In 2021, QUEST’s Alberta Combined Heat and Power (CHP) Working Group continued to work with Emissions Reductions Alberta (ERA) to refine and improve the Energy Savings for Business Program, including expanding incentives for smaller capacity combined heat and power (CHP) projects to increase adoption of energy-efficient technologies for small and medium scale businesses. The Working Group has long been advocating for energy efficiency programs in Alberta and has been providing ERA with feedback on how they can improve program uptake among Alberta businesses.

QUEST informed the design of the capacity stream of the Smart Renewables and Electrification Pathways Program (SREPs).

SREPs supports accelerating eligible projects that can transform our electricity sector as we move toward the net-zero economy of 2050. Capacity building also helps communities and organizations to acquire knowledge and the tools needed to develop renewable energy and grid modernization projects. Both are key steps in Canada’s equitable transition to a cleaner electrical grid.

Ontario’s Ministry of Environment, Conservation and Parks finalized policy changes streamlining approvals for low-risk combined heat and power (CHP) projects in 2021. The Ontario CHP Working Group supported reducing the regulatory burden on low-risk CHP projects. The final changes include exemptions for lower risk reciprocating and turbine CHP projects under 500 kW, and a streamlined sector registry approval for CHP projects up to 25 MW. The proposal also includes streamlined approvals for biomass-based CHP projects, with exemptions for projects between 50 kW and 150 kW, and a streamlined EASR for biomass-based CHP under 3 MW.

QUEST’s Ontario CHP Consortium has been very active in advocating for aggressive but fair carbon policies, first on cap and trade and then on the Emissions Performance Standards (EPS) program. In 2021, the Ministry of Environment, Conservation and Parks posted two decision notices to the Environmental and Regulatory registries (ERO 019-2813 and ERO 019-3719) that has the EPS program replacing the federal Output Based Pricing System. This is a positive development as the Ontario EPS gives a credit for heat recovery for non-industrial uses, sending price signals to incentivize behaviour that captures waste heat from electricity generation.

QUEST’s Alberta Combined Heat and Power (CHP) Working Group has been advocating with Alberta Energy, the Alberta Electric System Operator and the Alberta Utilities Comission to address a change in practice that effectively limited self-supply of electricity by Alberta businesses. In the fall of 2021, Alberta Energy put forward Bill 86, responding to industry and consumers to allow unlimited self-supply of electricity, as well as introducing storage to stand alongside generation.