Government must eliminate reliance on old models.
Would you like to stop paying electricity bills? Would you like to receive a quarterly cheque from your energy corporation?
Who wouldn’t?
It’s time for the government to adopt new mental models about alternative energy. As a community, we publicly proclaim our support for the environment. The choice and viability of alternative energy options are rising exponentially.
It was only a year ago that southern Ontario experienced the Great Blackout. California now accepts brownouts as a reality. Demand and supply are out of alignment. It is time to stop our slide down this slippery slope.
The solution Ontario announced recently is grounded in the old mental model. The provincial Liberal government’s solution was to reduce electrical consumption by installing smart meters in four million homes and small businesses by 2010. Each smart meter costs between $150 and $400. Smart meters measure both the amount of electricity and the time of day it is used, allowing the energy corporation to charge more during peak periods.
The rationale offered was not to increase revenues, but to serve as motivation to reduce consumer usage during peak periods.
This rationale is difficult to understand. Should consumers sit in the dark during the winter months? Maybe unplug the refrigerator? Do the wash after 8 p.m.? This plan affects the quality of life for Ontario Hydro consumers and appears to be an ill-conceived cash grab.
It is estimated that the Ontario Liberals will spend almost $600 million on Phase 1 of this project. The British Columbia and Alberta governments and their energy corporations can do better and lead change by adopting a new mental model.
The time has come to harness free energy using solar modules. Solar photovoltaic technology converts sunlight into electricity using solid-state semiconductor diodes called photovoltaic cells. Silicon (sand) is the most common semiconducting material used to make the cells. They have no moving parts and are generally warranted for 25 years.
Our provincial governments can join international alternative energy leaders, such as Germany, who demonstrate their concern for the environment by installing more than 14,000 MW of wind generating capacity and more than 20,000 solar electrical systems. The German government has invested a further $1.7 billion in alternative energy initiatives.
China also recognizes the need to lead in alternative energy initiatives to reduce its reliance on oil-generated electricity.
It is time to join the global leader in this industry. You may be questioning the economic viability of using integrated photovoltaic solar technology and conclude that it is not cost-effective. In the past, this has been true. However, I offer a persuasive business case, based on evidence rather than rhetoric.
The cost of oil has increased from $26 to roughly $50 a barrel. The efficiency of solar technology has also increased exponentially, while the cost of solar equipment has fallen. Environmental awareness, in the age of the Kyoto Accord and the melting polar caps, is growing. We are now willing to consider not just the financial bottom line, but also environmental and societal ones.
Fewer power-generating plants will be required with solar-based technology, reducing the impact on the environment. The more this new form of free energy is utilized, the cheaper the equipment will become through economies of scale. Installation during initial construction or while re-roofing older buildings, for example, will also reduce the capital cost of solar panels.
B.C. and Alberta have the potential to gain global recognition as leaders in integrated photovoltaic solar technology.
So what do we need to do? Call upon governments and energy corporations to:
* Work together to put “grid-tie systems”(the hookup that permits the flow of energy both to and from your home) in place for homeowners and small businesses. If the grid is used to store energy instead of batteries, the cost is reduced by a further 20 percent.
* Be socially responsible.
* Encourage and enable homeowners to purchase and install solar systems by both buying and selling electricity. The need for profitability is understood; however, the gap between the retail price charged and the wholesale price paid to consumers must reflect the community’s attitude that it is simply the right thing to do.
* Offer incentives for solar energy retrofits. If an incentive program were an interest-free loan amortized over 25 years, the monthly energy sold back would exceed the program’s financial obligation and the surplus could be returned to homeowners as quarterly payments. This program could be funded in place of projects such as Ontario’s $600 million on meters.
The new non-profit Vancouver Renewable Energy Co-operative has announced the installation of a pilot residential solar photovoltaic grid-tie system and solar hot water system on a residential building in Vancouver. It is an idea whose time has come.
Our government leaders and energy corporations are either part of the problem or part of the solution. Let’s hope they embrace innovation and overcome our reliance on old energy sources and old mental models.
Note: This article was originally published in 2005.
