General Framework

Established in 1992, CETC-Varennes' mission is to encourage targeted sectors of the Canadian economy to reduce their greenhouse gas (GHG) emissions, facilitate the sustainable use of energy, and improve their innovation capabilities. CETC-Varennes also designs and implements technological solutions, and gathers and disseminates knowledge in order to produce and use energy in ways that are more efficient and sustainable, and in order to stimulate the health of the Canadian economy. CETC-Varennes is responsible for the management of the federal photovoltaic energy R&D and technology transfer programme.

The Government of Canada is signatory to the Kyoto Protocol to the United Nations Framework Convention on Climate Change.

An on-going Technology and Innovation Initiative is contributing to advancing promising GHG technologies through R&D, demonstration and early adoption initiatives to achieve long-term GHG reductions and strengthen Canada's technology capacity in five key areas:

• decentralized energy production;
• advance energy end use in buildings and communities, industry and in transportation;
• cleaner fossil fuels;
• biotechnology; and,
• the hydrogen economy.

In 2005 the Government of Canada released a new national climate change plan entitled, “Moving Forward on Climate Change: A Plan for Honouring our Kyoto Commitment.” The plan combines regulatory, negotiated, and incentive-based approaches. It anticipates mandatory emission intensity caps for major GHG-producing sectors but also relies heavily on government-funded purchases of emission reductions, both domestically and through the Kyoto Protocol's market-based mechanisms. The Plan is the first phase of Project Green - a national project to create a healthier environment and a stronger economy by combining the efforts of governments, non-governmental organizations, businesses and all Canadians to build a more sustainable future ². It is estimated that the approaches outlined in the Plan, with an associated federal investment in the range of 10 billion CAD, could reduce GHG emissions by about 270 megatonnes annually in the 2008-2012 period.

Also in 2005, the Government of Canada, through Canada Mortgage and Housing Corporation, launched the first phase of a Canadian net zero healthy housing initiative, a government/industry partnership to build a vision for a sustainable living environment. The initiative, part of Project Green, will initially see the construction of 14 demonstration homes across Canada, and hopefully lead to a broad based deployment of Net-Zero Energy Homes in Canada.

Industry participation in this initiative is coordinated by the Net-Zero Energy Home (NZEH) Coalition ³ - of which Spheral Solar Power division is founding member. The initiative is intended to significantly increase consumer interest in and awareness of the important role that solar and other renewable energy technologies can play in meeting Canada's commitment for a clean energy future and healthy communities.

The PV market and industry in Canada is continuing with a modest growth, despite the low price for conventional energy. A sustainable market for remote and off-grid applications has developed over the last 12 years in Canada and continues to accounts for about 95 % of total PV installed. This is an unsubsidized market that is growing because PV technology is meeting the remote power needs of Canadian customers particularly for transport route signalling, navigational aids, remote homes, telecommunication, and remote sensing and monitoring. The installed power capacity has reached approximately 16,77 MW in 2005 compared to 13,88 MW in 2004 (see Table 1).
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Table 1: Cumulative PV power capacity installed in Canada

Year	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005
PV power [MW]	0,96	1,24	1,51	1,86	2,56	3,38	4,47	5,83	7,15	8,83	10,00	11,67	13,88	16,77*

*NRCan is expected on 20% growth in 2005
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National Programme

Within its framework, CETC-Varennes is responsible for the photovoltaic science and technology activities ⁴. The photovoltaic energy research group's primary mandate is to help develop and deploy photovoltaic energy technologies in Canada. To this end, two strategic approaches are being taken. The first is to accelerate the deployment of this technology in Canada, while the second aims at exploiting the technology's potential, both nationally and internationally.

Specific activities of the federal Photovoltaic Programme centre on:

1. Performing R&D addressing cross-cutting issues on off-grid and grid connected PV systems through collaboration with Canadian and international partners;
2. Providing leadership and technical assistance to committees and task forces that develop policies, codes and standards related to photovoltaic energy and interconnection guidelines;
3. Encouraging investment in manufacturing and provide business development support to globally competitive photovoltaic manufacturers that significantly contribute to Canada's climate change objectives; and,
4. Providing information to stakeholders and to Canadians to increase their awareness of the potential and value of photovoltaic energy.

Research and Development Programme

• Federal Photovoltaic Programme R&D
  The Canadian PV R&D Programme contributes to research projects in remote regions, undertakes technology development and demonstration projects, participates in the formulation of standards and codes, and supports, the evaluation of the performance of PV systems in new applications and their adaptation for use in cold climate conditions. R&D activities are mainly funded by the Office of Energy Research and Development (OERD), the Government of Canada's coordinator of energy research and development activities.

  OERD is responsible for the Programme of Energy Research and Development and the Technology and Innovation Research and Development initiative which support the energy-related R&D activities of federal departments, including the federal PV Programme. OERD also coordinates Canada's involvement in international energy R&D activities through linkages with the International Energy Agency (IEA), the U.S. Department of Energy, the European Union and the Asia-Pacific Economic Cooperation.

  On-going R&D projects undertaken by the PV Programme include:

  • R&D for the integration of PV-thermal systems in buildings;
  • Optimization strategies for Low Energy Solar Homes;
  • Evaluation on the use of small PV-hybrid systems in off-grid applications;
  • Integration of renewable energy technologies in off-grid residences in Canadian climatic condition;
  • Assessing the performance of PV products designed for building applications;
  • Collaboration with Measurement Canada on net-metering to address the regulatory issues;
  • Simulation studies on the impact of inverter-based systems and utility interconnected PV systems; and,
  • Supporting the development and adoption of performance and safety standards for use in Canada, including participation in the International Electrotechnical Commission working groups that aim to develop international standards.

• Solar Cell Research
  There has been growing interest in fundamental solar cell R&D at Canadian universities over the past several years. In 2005, a federally-funded study ⁵ provided an overview of fundamental solar cell R&D capability in Canada as a first step in identifying relevant solar cell research undertaken in the private sector and universities, and the potential of this work in strengthening the global competitiveness of Canadian companies involved in the production of PV technologies in Canada.
  

• Solar Buildings R&D Network
  The Government of Canada, through the National Science and Engineering Research Council (NSERC) is investing 5 million CAD over a 5-year period to create a Solar Buildings Network - a research consortium with the aim of advancing multi-disciplinary collaboration to innovate solar energy production and efficiency of its use in commercial, institutional and residential buildings in Canada. The federal research centres at NRCan and CMHC, industry and ten Canadian universities are participating in the Network to facilitate collaborative research in four subject theme areas: the integration of solar energy systems into buildings; solar thermal systems for heating and cooling; solar electricity generation in buildings; and simulation tools for solar building design. The Network is expected to produce about 80 Masters and PhD students knowledgeable in solar buildings research. This collaborative R&D effort will provide in-depth analyses to Canadian stakeholders on the optimization of low and net-zero energy homes for Canadian climatic conditions. It will help to support innovation in the residential construction industry in order to accelerate the adoption of low and net-zero energy solar homes.

Highlights of Canadian Demonstration Projects

• The most advanced building-integrated photovoltaic installation 'North of 60'
  In partnership with industry, the Government of Canada in 2005 unveiled a new federal building in Yellowknife, Northwest Territories, as an environmental showpiece for the North. The new 7 200 m2 four-storey building - the Greenstone Building ⁶ - will house about 200 public service employees from approximately 15 different federal departments, and is scheduled to become the first 'North of 60' Leadership in Energy and Environmental Design (LEED® ) Silver-certified project (Figure 1). The LEED® standard, originally developed in the United States and recently adopted in Canada, provides an effective and consistent framework for gauging sustainable building design. The building not only incorporates innovative energy conservation measures but actually generates some of its own power - enough electricity to meet five percent of the buildings electrical needs. In this installation 33,5 kilowatts PV cells are incorporated into a high performance south-facing curtain wall developed by Canadian-based Visionwall Corporation ⁷. Visionwall® PV curtain wall technology integrates PV laminated glass and an interior circuit wiring system into modular frames of energy-efficient glazing systems. This technology has overcome challenges, including high temperatures of the PV modules and access to wiring for maintenance. The electricity produced by the 33,5 kW PV curtain wall will be sold to the local electric utility, Northland Utilities, resulting in notable GHG reductions in an area heavily reliant on fossil fuels (diesel).

• Low emissions multi-energy source PV/GENSET hybrid platform for remote area power supply
  The Government of Canada through a TEAM-funded technology demonstration project is assisting Canadian industry to develop and grow the Canadian market for emerging innovative photovoltaic energy technology. The project led to the development of an advanced control system and platform that can enable photovoltaic, wind, fuel cells and alternative power systems to be optimally integrated into conventional fossil fuel-based power generating systems (“hybrid systems”) for remote and off-grid power applications. The project is undertaken by Xantrex Technologies Inc.⁸, a world leading manufacturer of innovative power electronic product interfaces and is based in Burnaby, British Columbia. Six field trials of the hybrid system (which combines a PV array, an engine generator, battery energy storage and power electronic controls) rated at 5kW are presently underway and are being monitored for performance and refinement (Figure 2).

  

• Canada's “Northern Light” solar powered house shines at the Solar Decathlon competition
  The Government of Canada in collaboration with private sector partners in the building and solar industry sponsored a Canadian entry into the second Solar Decathlon competition. The Canadian team, composed of engineering students from Concordia University and architectural design students from l'Université de Montréal, entered the competition with their Northern Light solar house, and were handsomely rewarded for their 2-years of hard work on this project (Figure 3). Their house was judged by an expert panel from the National Association of Home Builders of America as the most energy-efficient house of all the entries. Also, BP Solar awarded the Northern Light house with the BP Solar Award for best roof integration of photovoltaic technology. The house is now located on the Loyola Campus of Concordia University, to be used by the engineering school to further R&D advancements into solar optimized homes. Through research and education projects such as the Decathlon Solar House the Government of Canada is partnering with other levels of government, industry and academia, to demonstrate its commitment to building energy-efficient, healthy and sustainable communities.

Implementation

• Project Green: Canada's 2005 Climate Change Plan
  The Government of Canada is committed to the transformative, long-term change required to make deep reductions in greenhouse gas emissions while ensuring continued economic growth. In achieving that transformation, Canada believes it will meet its Kyoto target while maintaining a productive and growing economy. In 2005, Canada a passed the Climate Change Plan, “Moving Forward on Climate Change: A Plan for Honouring our Kyoto Commitment”. The Plan is built on six key elements: competitive and sustainable industries for the 21 st century; harnessing market forces; a partnership among governments; engaged citizens; sustainable agricultural; and forest sectors, and, sustainable cities and communities.

• Federal Investments in Technology-To-Market Support
  Federal investment in technology transfer is through continued support to three key delivery programmes:
  • Technology Early Action Measures (TEAM) ⁹, now in its third phase of funding (2003-2008), the federal government is continuing to provide financing for the late stage development and first demonstration of new technology with support between R&D and market implementation. TEAM supports projects that are designed to develop technologies that mitigate GHG emissions nationally and internationally, and that sustain economic and social development. Since 1998, TEAM has invested 113 million CAD in 101 projects, leveraging more than 800 million CAD in technology development investments. Of this, 10,35 million CAD were invested in six photovoltaic technology early market-entry demonstration projects;
  • Technology Partnerships Canada (TPC)¹⁰ is a programme that was established in 1996 through which the Government of Canada provides strategic support to firms engaged in private-sector R&D projects on a risk/reward sharing basis. Working in collaboration with innovative companies across Canada, TPC supports private sector R&D and prototyping for pre-competitive projects across a wide spectrum of technological development. Overall, TPC generates important benefits in terms of company competitiveness in areas that bring economic, environmental and social benefits to Canada. Since 1996, TPC has invested 2,75 billion CAD in 275 projects, leveraging more than 11 billion CAD in R&D investment (figures as of June 30, 2005). The large majority of TPC's projects are undertaken by small and medium-sized enterprises. While 37 % of the overall funding goes to these enterprises, they represent 89 percent of TPC's projects. TPC and TEAM are funding the development and commercialization of Solar Spheral TM technology ¹¹. The existing Programme is being phased out and in its place the Government of Canada will introduce the Transformative Technologies Programme, a new initiative to support innovation and technology adoption in Canada.
  • Sustainable Development Technology Canada (SDTC)¹² is a not-for- profit foundation established by the Government of Canada in 2001 to act as the primary catalyst in building a sustainable development technology infrastructure in Canada. SDTC finances and supports the development and demonstration of clean technologies which provide solutions to issues of climate change, clean air, water quality and soil, and which deliver economic, environmental and health benefits to Canadians. To do so, the Foundation draws from an investment fund of CAD 550 million. SDTC works closely with an ever-growing network of stakeholders and partners to build the capacity of Canadian clean-technology entrepreneurs, helping them form strategic relationships, formalize their business plans, and build a critical mass of sustainable development capability in Canada.

• Net Metering Initiative
  A working group composed of stakeholders from the electricity industry (manufacturers and utility) and federal regulatory branches in collaboration with the federal government is continuing work on the Net-Metering Project to identify and eliminate barriers to the introduction of net metering in the electricity sector ¹³. Deregulation of the Canadian electric utility industry is creating opportunities for distributed power generation to occupy a significant share of the electricity markets of the future. PV has an important role to play in this market, and appropriate policies to promote investments in PV are being pursued.

Industry status

• In 2005, Carmanah Technologies Corporation ¹⁵, a leading integrator of renewable and energy-efficient technology solutions completed the acquisition of Soltek Powersource Ltd. - a Canadian PV wholesaler - thereby enabling it to grow its portfolio of proprietary technologies, as well as partnerships with many of the world's leading component suppliers. Carmanah's headquarters and primary manufacturing facilities are in Victoria, British Columbia, Canada. The Company also operates an additional manufacturing facility in the Canadian Province of Alberta, as well as regional sales and customer support offices in many major city centres in Canada, the United States and in England. The Company is currently focused on three technology groups; solar-powered LED lighting, solar power systems (off grid and grid tie), and LED illuminated signage. Carmanah currently has more than 250,000 installations in 110 countries.

• ICP Solar, a leading manufacturer and supplier of consumer products based on advanced solar technology, in 2005 introduced a new PV brand - the Sunsei™ line of solar products - embodying ICP's continuous product R&D and its innovative proprietary manufacturing process. The company's headquarters and manufacturing facility, inaugurated about five years ago, are located in Montreal, Quebec, where ICP continues to expand its operations to manufacture new lines of PV products to meet consumer demand for innovative solutions. In 2005, ICP was recognized by a leading Canadian business magazine as one of the Canada's 200 fastest-growing companies.

• Xantrex Technology Inc. is a world leader in the development, manufacturing and marketing of advanced power electronic products and systems for the distributed, mobile and programmable power markets. The company's products convert raw electrical power from any central, distributed, or backup power source into high-quality power required by electronic and electrical equipment. Headquartered in Vancouver, British Columbia, the company has facilities in Arlington, Washington; Livermore, California; Elkhart, Indiana; and Barcelona, Spain.

• The Spheral Solar Power ¹⁶ plant in Canada, a division of ATS Automation Tooling Systems Inc., has a capacity to produce 20 Megawatts per year, capable of providing annual electricity for 6 000 homes. A state-of-the-art 190 000 sq ft fully automated manufacturing plant is located in Cambridge Ontario.

Market

Future outlook

Footnotes with relevant web sites

1. CANMET Energy Technology CentreVarennes: http://cetcvarennes.nrcan.gc.ca/eng/accueil.html
2. http://www.climatechange.gc.ca/english/newsroom/2005/plan05.asp
3. Zero Energy Home Coalition: http://www.associations.cc/nzeh/aboutthecoalition.htm
4. Program CETC-Varennes: http://cetc-varennes.rncan.gc.ca/en/er_re.html
5. Report on Canadian Solar cell R&D: http://ctec-varennes.nrcan.gc.ca/fichier.php/38862/2005-077e.pdf
6. http://www.climatechange.gc.ca/english/team_2004/dbProjects/viewProject.asp?id=5371&typ=ind
7. Visionwall: http://www.visionwall.com/
8. Xantrex: http://www.xantrex.com/
9. Technology Early Action Measure: http://www.climatechange.gc.ca/english/team_2004/
10. Technology Partnership Canada: http://tpc-ptc.ic.gc.ca/epic/internet/intpc-ptc.nsf/en/Home
11. Spheral Solar Power: http://www.spheralsolar.com/
12. http://www.sdtc.ca/en/index.htm
13. Netmetering initiative http://www.micropowerconnect.org/NetMeteringProject/index.htm
14. Canadian Solar Industries Association: http://www.cansia.ca; and Énergie Solaire Québec: http://www.esq.qc.ca/
15. Carmanah: http://www.carmanah.com/
16. Manufacturing: http://www.spheralsolar.com/

Further reading about Canada

• Canada - Country information