Why geothermal?
Geothermal energy is an internationally recognized clean, sustainable and renewable source of affordable heat and power. It is obtained by pulling hot water from deep below the earth’s surface and running it through a turbine to produce electricity with low or no emissions. After the hot water is used to make clean electricity, and before the water is reinjected, the remaining heat can be used for a variety of commercial, industrial, or entrepreneurial endeavours, including fish farming, greenhouse heating, district heating, pasteurization, material drying and snow melting. The experience of countries around the world shows us the great potential of geothermal heat and power. With legislative and regulatory support, we can harness the potential of geothermal here in Canada, and use it to create reliable green energy, jobs, and economic prosperity.
Send this letter to your MP and MLA:
Dear Elected Official,
As a voter in your constituency, I’m contacting you to let you know about Canada’s Geothermal potential, and to advocate for its use. Geothermal energy is the Earth’s own internal heat, and is incredibly versatile. Some examples of its uses include: greenhouse agriculture, refrigeration, space heating, tourism, and electrical generation. While particularly visible in the western provinces, geothermal resources are found throughout all of Canada. With this renewable form of energy, we can use Canadian expertise in sub-surface resource development to create sustainable and permanent jobs.
There is now a critical opportunity to expand our country’s green energy and economic growth. More action is needed to help level the playing field for geothermal developers, above and beyond the steps already taken in Budget 2017 & 2018.
In addition to the changes needed on the Federal level, the Provinces and Territories can play an important role in helping to level the playing field for the geothermal industry. Local geothermal developers are in need of a more robust Provincial regulatory framework, as well as direct support matching that which other renewable energy sources such as wind and solar receive. I strongly encourage Provincial or Territorial representatives reading this letter to contact the Canadian Geothermal Energy Association (CanGEA) for further details on the specific policy needs of geothermal developers in your area.
In 2016, the Parliamentary Standing Committee on Finance “Creating the Conditions for Economic Growth: Tools for People, Businesses, and Communities” stated that;
“Because Canada is part of a global community that is focused on protecting the environment and addressing climate change, the Committee recommends…[t]hat the Government of Canada take action to support and encourage Canada’s geothermal sector.”
Geothermal developers can become full and effective players in Canada’s renewable energy future, if the right changes are made.
CanGEA has consulted with geothermal developers and identified the following points as key ways to support geothermal development:
- 1. Allow geothermal projects to claim similar tax benefits as other renewable sources such as wind and solar power. Often geothermal projects face similar up-front costs and uncertainties as other renewable sources, but geothermal projects do not enjoy similar benefits. Rather than picking winners and losers in the renewable energy market, government should level the playing field. CanGEA would like to acknowledge and thank members of the federal and provincial governments who are already working with us on this issue, looking into creating equitable tax incentives for geothermal in areas such as test turbines.
- 2. Move the Government of Canada towards becoming net zero through the procurement of power, heat, and energy credits from the geothermal industry. A procurement process should be put in place so that geothermal companies can sell heat and power directly to the government. This would create a large initial buyer for renewable heat and power.
- 3. Continue to make direct government contributions to geothermal projects. For Canadian companies to be able to develop geothermal projects, they must have access to capital. Direct government support of geothermal companies, be it through grants, loans, subsidies or other forms of financing, would demonstrate the government’s commitment to assist in the development of Canada’s geothermal energy sector, and will open doors for geothermal developers to build the geothermal energy infrastructure Canada needs.
- 4. Initiate more federal heat programs. Geothermal heat is low-cost, clean and renewable, and provides positive economic and social benefits that add even greater value to geothermal development. Direct use of geothermal heat can either replace fossil-fuel-burning heat sources in a community, or replace electric heating, thus reducing the amount of electricity needed on the grid. The result is decarbonization of the overall economy. Government support of geothermal heat programs can help bring these benefits to isolated or underserved communities and promote social and economic prosperity as well as greenhouse gas emission reduction.
A more even playing field for geothermal in comparison to other renewable industries would help create a blossoming of clean, reliable, and affordable energy development in Canada, including geothermal. Climate change mitigation and clean growth are both better served by increased government support of geothermal heat and power.
When the opportunity comes for you to comment on programs and regulations, in provincial or territorial legislatures, and particularly as Budget 2018 moves through the federal legislative process, I ask that you support geothermal by making sure the recommendations written above are present so that Canada can be a richer, more sustainable place.
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