Community Investment

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Community investment in renewables and supporting policy : 

Community investment in renewables and supporting policy Renewable Energy Workshop Echo Bay November 20th, 2008

Neighbourhood Bulk Buy : 

Neighbourhood Bulk Buy Benefits to homeowners Volume discount Delegate research & negotiation Transparent process Rapid process Installers Save on sales costs Save on travel costs

Neighbourhood Bulk Buying : 

Neighbourhood Bulk Buying

Neighbourhood Bulk Buying : 

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

Wind Power : 

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 No international standards Unpublished results www.wind-works.org

Val-Éo example : 

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

Val-Éo example : 

Val-Éo example

Val-Éo example : 

Val-Éo example

Val-Éo example : 

Val-Éo example

What is Community Power? : 

10 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)

Economic Benefits of Community Power : 

11 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)

Local Community Benefits : 

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)

An Emerging Economic Development Opportunity : 

13 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)

Jobs: Denmark : 

14 Jobs: Denmark World market leader for wind turbine manufacturing Produce > ½ of the world’s 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 < NYC

Jobs: Germany : 

15 Jobs: Germany Generates $240 billion in annual revenue Germany’s 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 Germany’s Federal Minister of the Environment)

Communities Drive Renewable Energy : 

16 Communities Drive Renewable Energy 16 Source: NL,D,DK,ES,GB: Dave Toke, University of Birmingham, 2005, updated to Toke 2008 Source: Minnesota: Windustry, 2008 Source: Ontario: OSEA, 2008

Economic Dev. Potential for ON : 

17 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

Economic Development Potential for Ontario : 

18 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

Economic Development Potential for Ontario : 

Economic Development Potential for Ontario Ontario’s 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

Summary : 

20 Summary Renewable Energy creates a strong case for economic development Canada’s potential by 2012 13,000 jobs $10 billion in revenue Ontario’s potential 65,000 megawatts Economic benefits can be kept locally through Community Power projects….

About OSEA : 

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

Communities Drive Renewable Energy : 

Communities Drive Renewable Energy 22 Source: NL,D,DK,ES,GB: Dave Toke, University of Birmingham, 2005, updated to Toke 2008 Source: Minnesota: Windustry, 2008 Source: Ontario: OSEA, 2008

Community Power Fund (CPF) : 

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

CPF Current Allocations : 

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)

First Round of Applications : 

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 M’Chigeeng 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

The RESOP and Advanced Renewable Tariffs : 

The RESOP and Advanced Renewable Tariffs

The First in North America : 

27 The First in North America Feed Laws Feed-In Tariffs Advance Renewable Tariffs (ARTs) Renewable Energy Standard Offer Program (RESOP) www.onlinepact.org Austria Brazil China Cyprus Denmark Estonia France Germany Greece India Ireland Israel Ontario PEI South Korea Spain Switzerland Turkey Washington Etc. Feed-In Tariffs – Accelerating the Deployment of Renewable Energy by Miguel Mendonça

OSEA’s Campaign for ARTs : 

28 OSEA’s 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

OSEA’s Campaign Evolves : 

29 OSEA’s 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

Slide 30: 

30 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 Characteristics of the RESOP

“Value to Ratepayers” vs Cost + ROI : 

“Value to Ratepayers” vs Cost + ROI Criterion subject to internal interpretation Not part of OPA’s Mandate Not part of OSEA’s proposal Neither Spain, France or Germany use “value to ratepayers” in determining tariffs 31

Slide 32: 

32 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 RESOP Evolution

Slide 33: 

33 RESOP Pricing and Technology

Slide 34: 

34 RESOP Pricing and Technology Continued

Why Advanced Renewable Tariffs? : 

35 Why Advanced Renewable Tariffs? Community power proponents aren’t 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

What’s Next? : 

What’s Next? The Green Energy Act!

Best Practice : 

37 Best Practice Germany’s 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

Building on Best Pracitices : 

38 Building on Best Pracitices Building on EEG in addition to OSEA’s 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

Slide 39: 

39 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 Core Goals

Slide 40: 

40 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 Green Energy Act Coalition

Draft Issues : 

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 41

Stakeholders : 

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

Slide 43: 

43 Thank You! Roberto Garcia Member Services Manager 1-866-573-OSEA (6732) x228 [email protected]

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