Case Study Renewable Energy Co.

Table of Contents Summary of the case study Issues presented in the case study Analysis of the case study Results Recommendations Reference List Appendix Summary of the case study The increase in dependency on fossil fuel and other non renewable energy sources is facing challenges because of environmental concerns and economic reasons. Fossil fuel releases green house gases and is prone to price fluctuations while hydroelectric power is dependent on environmental conditions.Advertising We will write a custom report sample on Case Study: Renewable Energy Co. specifically for you for only $16.05 $11/page Learn More Many countries are looking for alternative energy sources that are renewable cleaner and independent from price fluctuations. Solar energy, wind energy, tidal energy and geothermal energy are the main renewable sources of energy. This paper gives a summary of the renewable energy sources that two students contemplated and researched after fi nishing their graduate school. Issues presented in the case study The issues presented in this case were mainly concerned with the energy demands in Ontario. The need for the electricity supply mix to be replaced was the main issues that brought about the aspect of alternative energy sources. Large and Berkeley found out that renewable energy source was the way to go since other energy sources presented economic problems, environmental problems and scarcity. They did an analysis of the different renewable energy sources and discovered that they could only venture into the renewable energy source that used the technology which they were best suited to capitalize on. A renewable energy source such as geothermal is pretty cheap but requires a lot of capital in order to establish its economic viability. Solar photovoltaic energy also requires a relatively large amount of capital although the standard offer price is pretty cheaper than some of the other sources. Analysis of the case stud y Large and Berkeley provides several different analysis of their research. They tabulate their data to compare between all the renewable energy that they researched on. There is also an analysis of the different energy sources that supply energy in Ontario. In an analysis of 2005 energy sources, it is evident that nuclear energy was the dominant energy source followed by renewable and coal in that order. Conservation was the least energy source that came behind gas and cogen. Another analysis done for the future supply of energy in Ontario in the year 2025 indicates that renewables will take over from nuclear to become the dominant energy supplier. Nuclear takes the second position followed by gas and cogen, conservation and gasification in that order. The graph below shows the general trend of the energy sources from the year 2005 to the year 2025.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Lear n More Figure 1: graph of the trend of energy sources between the years 2005 and 2025. Reeds, A. (2010). Renewable Energy Co. Richard Ivy School of Business Foundation Series 1 represents the energy fractions in the year 2025 while series two shows the fractions in the year 2005. In addition, Ontario’s standard offer program payment schedule tabulated in the file shows that solar photovoltaic energy is valued at $0.11 per Kilowatt hour. This price is way above the other energy sources that are offered the same value of $ 0.11 per kilowatt hour. All the prices are at base price. The photovoltaic potential of Canadian cities is also compared to that of other cities. From the table, it can be deduced that Canadian cities have relatively high photovoltaic potential compared to many other world cities. The city of Regina is the sixth city with the most solar photovoltaic potential. It is followed by Calgary, Toronto, Vancouver, and St. John. Another comparison was done on some q uick facts for the renewable energies researched. The standard offer program price for solar voltaic energy potential is 42 cent per kW installed while that of other renewable energy sources like wind, hydropower and biogas is 11.08 cent per kW. While there is an inflation index of 20 percent of the price increases by the consumer price index for all other renewable sources, the solar photovoltaic energy project has no inflation index. When the capital cost of the renewable energy sources are compared, solar photovoltaic energy leads with an estimated capital cost of $10, 000 to $14, 000, per kW installed. The table below summarizes the above analysis.Advertising We will write a custom report sample on Case Study: Renewable Energy Co. specifically for you for only $16.05 $11/page Learn More Table 1: Table of comparison of all the renewables discussed Solar photovoltaic wind hydro biogas Standard offer time 42 cent/kWh 11.08 cent/kWh 11.08 cent/kWh 11.08 cent/kWh Inflation index None 20% of the contract price increases by the consumer price index 20% of the price increases by the Consumer Price Index 20% of the price increases by the Consumer Price Index On-peak rate Not legible Not eligible 3.52 cent/kWh (must be 80%) 3.52 cent/kWh (must be 80%) Capital cost (estimated) $10,000-$14,000 $2,000-$2,750 per kW installed $4,000 to $7,000 per kW installed $4,000 to $7,000 per kW installed Average lead time 1-6 months 3-4 years 4 to 7 years 2 years Environmental permits None None for 2MW Environmental screening for all projects 2 MW All projects require an environmental screening process None for 5 MW Environmental screening for 5 MW Other permits Building permit zoning Municipal permit Navigation Canada Transport Canada possible official plan and zoning amendments Possible bylaw changes Building permits Property tax reclassification Ministry of Natural Resources Water supply issues Zoning Building permits Municipal p ermits Official plans and zoning bylaws Connection Ontario energy board license Local distribution company connection agreement Electrical safety authority certification Ontario energy board license Local distribution company connection agreement Electrical safety authority certification Ontario Energy Board License Local Distribution Company Connection Agreement Electrical Safety Authority Certification Ontario Energy Board License Local Distribution Company Connection Agreement Electrical Safety Authority Certification Resource South-facing, inclining approximately 45 degrees Shores of the Great Lakes Areas with high elevations Exposure to prevailing wind directions Steep rivers, streams, creeks or springs Flowing year-round Hilly areas with high year-round rainfall Proximity to renewable biomass Industry association Canadian solar industry association Canadian Wind Energy Association (CanWEA) www.canwea.ca Ontario Sustainable Energy Association (OSEA) www.ontario-sea.org On tario Waterpower Association (OWA) www.owa.ca Ministry of Natural Resources www.mnr.gov.on.ca Canadian Bioenergy Association (CANBIO) www.canbio.ca Canadian Biogas Association www.biogas.ca Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) www.omafra.gov.on.ca Adapted from Reeds, A. (2010). Renewable Energy Co. Richard Ivy School of Business Foundation Results From the graph in figure 1, even though the energy output and usage increases, the general trend is that renewable energy is slowly but gradually taking over the energy scene. From the table above, it can be deduced that solar energy is the most expensive in terms of standard offer time. Solar photovoltaic energy also requires the most capital cost. It is also quite expensive in terms of average lead time. However, solar energy needs no environmental permit and has the least number of permits needed. Recommendations It is beyond doubt that renewable energy is the most appropriate alternative energy source tha t can be utilize for sustainable economic growth and environment management. Since fossil fuel prices are always fluctuating, they affect economies and thus contribute to inflation. Fossil fuels also contribute to greenhouse gases because they produce carbon dioxide and sulfur dioxide. Carbon dioxide depletes the ozone layer which is essential for blocking ultraviolet rays that may otherwise cause skin cancer. Sulfur dioxide is known to cause acid rain that corrodes man made structures. Renewable energy sources are clean, cheaper, and stable for economic development. In my own opinion, since wind, solar, hydroelectricity and biogas, all depend on environmental conditions, I would recommend geothermal energy to be sourced in tectonically active areas. This renewable energy source does not depend on climatic conditions. It is available throughout the years and the earth’s interior is not going to cool soon. Reference List Reeds, A. (2010). Renewable Energy Co. Richard Ivy Schoo l of Business Foundation.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Appendix Figure 1: graph of the trend of energy sources between the years 2005 and 2025. Figure 1: graph of the trend of energy sources between the years 2005 and 2025. Table 1: Table of comparison of all the renewables discussed. Table 1: Table of comparison of all the renewables discussed. Solar photovoltaic wind hydro biogas Standard offer time 42 cent/kWh 11.08 cent/kWh 11.08 cent/kWh 11.08 cent/kWh Inflation index None 20% of the contract price increases by the consumer price index 20% of the price increases by the Consumer Price Index 20% of the price increases by the Consumer Price Index On-peak rate Not legible Not eligible 3.52 cent/kWh (must be 80%) 3.52 cent/kWh (must be 80%) Capital cost (estimated) $10,000-$14,000 $2,000-$2,750 per kW installed $4,000 to $7,000 per kW installed $4,000 to $7,000 per kW installed Average lead time 1-6 months 3-4 years 4 to 7 years 2 years Environmental permits None None for 2MW Environmental screening for all projects 2 MW All projects require an environmental screening process None for 5 MW Environmental screening for 5 MW Other permits Building permit zoning Municipal permit Navigation Canada Transport Canada possible official plan and zoning amendments Possible bylaw changes Building permits Property tax reclassification Ministry of Natural Resources Water supply issues Zoning Building permits Municipal permits Official plans and zoning bylaws Connection Ontario energy board license Local distribution company connection agreement Electrical safety authority certification Ontario energy board license Local distribution company connection agreement Electrical safety authority certification Ontario Energy Board License Local Distribution Company Connection Agreement Electrical Safety Authority Certification Ontario Energy Board License Local Distribution Company Connection Agreement Electrical Safety Authority Certification Resource South-facing, inclining approximately 45 degrees Shores of t he Great Lakes Areas with high elevations Exposure to prevailing wind directions Steep rivers, streams, creeks or springs Flowing year-round Hilly areas with high year-round rainfall Proximity to renewable biomass Industry association Canadian solar industry association Canadian Wind Energy Association (CanWEA) www.canwea.ca Ontario Sustainable Energy Association (OSEA) www.ontario-sea.org Ontario Waterpower Association (OWA) www.owa.ca Ministry of Natural Resources www.mnr.gov.on.ca Canadian Bioenergy Association (CANBIO) www.canbio.ca Canadian Biogas Association www.biogas.ca Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) www.omafra.gov.on.ca Adapted from Reeds, A. (2010). Renewable Energy Co. Richard Ivy School of Business Foundation This report on Case Study: Renewable Energy Co. was written and submitted by user Taraji Michael to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.