Something old, something new and something green

March 29, 2010  

What is the future going to look like?

It’s not a new question, but it’s one we’re still constantly trying to answer. And when it comes to energy, it’s a question that seems to have a few contradictory answers.

On one hand, we already know that Canada’s future is going to be different than its present: with the advent of alternative energy technologies and an increasing emphasis on energy efficiency, Canadians are demanding a bigger say in the energy they use. A national Canadian Centre for Energy Information survey conducted this year found that a full 59 per cent of respondents felt disconnected from decision-making on energy policies. But on the other hand, there are strong economic incentives to continue using the same profitable sources we’ve always used, especially when demand for those sources is growing globally. So, what’s a Canadian to do?

Flow doesn’t have a crystal ball (just a pic), but we’re always doing our best to keep an eye out to the future. So, here are a few thoughts on Canada’s energy future: the new, the old and the green.

Something Old

At the moment, Canada’s primary energy production is dominated by crude oil and natural gas. Together, these two sources make up almost 75 per cent of our total energy exports, exports that totalled $126 billion in 2008. Given the current patterns of global energy consumption, those exports isn’t likely to become any less important to the country.

Global demand for both oil and natural gas is continuing to rise, driven by demand in Asia and the Middle East, particularly China. According to the International Energy Agency (IEA), demand in the transportation sector alone is expected to climb 41 per cent by 2030. And with most of that demand occurring in the developing world, Canada’s strength as an exporter is likely to continue, especially with oil reserves actually continuing to grow.

In fact, despite the fact that oil is a non-renewable resource, developments in areas like Alberta’s oil sands — the second largest oil reserve in the world — have hiked the planet’s total proved reserves to 1,258 billion barrels. If demand continues to increase, there will continue to be reserves to meet this demand into the near future.

One of the places where industry will be discussing that near future will be the CERI 2010 Oil Conference, a three-day event running between April 18 and 20. With session titles like “Conventional Oil: Last Rights or New Breath?” it’s clear that the industry recognizes that changes are coming, but with demand continuing, there’s strong reason to believe that the future won’t necessarily be unrecognizable.

Still, while oil and natural gas have long been mainstays of the Canadian energy mix, an increasing emphasis on the environmental impact of their use has fuelled the development of alternative energy sources.  The field of alternative energy includes sources as varied as biomass and waste products, but two of the leading areas in the field of alternative energy continue to be solar and wind.

Something New

Solar and wind energy are two of the most common examples of energy technologies that are changing the Canadian energy mix, and are likely to continue to change it into our future. Solar power is already becoming increasingly common in Canadian homes and once-distant wind turbine might end up finding their way into our cities.

For now, solar energy is primarily used in two ways in Canadian homes, either passively and actively. Examples of active use include photovoltaic (PV) cells that generate electricity or through solar heating panels that transmit the sun’s heat through a heat-transfer liquid. Passive uses of solar energy include architectural changes that allow homes to absorb ambient heat and redirect it in much the same way that a heating duct redirects a furnace’s.

At a federal level, solar development is supported through Natural Resource Canada’s CanmetENERGY, whose solar projects include research into low energy solar homes and developing codes, certification, and installation standards for PV systems and components. The agency has even developed a useful map of PV potential across the country demonstrating Canada’s solar potential.

Given that potential, it’s not surprising that organizations like The Canadian Solar Industries Association (CanSIA) are trying to get professionals networking. In May, CanSIA will host its first-ever regional conference. Running for two days, May 25 and 26, the conference’s topics include “The economics of solar – can it make sense?”, “Sharing the Western Landscape…where do renewables and solar fit in?” and a “Solar Showcase” featuring private and public industry figures.

Wind, meanwhile, continues to be largely a commercial, rather than a residential sector. Though there are wind turbines small enough to be used residentially, they aren’t nearly as common as their larger, commercial brothers.

For now, wind represents only 0.3 per cent of the country’s total electricity mix, but given global trends it’s not difficult to imagine that number growing. In fact, in the last 10 years, wind power use globally has increased annually by 30 per cent. The applications for Canada, where rural communities sometimes require their own power, are considerable. Operations adding diesel or hydro to intermittent wind, for example, could provide the same amount of energy with fewer emissions and other negative environmental impacts. Expect issues like these to be discussed at The Canadian Wind Energy Association’s upcoming Wind Energy Forum, running from April 13 to 14 in Toronto.

Something Green

Whether they’re fossil fuels or renewable energy sources, one of our strongest motivations for changing the way we use energy continues to be our concern over greenhouse gas emissions. Even if our mix continues to include fuels that produce these emissions, the way we use our energy is becoming just as important as the types of energy sources we use. Canada’s energy future, then, is likely to include changes in that use, both by consumers and businesses.

For those industries already producing fossil fuels, the emphasis will now be on “cleaner” versions. From carbon capture and storage technology that will trap much of the carbon dioxide ultimately released into the atmosphere, to fundamental changes in the way that oil and natural gas are extracted. At least one of the many public acknowledgements of this move toward cleaner fossil fuels can be seen in the U.S.- Canada Clean Energy Dialogue, a resolution between the two countries aimed at reducing the intensity of the energy industry’s emissions.

Consumers, meanwhile, in addition to being able to purchase home-based energy systems that can sell power back to the grid, as Ontarians can do under the province’s Feed-In Tariff program, are using less energy. And provincial governments are doing what they can to ensure that this conservation becomes a large part of the country’s energy future.

Provincial governments have already nodded to the importance of reducing their citizens’ energy use, creating agencies like Quebec’s Agence de l’efficacité énergétique and Prince Edward Island’s Office of Energy Efficiency to centrally manage provincial energy efficiency initiatives. Together with more rigorous building codes and incentive programs that encourage everything from low flow toilets to more efficient appliances, the hope is that future energy use will not only be defined by resources like oil and natural gas, wind and solar, but by the consumers who ultimately use them.

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