December 16, 2016   Andrea…

December 16, 2016

 

Andrea Pastori

 

Cabinet Liaison and Strategic Policy Coordinator

 

Ministry of Energy

 

Strategic, Network and Agency Policy Division

 

Strategic Policy and Analytics Branch

 

77 Grenville Street, 6th Floor

 

Toronto Ontario M7A 2C1

 

Ms Pastori,

 

Re: 2017 Long Term Energy Plan

 

The Ontario Geothermal Association (OGA) represents the geothermal heating and cooling industry in Ontario, and includes as its members suppliers, designers, installers, drillers and engineers working in both commercial and residential markets across Ontario.  We are pleased to have the opportunity to make recommendations to Ontario Ministry of Energy as part of the review of its Long Term Energy Plan (LTEP), as we believe that our sector can play a key role in assisting Ontario to reach both its energy planning and its greenhouse gas emission reduction objectives.

 

OGA is already on the record in support of the direction charted by the Government of Ontario in relation to reducing GHG emissions and the industry has made the point emphatically that geothermal heating and cooling ought to form a significant part of the province’s plans.  The heating and cooling of buildings represents a major energy use in the Province of Ontario and much of this energy is supplied by fossil fuels (natural gas and heating oil).  Harnessing the thermal energy stored in the earth not only allows for a shift from carbon based fossil fuels to a renewable energy source, but it allows for a much more efficient use of the modest amount of electricity required to support these systems.  Geothermal is a proven technology whose time has come for Ontario.

 

We are pleased to find in the LTEP Discussion Guide a clear recognition that, in light of the government’s Climate Change Action Plan,

 

…the 2017 LTEP should take a broader view of the province’s energy needs and consider how the uses of electricity and fossil fuels influence each other. For example, because Ontario’s electricity supply is largely emissions free, commitments in the Climate Change Action Plan foresee a switch from conventional fossil fuels to the use of electricity for heating and cooling buildings and powering transportation (p.8).

 

There are recognized obstacles to the widespread uptake of geothermal systems in the province, most notably the relatively large up-front capital investment required, relative to other systems. There are, however, effective methods for overcoming this obstacle.  Some time ago the province made it possible for municipalities to introduce Local Improvement Charges (LICs) as a means to encourage energy-efficient upgrades to homes by making affordable financing available over a longer period of time and tying the repayments to the property affected as opposed to the owner/occupant. More needs to be done, however, to encourage municipalities to implement these tools as participation to date has been very limited.  An alternative or supplemental approach to this type of program might involve supporting collectivized (possibly utility) ownership and financing of geothermal loop fields in a district energy arrangement where thermal energy is delivered to buildings.  There are successful models for this type of arrangement across North America and Ontario should explore policy tools or regulations that would support programs of this type at home.

 

The OGA encourages the Ministry of Energy to recognize geothermal heating and cooling systems as an important tool towards the fulfilment of the objectives of the LTEP.  Benefits of the widespread adoption of geothermal systems in Ontario’s energy mix will include the following: •Geothermal is simultaneously a high-efficiency (arguably the most efficient technology on the market) and a low-carbon solution for building heating and hot water needs;

 

•The technology is applicable anywhere in Ontario where installation of heat exchangers is possible (almost everywhere) and can be used to dramatically reduce energy poverty in areas not serviced by natural gas;

 

•Investment in geothermal technologies will pre-empt the need or desire for expansion of existing natural gas infrastructure;

 

•A significant expansion of geothermal systems across the province can be managed without requiring an upgrade of existing electrical infrastructure;

 

•The technology is a well-understood, tested and mature application that works reliably and very efficiently;

 

•The technology can dramatically reduce peak electrical winter peak demand compared to other (air source) heat pump technologies;

 

•Geothermal can also reduce summer peak demand by 30-50%, compared to all other cooling solutions, including air-source heat pumps, central air-conditioning systems and chillers with cooling towers; •Geothermal will contribute to favourable electrical load profiles for local electric utilities across the province (increased base load, reduced peak load);

 

•Geothermal in general reduces energy consumption in comparison to any other heating and cooling solution, which reduces consumer exposure to price risk related to energy or carbon cost inflation; •Geothermal technology will contribute to “energy security” because most of the energy (thermal energy) is on site, and the balance (electricity) is for the most part produced locally within the province;

 

•Economic activity associated with the installation of geothermal systems are comprised of mostly local (roughly 70-80%) content, creating high-skilled and local jobs and significant investment opportunity for Ontario’s businesses;

 

•Geothermal allows buildings to become completely “net-zero,” in terms of carbon and energy, and enables buildings to incorporate complementary technologies such as thermal storage for demand side management, use of locally generated power (solar) without the use of inverters (loss of efficiency), leverage battery storage, and integration with electric vehicle use;

 

•Geothermal enables the transition of Ontario’s energy for buildings to be 100% carbon-free without construction of massive central power generation and upgraded power distribution

 

As noted above, geothermal (ground source heat pump) systems are tested and proven to deliver significant energy savings and GHG emissions reductions.  Yet market penetration remains limited. In order to facilitate more widespread uptake of this technology, there is need to better educate delivery channels to ensure systems are installed and maintained to the highest possible standards. There is also a need to educate the marketplace in general about the availability and benefits of this type of system.  The geothermal industry is prepared to work with the Government of Ontario to develop the programs needed to develop the marketplace for this technology.

 

The OGA appreciates the opportunity to make this submission to the Ministry on the Long Term Energy Plan.  We would be pleased to make ourselves available for further consultation on the development of programs and policies that will achieve the climate change goals of the Province of Ontario.

 

Sincerely,

 

Jim Bolger

 

Chair

 

ccOGA Board of Directors

 

Martin Luymes, HRAI

 

[Original Comment ID: 207180]