B.C. feed-in tariff energy proposal under scrutiny
B.C. Sustainable Energy Association president Guy Dauncey has raised questions about a proposed policy to encourage development of green-power technology in the province.
The B.C. Ministry of Energy, Mines and Petroleum Resources is working to establish a “feed-in tariff” regulation by early 2011.
Under the framework, operators of smaller-scale projects would sign five-year contracts to produce up to five megawatts of electricity for BC Hydro.
The list of approved energy sources would include biomass, biogas, geothermal, hydro, and ocean.
According to a government consultation paper, those investing in the “emerging technologies” could expect a return of five to 10 percent under the program.
But Dauncey questioned whether five years is a sufficient amount of time for projects to yield financial gains for investors.
“No one wants to invest money in projects that lose money,” he told the Straight recently by phone.
Dauncey also expressed doubt the five-megawatt limit on power production is realistic for geothermal projects.
“When you’re going to drill three, four, five kilometers underground that’s a big expense, and so you don’t do that for a small project,” he said.
