“This is the biggest market opportunity the world has ever seen.”
“In over 30 countries, renewable energy has become cost competitive with fossil fuel. In Germany, you see renewables everywhere, but back in Canada, we are still debating LNG and pipelines, and not focusing on clean, renewable energy.” Merran Smith was speaking on Bowen Island on Saturday as part of the Bowen Island Conservancy Speaker Series. Smith, took part in the Paris Climate Talks (COP21,) and has also just returned from last week’s North American Energy Ministers conference in Winnipeg that included energy ministers from Canada, Mexico, and the United States.
While Smith is buoyed by the discussions that took place in Winnipeg, it appears that Canada, , and BC is lagging with its approach to energy production and climate policy. "Most of the country is taking climate action but it’s almost embarrassing, that, in BC, we have not seen any new steps on climate change action since 2009. Even Alberta and Saskatchewan, along with Quebec and Ontario are already taking action." She describes how renewable energy is being embraced globally and being developed at a rapid pace while BC is still courting LNG.
"That story is over," says Ross Beaty, an audience member who had also been at the Paris talks. "That train has left the station. The cost of LNG has fallen through the floor. There are huge plants around the world producing more than they can sell. The economics mean it's completely over for LNG." Beaty, a part-time island resident and patron of the Beaty Biodiversity Museum at UBC, has talked with the drivers of change in the energy industry from around the world. Beaty described how oil-producing companies in Saudi Arabia are diversifying and are expanding solar-powered energy production and storage. "Saudi Arabia is planning on generating 8000 megawatts of energy a year from solar power." As a point of reference, Beaty says that Vancouver uses 800 megawatts a year. Smith points out that “China is the world’s biggest investor in renewable energy and India is fast becoming a leader in solar and wind energy energy. “Renewables are ready for prime time. The best solution to climate change is to electrify everything.”
Smith pauses, but only briefly. She is passionate, an her audience is fully engaged.
"The technology is there, and the cost has dropped significantly. Renewables around the world are already competitive." Smith told the audience that the market opportunities that exist in the renewable energy sector are seen by some as the biggest market opportunity that the world has every seen. " - and yet this is not a conversation we've been having in Canada," says Smith.
Smith is the executive director of Clean Energy Canada, with a main branch on Bowen Island. Her work aims to accelerate Canada's transition to a clean and renewable energy economy. Smith is also part of the BC Climate Leadership Team, which is advising the province on how best to strengthen policies and meet its climate commitments.
Smith refers to Canada's petroleum industry's infrastructure as what can become our "stranded assets." Smith said that stranded assets were a hot topic in discussions in Paris. As demands for petroleum products fall, "What will happen to the capital?" Leaders like Canadian economist Mark Carney, who serves as Governor of the Bank of England, have formed an international committee looking at the very real risk to capital from climate change. "This is one of the things that could rock the financial world," says Smith. On the other hand, in 2014 Canada had as many direct jobs in renewable clean energy as it did in the oil sands. There was as much money invested in clean energy in Canada as in forestry, agriculture and fishing combined,” says Smith. "Last year it was the fastest growing job sector in Canada.
Smith engages with energy leaders around the continent and knows the data she presents by heart. “Alberta is committed to 30% renewables, Saskatchewan is committed to 50%," adding that Ontario has shut down all of its coal power plants. "And, with the price of renewables plunging, solar panels have dropped about 80% in just 5 years.” She continues, “In Asia, where we want to sell our LNG, renewables are now a real threat. They can outcompete LNG in the market place in some places."
Smith sees carbon pricing as a valuable tool to manage carbon emissions, and climate change. “The question isn’t whether we should have a price on carbon, but rather how high should it be.”
Smith tells the audience that 90% of the global energy producers will have some form of a price on carbon by 2020. “What wee need is an effective price on carbon. Right now it’s too low in most countries. “
LNG and carbon pricing aside, Smith expressed a feeling of optimism. The busy mom of twins says that even though Canada is lagging behind other countries with renewable energy, “it was delightful to be Canada, this session,” Smith says of COP21. In Paris, “the business community that gathered that was the most inspiring.”
She is enthusiastic that there are new players on the field of energy production, storage and distribution. "The new energy players are technology companies. They are always upgrading. Technology companies are increasingly coming into the energy space. - If the issue is storage, these players will be a big piece in solving it." Smith is referring to companies like Tesla, Apple, and Google. "With Tesla planning for a $30,000 car," Smith explains, "there will be an uptake in electric vehicles as soon as the price drops." She shows a picture of the Tesla factory that "will unleash a battery revolution for homes and cars." Beaty, Executive chairman, Alterra Power Corp., says that his company is selling geothermal and wind-powered generators in Iceland, Chile, and in Canada. In his experience, without question, “renewable energy can compete" with non-renewables.
The city of Vancouver has committed to going 100% renewable energy as has San Francisco, Sidney and Copenhagen within 20 years.
Smith points to places outside of BC where the energy sector is largely focused on growing renewable energy. “In Germany, basically, if you put solar panels on the roof you can put energy back into the grid. It's a feed in tariff system that was seen by some as a subsidy. Ontario also uses this system. But, now Germany is also a global leader in solar power production. There's no debate in Germany about addressing climate change. They treat this is also their a core part of their economic strategy. They wanted to get 5% renewables into the grid, and after doing that, they went to 10 percent and then got to 25% and are looking to adding more. “
Smith is impressed by the attitude in Germany. “They have this "can do" attitude. If it was in Canada," she says, "the response would be negative, full of "no," and "but," “she says. “ There, the initial response to the challenge to greater efficiency is to embrace the challenge, “There, the response is an immediate "Yes." Then they push it to the edge and figure out the next step."
Both Smith and Beaty agree that, as Smith says, "renewables are ready for primetime." Smith says "parts of Africa and Asia will skip fossil fuel and go straight to renewables."
Smith says it'll be someone like Tesla’s Elon Musk, who also comes from a "yes," mindset, who will keep pushing the envelope and moving the industry forward with things like battery powered smart homes.
Smart homes, smart grids, smart economies were the focus of the energy ministers at the meeting in Winnipeg. "There will be a North American approach to energy and a continental commitment to pooling research and development" in the renewable energy sector.
Smith says that one of the "most effective tool we have been using to reduce carbon emissions is biofuel for cars." Coincidentally, fellow Bowen Islanders, Ian Thomson and Doug Hooper of The Waterfall Group, are largely responsible for establishing a healthy biofuel industry in Canada. Smith shows a graph of carbon pollution in relation to the carbon tax. It depicts a steep trajectory, "a hockey stick" graphic. When the premier froze the carbon tax and there was no new carbon tax there is a leveling off and soon BC’s carbon pollution will be increasing. "Alberta, Saskatchewan and Ontario are all moving ahead with new climate action, but there's not much progress in BC." Biofuel is a powerful tool for reducing emissions and "carbon pricing is a key feature in moving toward zero emissions," says Smith. "The GDP (gross domestic product) would rise. Mining and forestry would continue and forestry could sell biofuel." Smith concludes, "We are living in a real revolution. This is a tremendous renewable revolution." From the light bulbs we use to the way we transmit energy, store it and generate energy, the next couple decades will be globally transformative. Merran advises the audience that the province is supposed to be making a new climate plan. "Write to the Premier, to the Minister of Energy, and LNG and your MLA. Let them know that you support new bold Climate Plan for
BC.
For more good news you can follow Merran on twitter @merransmith.
