B. Decentralized Energy Production (DEP) R&D Program [7]

The primary goals under the DEP program are the removal of institutional barriers that prevent DEP installation (by 2010), and for 20% of new and replacement generation capacity to be met by DEP by 2025. Theme areas included in this program are: grid integration; renewable energy use; and fossil fuel conversion. Distributed Generation production generally refers to on-site power generating plants of less than 1 MW capacity; however, for the scope of this program, highly efficient fossil fuel plants (up to 25 MW) and wind farms are also included. These systems will increase the reliability of, and reduce GHG and air emissions from Canada's electric power system at an acceptable economic cost to Canadians.

Preliminary analysis indicates that addressing the institutional barriers to grid integration should proceed quickly over the short term (by 2010). Appropriate regulatory regimes must be in place first for commercial applications to succeed. Electricity regulations mainly fall under provincial jurisdictions in Canada, requiring working with many jurisdictions and provincial utilities. Several activities have been initiated to provide on-going support to regulatory agencies that may or may not be addressing the barriers to the grid integration of distributed generation.

Although, Canada has significant energy resources, conventional (e.g. Natural gas) sources are declining and systems efficiencies are required. Therefore the DEP will focus on unconventional and renewable sources. In technological areas where other countries already lead, DEP will focus on uniquely Canadian circumstances, such as: high-velocity, low-temperature wind regimes; low-temperature, wind/hydro dispatch and storage opportunities; long-transmission distances; and remote, northern communities.

Through executing the DEP program activities under the 
3 technology theme areas (Grid integration; Renewable energy use; CHP Fossil fuel conversion), DEP will help deliver on the following outcomes in the short, medium and long term:

Therefore, by 2010, the program aims to modify current codes and standards and interconnection guidelines and regulations such that on site production will be no more restricted than on site demand reduction. Grid integration modeling will have guided regulatory changes. Other activities will include resource assessments for renewable resources and the deployment of systems that use non-traditional fuels (waste, bioenergy). Federal research laboratories will work with universities and utilities to establish stronger research networks that will help in understanding how to integrate large blocks of intermittent power and distributed generation into the grid.

Partners involved in the Decentralized Energy Production (DEP) program include:

• Federal departments: Environment Canada, Public Works, Industry Canada, Natural Resources Canada, Measurement Canada, Standards Council of Canada, Agriculture Canada
• Universities: McGill, Alberta, New Brunswick, Concordia, Calgary, British Colombia, Laval, Waterloo, Toronto, NSERC research network
• Industry -Utilities: BC Hydro, Manitoba Hydro, NB Hydro, NS Power, ENMAX, Fortis, Hydro One, Whitby Hydro, Waterloo North Hydro, Hydro-Québec, Enbridge
• Research centers: Kinectrics, LTE-IREQ-Hydro-Quebec, Bodycote
• Manufacturers: Xantrex, Powerbase Automation, Norcan hydraulic turbine, GE Hydro, Alstom Power, Swiderski Eng, VA-Tech Canada, Rapid-eau Technologies, Ottawa Eng, Alternate Hydro Solutions, Clean Energy Corp, Gestion Conseil SCP, Spheral Solar Power, ICP Global
• Associations: Electro-Federation Canada - EEMAC Council, CEATI-SOIG interest group
• Other collaborations: EU-Microgrids program; Eltra, Denmark; ISET, Germany; USA DOE (NREL-Sandia); CIGRE C6 (Task Force); IEA PVPS Task10; and standards organizations (CSA, ULC, IEC, IEEE)