Last month the Chronicle-Herald editorialized that the province and Utility and Review Board should “rethink the policy of levying conservation charges on power bills.” In the face of rapidly escalating energy costs, that’s something a lot of Nova Scotians have been doing at home.
The Herald‘s argument is that Efficiency Nova Scotia costs ratepayers tens of millions of dollars annually to cut energy consumption by 135-million kilowatt hours, and here a couple paper mills shut down and save 900-million kilowatt hours for nothing— unless you count the increased EI and other social payments.
It’s a red-herring argument that anchors ones thoughts on irrelevant information. In deciding whether $36 million is a good investment in improving our energy efficiency, it makes no difference if we saved more shutting down factories—unless we’re willing to consider going around shutting down other factories as a legitimate power-saving tactic.
What’s economically relevant, and what the URB analyzes annually, is whether Efficiency Nova Scotia is worth the investment. And by every metric, it is. It saves the province more money than it costs ratepayers, and it saves energy more cheaply than renewables (including Muskrat Falls hydro).
Ironically, the Herald‘s very next editorial advised that, on the subject of the Muskrat Falls deal, “URB must conduct a thorough investigation of alternatives.” That’s exactly the sage thinking that led to Efficiency Nova Scotia.
From the beginning, Efficiency was decidedly not established for the good of society. It was developed based on cold hard economics. While environmentalists hailed the concept of placing energy savings beyond the purview of Nova Scotia Power and government, it was a 2007 NSP 30-year Integrated Resource Plan that determined energy efficiency would cost ratepayers much less than fossil fuels.
On average, efficiency programs cost about three-and-a-half cents per kilowatt-hour saved. The cost of generating the same energy in Nova Scotia is about 10 cents per kilowatt-hour. Some say that if the system is managed beautifully and the costs of renewables come down as expected over time, with more natural gas thrown in the mix, we might get that down to six or even five cents per kilowatt-hour. Still not nearly as cheap as efficiency measures. Conversely, smart metres are a great way to help consumers save money, but have little to no impact on greenhouse gas emissions.
To put Efficiency Nova Scotia’s cost to consumers in perspective, you can recoup what you give them on your bill by changing a handful of household lightbulbs to compact fluorescents. The non-governmental agency, which thanks to URB’s watchful eye has a higher degree of economic accountability than most government agencies, is imperfect—as are the patchwork of government rebate programs and incentives designed to save us energy and money.
But its establishment was visionary, and followed an unusually high degree of consultation (though also imperfect) via Dalhousie management professor David Wheeler. And it has very quickly attained impressive levels of energy savings.
Last year, for $36 million, Efficiency NS saved ratepayers $100 million in future electricity costs. As Efficiency NS points out, that’s a 275 percent payback, without considering the savings in environmental cleanup or the 37 jobs created for every $1 million invested—five times more than traditional energy projects —according to the Pembina Institute.
Efficiency’s performance is comparable, on a per capita basis, to world-leading organizations like Efficiency Vermont and Oregon Energy Trust—both run via nominal energy bill surcharges. And similar programming in Massachusetts in 2010 alone created $1.3 billion in customer savings, $6 billion in overall economic benefits, and 14,000 job-years of employment. The state is ranked first in the US in energy efficiency. Canada, as a nation, recently ranked 11 of 12 nations analyzed—below Brazil, China and the US.
The Herald‘s suggestion to cut Efficiency Nova Scotia’s funding source while it’s still in its infancy, yet is miraculously already walking, makes no economic sense. What is needed is not miserly penny pinching, but better access to low-cost efficiency measures, and energy discounts to low-income households.
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This article appears in Aug 23-29, 2012.
Every few months NSP starts requesting another 3 or 4% increase in power rates and the Government and taxpayers start complaining. Thursdays Chronicle Hearld, another wind farm approved. They throw out a lot of numbers in the article but they won’t divulge how much NSP pays for that power per KW or MW. If its like everywhere else in the world, they pay a lot.
Heres some numbers. 31.5 MW of wind power for $61 million. It will provide power to 10,000 homes. Does that sound impressive? Rule of thumb is 1 MW = 1000 homes. Why so poor efficiency? The power from wind turbines is un-reliable. The colder it gets and the hotter it gets, wind turbines turn the least amount. Sometimes their peak output is at the lowest demand. The wind power industry gives a 30% number, so this new 31.5 MW wind farm will average about 10 MW a day. Thats where they get the 10,000 homes number.
If this 31.5 MW project was a small Gas Turbine, it would be supplying power to 31,000 homes. It would be supplying 31.5 MW 24/7, 365 days of the year. Okay…little bit of down time for maintenance. This 31.5 MW Gas turbine will provide a lot more well paying jobs.
…and the price for this 31.5 MW gas Turbine will be a lot less than $61 million.
Un-reliable, power for 10,000 homes for $61 million and minimal jobs or Good quality, base load power 24/7 for 31,000 homes for some amount less than $61 million….and a lot of good jobs for some community.
Spain used to be the poster child for “Green Economy”. Well, couple years ago the Spanish Government had to come out and admit it was a failure. They lost jobs and created a huge debt. It was not working and they were stopping it before Spains economy ended up like Greece.
…and lets not forget the birds and bats that are killed by wind Turbines. Maybe Chris Benjamin could find that out for us readers. Wind farm owners won’t say anything. You know there’s some large Wind Farms that hire people and their sole duties are to collect dead birds and bats.
NowI know NSP management spending, lucrative salaries, stock options, spending accounts, and profit orientated mind set contributes to our ever increasing power rates, but the next time you read about another NSP request for a rate increase and you happen to drive by some majestic Wind turbines that you think is a good thing……you have nothing to complain about.
Actually, wind power costs about 9 cents per kWh, and is likely to increase very little over the 20 year life of the farm. A gas turbine is the most expensive form of generation in NS, at 10 cents plus with the currently depressed gas prices, let alone what will happen to gas prices in the next 20 years.
Regardless, as noted in this article, efficiency is always the cheapest source of energy – hands down. Energy efficiency is the only competition NS Power has. A few very small changes in a home will save more than enough to offset the efficiency fee, so it’s up to Nova Scotians to decide if they’d rather give money to NS Power or keep it in their pockets.
Speaking of low income households – the majority of those households are renters. Guess how many programs low-income renters get access to for their “small” Efficiency tax? None. 0. Zilch.
Unless you count the suggestion to talk to one’s landlord.
The market already gives people reason enough to save energy without having to pay a tax to save money. The high price of electricity – like the high price of gas – forces people to be more careful about how they consume.
I personally invested a few hundred dollars a few years back – I bought myself power bars with remote controls and switchable outlets to save me money on zombie power draw from my computers and my home entertainment system. I refitted every bulb in my apartment with high-efficiency bulbs. Done.
Oh wait, I was supposed to wait for the government to tax me so they could afford to educate me on how to save money? My mistake.
Energy-efficiency education is a laudable goal. Taking a program however, Conserve NS, which was already paid out of general revenue and provided the same services they do now – re-branding it as an “arms length governmental agency”- and instituting a new tax for consumers whether they are already efficiency minded or not – regardless of whether they can take advantage of the programs provided or not – is another asinine move from our idiotic provincial government.
Efficiency NS has to go.
Where in Nova Scotia is there a dedicated combined cycle natural gas turbine plant? I know Tufts Cove uses natural gas for its boilers and they have one? two? single cycle gas turbines for high demand periods. Those are expensive to run. Is that where you get the 10 cents plus for natural gas? Is that a operating cost? Does NSP sell its self its own power?
Ontario buys wind power for $130 mwh. Your 9 kwh for wind power in Nova Scotia would be $90 mwh..yes? I believe Ontario pays between $20-$30 Mwh for coal/hydro/natural gas based power.
…and Nova Scotia pays $90 Mwh? for natural gas..and they have no dedicated combined cycle natural gas turbine plants.
What does Coal coast per kwh? Hydro?
Just more government/green B.S. The less you use the more you pay. Thank the UARB for that gem, every time demand goes down, stranded costs go up, just because we are not using peak generating capacity that capacity is still there. Chris Huskilson and his gang of bean counters, spokeswomen and P.R. muchkins are still hanging around the washrooms either thinking up a new way of skinning the ratepayer. E.N.S. is just a front for the home inspection industry who charge you $300 bucks plus $45 bucks H.S.T. to tell you that you do not have a broken window somewhere in your house. They use the old fan in the door trick, no way you are gonna win on that one you could bury your hose ten feet in the ground and not pass their inspection quota’s. Then what do you get a tax credit, you get a tax credit to cover the P.S.T. that you would not have to pay in the first place if you did not fall for their bullshit. Bernie Madoff is serving 150 years for the same kind of ponzi scheme, maybe I will see the day when the hucksters at E.N.S. are sharing cells as well.
Raisin:
1. Tuft’s Cove has a CCNG plant, with two NG turbines exhausting through a heat recovery boiler that drives a smaller steam turbine. This was built in pieces over the past few years.
2. NSP has quoted a 20 year levelized (NPV) cost of $90/MWh for wind farms. it was mentioned in the news a while back. No doubt it’s on the URB website.
Dartmouthy:
1. According to their website, ENS offers services for low income renters and homeowners.
2. You should be commended for your own efforts to save energy, but residential savings pale in comparison to the savings from businesses. Also according to the website, ENS does much of their work with businesses.. As someone who has worked in industrial plants for many years, I can tell you that’s a helluvalot more complex and expensive than twisting in a few lightbulbs. I can also tell you that many businesses cannot make the investment in this capital-constrained economy, but each unit of energy they save with help from ENS is valuable to all Nova Scotians as the energy and money you are saving yourself.
It’s also worth pointing out the ENS was brought to the verge of creation by the previous PC government. The legislation was already drafted when the NDP took over.
Eddie, if you looked at the website:
http://www.efficiencyns.ca/for_home/renter…
You do realize all they offer is taking your old fridge or freezer away for you? Tjays Nothing for tenants. no tenants own their own fridges or stoves. Id love energy efficient models but it is beyond my control. Yrt i am forced to subsidize home owners through a tax on my bill so thry can get big rebates on nice new appliances? Fuck that. I appreciate there may be many businesses and industries across the province that need electrical refitting, but it shouldn’t be in the form of a tax levied on those who ccannot possibly take advantage of any real savings or real programs as a result of that tax. Just another slanted government sham in this fucking shit hole!