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How Distributed Generation is Revolutionizing Energy in Canada

Posted: 06/17/2013 5:33 pm

Ever since I was a little kid three smoke stacks dominated horizon across the lake where my grandfather built a cabin in 1919. Then in 2011, the smokestacks at the old Wabamun Power Plant came down, changing the landscape I had known for 50 years.

During the lifetime of that old coal-fired power plant, the pace of technological innovation was unprecedented: TVs, cell phones, computers, rocket ships, electric cars and even the Segway have all been invented and perfected.

Despite all of that innovation, the electricity system that that power plant was apart of had remained largely the same -- a massive centralized hub and spoke electricity generation system connected to ancient, expensive transmission lines. If Edison was still alive he would have recognized our system as the one he drew up all those years ago. If Alexander Graham Bell was still alive, it's doubtful he'd get past the home screen on his iPhone.

Canada's transmission infrastructure is aging and needs more than $98 billion of investment by 2030.

"There is no other industry that has stagnated for as long as the energy industry. We're still looking at 50-year-old powerplants, coal-fired facilities, that are connected to 80-year-old power lines that are located 200 plus kilometres away from the user," says Anouk Kendall, the executive director of the World Alliance for Distributed Energy Canada.

Kendall works with decentralized energy companies on some of the innovative solutions that are starting to rise to prominence today.

While cell phones and laptops have liberated us from being tied to land-lines and computers that once took up entire floors of buildings, the transmission grid remains the inflexible behemoth it was 50 years ago. The central idea of distributed generation -- where nimble, low-cost generators generate electricity where you need it -- is the equivalent of going from mainframe computer that takes up half a building to an iPad.

We spoke with Kendall standing in the middle of a 47.2 kilowatt solar system on the roof of EECOL Electric in Calgary, Alberta, just one example of the thousands of Canadians who have embraced decentralized energy.

EECOL electric sees solar as a big part of the future and got involved with solar to "kick-start us off in the industry," said Jason Zurowski of EECOL Electric.

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  • Anouk Kendall

    Anouk Kendall, the president of WADE Canada with the 47.2 kilowatt solar system on the EECOL Electric store in Calgary, Alberta, just one of thousands of examples of distributed energy systems in Canada. Photo David Dodge

  • EECOL Electric

    Jason Zurowski of EECOL Electric says the electric supply store wanted to break into the solar business so they installed a 47.2 kilowatt solar system on their Calgary store. Photo David Dodge

  • Solar panels

    The 47.2 kilowatt solar system on EECOL Electric Store in Calgary is an example of distributed energy. Most of the energy is used right where it is produced reducing the need for distribution infrastructure. Photo David Dodge

  • Peas in a solar pod

    Jason Zurowski EECOL Electric Anouk Kendall president of WADE Canada talking about distributed energy on the roof of EECOL Electric in Calgary, Alberta. Photo David Dodge

  • EECOL Electric's roof

    Jason Zurowski of EECOL Electric and Anouk Kendall president of WADE Canada among the 189 solar modules that comprise EECOL's distributed solar energy system on their Calgary store. Photo David Dodge

  • Brent Harris

    Brent Harris CTO Sustainable Energy Technologies in the company's testing lab in Calgary. Inverters being produced by this Calgary company are destined for the German market where solar producers are installing battery systems with their solar systems to enable them to store the energy for release when electricity is in higher demand. Photo David Dodge

  • Biogas

    James Callaghan in the engine room of the Maryland Farms biogas operation near Lindsay, Ontario. The 500 kilowatt distributed energy biogas system produces energy right at the farm reducing the need for long distance transmission and increasing efficiency by providing enough heat to heat all of the farm buildings. Photo David Dodge

  • Readout

    This cogeneration V12 engine is cranking out 254 kilowatts of electricity 24-7 running on methane gas created from cow manure. This is distributed energy in action on a farm in Ontario. Photo David Dodge

  • Small wind

    Two 50 kilowatt wind turbines provide distributed energy at Université St. Anne in Church Point, Nova Scotia. By switching from heating with fuel oil to biomass and solar thermal energy and by adding two wind turbines the University is saving $200,000 per year. Photo David Dodge

  • Urban wind

    Speaking of distributed energy, people just like to hang out at Toronto's 600 kilowatt wind turbine installed at Exposition Place in the heart of Canada's largest city. Photo David Dodge

  • Toronto's urban wind turbine

    Toronto's WindShare wind turbine is a 600 kilowatt unit, and it would be considered distributed generation being right in the heart of the city, as seen from Dufferin Street in Toronto, Ontario. Photo David Dodge

  • Net-zero homes

    Les Wold, of Effect Homes a net-zero home builder in Edmonton, Alberta is part of a growing interest and market for distributed generation in Canada. Photo David Dodge

So what can distributed generation do for me? There are lots of good ideas in the world and only so much time, so why care about this one?

Have you ever looked at your electricity bill and tried to decipher the myriad transmission and distribution charges? Oftentimes that part of your bill can even equal the amount you have to pay for the electricity you actually used. You're paying for decisions made decades ago about giant monolithic systems that have failed to evolve with technology.

And the costs are set to mount. According to the Conference Board of Canada we have to spend $98.1 billion in transmission and distribution infrastructure by 2030 (PDF).

There is a way we can lower these charges in the long term and it's dead simple. Generate the electricity where the demand is and you don't have to spend billions of dollars.

"If there is anytime to start looking at a more modern, progressive energy infrastructure it's right now. We have to spend the money anyway so are we going to spend it on the 1940s Chevrolet or are we going to buy something more modern and make a commitment to modernizing this industry," says Kendall.

The options of distribution generation technology

The reason we built the system we did was because the economies of scale for these giant systems meant that costs were kept down. Well they're not going to be able to rely on the price advantage for long.

The cost of solar modules has dropped by two orders of magnitude in the past 35 years.

This massive price drop is due to Swanson's Law, a corollary to Moore's Law of transistor cost. Swanson's law, which was named after Richard Swanson the founder of SunPower, says that the cost of photovoltaic cells falls by 20 per cent with each doubling of global manufacturing capacity.

And solar isn't the only distributed energy solution that is bringing down costs. Combined heat and power projects, whether they're run off of natural gas, biogas, landfill gas, biomass or waste, have become far more efficient and cost effective to run. These projects can be integrated fairly seamlessly into an urban context and can take advantage of Canada's extensive natural gas infrastructure

As Brent Harris, the chief technology officer of Sustainable Energy Technologies explains, the energy landscape is changing dramatically. "How it's changing is really with the lower cost of the distributed technology... that's what's pushing the distributed generation agenda around the world."

Another big advantage distributed generation has is the speed of deployment. "You can get a solar system installed in 90 days versus 10-15 years for a new coal or nuclear plant. It's pretty hard to predict your energy demands that far ahead of time," says Harris.

The list of additional benefits is considerable including a more robust grid, reduced line losses, reduced pollution, less opposition to smaller projects, local job creation and new businesses and generally less need for big, expensive infrastructure.

Japan is pursuing distributed generation as a hedge against the catastrophic grid failure that happened after Fukushima. As far as jobs, Brent Harris' company, Sustainable Energy Technologies, is based in the oil city of Calgary, Alberta. The company designs and manufactures inverters and sells them all over the world. An inverter is a box that turns DC electricity into AC electricity and vice versa. It's a vital piece of equipment for solar systems, and most of their business happens in Europe.

In fact, Sustainable Energy Technologies just got a contract to supply 21,000 power inverters to a company in Germany that is making battery storage systems for solar systems to allow owners to delay selling power until its needed.

And when you start looking at distributed energy around the world it makes even more sense. India skipped the era of landlines and just went straight to being the second largest mobile phone market in the world. It can do the same when it comes to its energy infrastructure. Beset by blackouts they can simply hop over the step of building a centralized hub and spoke system and generate the power where it's needed.

Adding distributed generation is a no-brainer. It's the evolution of a system that has remained stagnant for quite some time. As barriers come down along with prices we could very easily see 25 per cent of our electricity coming from decentralized energy sources such as solar. Germany already gets 25 per cent of its electricity from renewable sources and is headed for 80 per cent by 2050.


Follow David Dodge on Twitter: www.twitter.com/greenergy_dave