Renewable Energy Incentives-Thermal vs. Electrical

As some of you may know there is speculation that the government may reduce the renewable power incentive program known as FIT (Feed In Tariff) under the Green Energy and Economy Act.

What this would do would be to reduce the rate paid for solar or wind power and possibly to reduce the financial investment in Ontario. The activity in this market has been the effect of reducing the cost of building a solar facility from $15.00 per Watt installed to about $5.00 per Watt in 2011 over a period of some 7 to 10 years.

President Obama even has a new renewable initiative “Sunshot” aimed at getting to $1.00/ Watt – cheaper than any other form of power.

So just as Angus Power is getting on a roll with 3 solar roofs, this could slow down the development of the Ontario market.

However, there is always a forward thinking entrepreneur ready to seize the next opportunity: Bullfrog Power have made the move to add Green Gas to their Green power offerings. This was launched at the Brick Works/Evergreen Centre this week; Bullfrog contracts to buy biomethane produced from a digester on from a landfill site and sells it to residential or commercial clients at a premium.

This is really interesting to Angus Power as it may stir the market for gas produced from organic material (rather than old dinosaurs) and instead of using the gas to fuel an engine it goes into Union Gas or Enbridge pipeline after cleaning and gets delivered to your home. If you consider that most generating sets operate at about 35% efficiency and the 65% is lost as heat rejection; producing thermal energy rather than electrical energy can be a much more efficient thing to do. Except we may need to rename ourselves as Angus Energy!

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