Community investment in renewables and supporting policy

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Community investment in renewables and supporting
policy

• Renewable Energy Workshop
• Echo Bay
• November 20th, 2008

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Neighbourhood Bulk Buy

• Benefits to homeowners
• Volume discount
• Delegate research negotiation
• Transparent process
• Rapid process
• Installers
• Save on sales costs
• Save on travel costs

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Neighbourhood Bulk Buying
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Neighbourhood Bulk Buying

• www.ourpower.ca
• Resources
• Start-up guides
• Sign-up forms
• Press release templates
• Request for Proposal templates
• Applicable incentives and rebates

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Wind Power

• Large or small
• Unproven or untested designs
• Vertical versus horizontal axis
• Downwind versus upwind
• Roof-mounted
• ducted
• Underperformance to spec.
• No international standards
• Unpublished results
• www.wind-works.org

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Val-Éo example

• Landowner co-op
• Land lease agreements
• Opportunity for neighbours to invest
• Limited liability partnership
• Major financial investors
• Major land contributors
• Co-op is managing partner
• Project developed democratically

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Val-Éo example
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Val-Éo example
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Val-Éo example
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What is Community Power?

• Locally owned (wholly or substantially) Renewable
  Energy generation projects
• Optimizes local benefits (social, economic and
  environmental)
• Commercial-scale (enough energy to sell back to
  the grid)
• Accessible, open participation
• Democratically controlled (1 vote/person)
• Financially viable (positive Rate of Return)

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Economic Benefits of Community Power

• Community Power is a proven economic model
• Stabilizes long term energy prices
• Creates jobs
• Contributes to a culture of energy conservation

(U.S. Research Project - Iowa Policy Project)
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Local Community Benefits

• Locally Owned Community Power Projects
• Generate 5-10 times the local benefits than the
  traditional, centralized energy generation model
  (Iowa Policy Project )
• Traditional, centralized energy generation model
• 75-90 cents of every dollar spent on energy
  leaves the local economy (U.S. Dept. of Energy,
  Rocky Mountain Institute)

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An Emerging Economic Development Opportunity

• Operation of wind turbines employs more people
  than the traditional energy model
• 27 more jobs than coal plants
• 66 more jobs than natural gas plants
• (New York State Energy Research and Development
  Authority)

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Jobs Denmark

• World market leader for wind turbine
  manufacturing
• Produce gt ½ of the worlds wind turbines
• Export rate of 90
• Generate 7 billion annually
• Defined by World Bank as a high income economy
• Ninth in Quality of Life Index
• (U.S. 13th, Canada 14th)
• Employ 20,000 people in Renewable Energy sector
• with a population of lt NYC

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Jobs Germany

• Generates 240 billion in annual revenue
• Germanys Renewable Energy sector employs
  250,000 people
• Germany is expected to provide more green jobs
  than the U.S. auto industry employs by 2020
• (United Nations Energy Partnership and Germanys
  Federal Minister of the Environment)

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Communities Drive Renewable Energy
Source NL,D,DK,ES,GB Dave Toke, University of
Birmingham, 2005, updated to Toke 2008 Source
Minnesota Windustry, 2008 Source Ontario OSEA,
2008
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Economic Dev. Potential for ON

• Wind energy projects create new jobs in
  manufacturing, transportation and construction
• Industry Canada states that by 2012
• 13,000 green jobs
• 10 Billion in revenues

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Economic Development Potential for Ontario

• Current state of the industry in Ontario
• Turbine tower (Exhibition Place) was made in Ajax
• New solar/silicon manufacturing plant in Vaughan
• Most of the employees are former auto workers
• Land Leasing (2-5K/yr/turbine)
• Community Power - Local Renewable Energy project
  ownership
• First Nations
• Co-operatives
• Local land owners

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Economic Development Potential for Ontario

• Ontarios Potential Renewable Energy
• 30,000 MW Offshore Wind
• 25,000 MW Onshore Wind
• 5,000 MW Medium/Micro Hydro
• 5,000 MW Small Hydro, Solar, BiogasTOTAL
  Potential 65,000 Megawatts
• With a comparable wind resource to Ontario,
  Germany already has 31,000 MW of installed
  capacity

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Summary

• Renewable Energy creates a strong case for
  economic development
• Canadas potential by 2012
• 13,000 jobs
• 10 billion in revenue
• Ontarios potential
• 65,000 megawatts
• Economic benefits can be kept locally through
  Community Power projects.

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About OSEA
What is OSEA? A province-wide member-based
non-profit trade association founded in 1999 How
many members does OSEA have? 1500 (75
organizations plus individuals) Who does OSEA
represent? The Sustainable Energy Sector and
Community Power including individual citizens,
First Nations, co-operatives, farmers,
businesses, municipalities and other institutions
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Communities Drive Renewable Energy
Source NL,D,DK,ES,GB Dave Toke, University of
Birmingham, 2005, updated to Toke 2008 Source
Minnesota Windustry, 2008 Source Ontario OSEA,
2008
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Community Power Fund (CPF)

• Founded by the Ontario Sustainable Energy
  Association (OSEA)
• CPF is a sister organization to OSEA
• Both OSEA and CPF serve the Community Power
  sector in Ontario
• Defining Community Power
• First Nations, farm-based organizations, local
  community organizations etc., who want to
  develop, own, control renewable energy projects
  for the benefit of their community
• Organizational models include non-profits,
  co-operative, corporations that adhere to
  co-operative principles etc.
• Retain minimum 50 equity ownership

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CPF Current Allocations

• Project Development Grants (3 million)
• Pre-feasibility Grant
• (5,000 Pre-feasibility study template)
• Feasibility Grant
• (25,000)
• Strategic Opportunity Grant
• (25,000)
• Project Development Grant
• (50,000 - 300,000)

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First Round of Applications

• 2 Large Wind Grants
• Windy Hills Caledon
• Chippewas of Georgina Island First Nation and
  Windfall Ecology Centre
• 5 Strategic Opportunity Grants (Wind)
• Walpole Island First Nation
• MChigeeng First Nation
• Wikwemikong First Nation
• Positive Power Hamilton Co-op
• Blue Water Agriwind Co-op
• 8 Feasiblity Grants
• Campbellford Seymour Community Foundation
• Barrie Wind Catchers
• LIFE
• Next Generation Co-op
• Norfolk Federation of Agriculture/FEO
• TREC North
• Windshare
• Windward Co-operative Homes

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The RESOP and Advanced Renewable Tariffs
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The First in North America

• Austria
• Brazil
• China
• Cyprus
• Denmark
• Estonia
• France
• Germany
• Greece
• India
• Ireland
• Israel
• Ontario
• PEI
• South Korea
• Spain
• Switzerland
• Turkey
• Washington

• Feed Laws
• Feed-In Tariffs
• Advance Renewable Tariffs (ARTs)
• Renewable Energy Standard Offer Program (RESOP)
• www.onlinepact.org

Feed-In Tariffs Accelerating the Deployment of
Renewable Energy by Miguel Mendonça
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OSEAs Campaign for ARTs

• 2004 - OSEA launches ARTs campaign
• Fall 2004 Liberal Party endorses ARTs
• Winter 2004 Ministry of Energy contracts OSEA
  for ARTs Policy study
• Fall 2005 Ministry of Energy issues Directive
  to OPA to develop recommendations for a program
• March 2006 - Premier announces the RESOP
• November 2006 OPA issues RESOP rules

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OSEAs Campaign Evolves

• November 2007 issues Renewables Without Limits
  discussion paper
• May 13 2008 OPA proposes RESOP changes
• June 2 2008 OSEA and partners launch Green
  Energy Act (GEA) Campaign
• September 18 2008 Premier announces Green
  Energy Act Minister of Energy and
  Infrastructure directs OPA regarding
  conservation, renewables and First Nations
  consultation
• November 2008 OSEA releases RESOP recommendations

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Characteristics of the RESOP

• 10 MW Project Cap
• Open to all Players
• 20 Year Contracts
• Standardized Prices
• 11 /kWh Base Price (wind, hydro, bio-gas)
• 42 /kWh Solar PV
• Biogas and Small Hydro 3.5 for
  Dispatchability

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Value to Ratepayers vs Cost ROI

• Criterion subject to internal interpretation
• Not part of OPAs Mandate
• Not part of OSEAs proposal
• Neither Spain, France or Germany use value to
  ratepayers in determining tariffs

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RESOP Evolution

• Improved pricing based on cost and differentiated
  by scale, resource intensity and application
• Grant renewable energy priority access to the
  grid
• Grant renewable energy priority of purchase
• Grant Community Power proponents priority access
  to the grid where capacity is limited
• Grant priority access to expanded grid capacity
  with assured cost recovery for grid companies
• Provide full inflation protection
• Lift the program size cap
• Implement an anti-gaming provision for projects
  connected to the distribution system

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RESOP Pricing and Technology
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RESOP Pricing and Technology Continued
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Why Advanced Renewable Tariffs?

• Community power proponents arent precluded
• Broad-based participation
• Simplified administrative process
• More players, stronger local economies, more
  manufacturing, more jobs, more renewable energy
  generation
• A proven policy mechanism
• Provides stable investment and manufacturing
  environment

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Whats Next?

• The Green Energy Act!

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Best Practice

• Germanys Erneuerbare-Energien-Gesetz (EEG), or
  Renewable Energy Sources Act 2000
• Enshrined Feed-in Tariffs in law
• World-leading industry in 15 years
• 32,000 MW of installed renewable energy
• Latest figure 215,000 people employed in German
  renewable energy industry
• For more information on the EEG
• www.bmu.de

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Building on Best Pracitices

• Building on EEG in addition to OSEAs evolved
  RESOP the Green Energy Act will also emphasize
• Conservation
• Role of Energy Utilities
• Accessibility
• Modernization - smart grid technologies
• Expanded Community and First Nations
  Participation

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Core Goals

• Make Ontario a world leader jobs, energy policy,
  renewables and conservation
• Prioritize conservation, RE and CHP over all
  other new electricity generation
• Enable all Ontarians to become conservers and
  generators while making a profit
• Grant priority procurement and obligatory grid
  access via Advanced Renewable Tariffs for RE and
  CHP projects
• Ensure a continuous improvement approach to
  conservation programs - minimum 2.5 annual
  (compounding) reduction in energy resource needs
  from CDM between 2011 2027 period

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Green Energy Act Coalition

• Environmental Defense
• David Suzuki Foundation
• Ontario Federation of Agriculture
• First Nations Energy Alliance
• The Ivey Foundation
• Pembina Institute
• Ontario Sustainable Energy Association
• Community Power Fund

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Draft Issues

• Community Power
• Renewable Energy Procurement
• Grid Evolution
• Conservation
• Environmental Protection
• Planning, Permitting, and Environmental
  Assessments
• Jobs and Training
• Administration and Governance of the Energy
  Sector
• Other Act Amendments

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Stakeholders

• First Nations
• Farmers
• Unions
• ENGOs
• Industry Associations
• Muncipalities
• Utilities
• Lenders and other financiers
• Etc.

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Thank You!
Roberto Garcia Member Services Manager 1-866-573-O
SEA (6732) x228 roberto_at_ontario-sea.org