to access the recently presented Municipal Webinar
Get the most for Your Municipality from the Large Renewable Procurement Program (LRP) A webinar hosted by OSS & OSEA April 21st, 2015 presenters: Harry French Dr. Christine Koenig Energizing Communities – Naturally! Agenda! Experience with Community Power in Ontario and learning objectives The Large Renewable Procurement Program 1 Rules and process Mandatory Community Engagement Rated Criteria Opportunities for Municipalities What others have done Next Steps 2 The energy transition – from large corporately owned to small community owned.! Danish energy system in the mid 90s Danish energy system today 3 In the past:! small FIT 2.0 and 3.0! Municipalities and communities had priority! Municipali-es with projects on own roofs and support resolu-on could achieve maximum points 4 FIT 3.0 contract offers 2014 by geographic regions! Row Labels Biogas (On-‐ Farm) Solar (PV) (Non-‐ RooJop) Renewable Biomass Wind Solar (PV) Waterp (On-‐ (RooJop) ower Shore) Grand Total Bruce 11 14 25 Central 10 11 21 25 67 93 180 180 East 1 GTA Northeast 34 Northwest Sault Southwest 6 1 1 3 1 2 3 6 74 1 88 42 6 2 44 3 West of London Grand Total 9 87 402 42 1 1 499 5 Majority of application to FIT 3.0 were participation projects! Source: OPA FIT 3.0 applica-on summary Jan 2014 6 What is (was) a Community Participation Project under FIT 1-3 ?! 50 property owners, residing in the municipality for a To obtain access to the minimum of 2 years upon submission of application. contract capacity set Must be organized as a Renewable Energy Co-operative aside the community RE Co-op must hold at least 15% economic interest in the investment member project (same rules apply as to all other co-ops) had to hold >50% of Applicant must obtain Municipal Support Resolution. the project’s equity 7 Participation goals over achieved! Source: 8 The rise of Community Power! in Ontario as a consequence! 9 Large Renewable Procurement (LRP) – a game changer! no more FIT contracts for projects over >500 kW all projects > 500 kW must go through the LRP Request for proposal (RFP) process. This is a price competitive evaluation process. Proponents must qualify first on a financial and experience basis. Community engagement is a critical component to the LRP. 10 Learning objectives for this webinar! Understand process and impact of the LRP 1 RFP program Understand how your municipality can best benefit from hosting renewable energy projects Explore models or participation and partnership with developers and your municipality Learn from others in Ontario Identify your needs and next steps 11 Agenda! Experience with Community Power in Ontario and learning objectives The LRP 1 RFP program Rules and process Mandatory Community Engagement Rated Criteria Opportunities for Municipalities What others have done Next Steps 12 The LRP 1 program - overview! RFP for solar, wind, biogas/mass projects > 500 kWh Only qualified applicants can participate (42 have qualified out of ~120 applicants) 300 MW wind, 140 MW solar and 50 MW biomass and biogas will be procured in the LRP 1 RFP RFP is open for submission since March 10, 2015 Submission deadline is September 1, 2015 13 The LRP 1 program – role of municipalities! Proponents have to meet mandatory community engagement requirements to be eligible! Projects are strictly selected on lowest evaluated proposal price The evaluated proposal price is the result of several factors applied to the proponents basic on- and off-peak price. The factors applied depend on energy source and rated criteria points. 14 Mandatory Community Engagement requirements! Project website including: project description Community Engagement Plan Site Considerations Report Community Engagement Plan At least one meeting with designated officials and/or Clerk of the project site hosting (lower tier) municipality (3.2.5 (b) Meeting with Project Community) Distribution of Community Engagement Plan to prescribed community officials and stakeholders At least one Public Community Meeting (conditions apply) open to all public (section 3.2.5 (c)) Notice of Public Community Meeting as prescribed (section 3.2.5 (d)). Public Meeting Summary Report plus various prescribed forms. 15 Rated Criteria – Community Engagement! 16 Rated criteria gives your Municipality significant leverage to negotiate! ! Municipal Council Support Resolution 50 points >75% of abutting landowners support 30 points Municipal Agreement 10 points If a developer has met all of the above criteria a maximum of 80 points will be awarded! The impact of these points is significant. Example: In a 20 MW on-shore wind project 80 vs 10 points can translate into a difference of $30/MW in price per MW or a total of >$ 20M in revenue over 20 years from power to the developer! 17 Agenda! Experience with Community Power in Ontario and learning objectives The LRP 1 RFP program Rules and process Mandatory Community Engagement Rated Criteria Opportunities for Municipalities What others have done Next Steps 18 The Municipal Agreement – opportunity for your Municipality! Agreement scope/form benefits to community Community Fund Annually a portion of revenue from project goes into a dedicated community fund administered by the municipality direct recurring cash flow to municipality Municipal-Supply Agreement Maintenance and construction contracts long term job creation, direct benefit for local businesses and their business and skill development Municipal Partnership Economic participation of the municipality through their LDC or other in LP or JV with developer direct ownership of municipality, voting rights and greatest influence on project scope and direction Endowment Fund Annual contribution made to a foundation by the project, administered locally fund available to a broad range of environmental and social purposes Co-op equity participation Economic participation of community co-op in project LP or JV formed with developer direct economic benefit and ownership of residents, has greatest impact on acceptance and future project development 19 Agenda! Experience with Community Power in Ontario and learning objectives The LRP 1 RFP program Rules and process Mandatory Community Engagement Rated Criteria Opportunities for Municipalities What others have done Next Steps 20 Community Vibrancy Fund! Haldimand County negotiated a Community Vibrancy Fund with contributions of $2,000,000 per year over the life of the project. Improvement of community and protective services, land stewardship initiatives, recreational facilities and municipal infrastructure. 21 Community Foundation! Administer by the Chatham Kent Community Foundation, the project contributes $250,000 to local charitable organizations each for perpetuity. The South Kent Wind Community Fund will support community resilience and prosperity through each of the following areas: Community, Environment, Health and Wellness, Youth and Education. 22 Municipal Supply Agreement! Municipal Supply Agreement Entegrus Inc. (which is 90% owned by the Municipality of Chatham-Kent) obtained contracts for maintenance for the South Kent Wind Project resulting in approximately $300,000 of services provided by local employers including Entegrus. Entegrus reserves the right to be a 15% owner in the project 23 The county that shares the profits!! County'of'Brant'FIT'Projects' Roo5op'PV'solar'projects'on'our'three'Community' Centres'will' • generate'economic'benefits'to'be'shared'by'the' County,' • the'CoBoperaCve'and'the'community' • while'providing'environmental'benefits'for'our' children.' Brant'Sports'Complex' South'Dumfries' Community''Centre' Burford'Arena' 24 Local champions are key to success! Key factors of success: Municipality had the vision to share with the community and carried through. Local champions on board of directors Community engagement activities. Very quickly achieved minimum equity raise and will reach final funds in time Construction will be completed end of this year SBC is looking to develop more projects 25 The Wind Farm Co-op (large FIT 1.5)! 26 Community – Commercial Partnership ($ 72 M capital project)! Gunn’s$Hill$Wind$Farm$$ Limited$Partnership# OCEC$ General# Partner# (Prowind)# Limited#Partner# GHWI$ Limited#Partner# owns#max.#49%#of#LP’s# assets,#has#voCng#rights# $ owns#min.#51#%#of#LP’s# assets,#has#voCng#rights# Project$3# Six#NaCons# Limited#Partner# owns#max.#10%#of#LP’s# assets,#has#voCng#rights# governs#and#operates# the#LP,#assumes#liability# Project$Asset(s)# FIT$contract$$$ 30# 27 Building a sustainable, resilient and distributed clean energy infrastructure for Ontario! Ontario 2015 Biomass Ontario 2050 Solar Geothermal Wind Hydro 28 Thousands of villages, towns,! municipalities go 100% renewable in Germany! For example Jühnde: 750 residents 200 dwellings 9 farmers 500 cows and 150 pigs no industry… started journey in 2000 inspired by students of nearby University of Göttingen local champions took on the lead today Germany’s poster child for Community Power! 29 Agenda! Experience with Community Power in Ontario and learning objectives The LRP 1 RFP program Rules and process Mandatory Community Engagement Rated Criteria Opportunities for Municipalities Models for Participation What others have done Next Steps 30 LRP Readiness Self - Diagnosis! 31 ! Questions & Answers ! 32 We are here to…! bring the community together and set up a co-op enable community-commercial partnerships help you structure the work, manage the project and its milestones support you in developing your messaging and consolidating your ideas guide you through the regulatory maze of OPA, MOE, LDC and FSCO create a solid organizational backbone that can carry your project develop and communicate a business model that lenders, investors and FSCO will support source and contract the best technology and service providers for your needs be your co-ops back-office once you’re hooked up to the grid 33 Building healthy RE Co-ops! community engagement & finding the champions incorporation & governance operationalization, stakeholder management, start-up financing marketing & communication business plan Strategic partnerships, JV and LP agreements equity financing Picture of your choice Our vision is of a prosperous Ontario with a thriving sustainable energy sector, good jobs, resilient communities, and healthy environments powered, heated, cooled, and moved by portfolios of sustainable energy. 35 www.ontario-sea.org OSEA activities summary • Public awareness • Website, newsletter and social media • Green Energy Doors Open – October • Advising government • Ad hoc government relations • The 20/20 Roadmap/ 20/20 Roadmap Leadership Group • Networking • Powering Prosperity Awards • Energy Drinks • Capacity building • Municipal Best Principles and Practices • Webinars 36 www.ontario-sea.org Become a Member… And tab into our resources and network Contact: Nicole Risse, Director Email: nicole@ontario-sea.org Tel: 416.977.4441 x 3 Cell: 416.892.0559 www.ontario-sea.org 37 www.ontario-sea.org Thank you for your participation!! Harry French harry@ontariosustainability.ca! Christine Koenig! christine@ontariosustainability.ca! ! ! 38
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