Browsing by Author "Shaffer, Blake"

Now showing 1 - 14 of 14
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    An Economic and Policy Assessment for a more Sustainable Electricity Grid in Alberta
    (2022-12) Couch, Andrew G.; Shaffer, Blake
    This research investigates whether integrating distribution connected generation projects is more sustainable than transmission connected generation projects in Alberta. To test if incorporating more distribution connected projects into the electricity grid was in the best interest of Albertans, a case study of a 20MW solar project was tested via a transmission and distribution grid tie in. Additionally, a benefit cost analysis was performed to assess if deferring the cost of long-term transmission upgrades with distribution system upgrades was a superior option. Finally, a survey of stakeholders was conducted to see if there was support for changes to the tariff system to support additional distribution connected projects. Results showed it was less expensive to upgrade the distribution system and produce electricity via distribution-connected projects. Survey results show that Albertans support changes to the tariff system to promote distribution connected projects making the electricity grid more sustainable in the long term.
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    Analysis of an Electricity Market Restructuring Reform: The Case of Mexico
    (2020-09-10) Flores, Brenda; Shaffer, Blake
    In 2013, Mexico started reforming its electricity sector, expecting improvements in the performance of the industry and increases in consumers’ welfare. The 2012-2018 administration introduced competition to their generation segment and created a Wholesale Electricity Market through a series of constitutional amendments. It aimed to attract private capital to modernize the sector and improve the quality and reliability of energy supply in the country. It also sought to decrease the high electric costs and encourage the incorporation of clean energy in the sector. However, consumer prices have not reflected the improvements in competition in the market. This framework has allowed the current government to propose measures that are opposed to the competitive model. The purpose of this project is to analyze the implemented policies and their consequences, as well as the implications of keep increasing market competitions or returning to a state-owned utility monopoly. Paul Joskow developed some key principles for reforming processes to create efficient electricity markets. These principles can be used as a “standard model” for jurisdictions restructuring their power sector. The model can be helpful to analyze any country’s restructuring electricity reforms. This project compares them to Mexico’s measures to identify barriers to competition and other sources of inefficiencies in the Mexican electricity market. According to the literature review, the model based on Joskow’s principles for a successful liberalizing reform mainly consists of: i) Privatization of state-owned utilities, ii) Vertical separation of competitive segments, iii) Designation of a single Independent System Operator (ISO), iv) Promotion of efficient access to the transmission network, v) Creation of voluntary public wholesale spot energy and operating reserve market institutions, vi) Development of active demand-side institutions and vii) Creation of independent regulatory agencies. For a reform to be successful, it also needs a strong political commitment to it. Furthermore, nonstable market rules and regulatory imperfections deter potential investments in new generating capacity. Mexico complied with the vertical and horizontal separation of the state utility, the designation of an ISO, the creation of the institutions for a wholesale market and the creation of independent regulatory agencies. Nevertheless, the Mexican restructuring process did not privatize its state-owned utility. That decision makes it harder to incentivize performance improvements and the utility can be used to pursue political agendas. Also, Mexico is still in an early stage in the development of demand-side management institutions, limiting the efficiency of the market to incorporate demand responses. Moreover, prices have not decreased due to the increasing congestion in various links of the national transmission network. Additionally, with the change in administration, there is currently weak political support for the reform and the market rules are unstable, discouraging investment. The legal separation of CFE was pulled back and two temporarily suspended agreements may allow for exclusionary behaviour in the access to transmission. These actions impose further barriers to competition.
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    Attitudes, behaviours and barriers to public health measures for COVID-19: a survey to inform public health messaging
    (2021-04-21) Lang, Raynell; Benham, Jamie L; Atabati, Omid; Hollis, Aidan; Tombe, Trevor; Shaffer, Blake; Burns, Katharina K; MacKean, Gail; Léveillé, Tova; McCormack, Brandi; Sheikh, Hasan; Fullerton, Madison M; Tang, Theresa; Boucher, Jean-Christophe; Constantinescu, Cora; Mourali, Mehdi; Manns, Braden J; Marshall, Deborah A; Hu, Jia; Oxoby, Robert J
    Abstract Background Public support of public health measures including physical distancing, masking, staying home while sick, avoiding crowded indoor spaces and contact tracing/exposure notification applications remains critical for reducing spread of COVID-19. The aim of our work was to understand current behaviours and attitudes towards public health measures as well as barriers individuals face in following public health measures. We also sought to identify attitudes persons have regarding a COVID-19 vaccine and reasons why they may not accept a vaccine. Methods A cross-sectional online survey was conducted in August 2020, in Alberta, Canada in persons 18 years and older. This survey evaluated current behaviours, barriers and attitudes towards public health measures and a COVID-19 vaccine. Cluster analysis was used to identify key patterns that summarize data variations among observations. Results Of the 60 total respondents, the majority of persons were always or often physically distancing (73%), masking (65%) and staying home while sick (67%). Bars/pubs/lounges or nightclubs were visited rarely or never by 63% of respondents. Persons identified staying home while sick to provide the highest benefit (83%) in reducing spread of COVID-19. There were a large proportion of persons who had not downloaded or used a contact tracing/exposure notification app (77%) and who would not receive a COVID-19 vaccine when available (20%) or were unsure (12%). Reporting health authorities as most trusted sources of health information was associated with greater percentage of potential uptake of vaccine but not related to contact tracing app download and use. Individuals with lower concern of getting and spreading COVID-19 showed the least uptake of public health measures except for avoiding public places such as bars. Lower concern regarding COVID-19 was also associated with more negative responses to taking a potential COVID-19 vaccine. Conclusion These results suggest informational frames and themes focusing on individual risks, highlighting concern for COVID-19 and targeting improving trust for health authorities may be most effective in increasing public health measures. With the ultimate goal of preventing spread of COVID-19, understanding persons’ attitudes towards both public health measures and a COVID-19 vaccine remains critical to addressing barriers and implementing targeted interventions and messaging to improve uptake.
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    Carbon Policies In Canada: Implications For Biomass District Energy Systems
    (2021-08) Brehon, Kayla Marlene; Brennan, Liz; Shaffer, Blake
    This study examines the impact of carbon policies on the implementation of biomass district energy (DE) systems within Canada. DE systems offer an energy efficient approach to providing heating, cooling, domestic hot water and sometimes electricity to residential or commercial buildings. Biomass and wood biomass is examined as an affordable fuel option for the DE systems. To reduce greenhouse gas (GHG) emissions, biomass DE systems can offer an affordable and stable option. This study examines how three systems across Canada are impacted by fuel charges or large emitter incentives and compares that to if they used only the fossil fuel most used in the province the system is located. It was determined by this paper that carbon policies increase these systems competitiveness in most circumstances. However, a dramatic increase in the cost for wood biomass or a drop in fossil fuel prices could render some systems economically inviable.
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    Electric vehicle incentives: Reconciling private and social costs and benefits
    (2020-08) Goddard, Kiana; Shaffer, Blake
    Canada is looking to reduce its emissions by targeting the transportation sector. While there are a number of policies to reflect this, one in particular seeks to impact individual’s private decision to transition their passenger vehicles from internal combustion engine vehicles to the more environmentally beneficial battery electric vehicles. Results indicate that the current federal grant incentive program for electric vehicles plays a significant effect in the costs of investing in passenger BEVs and ICEVs. These costs are evaluated through net present value equations that reflect private costs, as well as incorporate the social cost of carbon. Furthermore, an inventory of the current policies in comparison to other countries provide further indication of where Canada needs to pivot in terms of policy to reach their current targets.
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    Evaluating Methodologies of Quantifying Avoided Costs in Energy, Capacity, and Transmission and Distribution Resulting from Energy Efficiency Policies
    (2023-05-29) Li, Qiushan (Lillian); Shaffer, Blake
    This study embarks on an in-depth exploration of methodologies for quantifying avoided costs in energy, capacity, and transmission and distribution as a result of energy efficiency policies. The research is anchored in a comparative lens, scrutinizing techniques adopted by jurisdictions such as California, New England, and Ontario. Motivated by the escalating electricity demand due to heightened electrification, the study seeks to understand how energy efficiency policies can be a counterforce by quantifying their utility system benefits. While the U.S. showcases a consistent adoption and documentation of energy efficiency policies, Canada's engagement appears fragmented. The prevailing measure for energy efficiency cost-effectiveness remains the total resource cost test, emphasizing avoided costs as energy efficiency's primary benefit. The investigation reveals a dependency on forward electricity price forecasts for avoided cost in energy, and construction costs of new power facilities for avoided cost in capacity. Methodologies for avoided transmission and distribution cost display variance, with some hinging on historical data blended with investment forecasts. Spotlighting Alberta reveals an imminent need for robust data infrastructure and agile adaptation mechanisms in the energy landscape, ensuring precise utility benefits quantification from energy efficiency policies.
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    Evaluating the efficiency of renewable energy policy tools to incentivize deployment of renewable energy in Alberta
    (2020-12-11) Schumacher, Nicholas; Shaffer, Blake
    This report analyzes the efficiency of renewable energy policy as a tool for Albertan policymakers to accelerate the decarbonization of the province’s electricity sector. Alberta’s electricity system is the most emissions intensive in Canada. Albertans consume only 11% of total electricity generated in Canada but produce 52% of electricity associated emissions. Increasing renewable energy deployment in Alberta could significantly reduce CO2 emissions in the sector and assist in the global fight against climate change. Policy tools have been used in provinces outside Alberta and in international peer countries to drastically increase the deployment of renewable energy. Proponents of renewable energy policy argue that similar outcomes could be achieved in Alberta. Albertan policymakers have implemented some programs to incentivize renewables development in the past, but more action will be needed to achieve deep decarbonization of the electricity system. Four policy tools are commonly used in attempts to increase the deployment of renewable energy technologies: carbon pricing, investments in intertie capacity, loan guarantees, and feed-in tariffs (FITs)1. These policies address the main barriers to renewables deployment, which are intermittency of variable renewable power generation, lack of financing opportunities, and competition with conventional fossil fuels. This paper evaluates case studies in each of the four policy tools from the Canadian provinces and international comparators to evaluate their ability to increase renewables deployment. The policy tools are then evaluated in the Alberta context to consider regional implications in their implementation. If the stated policy options are capable of efficiently incenting renewables deployment abroad, policymakers may wish to consider implementing or expanding those policy options here in Alberta.
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    Feasibility Study of Smart Charging in Electric Vehicles
    (2020-08) Venkatesan, Sounderya; Shaffer, Blake
    Electric vehicles (EVs) are a rapidly emerging technology than can provide the opportunity to reduce emissions from the transportation sector. As EVs penetrate the transport market, electricity will become the fuel of the future and present new challenges and opportunities to Canadian utilities. This study aims to investigate the role of smart charging to address the challenges caused by EV adoption. Specifically, it seeks to examine the energy implications caused by EV charging and provide potential smart charging solutions along with policy recommendations. Most of the identified challenges are related to distribution grid, charging infrastructure and peak demand issue. Results suggest that workplace charging, time-of-use rates, and shifting load behaviour can effectively minimize the energy costs and avoid peak loads. These identified smart charging solutions can ultimately save millions of dollars to the utilities and set an example for managing energy efficiently even during the times of increased power demand.
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    Mandatory Radon Testing and Mitigation of Businesses in Alberta
    (2023-05-29) Kursaeva, Mariia; Shaffer, Blake
    This paper investigates the need for mandatory radon testing and mitigation measures in workplaces in Alberta. Radon, an odourless and colourless radioactive gas arising naturally from soil, has been linked to lung cancer. Despite alarming statistics, most businesses in Alberta are not required to conduct radon testing. The paper conducts a cost-benefit analysis within a 25-year timeframe to evaluate the implementation of mandatory radon testing and mitigation measures in workplace settings in Alberta. The paper highlights that the lack of mandatory radon testing in businesses poses a significant and avoidable health risk. By focusing on occupational radon exposure and drawing on the precedent set by mandatory testing in childcare facilities, the paper proposes a feasible solution to mitigate radon-induced health hazards in workplaces. The paper analyzes two alternatives: the status quo, where testing is voluntary, and mandatory testing for all registered businesses. It examines costs and benefits, including healthcare expenses and the value of statistical life. The analysis concludes that the mandatory testing scenario demonstrates cost reductions under both three percent and eight percent discount rates. The adoption of this approach could yield significant savings, estimated at eight to seventeen billion dollars over the next twenty-five years. The paper acknowledges assumptions and limitations but ultimately recommends that the government enforce mandatory radon testing and mitigation, safeguarding public health and ameliorating financial implications for Alberta.
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    The Potential for Hydrogen in Alberta: A Case Study of Combusting Hydrogen Gas in the Electricity Sector
    (2020-09-10) Neff, Jordan Andrew; Shaffer, Blake
    Electricity forms Alberta’s backbone, enabling progress, development, and an environment where businesses can thrive. Unlike other provinces with significant hydro resources, Alberta’s electricity industry is dominated by fossil fuels. One option to achieve lower carbon emissions is to replace natural gas with hydrogen as it does not emit any carbon dioxide when combusted. Moving to such a fuel will require technical compatibility, cost competitiveness, and the right incentive structure to encourage its use in the sector. Within this case study, I examine the current methods for producing hydrogen, discuss infrastructure compatibility, and then consider the current composition of Alberta’s large-scale electricity generators classified by make and model. For the most prevalent generators, I conducted a review of the potential technical capability in converting their fuel stocks to incorporate hydrogen as declared by the manufacturers and through similar conversion projects around the world. Furthermore, I analyze the marginal cost for the above generators to identify whether hydrogen is economic at current prices to incorporate into generator fuel mixtures. With current production methods and cost functions, hydrogen remains cost-prohibitive compared to its alternative of natural gas, whether for combustion turbines or steam boilers. Producing hydrogen from steam methane reforming would increase marginal fuel costs by 1.7 times compared to natural gas, and 1.36 times compared to coal. To successfully incentivize hydrogen, the carbon levy in Alberta would need to exceed $130 for production and carbon capture to become cost-effective given the natural gas prices over the last 10 years. If using steam methane reforming, carbon capture would be a required part of the hydrogen production process, else using hydrogen would be a more carbon-intensive option than using natural gas. Alternatively, as worldwide hydrogen production increases the sector may benefit from economies of scale from new technologies or methods making hydrogen a competitive option. This paper provides a study of the potential for hydrogen to power the electricity industry and further discusses some of the present and potential hurdles for policymakers to consider for hydrogen to become a successful fuel to power the sector.
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    The Potential Role for Geothermal Energy in Alberta's Future Electricity Mix
    (2022) Nishiyama, Christopher; Shaffer, Blake
    This capstone investigates the potential role of geothermal energy in Alberta's 2035 electricity mix. Using a jurisdiction scan, this capstone reviews and compares the policy environment, use of technology, geology, and costs of geothermal development in selected regions. With the results, similarities and differences between jurisdictions will be identified and used to facilitate a discussion regarding the pattern of geothermal development in Alberta and its potential role in the future electricity mix. This capstone finds that without public policy developments, geothermal energy will likely play a limited role in electricity generation and may be used in tandem with direct-use heating and co-producing oil and gas resources. Using the experiences of other jurisdictions, the capstone concludes with a discussion of potential policy options to encourage geothermal energy development in Alberta.
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    Understanding the impacts of net-zero electricity in Canada by 2035
    (2023-02-14) Ahmadkhani, Sana; Shaffer, Blake; Muehlenbachs, Lucija; Tombe, Trevor
    Canada is committed to eliminating greenhouse gas emissions from its electricity system. The Clean Electricity Standard (CES) policy intends to enforce a net-zero electricity system by 2035 in which all thermal generators must be ceased. While many parts of Canada are already there, many are not. And the need to grow electricity supply to meet new electrical demand will add to the pressure. The purpose of this paper is to present for the first time in Canada a Python-based generator-level model that will be used to illustrate how 2035 electricity decarbonization will affect thermal capacity, generation, and carbon dioxide emissions. In this thesis, we review electricity markets across Canada and the clean electricity policies in each province. We explore what the 2035 CES policy will mean for the electricity sector in terms of how the policy will truncate the installed capacity and energy produced from thermal generators, and the amount of CO2 released. We discuss what we call the spatial impacts of clean energy policies in terms of where the impacts will most be felt on a regional level in terms of jobs affected. Finally, we discuss opportunities to reduce the adverse community effects of this policy. For our main results, we find that relative to letting thermal power plants live out their current expected lives, the CES policy will truncate 22 percent of fossil capacity-years, reduce 17 percent of CO2 emissions (68 megatonnes from 2035 onwards) and put at risk 21.7 percent of jobs at thermal power plants. Knowing when and where a facility closure will take place can allow targeted deployment of training resources for those in need, long-term budgeting that includes tax revenue losses, and advance planning for transitioning individuals to local jobs in environmental remediation of fossil facilities and new clean electricity generation. The ability of coal mines and other fuel supply to operate at efficient scales in order to stockpile fuel while serving out existing contracts will also be facilitated by clear expectations as to when and where generator retirements will occur.