Renewable Power sector In Canada
Descripción
Renewable Power External and Internal analysis of the Industry Kunal Deep (500670161)
2014
Executive Summary The report analyses the renewable power industry in Canada. Around 61% of the power, requirement comes from Hydro. Rest is from other sources like nuclear, coal, wind and solar. In this industry there are giant market players, which are involved in production and distribution of electricity. Most of them are partially or fully owned by the provincial governments. Any new venture needs heavy capital investment and takes years to become operational. Also, this sector is highly technology intensive. The companies need an extensive R&D about potential output and commercial feasibility before clearing and implementing a project. Suppliers of power companies are in constant pressure to provide efficient equipment in lower prices. At the same time, power industry is dependent on suppliers with good expertise in the field of power generation. The power consumer does not bother about the source of electricity. Their concern is the end price they have to pay for per unit of power. The renewable energy is dominating in this sector because of the low prices. If in case the cost of production of renewable power goes higher the transmission and distribution companies will prefer to switch to cheaper power options in the market. If the coal prices or the international gas prices goes down the internal combustion generators can produce cheaper power. However, Canadian government seems determined to shift all the power facilities to renewable sources. It has planned to end the power production by internal combustion by 2040 (Canadian electricity Association, 2013). The country is on fast tracks for developing other renewable energies like wind, solar and tidal. The wind energy output has increased by many folds since 2004 (Energy and mine ministry conference, 2013). According to Global Wind Energy Council in January 2014, Canada is ranked 9th highest producer of wind energy in the world (Energy Division, government of Manitoba, 2014). BC Hydro and Hydro Quebec are the companies with large production capacity. The vision of the company is to serve the industry and population of the respective province with a clean and safe power source. The companies have adopted the latest distribution technologies and are moving rapidly towards a smart grid distribution system. The company rapid growth of their operation ensure elimination of use of fossil fuels in power industry. SunEdison is a small company when compared to other two. But it has made significant difference in Ontario province by installation of first ever fully operated PV solar grid. The company has struggled financially in the past. But it has come up good. The stock prices are in good shape. This company has launched a special Feed-‐ In-‐Tariff program, where users of solar cells can be exempted of the installation price. The various venture with the other industries under this scheme the company has developed a reputation of socially responsible corporate. This has fetched the company various incentives and joint programs from the Ontario government.
The renewable power is dominating the Canadian power sector and will continue to dominate. The acceptability of the renewable power is growing. Wind and tidal wave energy are yet to be explored. There are many small, producers spread across the Canada that sell electricity to the hydropower giants. But soon those sectors also will have a significant share in the power production and distribution in Canada.
Table of Contents Executive Summary ..................................................................................................... 2 Introduction ................................................................................................................. 5 Industry Definition ....................................................................................................... 6 Industry Report Part 1: EXTERNAL Analysis .................................................................. 7 Porter’s Five Forces ...................................................................................................... 8 Market Competition .................................................................................................................................................. 9 Power of buyers .......................................................................................................................................................... 9 Power of Suppliers ................................................................................................................................................. 11 Threat of New entrants ........................................................................................................................................ 12 Threat of substitute products ............................................................................................................................ 12 PESTLE analysis .......................................................................................................... 14 Political ........................................................................................................................................................................ 14 Social ............................................................................................................................................................................ 15 Technological ............................................................................................................................................................ 16 Legal ............................................................................................................................................................................. 16 Environmental ......................................................................................................................................................... 16 Companies of interest ................................................................................................ 17 BC Hydro ..................................................................................................................................................................... 17 Hydro Quebec ........................................................................................................................................................... 17 SunEdison .................................................................................................................................................................. 18 Industry Report Part 2: INTERNAL Analysis ................................................................. 19 Company analysis ...................................................................................................... 20 BC Hydro .................................................................................................................... 20 Vision Mission and Objectives ........................................................................................................................... 20 Key performance indicators and Strategic approach of BC hydro .................................................... 22 Financials ................................................................................................................................................................... 24 Summary ..................................................................................................................................................................... 25 Hydro Québec’ ........................................................................................................... 26 Objectives ................................................................................................................................................................... 26 Vision and Mission ................................................................................................................................................. 26 Financials and performance of Hydro Québec’ .......................................................................................... 29 Summary ..................................................................................................................................................................... 30 SunEdison .................................................................................................................. 31 Objectives ................................................................................................................................................................... 31 Conclusion ................................................................................................................. 37 References ................................................................................................................. 38
Introduction The installed capacity and production of Renewable power has increased many folds in past decade. The renewable energy revolution has surpassed all the expectations. In the past ten years the analyst observed a paradigm shift in the global perception towards these naturally available forces. Several factors contributed to this rapid growth. The energy crisis in 1970s injected the idea of self-‐reliance for the domestic energy demand. At the same time few countries like Denmark, Germany, Canada, USA and Spain surprised the world by creating huge markets for renewable energy sector. They demonstrated some exceptional capabilities to commercialize these naturally available powers. It provided the axel for the renewable energy market with major technological advancements and economy of scale. In Canada the first noticeable use of renewable power started with hydro. The first use of water to produce electricity was from a wheel built by the Ottawa Electric Light Company at Chaudières Falls in 1881. This was used to power streetlights and local mills. Few years later Montmorency Falls illuminated the streets of Terrasse Dufferin in Québec City and Lachine rapids the streets of Montréal. Since then onwards the hydropower plants are built up coast to coast in Canada. While taking a look at the potential within Canada, the vast land size, numerous rivers, large lakes spread across the country and long coastline makes it one of the richest countries in the world in terms of natural resources. It’s a country of wild and legendry rivers. The Mackenzie, the Fraser, the Churchill, and dozens more all are part of its national identity. They are not only vital to history textbooks, Group of Seven exhibit, or gift-‐shop postcard rack, but are also excellent waterways holding tremendous potential of power generation. While most countries in the world are worried about the energy crisis due to shortage of fossil fuels, Canada has already included renewable power source as a big share of electricity supply. Exploring potential of over 200 rivers across the country using Hydropower, many projects are in operation or are planned. Today major part of the total power requirement of Canada comes from hydroelectric power stations and in coming years an investment of billions over the key mega hydro projects in Canada is estimated. Just as the constructions of national highways has helped to define Canada as a country so has the Hydropower development. This document will take you thru the details of renewable power sector in Canada. Its an effort to explain how this sector, which is still developing in most parts of the world has become an integral part of the living of this land.
Industry Definition When a source of energy is replenished by nature, continuously, in human time frame that source of energy is considered as renewable. Continuous cycle of nature ensures the never-‐ending source of renewable energy. The renewable source produces energy at the rate, which is faster than it can be consumed. It’s only the matter of the extent of technological advancement, which pushes the limit of the maximum tappable energy from these sources. Use of renewable source of energy is free from green house emissions and comparatively cleaner energy than the non-‐renewable source of energy. A significant push towards harvesting the renewable sources that meets the energy demands came into picture when the concerns were raised about the exhaustion of fossil fuels within few decades. However, even fossil fuels originate naturally from animal and plant remains but nature takes millions of years to produce these fossil fuels. Renewable power holds the promise to reduce the pollution, generate pollution free power, and provide a long-‐term energy solution to fuel a sustainable growth of economy.
Industry Report Part 1: EXTERNAL Analysis
The section will cover the external analysis of the renewable power sector using Porter’s five forces and PESTEL analysis. Porter’s five forces is a strong tool to determine the external market drivers of the industry and product pricing. The evaluation of the effect of suppliers and consumers in electricity pricing, the existing market competition and the threat of new entrants help to evaluate the stability of a player in the market. PESTEL will look into the various other factors that influence the industry performance.
Porter’s Five Forces This tool is used to analyse the diamond model of the industry. The analysis with this tool will let us go thru the external forces affecting the industry. The factors, which influence the company performance and their strategy, will be identified in this analysis.
Supplier power (Medium) -‐ Few suppliers but no power of cost regulation -‐ Few competitiors
Buyer Power (Low) -‐ Less alternative products -‐ High switching cost
Competition (Low) -‐ High government regulation -‐ Single regional player
Threat of new entrant (Low) -‐ Huge capital investment is needed -‐ Economy of scale -‐ Environmental issues
Threat of Substitute products (Medium) -‐ Readily available fossil fuels -‐ Fossil fuel market instability
Market Competition Low The market price of per unit of power is heavily regulated by the government policies. Therefore there are very low chances of price competition among the renewable power producers. Moreover, the market mostly has single regional players in Canada. This reduces to very low internal competition. However, uninterrupted power supply is one aspect where power producers can get an edge. Installing better technology equipment there can be better out put. Hydropower producers dominate the market. They account for more then 90% of the renewable power in Canada (Yang, D, 2014) (Figure 1). Products and services (%) 100 80 60 Products and services (%)
40 20 0 Hydro
Wind
Created by Kunal deep. Data source Yang, D, 2014
Others
Power of buyers
Low The renewable power has four different buyers. 1. Residential buyers: The residential buyers the end users of the electricity. They have the highest contribution in terms of consumption of power in Canada. They contribute around 32% (Yang, D., 2014) of the total electricity consumption. With no alternate power arrangements they are solely dependent on the power companies for the power supply. 2. Industrial Markets: These are the big industries, which run on electricity. These companies consume huge amount of electricity. They have their own distribution system and grid setups. They also have their own power production unit. When the power cost goes higher or in case of irregular or insufficient power supply these industrial units do not risk effecting their normal operation. To reduce full dependency to the power companies, these big industrial units have their own production units. 3. Commercial market: The commercial market are small and big shops which have consume more then a residential buyer but lass then the Industrial markets. Their total consumption is almost equal to the Industrial markets.
They consume contribute around 29% (Yang, D., 2014) of the total revenue of power companies. They normally do not have alternative arrangements for the electricity supply like big industries have, but they enter into the power pact with the energy companies to ensure the correct budgeting of electricity consumption and also the regular minimum electricity supply. 4. Exports: Canada’s renewable power industry also exports a significant amount of electricity to USA. This export is about 8.6% (Yang, D., 2014) of the total revenue. The major threats to this class of consumers are the local power producers. The buyer’s contribution and alternate power arrangements is summarized in the following table. Table1. S.No. Buyers Contribution in Alternate arrangements of power revenue (%)* 1. Residential 32 None markets 2. Industrial Markets 30.2 Industries can have their own power production unit 3. Commercial 29 Commercial markets can enter into market power purchasing agreements with the producer for a lower price 4. Exports (mainly 8.6 Local power producers in USA. USA) *Created by Kunal deep. Source Yang, D, 2014.
But the alternate arrangements from the individual does not affect in overall demand of the renewable power. Stats indicate that Canada is more dependent on Renewable power then thermal non-‐renewable resources of power generation. Hydro is a dominant source of power in Canada (Figure 2). Figure 2.
Power generation (%) 70 60 50 40 30 20 10 0
Power generation (%)
*Created by Kunal Deep based on data from Canada’s electricity industry, 2013, p. 14
Moreover, the demand of renewable power has increased every year after recession and is also expected to grow in future (Figure 3). Figure 3.
2010-‐11 Domestic Demand of renewable power ($m)
2011-‐12 2012-‐13 2013-‐14 2014-‐15 2015-‐16 2016-‐17 2017-‐18 2018-‐19 0
5000
10000
15000
20000
25000
30000
Created by Kunal Deep based on data from Yang, D, 2014
Also, the prices of electricity will be increasing in the future (Yang, D, 2014). Therefore, the increase in demand despite the increase in price indicates that the buyer power is low in this industry.
Power of Suppliers (Medium) The power market is always in constant pressure of low cost electricity generation because the end user does not consider the source of power but cost of power per unit. Therefore, the transmission and distribution (T&D) companies will buy power from the producer who can supply the cheapest electricity. To maintain the low cost of production, suppliers are in constant pressure to delivery low cost products and services to the power generation companies. The major suppliers of power industry are described in Table 2 with competition level of that industry and the barrier for new players to enter into the industry (Yang, D., 2014). Suppliers Competition Level Barriers to Entry Engine and turbine Medium Medium manufacturing industry Transmission line High Medium construction Semiconductor and other High High electronic device manufacturing Source: Yang, D, 2014
The competition level is high and medium, but at the same time Table 2 indicates that it is not easy for a new player to enter into the market. The competition helps power industry to get some strength over their suppliers. But still with less number of suppliers and low chances of new suppliers the power industries are dependent on the existing one. In future when electricity price will rise the suppliers with technical expertise will help power companies to create more revenue. So the supplier power is medium but is projected to increase in future.
Threat of New entrants Low Capital requirements and Government regulations This industry needs a very large initial investment. The actual production can take years to start and millions of dollars of investment. Since this industry is related to environmental factors so the installation and generation procedure come under government regulations. The construction of power plant and power production is should not harm the environment, animal habitat and water supply. The price per unit is also under the government regulations. The government of each province decides their policies to regulate prices (Yang, D., 2014). So a new entrant does not get a chance to create foothold on price war strategy. However, a company can increase its income by creating a bigger margin in cost of production and fixed price. But this only comes with a level of expertise and relationships with suppliers in this industry. Thus, economy of scale is high which creates a high barrier for a new entrant. Factors deciding the threat of new entrants to be low (at a glance): Factors Capital investment High Government Regulation High Actual production time Can take several years
Threat of substitute products
Medium Although hydro is the major part of electricity generation today, its contribution to the actual power generation capacity is lower. According to Canadian electricity Association, 2013 hydro contributes higher then the overall ‘actual generating capacity’. Hydro is 63% of the total part and conventional steam 15% currently (Figure 4). But the actual generating capacity of hydro is 57% and of conventional steam is 20% of the total (Figure 4). Similar to coal, combustion turbine has also higher potential then its current output. The major reason is the higher prices of the fossil fuels. Moreover, these prices are projected to increase in future. In case the prices of natural gas, petroleum or coal goes down of any reason this can negatively impact the renewable power demand from the T&D companies.
Figure4
70 60 50 40 30 20 10
Generating Capacity (%) Actual generation (%)
0
Created by Kunal Deep based on data from Canadian electricity Association, 2013, p. 48 -‐49
But taking the cognizance of environment, government is taking measures to reduce the use of fossil fuels in power sector to minimum. If the pace continues, it is estimated that the coal fleet will come to an end by 2040 in Canada (Canadian electricity Association, 2013). Therefore, even if the coal prices goes down, in the long run there will be less chances to retreat from the growing dominance of renewable power industry in Canada.
The porter’s five forces analysis maps out a picture of this industry to be static in nature. For new investors, it is though to enter the market because of the heavy regulations. The customer power is low as well. The demand does not decide the electricity prices. The corporations only decide the prices. The consumers have no alternative source of power. The switching cost for an individual power user is high. The uses of fossil fuels in power sector are going down and are strongly discouraged by the governments. So the threat has gone low. Over all the analysis shows the power producers and distributers have a stronghold in this industry.
PESTEL analysis In this analysis, we will see that the power sector is deeply influenced by the political and legal boundaries of the Canadian government. Also, the renewable power industry is very close to environment. So the PESTLE analysis is used as a tool to describe the factors related to the renewable power industry.
Political Government support and funding to renewable energy Not only environmental acts are imposed to the renewable power sector but also they are encouraged for more R&D projects. Different regions provide different incentives to the renewable power sector. For example, more than 50% of power requirements come from internal combustion in Alberta and Saskatchewan. In coming years, to support renewable energy, provincial government has created ‘Climate change and emission management funds’. Saskatchewan has targeted to double its wind energy capacity to 9% by 2017 (Energy and Mines Minister’s conference, 2013, p. 8). Manitoba, Ontario and Quebec also have targeted to tap major part of their wind energy potential in next five years. Tax measures In 2006, Government of Canada extended ‘accelerated capital tax allowance’ to 2020. The startup expenses was also included as ‘renewable and conservation expanses’. This made startup expenses fully deductible in the year incurred and was also now eligible to be carried forward or to be renounced to shareholders through a flow-‐through share agreement (Energy and Mines Minister conference, 2013, p.7) Economic Funding is the biggest hurdle in starting a new renewable energy project. Large capital is required to start a project. A powerhouse takes several years to start operation. Therefore, most of the projects are carried out by the government-‐funded agencies on contract basis. Additionally, the maintenance of these projects is quit high. However, the established industry has seen a regular improvement in revenue after recession and according to IBISworld analysis it seems to be improving in the following year (Yang, D, 2014). Figure 5.
Revenue 35000 30000 25000 20000 15000 10000 5000 0
Created by Kunal Deep. Source Yang, D, 2014
Revenue
Canada is 13th costliest country in residential electricity prices and commercial electricity prices (Canadian electricity Association, 2013, p. 56-‐57). But the electricity rates are reduced or have varied slightly over the past decade.
Social
Renewable power is a growing industry. The demand of electricity has increased rapidly in past twenty years and this is expected to rise further in the coming years (Figure 6-‐1). Figure 6-‐1.
2010-‐11 X-‐axis -‐ Domestic Demand of renewable power ($m)
2011-‐12 2012-‐13 2013-‐14 2014-‐15 2015-‐16 2016-‐17 2017-‐18 2018-‐19 0
5000
10000
15000
20000
25000
30000
Created by Kunal Deep based on data from Yang, D, 2014
A more futuristic look into the demand of the capacity given in the figure 6-‐2 also shows a the demand has been rising from past 20 years and will continue to rise for the next 20 years. Figure 6-‐2
Electricity needs (Gw per year) 250000 200000 150000 Electricity needs (Gw per year)
100000 50000 0 20 years ago
Today
Created by Kunal Deep. Source (Yang, D., 2014)
20 years ahead
The industry has seen a constant development over the past decade (excluding recession days). It provides a large part of Canada’s employment. The wages have increased slowly but surely (Yang, D, 2014).
Technological The renewable power industry has a high potential for technological developments. Canada’s installed capacity and solar PV output are expected to increase capacity in coming years (Appendix 2). Additionally, the new technological developments in the wave, tidal and geo-‐thermal energy sectors are going to contribute in the power requirement of the nation. Grid length has steadily increased in Canada (Canadian electricity Association, 2013, p. 29) and, investment in transmission lines and distribution line has also increases in past decade (Canadian electricity Association, 2013, p. 30)
Legal Renewable power sector is highly regulated industry, due to its close connections with the natural resources. The government keeps a close eye on its installations and operations via various policies and laws. Appendix 1 maps the acts that influence different stages of a project. Every regional government has their own regulations according to the environmental conditions and available resources.
Environmental
With the increase green house problem renewable source of energy are considered safe and environment friendly. Green house problem is explained with definition in Appendix 4. They cause less or no pollutions. Hydro is the major power source in Canada. But the contribution of solar PV, wind and tidal wave are also growing rapidly. Appendix 3 explains the growth trend of these alternatives of Hydro. Environmental risks These projects are free from any green house gas, but these projects are not completely environmental friendly. Hydro involves the blockage of the natural flow of the river. It causes serious impact on the ecology of the river. It impacts fishery. The drainage capability of the river is reduced. The mercury level in the body of local residents rises or the whole community has to be displaced from the nearby region (Berkes, F.1988). Downward passage facilities for seaward migration do not exist at most hydroelectric dam (Zhong, Y. & Power, G., 1994).
With expansion of every year the industry has a good future but due to its close proximity to the nature the industry is highly regulated by the provincial governments. There is no denial that there are environmental risks in rolling out the projects in this industry but calculated steps from the firms and close watch from the government has insured its success. The following subsection forms the foundation for the internal analysis. Based on the external analysis the companies have been chosen to plot in depth view about this industry.
Companies of interest The Hydro companies are huge and supply 61 percent of the power requirement. (Yang, D., 2014). They are the biggest players in this industry. Therefore, this analysis focuses on two biggest Hydro producers of Canada: Hydro Quebec and BC Hydro. BC Hydro, operational in the west coast, powers most of the homes of British Columbia. The other is Hydro Quebec, operational in the east coast, is the biggest supplier of electricity in Canada. Apart from domestic supply, they also export power.
BC Hydro BC Hydro is the biggest supplier of electricity in British Columbia. This company is fully owned by the government of British Columbia. It directly reports to the BC government through Ministry of energy, mines and natural gas. The government’s expectation is explained through legislation, policy and instruction. BC Hydro serves around 95% of the population. Out this 90% are household connections and rest are commercial and industrial. BC Hydro serves the people of British Columbia with 31 hydroelectric facilities, 300 substations and 76000 kms transmission lines (BC Hydro annual reports, 2013. p4) with a vision of “Powering B.C. with clean, reliable electricity for generations.
Hydro Quebec Hydro-‐Quebec is the biggest generator of electricity in Canada. It contributes around 27% of total renewable electricity production in Canada (Yang, D, 2014). This is the Crown Corporation of Government of Quebec. Hydro Quebec has a legacy of hydro services. Its oldest facility dates back to 20th century. Currently, it is the biggest supplier of electricity in Canada. Its 99.0% of the electricity comes from hydro, biomass and wind. Most of the biomass and wind energy facilities are outsourced (Yang, D, 2014).
SunEdison SunEdison is a leading solar PV power company in Canada. With a global foothold in solar energy and long standing presence helps its customer to consume solar power directly at home. This company provides solar PVs directly to the end user for electricity. The company also develops, operates and monitors hundreds of power plants across the world including Canada. BC Hydro and Hydro Quebec, in absence of competitors, are lone market players and their performance can be measured on the basis of their own set goals. In this analysis we will evaluate their performance on the basis of the goals set and company objectives. The third company, SunEdison, qualifies as the renewable power company and this is the only similarity with the former two. In all other aspects SunEdison is completely different. A solar power company with a global foothold and private investors, makes the company operation entirely different and so the analysis.
Industry Report Part 2: INTERNAL Analysis
Company analysis Hydro is one of the major contributors to the power market in Canada. There are many province owned corporations in Canada primarily owned by the provincial governments. Hydro Quebec is the largest power producer in Canada and the largest hydroelectric producer in the world Langford, Martha Whitney; Debresson, Chris, 1992). Therefore, the operations of this company will be crucial to look into when we are talking about the ‘Renewable Power Industry in Canada’. BC Hydro is another company, which is called the crown company of the province of British Columbia. It delivers around 95% of the total requirement of the electricity in the province (BC Hydro, 2014. BC Hydro annual report). SunEdison is the third company, which this report will cover. The analysis of this company will impart an angle different from the Hydropower and governmental operation. The previous two companies are the provincial crowns, supported by the governments of the respective province. But this company is a private initiative with a global presence. Although its footprint is tiny compared to the previous two companies, the company is successful in creating a customer base in the Ontario province. Its end customer solution to the power requirement is completely different from the previous two.
BC Hydro BC Hydro is the crown corporation of the government of British Columbia. This company has added a lot of value in terms of revenue and service to the province. Therefore, in a process of looking into the renewable power sector in Canada it is very crucial to measure the performance in and contribution to the renewable power industry.
Vision Mission and Objectives BC Hydro is a regulated provincial crown corporation reporting to the minister of energy and mines. It serves 95% of the population of British Columbia and is the third largest power producer of Canada (Dyble, J., Milburn, P. & Wenezenki, C., 2011 . p 9). “For generations” -‐ this short two word punch line of the company sends out a strong message of long term vision. The company in its official reports encapsulates its mission as ‘Powering BC with clean energy, reliable electricity for generations.’ (BC Hydro Service plan 2013/14-‐2015/16, 2013. p 5)
Safety
Accountability
Service
Integrity
Teamwork
*Source: BC Hydro Service plan 2013/14-‐2015/16, 2013
Service with Accountability It also works towards smooth relationships with its suppliers, consumers and communities they serve. Being a billion dollar Hydro Electric producer it also takes the responsibility to serve its customers with no adverse effect on the environment. Fostering a development with conservation and efficiency is the heart of company’s objectives. The company is committed to serve the residents of British Columbia with competitive rates. By a careful balancing of investment in electricity system and efficiently utilizing technology the company has been successful in keeping the power rate competitive. Safety with Integrity The company is committed to provide sustainable electricity to the people of British Columbia in the long run. Company sends out a clear message on its objectives. BC Hydro has a mission to operate thru integrated planning, technology and safely operating, maintaining and advancing its systems. In order to attract new business in the province of British Columbia, BC hydro understands that it has to be energy ready for the future demands of business, industry and people of the province. In order to set its objectives, BC hydro follows the Clean Energy Act (Appendix 7), which targets to achieve 93% of clean energy (BC Hydro Service plan 2014-‐ 15/2016-‐17, 2014).
Teamwork The BC hydro manages to achieve its target by purchasing power from independent producers and advancing in the technology of the clean energy capacity sources. The company targets to beat the Towers global Utilities index (GUI) score target of 79, which it has been doing in past couple of years. BC hydro’s revenue return to the government was $1083 million in fiscal year 2013. The company projects that this figure will be $1265 million in the period 2015-‐17 (BC Hydro Service plan 2014-‐ 15/2016-‐17, 2014). As per the government projections from 2018 onwards the income of BC Hydro will be driven by inflation (Appendix 5).
Key performance indicators and Strategic approach of BC hydro
Safety of the dams: BC hydro gives maximum stress to maintain the safety standards in its work place because a catastrophic event will not only harm the company services but it can shut down other industries of the province as well. The company claims to have strong safety program and risk assessment process, which is consistent with international best practices. Potential risks are identified by extensive studies and the risks are prioritized through BC Hydro capital plan. The efforts listed in the table below reflect the implementation of the sincerity BC Hydro claims to have regarding safety. Sites Nature of Action (year) Amount spent (USD) Eisle Dam Safety Upgrade (2004) 19 million Coquitlam Dam Rebulding (2008) 65 million Strathcona Dam Anchoring the intake 20million towers (2009-‐10) Across the province Spillway Gates (2005-‐ 400 million ongoing) John Hart Generating Upgrade project 1 billion Station *Source: British Hydro Media Center, 2014
As a standard for BC Hydro real time monitoring of its dams, weekly site inspections, inspection of every dam by device safety engineer twice a year and an independent inspection from a safety consulting engineer every 5-‐10 years. A joint review panel set up to inspect the ‘Site C Clean Energy Project’ (Appendix 6) declared that BC Hydro is an experienced dam owner with excellent record of dam safety. It finds that there has been not catastrophic dam failure in British Columbia (Joint review panel, 2014. p 253). Care for Customer: In the power sector, not only production but also distribution and services matter. BC Hydro’s performance can be measured on three parameters. Customer Satisfaction index (CSAT index), billing accuracy and first call resolution. On the CSAT index (Appendix 8) BC Hydro maintains minimum of 85 and targets to be there in the future. The customer satisfaction index varies widely over the factor about ‘how much their grievances are herd’. The BC hydro experienced a downward
push in CSAT index in the start of the year 2013. But with the enhancement of the online tools normal seasonal call volumes were well addressed later. At the end of the year, the company was able to maintain a CSAT of 86 (BC Hydro, 2013. p29) Company also adds the technological advancements to the distribution system for a better service to the customers. The installation of the Smart Meters (Appendix 9) in the households and small business was the first step towards the installation of smart grids (LaRoy, S., Luan, W. & Sharp, D., 2013. p 1). These smart meters provides system wide measurement and visibility. The customers can check their consumption on hour-‐to-‐hour basis almost in real time (Bartel, M., 2013). There were complaints of billing accuracy (Moneo, S., 2012) and exposure to harmful wireless radiation of smart meters (Reynolds, C., 2012), but these claims had never been sufficiently substantiated. Also, the company has clarified appropriately against such concerns. (Appendix 10) 120 100 80 Target 2013 (%)
60
Actual 2013 (%) 40
Actual 2014 (%)
20 0 CSAT Index
Billing accuracy
First call resolution
Source: (BC Hydro, 2013. p22. British hydro annual report 2013 ) and (BC Hydro, 2013. p22. British hydro annual report 2014, p14) The glowing bar in the figure tells that the company missed its target of 1st call
resolution (percentage of call that are resolved with the first contact with the call center agent) in 2013. But the blue colored bar has again achieved the target height in 2014 (BC Hydro 2013 annual report, 2013. p22) (British hydro 2014 annual report, 2014, p14) Demand side management and emission control: The power companies working in such a close proximity of nature also carry responsibility to ensure minimal impact on it. Company runs many power smart programs, conservation rate structures and efficiency regulations and conservation culture. In 2014, BC Hydro was involved in Fish and Wildlife compensation program (FWCP), which included a new riparian forest in two locations. The management system of BC Hydro is ISO recognized since 1988 (British hydro 2014 annual report, 2014, p27). In terms of demand side management (DSM) strategy the BC Hydro is counted as one of the best in North America.
BC Hydro continues to meet the 93% of clean energy criteria under Clean Energy Act. Although, BC Hydro missed its own target for 2014 about DSM and GHG emissions (figure #2) but still the company is doing well with other jurisdictions in North America. (British hydro 2014 annual report, 2014, p27) Figure 2 GHG Emissions (kilotonned CO2e)
DSM (Gwh/yr) 5200 5100 5000
Target 2014
4900 4800
Actual 2014
4700 4600
735 730 725 720 715 710 705 700
Target Actual 2014 2014 Source: British hydro 2014 annual report, 2014
Target 2014 Actual 2014 Target Actual 2014 2014
With the enactment of federal PCB regulations in 2008 (Appendix 11) the company has taken major steps to remove the transformer, which do not meet the standards. In 2014, according to a sampling survey 20% of the transformer and reactor bushing have a total PCB concentration greater then 50ppm. BC Hydro has targeted to remove all such installations by 2025. (Mike, L., Olan, D., Raina, P., & Middleton, B., 2014. P 16) The company advertises to buy less what it sells. It claims that the conservation and energy awareness plans has helped lite 44,000 more homes without creating a new dam. In spite of rising power demands due to developments in the province the company has targeted to reduce the power usage by 66% by 2020 ( BC Hydro, 25 years of power smart: DSM and role of conservation) BC Hydro has also maintained a Fish stranding database management tool (FSDMT). This tool maintains the information of incubation timing to estimate the amount of habitat dewatered and the dewatered channels. This information is kept current to facilitate the effective communication of fish stranding impacts. (BC Hydro, 2013. Duncan Dam Project Water Use Plan)Financials (All figures from BC Hydro annual report: 2014 and 2012)
Cost of energy: The domestic cost has been rising since 2011. But the total has been fluctuating in the period of 2011-‐2014 because of the trade cost of the energy. 2014 2013 2012 2011 Domestic 1252 1123 1100 1049 Energy cost Trade energy 894 683 776 366 cost Total energy 2146 1806 1876 1415 cost
Revenue: The revenue growth is positive. The domestic revenue has been rising since 2011, but the trade revenue has registered a decline in the period of 2012-‐13. But the strong domestic demand has kept the revenue growth positive. 2014 2013 2012 2011 Domestic 4319 4038 3709 3438 revenue Trade 1073 860 975 578 Revenue Total 5392 4898 4684 4016 Consolidated statement of operations 2014 2013 2012 2011 Revenue 5392 4898 4684 4016 Expenses 4389 4843 3581 3427 Net Income 509 549 447 549 Total capital 2036 1929 1917 1519 expenditures
Summary BC Hydro, the provincial crown company of British Columbia, has been serving the people of the province for generations. The strategy of long-‐term goals has made its establishments sustainable and reliable. The company has launched many new technology equipment in their production and distribution of power. Energy efficiency of the company is one of its core values. The company gives a lots of offers and incentives to the power users which follow the power efficiency guidelines. The company is has been expanding its market in other renewable power sources like wind and solar PV. The company ahs been doing quit well financially in the last few years but has missed some of its targets in past years. Still this company is performing above standards in the segment of industry.
Hydro Québec’ Objectives
Energy efficiency Electricity is a valuable resource. The company puts effort to conserve the energy and put the produced power in valuable use. The energy efficiency is at the heart of the company objectives. The company continues to install new technology devices to upgrade the system to be more efficient. The company’s goal is to implement lasting behavioral changes that can lead to a long-term energy saving system. The company is also involved into encourage and educate its customers to save energy and install energy efficient electric installations. Renewable energy Energy from a renewable resource is an essential component for development. Hydro Québec’ in 2013-‐14 generates 99% of its electricity from renewable power source. The major part of the company operations are involved in the hydro projects but it also promotes the wind and solar power production.
Energy Efriciency
Renewable energy
Technology Innovation
3-‐Objectives
Technological Innovation The rapid change in technology ensures the company to work more efficiently. The company is moving towards power smart-‐grids. This will save the power, reduce operating cost and offer new services. This will also enhance the efficiency of the management distribution system.
Vision and Mission Hydro Québec’ is a hydropower company involved in production, sales and distribution of the power. As of 2013 report, the company generated 99% of the power from hydro. The sole owner of the stakes of the company is Government of Québec’. Apart from Hydro, it also supports wind and solar technology but their contribution in company operation is far less as compared to hydro (Hydro Québec’, 2014, Annual report Hydro Québec’ 2013. p 2).
Long term operatibility
Innovation
Value creation
Commitment to Customer
Efriciency
Long-‐term operability: The Company has adapted a work planning mechanism to the diverse hydropower mechanism, which includes both the river run and the dams into consideration. A regular evaluation of the work is carried out in order to ensure the smooth production and distribution of the power. In 2013, the company has invested about $416 million in generating station refurbishment and refitting (Hydro Québec’, 2014. Annual report Hydro Québec’ 2013). The company uses unmanned robots to inspect virtually inaccessible power lines. This avoids in risking a technician’s life and also ensures the effective maintenance of the production and distribution (TheStar.com, 2014) Value creation from Québec’ power: The installed capacity of 35.9 GW in its 62 stations has created a high value in terms of money, job and reputation for the population of Québec’. The company has been successful to fulfill the power requirements of the people of Québec’. In addition to that the company has a big power export market. The careful planning and sound operation has brought the high export revenue to the company. The result from the continuing operation totaled $2,938 m in 2013. It is a increase of $202 m increase over the past year. The figure below shows the revenue trend from export (Hydro Québec’, 2014. Annual report Hydro Québec’ 2013). Also because of its continuous success every year, the company has a history of paying high dividends. Result from continuing operation ($M) 3000 2800 2600 2400 2200
Source: Annual report Hydro Québec’ 2013
Dividend paid ($M) 2500 2000 1500 1000 500 0
This company has generated a high value from all its operations. Except construction, all the other operations have added into the revenue in of the company domestically and overseas. The construction is has only been done in its home province. The developers bid extensively in any contract opened by the company. The company has attracted a 7GW of bids in 459MW request. Not only hydro but also wind energy is under the contract. It has opened a bid to create 100 MW of wind energy by 2016. The rest of the power will be operating in the later year (Bailey, D., 2014) 12000 10000 8000 Revenue ($M) 6000 Result from continuing operation ($M)
4000 2000 0 Generation Transmission Distribution Construction Annual report Hydro Québec’ 2013
Maximum efficiency and savings: The Company generates more then 99% of its electricity from water (Hydro quebec, 2014, www.hydroquebec.com) The Company heavily invests in the research and innovation of the efforts. The company with its research institute Institut de recherché d’Hydro-‐Québec (IREQ) as a part of the 24 projects in 2013 has invested 19 million in technical and expertise-‐related mandates amounted to $19 million Hydro Québec’, 2014. Annual report Hydro Québec’ 2013. p 14). For encouraging the users to save electricity the company launches several awareness campaign. In 2014, the company has announced Efficient Home Program to encourage single family to encourage them installing efficient products. The program includes the promotional incentives of up to $5,000 for the construction of model homes (News wire general article, 2014). Commitment to customers: The Company has established customer’s service centers and toll free numbers in case of any trouble to the customers. The company has an up to date power outages information in its website to keep the customer informed. The company uses a map, which describes the exact location of the power outages on the other hand region by region it updates the number of customers facing
power related issue or are without power. As of the moment this report is created there were 562 customers reported interruptions out of 4,175,811 i.e. 0.01% of the total customers. (Hydro Québec’, 2014. Service Interruptions based on regions). The advance metering system is another effort for a better customer service from the company. The advance metering system was introduced towards the evolution of the customer services. The company has announced the installations all the AMS will be installed for every customer by 2017 (n.d, 2012). The sincerity of its delivery of the products and services has always given it uplift in terms of Customer satisfaction index. The index for Hydro Québec’ was 7.39 in 2009 and in 2013 it has reached to 7.48 on the scale of 10. Technological innovation (production and distribution) – The advance metering system has been one of the biggest steps from the company towards technological changes. This enables are person to not the reading almost in real time. The satisfaction of the installation has been reported to be 8.7 out of 10 Hydro Québec’, 2014. Annual report Hydro Québec’ 2013. p 25). This is the step towards installation of Smart power grid. The North American power grid is a very complex system with the export of the power the distribution channel of the company expands across the border. The company has made their power line ready for any possible natural calamity. The company has recalibrated the trip levels across the grid this gives minimizes the chance of damage in case of solar storm. The company has created a an alert system to measure the disturbances in the grid during the magnetic storm. The company also funds a huge amount of funds for the innovation in collaboration with several Canadian and American institutes. In 2013 it has invested 11,061.1 million dollars in the research projects across the North American universities. (Hydro Québec’, 2014. Innovation and partenership)
Financials and performance of Hydro Québec’ Noticeable points from the graphs -‐ As per the company trend the percentage of dividend paid has always been around 30%, but since the revenue went down in the year 2012, the actual amount of the dividend paid was less. Dividend paid ($M)
Revenue ($M) 13000 12800 12600 12400 12200 12000 11800 11600
2500 2000 1500 Revenue ($M)
1000 500 0 2009 2010 2011 2012 2013
-‐ The installed capacity registered a hike after the inauguration of the Eastmain-‐1-‐A powerhouse in June 28th, 2012. It can generate 2.3 TWh of energy per year, the annual consumption equivalent of over 135,000 homes. Total Installed Capacity (MW)
Result from continuing operation ($M) 3000
37500 37000 36500 36000 35500 35000
Total Installed Capacity (MW)
2800 2600 2400 2200 2009 2010 2011 2012 2013
-‐ The total customer subscription and total assets have raised the bar every financial year.
Source: Annual report Hydro Québec’ 2013
2013
Total Assets ($M) 2012
Total customers (x10,000)
74000 72000 70000 68000 66000 64000 62000
2011
420 415 410 405 400 395 390
Total Assets ($M)
2010
Total customers
Summary The company is a giant player in the power sector. It has made a big impact in the lives of people of the Québec’ province. The financial strength of the company has grown constantly in the past few years. The technological advancements brought in by the company has revolutionized the way power sector has been working in the past. The safety measure taken by the company has made it a safer place for its employees. Similarly the revolution in the metering system has brought in change in the style of power distribution. The industrial growth and the over dependency on hydro are few challenges the company has. But the recent introduction of investment in the wind sector shows that the company is well prepared for any future challenges.
SunEdison SunEdison is a solar energy service provider company. On May 30, 2013 the stockholders of the company approved the renaming of the MEMC Electronics Limited Inc. to SunEdison Inc. This company has a global presence; coupled with a long-‐standing presence in Canada. SunEdison sells the PV cells to the end users and also services regarding installation of solar PV cells. Especially, for the organizations in Ontario the company provides the opportunity to generate their revenue by leveraging their rooftop or the unused land by installing the solar PV systems. The customers can either purchase the their own PV system or lease their roof top or land with absolutely with no upfront capital. By the analysis it is observed that solar industry is quite different from the Hydro. The movement of suppliers, buyers and competition is very different. The solar installations can be a grid structures with a huge generation capacity to a small individual roof top installation. So it is important to look into this industry separately before we walk thru the objectives, performance, SWOT and values chain analysis of SunEdison.
Objectives SunEdison organizes its services to tap the best Sun has to offer. The company operates and develops more than hundreds of power plants across the world with 135.8 MW of photovoltaic capacity. Doing right for the environment Fossil fuels are burnt to provide energy. Along with this energy, it adds greenhouse gases to the environment as well. The company in this regard is working to replace the systems with more and more items to prevent the use of fossil fuels. The use of photo voltaic cells results in zero emissions. It has launched a Feed-‐In-‐Tariff program, which encourages the people of Ontario. Under this scheme the users will get a new revenue stream from the unused roof space. The solar PV system host will receive a lease check for the place allocated and the customer is not essentially bounded to use the electricity produced from their roof top providing more flexibility to the customers (SunEdision, 2014. Proof that doing right by the environment is also financially rewarding). Immediate benefit for the customer SunEdison provides customized solution for each of its customers. The company claims that they have got 44% of the returning customers (SunEdison, 2014. Government, utility and commercial solar customers realize financial returns while saving the planet). One of the major success to the company was when ‘The Staples Inc.’ totally bought the idea of roof top Solar installation and praised the SunEdison of this innovative idea. The system size installed for Staples Inc. was worth the capacity of 2.8 MW in 12 sites (SunEdison, 2014. Customer success stories: Staples Inc). In addition of being environment
friendly, the company also claims to reduce the per kWh cost for their company. Similarly, the Seagull lightening products has equipped its 500 kW of energy requirements over their rooftops using the Feed-‐In-‐Tarrif program of SunEdison. SWOT analysis SunEdison Strength The company has a huge domestic market. The North American consumers are buying into the idea of clean energies (figure 1). The solar panels are one of the best ways technology has given to replace the traditional power sources. The government of Ontario has taken many initiatives to promote the use of solar panels. The company has been able to establish the first fully operated utility scale solar PV Energy Park in Ontario with the help of Government of Ontario mid way between Ottawa and Toronto (SunEdison, 2014). First Light Ontario – Canada’s First fully active Solar PV Energy Park). The company has long-‐standing relationships with Kohl’s, Walmart, Whole foods and Staple’s. (Trabish, H. K., 2012). These companies provide their roof tops for solar panel installations. The company gets an advantage of image of being environmental friendly and socially responsible corporate. Weakness Unlike Hydro, the market in solar industry has been highly competitive. FirstSun, SunPower, NextEra Energy resources, OCI enterprises are some of its competitors (Trabish, H. K., 2012). The following figure gives an understanding of the US market players in solar power sector. High installation cost is also one of the factors which weakens the Solar energy market. The company has included are program Feed-‐In-‐Tarrif (SunEdision, 2014. Proof that doing right by the environment is also financially rewarding) programs in Ontario to come up with solution over high installation cost. But this plans has not been expanded thru ought its market length.
SWOT diagram Strength -‐Domestic market -‐Favourable govenrment policies -‐ Socialy reponsible corporate image
Threats
Weakness
-‐ Financial limitation -‐ Unexpected market road blocks -‐ Increasing labor cost.
-‐ Competitive market -‐High installation Costs -‐ Small business units
SWOT
Opportunity -‐ wide Range of products
-‐ Emerging markets -‐ Growing demand -‐ growth rates and proritability
Opportunities SunEdison is a leading semiconductor and solar technology company. Company is not only active in selling development manufacture and sale of wafers, but also designs, develops and constructs solar energy systems. Apart from a market in north America, the company is has its huge sales market in Europe and Asia as well. As the company has footprints around the globe (figure 1), it will not be difficult for the company to expand its market in accordance with the demand in the emerging markets. Sales 2013 ($m) 600 400 200 0
Figure1: source: SunEdison Annual report, 2013
Sales 2013 ($m)
Threats The company is suffering from a financial down turn. The company has observed a loss of net sales and gross profit in last couple of years (Table: Statements of operation data). We will see the detailed report in the financials of the company in the coming sections. The international oil prices are also a threat to the company. As the market prices of the oil go down, the power prices generated using these oils are also expected to go down. Thereby hitting the sales of the solar panels. Another is the labor cost, which again is well detailed in the financial section (Table: Other expenses) observes a continuous rise. This increases the cost of operation thereby hits the profitability of the company. Financials SunEdison While the sales increased from 2009 to 2011, the same saw a downslide in the year 2012 and 2013 (Table: Statements of operation data). The company reports a decline in Solar energy sales from 2011 onwards. According to the company, it suffers this decline due to decline in the solar wafer sales and the failure of the execution of the Suntech contract resolution in 2011 (SunEdison, 2014. SunEdison annual report 2013. p 21). Table: Statements of operation data (all figures in $m): 2013 2012 2011 2010 2009 Net Sales 2,008 2,530 2715 2239 1163 Gross 145 335 294 337 128 Profit Marketing 362 302 349 255 162 and Admin R&D 71.1 71.8 87.5 56 40.4 Operating (314) 57.2 1301 21 127 (loss) income
Graphical representation of key performance indicators: Net Sales ($m)
Gross Pro\it ($m)
3000
400
2500
300
2000 1500
Net Sales ($m)
1000
2009
2010
2011
2012
0
2013
500
*Source: SunEdison annual report 2013
200 100
Gross Prorit ($m)
0
Balance Sheet Data (All figures in $m): 2013 2012 Cash and 573 553 equivalents Total 6680 4745 Assets Debt, 2698 1606 financing, lease Source: SunEdison annual report 2013
2011 585
2010 707
2009 633
4882
4612
3566
1355
656
386
2012 139
2011 452
2010 352
2009 225
347
598
280
28
5600
6400
6500
5100
Table: Other expenses 2013 Capital 133 Expenditure Construction 465 of solar systems Employees 6300 Source: SunEdison annual report 2013
The gross margin (Table: Gross profit) has been declined in 2013 because of the negative impact of the fully developed solar system as well as 10.2 million of impairment of the intangible assets and 18.5 million of cost or market charges. In the same year, a few contracts like came in, which helped to revive some of the loss of the sales (SunEdison, 2014. SunEdison annual report 2013)
Cost of goods Sold ($m) Gross Profit ($m) Gross Margin
2013 1862
2012 2194
2011 2420
145
336
295
7.2%
13.3%
10.9%
Table: Gross Profit
Gross Pro\it ($m) 400
Gross margin (%) 15
300
10
200
Gross Prorit ($m)
100 0
Gross margin (%)
5 0
2011 2012 2013 Source: SunEdison annual report 2013
2011 2012 2013
But in the year 2014, the company has perfomed well. The stocks have seen upward movements in NASDAQ. After the investment of Atali capitals in June 2012 the stocks has seen 10 fold gain. The stocks of the company that went plunging around $1 during mid-‐2012, is now trading around $21 in December, 2014 (Gara, A., 2014) Stock trends (May 2012 to Dec 2014)
SunEdison, Inc. (SUNE) -‐ NYSE
*Source: www.finance.yahoo.com
The reasons for this upward surge may be push by a couple of factors. The huge potential demand from China is one the reasons why these solar stocks are trading high. The emerging markets have remained the demand drivers. This projection had been in suspicion due to the fear of plunging oil prices. But there is seen no near term impact in demand of the solar panels (n.d., 2014). Therefore, the stock prices have grown many folds in the last couple of years.
Conclusion Hydro is the major source of power in Canada. Provincial governments own most of the facilities and have negligible competition in the market. But these companies are committed to serve the people of the province and to meet their growing energy demand. Even in the absence of any competition the provincial crowns push to improve production and service. New production projects and smart grids installation has played crucial role in Canadian power sector. Also, alternative renewable power sectors like wind, solar and tidal energy is developing rapidly. These power producers are small in comparison to Hydropower producers. Solar is the next bigger sector in Canadian renewable power market. But most of production units are privately owned. Thus the company operations and structures are very different from the government owned power producers. SunEdison has introduced various schemes to encourage the usage of solar PV supported by governmental policies. These efforts are drawing some upward growth trajectory in Canadian power market. Canada is, clearly, ahead in the path of being a country with clean power. Government regulations and people’s awareness towards nature has ensured a balance between requirements and environmental safety. The future of the power sector is tilted towards renewable power generation. The transformation is seen not only technically but also financially and institutionally. Beyond transformations in production the renewable power companies own a huge distribution channel. It indicates that in future their march towards complete dominance is quit possible.
References Bailey, D., 2014. Hydro-‐Quebec attracts nearly 7GW of bids in 450MW request. Wind Power monthly. Retrieved on 9th Dec 2014 from: http://www.windpowermonthly.com/article/1320955/hydro-‐quebec-‐attracts-‐ nearly-‐7gw-‐bids-‐450mw-‐request BC Hydro, 2013. BC Hydro annual reports. Berkis, F., 1981. “Some environmental and social impacts of the James Bay hydroelectric project, Canada.” Journal of Environmental Management 12: 157-‐172 Bartel, M., 2013. Smart meter shocks new business. Burnaby newsleader. Retrieved on 6th Dec 2014 from : http://www.burnabynewsleader.com/news/218759741.html BC Hydro, 2013. British hydro annual report 2013. BC Hydro, 2013. BC Hydro Service plan 2013/14-‐2015/16, 2013 BC Hydro, 2013. Duncan Dam Project Water Use Plan. BC Hydro, 2014. BC Hydro Service plan 2014/15-‐2016/17, 2014 BC Hydro, 2014. 25 years of power smart: DSM and role of conservation. Retrieved on 7th Dec 2014 from: https://www.bchydro.com/news/conservation/2014/demand-‐side-‐ management.html Hydro Québec’, 2014. Innovation and partenership. Retrieved on 7th Dec 2014 from: http://www.hydroquebec.com/sustainable-‐development/technological-‐ innovation/innovation-‐partnership.html British Hydro Media Center, 2014. Facts about dam safety at BC Hydro. Retrieved on 6th Dec 2014 from : https://www.bchydro.com/news/press_centre/news_releases/2014/dam-‐safety-‐ facts.html Canadian electricity Association, 2013. Canada’s electricity industry report. Chung, E., 2011. The power grid is getting smarter, but is it tougher?. CBC News Canada. Retrieved on 9th Dec 2014 from:http://www.cbc.ca/news/canada/the-‐ power-‐grid-‐is-‐getting-‐smarter-‐but-‐is-‐it-‐tougher-‐1.1053093
Dyble, J., Milburn, P. & Wenezenki, C. 2011. Review of BC Hydro. Retrieved on 6th December, 2014 from: http://www.newsroom.gov.bc.ca/downloads/bchydroreview.pdf Energy and mines ministry conference, 2013. Canada: global leader in renewable energy: enhancing collaboration on renewable energy technology. Energy and mines ministry conference. Gara, A., 2014. SunEdison turnaround a big score for small activist hedge fund. Forbes. Retrieved on 7th Dec 2014 from: http://www.forbes.com/sites/antoinegara/2014/11/18/sunedison-‐turnaround-‐ proves-‐first-‐try-‐hit-‐for-‐activist-‐hedge-‐fund-‐altai-‐capital-‐management/ Hydro quebec, 2014. Information retrieved on 9th December 2012 from: www.hydroquebec.com Hydro Québec’, 2014. Annual report Hydro Québec’ 2013 Hydro Québec’, 2014. Service Interruptions. Retrieved on 9th Dec 2014 from : http://poweroutages.hydroquebec.com/poweroutages/service-‐interruption-‐ report/#bis Joint review panel, 2014. Report of the joint review panel site C clean energy project BC Hydro. Retrieved on 6th December, 2014 from: http://www.ceaa-‐ acee.gc.ca/050/documents/p63919/99173E.pdf LaRoy, S., Luan, W., & Sharp, D., 2013. Data traffic analysis of smart metering network. IEEE. Langford, Martha Whitney; Debresson, Chris (1992). "The Role of Hydro Quebec in the Rise of Consulting Engineering in Montreal 1944-‐1992: An essay in oral history and company genealogy. Scientia Canadensis: Canadian Journal of the History of Science, Technology and Medicine. Retrieved 2010-‐01-‐04. Moneo, S., 2012. BC Hydro pulls smart meters for testing. The Global Mail. Retrieved on 6th December, 2014 from: http://www.theglobeandmail.com/news/british-columbia/bchydro-pulls-smart-meters-for-testing/article534384/ Mike, L., Olan, D., Raina, P., & Middleton, B., 2014. Assessing the risk of high hydrogen gas content bushing. International Dobel Client Conference. NewsWire general article, 2014. New Hydro-‐Québec Energy Efficiency Program -‐ Residential construction: make way for efficient homes. Retrieved on 9th Dec 2014 from: http://www.newswire.ca/en/story/1452533/new-‐hydro-‐quebec-‐energy-‐ efficiency-‐program-‐residential-‐construction-‐make-‐way-‐for-‐efficient-‐homes
Reynolds, C., 2012. Group's bid to stop BC Hydro's smart meters rejected. The Global Mail. Retrieved on 6th December, 2014 from: http://www.theglobeandmail.com/news/british-‐columbia/groups-‐bid-‐to-‐stop-‐bc-‐ hydros-‐smart-‐meters-‐rejected/article552300/ Statistics Canada 2013. Installed generating capacity by class of electricity producer, annual: Ottawa. Energy Division, government of Manitoba, 2014. Weblink: http://www.gov.mb.ca/ia/energy/wind/ SunEdison, 2014. About SunEdison: Solar energy company to Ontario Canada and the world. Retrieved on 7th Dec 2014 from : http://www.sunedison.ca/aboutus-‐-‐ solar-‐energy-‐company-‐canada.php SunEdison, 2014. Government, utility and commercial solar customers realize financial returns while saving the planet. Retrieved on 7th Dec 2014 from: http://www.sunedison.ca/customer-‐profiles-‐-‐commercial-‐solar-‐canada.php SunEdison, 2014. Customer success stories: Staples Inc. Retrieved on 7th Dec 2014 from : http://www.sunedison.ca/uploads/pr/11/profile_staples.pdf SunEdison, 2014. Customer success stories: Seagull lightening products. Retrieved on 7th Dec 2014 from: http://www.sunedison.ca/uploads/pr/10/profile_seagull.pdf Trabish, H. K., 2012. Emerging solar strategies, Part 4: SunEdison and next big thing. Retrieved December 7, 2014, from: http://www.greentechmedia.com/articles/read/Emerging-‐Solar-‐Strategies-‐Part-‐4-‐ SunEdison-‐and-‐The-‐Next-‐Big-‐Thing TheStar.com, 2014. Unmanned devices changing everything from war to agriculture. Retrieved on 9th Dec 2014 from: http://www.thestar.com/news/insight/2014/12/07/unmanned_devices_changing_ everything_from_war_to_agriculture.html Yang, D, 2014. Renewable power in Canada. IBISWorld industry report. (n.d., 2014). Deutsche bank sees robust near term demand. Street Insider. Retrieved December 7, 2014, from http://www.streetinsider.com/Analyst+Comments/Solar+Sell-‐
Off+Overdone,+Deutsche+Bank+Sees+Robust+Near+Term+Demand+%28TSL%29+ %28SCTY%29+%28SPWR%29+%28VSLR%29+%28SUNE%29/10061138.html .n.d, 2012. Hydro-‐Québec announces rollout of advanced metering infrastructure. P R NewsWire. Retrieved on 9th Dec 2014 from: http://www.prnewswire.com/news-‐ releases/hydro-‐quebec-‐announces-‐rollout-‐of-‐advanced-‐metering-‐infrastructure-‐ 122586423.html
Appendices
1. Government rules and their effects on different stages of the project Stages ! Planning Environmental Permitting Follow-‐up Assessment Regulations Process Canadian Environmental Assessment X X X Act – CEA agency* National Energy Board X X X X Act – NEB* Land Use plans. Impact reviews. Innuvialiut X X X Final Agreement – INAC* Species at risk Act – EC/DFO X X Management Boards for Territorial X Lands / Water Act Metal Mining Effluent Regulations – X X X EC/DFO Explosives Act – NRCan X X NWPA-‐TC** X X *Permits required under other acts too. **Navigable water protection act Created by Kunal deep. Source: Canadian Electricity Association, 2013, p. 54
2. Expected developments in various sectors of renewable power industry Renewable Power Future Estimate (for Canada) Wind Power 12k MW by 2015 (approx.. 8% of Canada’s installed capacity Solar PV 3k MW by 2016 (approx. 2% of Canada’s installed capacity Hydro 5k MW additional capacity by 2020 Ocean Energy 60MW by 2016 * Table created by Kunal Deep. Info source: Energy and Mines Minister’s conference, 2013.
3. Wind power in Canada. Source: Energy and mines ministry conference, 2013
4. Green house problem: The rising overall temperature of atmosphere due to the emissions of green house gases like CO2, SOx, NOx 5. Net income is determined by the following relation (till 2017): Net income = (Deemed Equity of British hydro, i.e. 30% of company’s rate base) X (allowed rate of return) 6. Site C Clean Energy Project is the third hydroelectric facility to be built in the Peace River near Fort St. John.
7. ‘Clean energy act of British Columbia’ was passed in 2010 under bill 17 by the Government of British Columbia More info about this act can be found out at the website of the government of B.C. Following link is the direct link to the act in its original format: https://www.leg.bc.ca/39th2nd/1st_read/gov17-‐1.htm 8. CSAT index: It is calculated based on the percentage of customers (residential, small and medium-‐sized business and key accounts) based on the level of satisfaction of the customers in five areas, given equal weightage: Five providing reliable electricity, value for money, commitment to customer service, acting in the best interests of British Columbians, and efforts to communicate with customers and communities. 9. Smart metering system: How it works? “BC Hydro's smart metering system employs a 900MHZ unlicensed RF mesh solution for the metering NAN. Data from smart meters in each NAN are aggregated at the NAN collector and then backhauled to the data center via the WAN. Currently most of the meter collectors use commercial cellular mobile service for WAN backhaul. Beyond cellular coverage, the WAN can also be provided by community level Internet Service Providers (ISP) and, as a last resort, by satellite service to a pole-top mounted terminal. Use of WiMAX radio technology as a WAN edge network is also on the roadmap, and has been undergoing extensive trials. The head end ADCS polls meter data three times a day following a predefined schedule. From the ADCS, the data is published on the Enterprise Service Bus (ESB), which passes the data to the Meter Data Management System (MDMS) and other applications in the data center; eventually all data is stored in Data Repository (DR)”. Direct text from IEEE journal by Sharp, D., LaRoy, S. & Luan, W., 2013. 10. Letter of Bob grammer (Community retation manager, northern region, BC Hydro) regarding ‘Local communities concern over high power bills’: http://www.northernrockies.ca/assets/Home/Latest~News~Images/BC%20Hydro%2 0reply%20-‐%20NRRM%20high%20bill%20concerns%20March%202013.pdf 11. The new federal laws : According to the new federal laws regarding the PCB regulations, all the transformers bushings with PCB levels 50-‐500 ppm has to be removed.
Lihat lebih banyak...
Comentarios
