Alternative energy

Alternative energy is a general term for any form of energy that can be substituted for another form. Natural gas, for example, can be an alternative for coal or oil. Clean coal technologies can be an alternative for hydro, nuclear or natural gas. Nuclear energy can be an alternative for hydroelectricity or thermal power plants fueled by coal, natural gas or oil. Many alternatives have emerged because of environmental concerns over the use of fossil fuels.

Renewable energy is the term for energy sources that are replenished continuously. Examples include wind, solar, tidal power and hydro. Distributed electricity generation refers to small energy sources, such as micro turbines and fuel cells, that generate electricity on-site for industrial operations, buildings and homes.

The drawback with these renewable and alternative energy supplies is that they tend to be more expensive or face technical hurdles. Renewable energy sources such as wind are also limited by the intermittent nature of wind flows.

Although producers still rely on subsidies, the costs of wind energy are approaching economic levels. And power companies and other industry sectors are taking steps to invest in wind opportunities across Canada. Industry is also investing in natural gas-powered micro-turbine opportunities. As market opportunities grow, these energy technologies could make modest but important increases in their share of Canada’s generation mix over the next decade.

Another technology that offers promise over the long term is fuel cells, battery-like devices that efficiently convert hydrogen to electricity. Fuel cells produce no pollution when operating. However, producing hydrogen for use in fuel cells can cause pollution. For example, extracting hydrogen from natural gas produces carbon dioxide. A number of fuel cells are now under development, some with government and industry support. They are not expected to be commercially available until 2010 or later.