Inclusive in the report are identified policy gaps in Canada and recommendations at a high-level. We encourage industry stakeholders to read the full report here.
Alberta
CanGEA has drafted comments on Directive 065 and they are due to be submitted by September 16, 2024. We encourage Policy-level members to review the comments and reach out to provide any input. CanGEA is not intending to comment on Directive 071 unless members reach out with input. British Columbia
In the draft Thermal Energy System (TES) guidelines, CanGEA had requested clarification on the intent behind a proposed eligibility for regulatory exemption checkbox that, "There is no agreement or arrangement granting the TES Provider exclusive rights to own or operate the TES." Geothermal development projects require relatively high levels of capital expenditures and reservoir specialists— without the enablement of TES Providers to own and operate the system, the risks for developers and investors to harness geothermal resources are too high. As a result, BCUC has made the following adjustment, "The attestations with respect to Exclusivity in Appendix A, which state “There is no agreement or arrangement granting the TES Provider exclusive rights to construct, own, or operate the TES” and “There is no agreement or arrangement granting the TES Provider exclusive rights to own or operate the TES” are replaced by one attestation that states “There is no arrangement granting the TES Provider exclusive rights to provide service (e.g. mandatory connection)." This is a preferential outcome, as it streamlines the TES application, while allowing geothermal developers to confirm their customers with an energy purchase agreement. Further, the adjusted language provides for geothermal developers to own and operate the utility system, avoiding the less desirable scenario of being forced to hand it over to another firm that would have to adapt to a steep learning curve and data gap. Following this update, CanGEA submitted an additional submission - in reply to the submissions of other interveners. We expressed out thanks to BCUC for addressing our concerns, as well as provided a few short comments on other submissions. The public may view the proceedings here. British Columbia
The BC government has committed to serious investments to bolster British Columbia’s electricity infrastructure, with $10 billion aimed at building out electricity transmission and distribution capacity. This extensive build-out is set to transform the electricity landscape across B.C., targeting key regions such as Vancouver Island, Surrey, and the southern Interior. On Vancouver Island, significant investments include new substations, upgrades to transmission and distribution infrastructure, and seismic upgrades to key dams. In Surrey, the construction of new substations and enhancements to existing ones will support the city’s rapid growth and increasing electrification needs. The southern Interior will see nearly $6 billion invested in upgrading generating facilities, transmission lines, and substations. The upgrades intend to support unprecedented growing demand for electricity. Josie Osborne, Minister of Energy, Mines, and Low Carbon Innovation, emphasized, “We must build out B.C.’s electrical system like never before, to power our homes and businesses, to power a growing economy and to power our future.” Chris O’Riley, president and CEO of BC Hydro, noted, “We are embarking on significant upgrades to our electricity system to ensure we can continue to provide reliable and clean electricity to our customers.” Massive build-out of B.C.’s electricity infrastructure presents a significant opportunity for the geothermal industry. As BC Hydro’s call for power aims to acquire approximately 3,000 gigawatt hours per year (GWh/y) of clean electricity, the geothermal sector must be poised and ready. Stakeholders of our industry must quickly unite to advocate for regulatory overhaul to streamline project applications and fiscal reform to carve out geothermal in existing incentive programs that our developers may be positioned to provide clean power to meet BC's hefty demands. See BC Gov News for more information. gov't issues cabinet directive on regulatory and permitting efficiency for clean growth projects7/12/2024
Federal
The Cabinet Directive on Regulatory and Permitting Efficiency for Clean Growth Projects is set to streamline federal regulatory processes, which can indirectly benefit the geothermal industry by creating a more predictable and coordinated regulatory environment. This Directive replaces the 2007 directive on regulatory performance for major projects and complements other cabinet directives, focusing on efficient, environmentally sustainable economic opportunities while respecting existing legislative authorizations. The Directive's objectives include accelerating federal decision-making, enhancing confidence in regulatory processes, clarifying roles and responsibilities of federal entities, and reducing burdens on Indigenous groups through coordinated processes. Although permitting for geothermal projects primarily falls under provincial jurisdiction, the federal government may influence environmental assessments, Indigenous consultations, and projects that span multiple provinces. The Directive promotes principles such as certainty and predictability, interjurisdictional cooperation, meaningful Indigenous partnerships, urgency, and comprehensive decision-making. This holistic approach can help streamline federal aspects of the permitting process, facilitating smoother project development for geothermal developers. The Directive identifies key sectors, including clean electricity, clean fuels, and greening industry and hard-to-abate sectors, where geothermal energy is poised to be a crucial contributor. The support for innovation and development of new technologies within this framework positions the geothermal industry to capitalize on emerging opportunities and contribute significantly to Canada’s clean energy future. More details here. British Columbia
Having been engaged in the intervener process for years, CanGEA and member companies have filed comments with respect to BCUC's recent revised draft TES guidelines, to ensure that geothermal systems are granted necessary regulatory flexibility. The public may review the proceedings here. Alberta
Once again, representatives of CanGEA were in attendance to rub shoulders with leaders in the energy industry, raising the opportunity for geothermal energy development in Alberta. Federal
CanGEA polled our membership and the broader industry to showcase the growth and progress of our sector. Thank you to all who participated in the survey. British Columbia
The BC Government has announced their intention to undertake a review of the Environmental Assessment Act in late 2024. As required by the Act, it must be reviewed within five years of coming into force. The Environmental Assessment Office (EAO) has vowed to consult with industry associations to “help identify successes, challenges and potential areas of focus for the review.” The EAO will be reaching out to us this summer—we invite CanGEA Policy Level members to provide input to [email protected]. Alberta
Alberta announced temporary measures back in March which come into effect on July 2nd. The temporary rules will limit the practice of economic withholding to lower power prices for consumers. In the Government’s own words, “Economic withholding was designed as a legitimate tool to encourage new investment in the province’s power market. The slightly higher prices that economic withholding causes in the short-term attracts new competitors to Alberta, leading to lower prices in the long-term. That all changed when the accelerated phaseout of baseload coal, and emphasis on intermittent renewables, altered Alberta’s supply mix. The negative impacts of economic withholding would normally be offset by having adequate competition in the market. However, the accelerated coal phaseout significantly increased the impact of economic withholding on ratepayers, beyond the original intent of the policy.” The regulatory response in the meantime includes:
CanGEA will continue to advocate for the longer-term solution – that generators of baseload renewable energy be paid and/or incentivized to develop and maintain dispatchable 24/7 electricity. Government press release on the temporary measures here. CanGEA has finalized policy proposals for the Federal Government, Alberta, and British Columbia. CanGEA members can read our draft here and Policy-level members are invited to provide feedback before the draft is finalized in August 2024. This paper will serve as our base advocacy priorities moving forward.
Alberta
Naheed Nenshi brings experience in municipal governance, serving as Calgary’s mayor from 2010 to 2021. He holds as Master of Public Policy from Harvard and worked for McKinsey & Company before starting his own consulting firm. On energy issues, he has said:
Federal
On June 21, the Government of Canada passed Bill-C59, which includes the Clean Technology Investment Tax Credit that includes geothermal heat and electricity projects. We covered the details of this ITC in prior newsletters. We commend the Government for their forward-thinking approach to our energy future and would encourage energy developers across Canada, and abroad, to consider adding Canadian geothermal projects to their portfolio, in light of this new incentive. More information and claiming instructions are available here. |
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