3. Legal Issues Specific to Categories of Clean Energy Projects
We examine here, in brief, the various categories of clean energy project and particular legal considerations that might be applicable to them. Although particular legal issues have been identified for all categories, many of them are relevant to other technologies as well.
3.1 Renewable Energy Electricity Generation
3.1.1 Solar
Solar energy technologies that produce electricity fall into two categories: direct energy conversion (e.g., photovoltaic (PV)); and indirect energy conversion (e.g., solar central thermal or concentrated solar power (CSP)). Common applications of photovoltaic technology include on-grid systems, whether central-grid or isolated grid PV systems; off-grid systems whether stand-alone PV-battery systems, or hybrid systems which have a combination PV-battery-generator set; and PV water pumping systems. Typical utility-scale systems require large site areas due to relatively low conversion efficiencies.
Specific legal issues that may arise include:
3.1.1 Solar
Solar energy technologies that produce electricity fall into two categories: direct energy conversion (e.g., photovoltaic (PV)); and indirect energy conversion (e.g., solar central thermal or concentrated solar power (CSP)). Common applications of photovoltaic technology include on-grid systems, whether central-grid or isolated grid PV systems; off-grid systems whether stand-alone PV-battery systems, or hybrid systems which have a combination PV-battery-generator set; and PV water pumping systems. Typical utility-scale systems require large site areas due to relatively low conversion efficiencies.
Specific legal issues that may arise include:
- Obstruction of fuel source (sunlight)
- Intermittent nature of fuel source
- Choice of system (PV or CSP) and associated legal issues
- Land requirements and intensity of land use
- Obtaining and handling the cooling water required for thermodynamic power cycles
- Choice of distributed generation over the upgrade of constrained transmission and distribution systems
- Environmental hazards in CSP systems: materials used, risk of spills and industrial accidents, disposal of hazardous waste
- Significant electrical shock hazard (even for household scale systems)
3.1.2 Wind
The wind can be used to generate electric or mechanical power. Electricity generated from the wind may be fed directly into a central or isolated grid, or may be stored using technologies such as pumped storage or batteries. Mechanical power is often used for purposes such as water pumping for irrigation.
Wind farms require significant areas of land but the nature of turbine design means that they can often easily be combined with compatible land uses such as agriculture or forestry. A rigorous environmental impact assessment is typically required for large wind farms to evaluate factors such as avian impacts, noise, ground frequency vibrations, radio interference, and the risk of personal injury (due perhaps to a thrown wind blade).
Specific legal issues that may arise include:
The wind can be used to generate electric or mechanical power. Electricity generated from the wind may be fed directly into a central or isolated grid, or may be stored using technologies such as pumped storage or batteries. Mechanical power is often used for purposes such as water pumping for irrigation.
Wind farms require significant areas of land but the nature of turbine design means that they can often easily be combined with compatible land uses such as agriculture or forestry. A rigorous environmental impact assessment is typically required for large wind farms to evaluate factors such as avian impacts, noise, ground frequency vibrations, radio interference, and the risk of personal injury (due perhaps to a thrown wind blade).
Specific legal issues that may arise include:
- Aviation safety (including turbine height and the approvals process)
- Obstruction of fuel source (wind)
- Intermittent nature of fuel source
- Alternative and concurrent land uses (agriculture, etc.)
- Effects of wind shadow on adjoining or neighbouring properties
- Electromagnetic interference
- Visual and noise impacts of wind turbines
- Proximity to population centres
- Avian pathways/avian mortality
- Extensive investment in substation and interconnection facilities may be required
- Wind resource assessment
3.1.3 Geothermal
Geothermal technologies convert exploitable underground heat reservoirs into heat and/or electricity, as well as using such reservoirs as a heat source to drive thermodynamic refrigeration cycles. Most commercial power plants employ hydrothermal resources although other technologies are gaining momentum.
Electric power technologies are primarily of two types: (a) steam plants that use the resource directly to drive a classic thermodynamic power cycle; and (b) binary plants that use the resource indirectly to heat an intermediary working fluid which is then is employed in the power or refrigeration cycle.
Specific legal issues that may arise include:
Geothermal technologies convert exploitable underground heat reservoirs into heat and/or electricity, as well as using such reservoirs as a heat source to drive thermodynamic refrigeration cycles. Most commercial power plants employ hydrothermal resources although other technologies are gaining momentum.
Electric power technologies are primarily of two types: (a) steam plants that use the resource directly to drive a classic thermodynamic power cycle; and (b) binary plants that use the resource indirectly to heat an intermediary working fluid which is then is employed in the power or refrigeration cycle.
Specific legal issues that may arise include:
- Substantial investment required for resource exploration
- Groundwater issues (protection, etc.)
- Potentially harmful effluent discharges and handing of hazardous and corrosive materials and minerals
- Geographic location (areas of active volcanism)
- Obtaining and handling cooling water required for thermodynamic power cycles
3.1.4 Biomass/Biofuels
Biomass fuels fall into three categories: (a) solid fuels; (b) liquid fuels; and (c) gaseous fuels. The combustion of fuels derived from biomass is used to produce electricity, to produce heat, and to drive refrigeration cycles.
The two key issues to be considered when deploying systems for fuel derived from biomass are securing a long-term biomass resource and environmental impact. A rigorous resource assessment is important to determine issues such as the quality and variability of the resource, the quantity of the resource, the reliability of the suppliers, fuel handling issues, price risk, moisture issues, geographical dispersion of the resource and the inherent transportation arrangements, etc. In order to ensure the viability of the project, long-term fuel supply contracts are recommended.
Specific legal issues that may arise include:
Biomass fuels fall into three categories: (a) solid fuels; (b) liquid fuels; and (c) gaseous fuels. The combustion of fuels derived from biomass is used to produce electricity, to produce heat, and to drive refrigeration cycles.
The two key issues to be considered when deploying systems for fuel derived from biomass are securing a long-term biomass resource and environmental impact. A rigorous resource assessment is important to determine issues such as the quality and variability of the resource, the quantity of the resource, the reliability of the suppliers, fuel handling issues, price risk, moisture issues, geographical dispersion of the resource and the inherent transportation arrangements, etc. In order to ensure the viability of the project, long-term fuel supply contracts are recommended.
Specific legal issues that may arise include:
- Environmental impacts (emissions, ash disposal, hazardous waste)
- Fuel supply issues (type of fuel, resource assessment, fuel storage, fuel supply contract and pricing structure, offtake and hedging agreements, transportation agreements)
- Particular siting issues (including proximity to population centres, odours, etc.)
- Agricultural issues (water supply, water discharge, waste discharge, fertilizer)
- Obtaining and handling cooling water required for thermodynamic power cycles and for distillation systems (e.g. for ethanol production)
- Political issues (crop diversion, food prices, etc.)
3.1.5 Hydro
Hydro technologies convert the potential and kinetic energy contained in flowing water into electricity and mechanical power. The electric power may be fed directly into central grids, isolated grids, or be directed to off-grid applications. The system size depends on many factors including the availability and seasonal variations of the resource, as well as the unique characteristics of the site.
Specific legal issues that may arise include:
Hydro technologies convert the potential and kinetic energy contained in flowing water into electricity and mechanical power. The electric power may be fed directly into central grids, isolated grids, or be directed to off-grid applications. The system size depends on many factors including the availability and seasonal variations of the resource, as well as the unique characteristics of the site.
Specific legal issues that may arise include:
- Significant civil works may be required
- Seasonal variation in water flow
- Suitable sites maybe remote and require significant investment in transmission lines and roads
- Environmental impacts (disruption to fish, upstream and downstream flooding, indigenous rights, loss of flora & fauna)
- Use of 'run-of-river' systems to mitigate environmental impacts
- Particular impacts of large dams (on biodiversity, migratory marine species, watershed management, downstream flow, and human habitation)
- Political and social considerations (population displacement, etc.)
3.1.6 Ocean
There are currently four main ways to harness energy from the oceans. Tidal power exploits the differential between high and low tide to generate electricity. Wave power technology allows electricity to be generated directly from waves or from pressure differentials below the surface. Ocean current power systems use the flow of ocean currents to produce electricity. And ocean thermal energy conversion uses the latent energy stored in the ocean to generate electricity.
Specific legal issues that may arise include:
There are currently four main ways to harness energy from the oceans. Tidal power exploits the differential between high and low tide to generate electricity. Wave power technology allows electricity to be generated directly from waves or from pressure differentials below the surface. Ocean current power systems use the flow of ocean currents to produce electricity. And ocean thermal energy conversion uses the latent energy stored in the ocean to generate electricity.
Specific legal issues that may arise include:
- Very new technology
- Supply and technological bottlenecks for capital equipment
- Intermittent nature of fuel source (tidal)
- Substantial infrastructure required
- Issues related to being offshore (including leasing)
- Potentially significant environmental impacts (including marine habitats, marine migration, coral reefs, ocean temperatures)
- Potential for severe ocean storms destroying entire power plant
3.2 Heating and Cooling Systems
Heating and cooling systems use renewable fuels to heat and cool, as opposed to generating electricity or for transport. These projects tend to be smaller and typically deployed at the facility level, and may combine with elements of other clean energy technologies. Particular technologies and systems include solar water heating, ground source heat pumps, water distillation stills, solar air heating, and solar driven absorption air conditioners.
Commercial scale heating and cooling systems include district heating and cooling, systems for large buildings and campuses, and process heat in industrial facilities. The systems are often deployed in hybrid combinations with other renewable energy technologies.
Specific legal issues that may arise include:
Heating and cooling systems use renewable fuels to heat and cool, as opposed to generating electricity or for transport. These projects tend to be smaller and typically deployed at the facility level, and may combine with elements of other clean energy technologies. Particular technologies and systems include solar water heating, ground source heat pumps, water distillation stills, solar air heating, and solar driven absorption air conditioners.
Commercial scale heating and cooling systems include district heating and cooling, systems for large buildings and campuses, and process heat in industrial facilities. The systems are often deployed in hybrid combinations with other renewable energy technologies.
Specific legal issues that may arise include:
- Fuel supply issues (type of fuel, resource assessment, fuel storage, fuel supply contract and pricing structure, offtake and hedging agreements, transportation agreements)
- Environmental impact (emissions, hazardous chemicals, etc.)
- Differential legal documentation requirements based on project size
- Obtaining legal/regulatory rights to install underground systems
- Many similar issues as biomass, particularly when combustible fuels are used
3.3 Combined Heat and Power (CHP)/Cogeneration
Combined Heat and Power (CHP) technology (also known as cogeneration) produces electricity and usable heat simultaneously, thus leading to far greater thermal efficiency than a stand-alone electric or heating plant. The CHP process is typically deployed at the facility level and in utility power plants, where waste heat from the thermodynamic process may be put to use onsite. Examples of thermodynamic processes include electric generators driven by internal combustion engines, steam plants, gas turbines, and combined cycle plants. The heat produced may be used to produce or augment power production, or for other purposes such as industrial process, refrigeration and air-conditioning, thermal drying, air heating, and other applications.
Specific legal issues that may arise include:
Combined Heat and Power (CHP) technology (also known as cogeneration) produces electricity and usable heat simultaneously, thus leading to far greater thermal efficiency than a stand-alone electric or heating plant. The CHP process is typically deployed at the facility level and in utility power plants, where waste heat from the thermodynamic process may be put to use onsite. Examples of thermodynamic processes include electric generators driven by internal combustion engines, steam plants, gas turbines, and combined cycle plants. The heat produced may be used to produce or augment power production, or for other purposes such as industrial process, refrigeration and air-conditioning, thermal drying, air heating, and other applications.
Specific legal issues that may arise include:
- Fuel supply issues (type of fuel, resource assessment, fuel storage, fuel supply contract and pricing structure, offtake and hedging agreements, transportation agreements)
- Environmental issues (air quality, emission control equipment, and phase out of harmful refrigerants, etc.)
- Particular siting and zoning regulations
- Obtaining appropriate operating permits and licences
- Offtake agreements and utility tariffs
3.4 Energy Efficiency
Energy efficiency is using less energy to provide the same level of energy services-conserving energy as a means of increasing the total amount of energy available. Energy efficiency projects typically take place with existing buildings (such as through a process of retrofitting) but can also be integrated into new building construction. Energy efficiency projects can range from household level to large facilities such as hotels, arenas, and factories.
Specific legal issues that may arise include:
Energy efficiency is using less energy to provide the same level of energy services-conserving energy as a means of increasing the total amount of energy available. Energy efficiency projects typically take place with existing buildings (such as through a process of retrofitting) but can also be integrated into new building construction. Energy efficiency projects can range from household level to large facilities such as hotels, arenas, and factories.
Specific legal issues that may arise include:
- Fuel supply issues (type of fuel, fuel storage, fuel supply contract and pricing structure, offtake and hedging agreements, transportation agreements)
- Government regulations and financial incentives
- Performance-based contracting
- Leasing considerations (including modification of existing leases, integrating environmental considerations into leases)
- Scale of project-household versus large facility
- Disposal of hazardous materials (byproducts of retrofitting process)
- Integration with CHP/cogeneration
