Time to give “earth” energy some respect
My Clean Break column/feature in today’s Toronto Star takes a look at the potential that low-temperature geothermal technology has to reduce the use of fossil fuels in the province, and in certain situations, also reduce electricity consumption. Now, there’s much debate over what these systems should be called. The Canadian GeoExchange Coalition prefers the name ”geoexchange,” but they’re also known as “earth energy” systems or simple ground-source heat pumps. The column focuses largely on some of the new financing models that are emerging to make these systems more affordable to homeowners and businesses. Marshall Homes, for example, offers them as an upgrade on new homes and allows buyers to roll them into their mortgages. NextEnergy Geothermal Solutions has worked out a deal with Waterloo North Hydro and rents the systems to homeowners under a 20-year contract that charges a fixed fee on the customer’s local utility bill. The benefits of offering low-interest financing can be seen in Manitoba, which has seen annual geothermal installations nearly triple over the last four years.
Still, there are barriers to adoption. One is a lack of skilled workers to install these systems as the market grows, and the other is a lack of standardized training. The Canadian GeoExchange Coalition is going to unveiled a national training program this fall that should help matters, but it will take some time before this industry gets itself organized. There’s also a shortage of drillers that can dig the vertical holes where tubing is laid, but as with any market, if the demand is there the drillers will come.
One more thing: This technology isn’t for everybody. It benefits those who use electricity for heating the most, and while it does offer benefits for those wanting to switch from natural gas, oil or propane, switching from these fuels means relying more on the grid during the winter times to power the geoexchange system. In the summer, the system would use less electricity than a conventional air conditioning system. Overall the energy savings are high — the net effect is quite positive — but the impact on the grid depends on the mix of homes that are switching.
Tyler Hamilton is editor-in-chief of Corporate Knights magazine and a business columnist for the Toronto Star, Canada's largest daily newspaper. In addition to this Clean Break blog, Tyler writes a weekly column of the same name that discusses trends, happenings and innovators in the clean technology and green energy market. This blog is a personal project started in April 2005. It is not an official blog of the newspaper.
