Canada’s current power grid
was designed to transmit electricity from a power plant often in a
remote location to large-scale industrial users and households in
large populated areas.

This grid was not designed to meet the needs of the growing
demands of a digital society or the increased use of renewable
power production.

Consumers however are increasingly demanding low cost and more
reliable and cleaner electricity. As a result, renewable energy
sources are becoming a more critical component of Canada’s energy
mix.

These renewable and cleaner energy technologies involve much
smaller scales of production than the traditional large hydro,
nuclear or thermal power plant. The approach that employs
small-scale technologies to produce electricity close to the end
users of power is referred to as Distributed Generation (DG).

But the question remains, how can these smaller scale energy
sources fit within the larger traditional electrical systems and
what are the advantages and disadvantages of each approach?

Distributed Generation power often utilizes renewable energy
technologies including run-of-river, tidal current, windmills and
various biomass-generating technologies.

Natural gas powered generators could also be used in a
Distributed Generation capacity. As opposed to the traditional grid
where electricity is carried long distances to the end user,
Distributed Generation offers a number of tangible advantages over
the traditional grid.

Distributed Generators often provide lower-cost electricity and
greater reliability and security with a lower environmental
footprint than traditional power generators.

Central power plants, while historically producing relatively
cheap electricity based on coal-fired thermal plants, nuclear or
large-scale hydroelectric dams have the distinct disadvantage of
lengthy transmission lines, heavier carbon footprints especially
for coal fired systems, and higher security risks.

These disadvantages can be mitigated through employing smaller
modular generating facilities such as solar panels that are very
near to the end users.

Furthermore, the end user is able to sell back to the grid
unused electricity, whereas, a considerable amount of power is lost
in the transmission and distribution for traditional systems.

According to the International Energy Agency, “broad deployment
of Distributed Generation could result in cost savings of nearly
30% of total electricity costs by mitigating transmission and
distribution losses and displacing expensive infrastructure”

In many regions of Canada large, centralized power plants in
addition to greenhouse gases emit significant industrial emissions
including, sulfur oxides, particulate matter and nitrogen oxides.
Greater use of Distributed Generation technologies can
substantially reduce both greenhouse gas and industrial
emissions.

Distributed Generation technologies as
they are independent of the grid are better able to provide
emergency power to hospitals, police stations, airports and water
and sewage treatment infrastructure.

Distributed Generation technologies including solar power, wind,
tidal, wave, run-of-river and fuel cells provide considerable
market opportunities for Canadian developers and potentially
thousands of jobs will result as these opportunities are
realized.

In addition to the considerable business (and employment)
opportunities associated with Distributed Generation, there are
many isolated communities in Canada that are off the grid and are
generating power through very expensive and highly polluting diesel
generators. Power is essential for the socio-economic development
of every region of Canada and is a basic infrastructural
requirement.

Smaller generating technologies will enable these remote
communities to produce cheaper and cleaner power, which is urgently
needed by both households, and will provide electrical power for
potential new industries to emerge such as aquaculture and sawmills
that could offer these isolated communities’ economic
stability. 

Without adequate generating capacity communities that are off
the grid have virtually no potential to attract new industries even
if they have a significant resource base including fish, mining and
forest products. Small generating technologies offer a new dynamic
for these communities to possibly grow and thrive.

And, once they are on the grid any unused electrical power can
be re-distributed and provide financial gain to the community.

Table 1.1 Matrix of Distributed Generation Benefits was
originally published in a United States Department of Energy report
The Potential Benefits of Distributed Generation and Rate-Related
Issues That May Impede Their Expansion [February 2007] illustrates
the significant benefits of the Distributed Generating model.

The only disadvantage that is not illustrated in Figure 1.1 is
that many of these smaller energy technologies are currently more
expensive than the larger more traditional power facilities.

But this is changing, as these smaller technologies are becoming
more cost effective and experiencing declining costs. The graphs
below show potentially rapidly declining cost curve scenarios that
were developed by United States National Laboratory for Energy
Renewal for wind, solar voltaic, geothermal, solar thermal and
biomass.

 

In addition to the considerable benefits associated with
Distributed Generation technologies, the introduction of the
so-called “smart grid” will undoubtedly provide additional benefits
by saving energy, reducing costs and increasing reliability by
through the use of two-way communication that works interactively
with electrical appliances, electric vehicle charging systems and
the two-way flow of  small-scale renewable energy between the
user and the grid depending on power-flow needs.

The potential benefits of Distributed Generation are
substantial. However, the Distributed Generating model is not a
threat to the continuing viability and sustainability of the
electrical grid.

Both large scale and small facilities in an optimal system will
efficiently provide power to both large industrialized areas and to
remote communities.

And, the greater emphasis on Distributed Generating systems both
within and off the grid will result in considerable cost savings,
lower greenhouse gas and industrial emissions, improved power
quality (less brown outs and black outs), improved security of the
electrical supply and highly skilled and high paying jobs.

The opportunity is there, but we must take the necessary steps
to capture it.

Kenneth White is an economic consultant who works and lives
in Port Coquitlam British Columbia. His web site is href=”http://www.actonwhite.com”
target=”_blank”>www.actonwhite.com