Posted Wed, 05/12/2010 - 11:31 in Engineering

The real cost of renewable energy

A recently completed study by second year Dalhousie combined master of engineering and MBA student David Oliver, determined the actual cost of using renewable energy technologies to supply single homes and small communities in the Atlantic region.

Key Points:

Mr. Oliver looked at four technologies. Ground-source heat pumps (GSHPs ) and solar thermal panels for space heating and hot water and wind turbines and photovoltaic solar panels for electricity. He compared the annual costs of installing and financing these systems with the average annual cost for traditional non-renewable sources. The systems were then applied to single-detached homes and small communities to see if there were economies of scale.
The results revealed that a single home using a ground-source heat pump (GSHP) for space heat and hot water would save up to $1000-$1800 annually compared to conventional non-renewable sources. While wind turbines were not cost-competetive on a single-home scale, for a small community of 60 or more homes, there were significant economies of scale. One GSHP supplying a community was not found to provide savings because of the costs of connecting each home. Solar-thermal panels providing hot water were slightly more expensive, about a $245 annual increase, while photovolatic solar panels were not found to be cost competitive at all.
These systems would not fully remove a user from the energy grid as electricity is needed when the wind isn't blowing and for powering heat pump compressors, but the carbon footprint is reduced. Mr. Oliver determined that powering your home with wind electricity would be the carbon equivalent of removing just over two cars from the road. Another consideration from the study is taking into account provincial rebates and grants for installing these systems, which could be subtracted from the costs in his study. These were not factored into the study as they can change and would therefore, change the analysis.
To determine the cost and energy calculations for each system in the study, Mr. Oliver used information from organizations such as the International Energy Agency, the Canadian Wind Energy Association and Natural Resources Canada.

Pull Quotes:

“The study had two goals. First to determine the cost of renewable energy for homeowners and second to see if economies of scale kick in with larger renewable energy systems. For example, would you save money if you and your neighbours went in on a wind turbine together or if you each put one in your back yard?” - David Oliver, second year Dalhousie combined master of engineering and MBA student.
“For a single detached home the most economical delivery of renewable energy came from a ground-source heat pump with savings between $1000-$1800 per year depending on whether you currently use electricity or oil for heating.” - David Oliver, second year Dalhousie combined masters of engineering and MBA student.
“There are many compelling reasons to choose renewable systems, but if you're going to invest your money, you should invest in the most economically sensible system, the system which can capture renewable energy from your local environment at the lowest cost.” - David Oliver, second year Dalhousie combined master of engineering and MBA student.
“Public funding programs were omitted from this work, as they can change or end,” says Mr. Oliver. “This analysis examines whether renewable energy technologies can stand on their own two feet against current systems.” - David Oliver, second year Dalhousie combined master of engineering and MBA student.
“David's analysis can be used anywhere. The methodology is such that you can apply the figures from any region and get the accurate information for that climate. It paints a clear, unbiased picture of the costs of all energy sources.” - Prof. Dominic Groulx, assistant professor in the Department of Mechanical Engineering at Dalhousie and graduate supervisor to David Oliver.

Images:


David Oliver 1 David Oliver kneels in front of solar thermal panels on the roof of the Ecology Action Centre in Halifax Download Hi-Res	David Oliver 2 David Oliver kneels in front of solar thermal panels on the roof of the Ecology Action Centre in Halifax Download Hi-Res