ontario can benefit from all of this?

First, Hydro One and Ontario Power Generation (OPG) have not been able to have generation keep pace with demand for quite some time. Add to this the fact that a significant portion of our supply comes from coal fired plants, which the government wants to shut down due to CO2 emissions.

Secondly, if you read the fine print, you realize that up to 20 percent of the power sent out over the lines is lost in transmission. This could be due to a combination of factors, including an aging power grid, or the effect of sending electricity over long distances.

Third, despite those of us who heat with electric, the peak demand is in the summer, not the winter.

Lastly, building new capacity is expensive, and usually cost overruns are the order of the day. Already the debt servicing charge on your bill can be as high as what you pay for the power you consume.

The province has already allowed for the possibility of individuals and companies to sell surplus solar generated electricity back to the grid at over 40 cents a kilowatt hour (compared to buying it at roughly 6 cents). A good deal...if you can afford it.

To be self sufficient with solar, one would have to spend up to $50,000 for the equipment and installation, making this deal only for the very wealthy.

Here's a plan.

First, have Hydro One offer a credit financing capacity for individuals and businesses to purchase solar power systems, for little or no money down.

Once the system is operational and tied into the grid, Hydro One buys the power at the going rate of 42 cents, and charges you the 5-6 cents as per normal.

The difference between what you sell and what you use would constitute the monthly payment on the system.

Most likely, you would run significant surpluses in the summer, which would pay down the system quicker. In the winter, when generation is lower, you may only generate enough for your own use. This means, however, your Hydro One bill would only relate to paying for your system, and not both the system repayment and your hydro use.

The bigger the solar arrays, the better, which makes this idea perfect for farmers. Barns have enormous roof lines and, by virtue of being near pasture land, have almost no tree cover to block sunlight.

Such a scheme could be tested in partnership with OMAFRA, where participating farms could place systems on barns and outbuildings, and the electricity generation and usage are monitored for one season. Improvements and changes could then be incorporated into a bigger plan.

At first blush, the plan, if workable, accomplishes four things:

1. It reduces or eliminates the electric bill for the participant;
2. It is easier, faster, and cheaper to bring generation capacity on-line than big mega projects, which, in turn, does not add to Hydro One's stranded debt of over $30 billion;
3. It is locally produced, so it reduces the amount of power lost in the grid, and protects areas from brownouts and major disruptions;
4. It is zero emission technology that gives us latitude concerning coal fired plants.

While I am not someone skilled in the science of this technology, we do need to explore options that will meet Ontario's demand for power, and save green - in our environment and in our wallets.