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PTC for all renewable energies In order to encourage a transition to low-carbon / renewable energy technologies such as wind & solar, regulators & utilities often provide a Production Tax Credit for a kWh produced by eligible technologies. Data from Statistics Canada show that electricity generation in 2022 was 643 billion kWh, of which 437 billion kWh was from renewable energy technologies (394 billion hydro, 39 billion wind, 3 billion solar, 0 tidal) with 124 billion kWh from combustible fuels and 82 billion kWh from nuclear reactors. In terms of energy demand, Canada consumed 2,574 billion kWh of secondary energy in 2022, says NRCan's Comprehensive Energy Use Database, of which 1,065 billion was used in industry, 686 billion in transportation, 406 billion in the residential sector, 334 billion in the commercial / institutional, and 83 billion in agriculture. This total consumption resulted in the emission of 457 billion kg of carbon in that year. What The supply of electricity from renewable energy technologies is growing, thanks to PTC incentives and growing concern over negative environmental impacts of our energy use, and green power sources are expected to increase beyond their current 17% share of total energy consumption. A major factor over which people can take direct action is the consumption in buildings of thermal energy for space heating, space cooling & water heating. The NRCan data show that 81% of residential energy consumption (327 billion kWh) is for thermal end uses, which are responsible for 87% of the sector's emissions (34 billion kg). In the CI sector, 66% of energy consumed (220 billion kWh) and 77% of its emissions (36 billion kg) are from thermal applications. Heating & cooling in these two sectors consumes 21% of Canada's secondary energy (547 kWh) and emits 16% of the country's total emissions (71 billion kg). Fix A ground source heat pump produces 21,307 kWh of dispatchable renewable energy from the ground in the average household across Canada, NRCan data show, and avoids the emission of 3,148 kg of carbon every year. A GSHP would need 5,000 kWh of power from the grid (wind or solar?) to operate its compressor & pumps which, when added to the 5,000 kWh average household consumption for lights & appliances, means that building would produce 21,000 and consume 10,000 .... above the accepted ratio for netzero. Output from wind & solar has high value to a utility because that production can be sold, but our climate emergency calls for emissions to be reduced wherever and whenever possible. Providng a Production Thermal Credit to building owners which reduce their emissions at source, is a good investment. Next NetzeroPLUS Canada is launching a campaign for ALL renewable energy technologies (electric AND thermal) to be eligible for a Production Thermal Credit if they can PROVE they produce renewable energy (with special consideration to dispatchable technologies which do not require battery storage) and PROVE they reduce emissions. The support can be introduced in a range of formats, from cash incentives to tax credits to carbon allowances and more, in order to provide flexibility & focus based on numerous local considerations. We believe a Production Thermal Credit should be available to ALL renewable energy technologies.
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Some sources of inspiration: Common Misperceptions of Ground Source Heat Pump NRCan: Heating & Cooling with a Heat Pump How the Canadian Senate is installing GSHP |