Renewable Energy

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Renewable Energy Economic Development

• Deborah Doncaster
• Ontario Sustainable Energy Association

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Overview

• Who is OSEA?
• What is Community Power?
• Renewable Energy - an emerging economic
  development sector
• The added value of community power or local
  ownership
• Policy regime - beyond the private sector
• Role of EDCOs

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Ontario Sustainable Energy Association

• Member-based NGO representing over 30 community
  organizations developing green power projects
• Wind, solar, biogas, small hydro
• Generally small wind projects (lt 10 MW) with
  large or utility grade turbines
• Represented interests
• Community co-ops and non profits
• Municipalities (MUSH sector)
• Farmers and rural land owners
• Locally owned SMEs (developers, suppliers,
  installers)

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OSEA Community Power Orgs.

• Windy Hills Caledon
• WindShare
• WindFall Ecology Centre
• Toronto Renewable Energy Co-op
• Superior Renewable Energy Co-op
• The Renewable Energy Co-operative North
• Sustainable Energy Resource Group
• Power Up Renewable Energy
• Barrie Wind Catchers
• Cool Caledon

• Citizens For Renewable Energy (CFRE)
• Eco Energy Choices Ottawa
• Eco-energy Durham
• Hearthmakers Energy
• Countryside Energy co-op
• EcoPerth
• MChigeeng First Nation Economic Advancement
  Project
• Positive Power Co-op Hamilton
• Green Energy Co-operative

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What is Community Power?

• Locally owned (wholly or significantly) RE
  generation projects
• Commercial-scale (or aggregated micro)
• Optimizes local benefits (social, economic and
  environmental)
• Accessible, open participation
• Democratically controlled
• Financially viable

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What is Community Power?

• WindShare
• Toronto-based wind power co-operative
• Members are local residents, businesses,
  Charities, financial institutions etc.
• Members managed development process of project (
  1 MW wind turbine on Toronto waterfront) via
  staff, Board, contracts and volunteer committees
• Members fundraised to cover development costs, do
  Offering, and sales and marketing (1 million)
  (1/2)
• Members purchased shares (500 min - 5,000 max)
• Members sell power to Toronto Hydro (grid)
• Co-operative is paid for green power supply
  (250K / MW / yr)
• Co-op pays out expenses - lease, insurance, OM,
  taxes, interest on debt, staff and org. expenses
• Members receive dividends proportionate to number
  of shares owned( number of kWhs they produce)
• Members determine how to spend surpluses beyond
  dividends

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What is Community Power?

• FarmShare
• Landowner and/or farmer co-operative
• Aggregation of micro-generators (100 Kw biogas
  digester, 3 kW solar PV, 150 kW wind)
• Aggregate sells power to the grid
• Members receive dividends
• Washington - PPA price set to encourage local
  manufacturing and use of local installers

• Region of Niagara and Rankin Construction
• Representing local municipalities and a local
  business
• 10 MW wind farm
• Sells power to the grid
• Region provides feasibility financing through FCM
  funding
• Rankin provides construction and extends their
  business know-how and practice
• JV sells power to grid

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Community Power and Economic Development

• In the energy economy, there are 2 principle
  organizational models by which to
  develop/own/sell green power into the grid
• As a private enterprise
• As a community-based enterprise
• Experience abroad (Denmark, Germany, U.K., Iowa,
  Minnesota) proves that green power development
  results in local and regional economic
  development
• However, community-based green power enterprises
  can compete with the private sector AND result in
  a greater degree of economic development for the
  local community and region

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Community Power Potential

• Germany
• Largest installed capacity in the world (18,400
  MW of Wind)
• Supplies 6 of countrys electricity
• 35 wind projects are owned by local residents
  and communities
• Denmark
• 4th largest installed capacity worldwide (3,100
  MW of Wind)
• Supplies 20 of countrys electricity
• 85 wind projects owned by local residents and
  communities

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An Emerging Economic Development Opportunity

• Operation of wind turbines employs more people
  than traditional energy sector
• 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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Human Resource Needs in Canadian Wind
Energy(Industry Canada report)
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Wind Jobs ED Potential

• According to Industry Canada, by 2012, Canada
  will have 5600 MW of new wind and 13,000 jobs
• We could see this growth in Ontario alone given
• Wind energy projects create new jobs in
  manufacturing (electronic components, turbine
  parts such as blades and towers), transportation
  and construction (foundations and installation of
  turbines)
• Toronto turbine tower was made in Ajax Ontario
• New tower manufacturing facility built on Lake
  Erie in response to sudden growth in wind
  development along Lake Erie and Lake Huron (RMI -
  US company)
• Wind energy offers rural landowners a new cash
  crop (2,000/ yr/turbine or 2-3 of projects
  gross revenues)
• Although a landowner may receive a lease payment
  of 2,000 to 5,000 per turbine annually, owning
  a turbine can double or triple the income

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Local Tax Revenues

• 75-90 cents of every energy dollar leaves the
  local economy (FCM, RMI, US Dept Energy)
• Property taxes for wind are often 2-3 time higher
  than traditional power plants
• Property taxes for munis 10,000 /MW/yr or 1
  of assessed value of a wind project
• Examples
• Lincoln County, Minnesota 470K in 2003 (155 MW)
• Kewaunee County, Wisconsin 200K/yr - or 50 of
  countys budget (20 MW)
• Iowa 2..5 million/yr (320 MW)

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• Wind Utility Consulting 2005

For 1 MW of generating capacity annually
Locally owned wind generation creates 10 times
more economic activity in the local community and
state than does wind generation owned by
out-of-state companies.
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Current Opportunity In Ontario

• Ontario requires over 20,000 MW in new generating
  capacity to replace old units
• Represents a 40 billion investment
• Ontario requires massive investment in
  transmission system

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Wind Power Potential in Ontario

• Ontario has over 3 times the landmass of Germany
  and a comparable wind regime, some say even
  better.
• Germany has 18,400 MW of installed capacity of
  wind.
• Several jurisdictions are supplied 100 by wind.
• Ontario presently has 175 MW of installed wind
  capacity.
• Ontario requires over 20,000 MW of new generation
  capacity.
• Ontario could easily provide 5000 MW of wind by
  2010.
• Industry Canada Study equates 5000 MW with 13,000
  jobs

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Solar Power Potential in Ontario

• Solar Photo-Voltaic
• Germany 768 MW of installed capacity
• Canada 11 MW despite a superior resource to
  Germany
• CanSIA solar PV estimates
• 13,000 MW by 2025 in Ontario
• 39,000 MW by 2025 in Canada

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Biogas Small Hydro Power Potential

• Biogas
• 8,000 farms in Ontario with sufficient herd to
  support biogas digesters between 100-200 kW
• Overall generation capacity of 400 MW
• Include landfill gas, food oil wastes and energy
  crops and the capacity grows to 1200 MW.
• Small-hydro (lt 20 MW)
• 1000 MW (new and refurbished)

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Ontario RFP for Renewables

• Ontario Renewable Portfolio Standard
• 5 (1,350 megawatts) by 2007
• 10 (2,700 megawatts) by 2010
• Ontario Government Request for Proposals
• Awarded nearly 400 MW of renewables
• Awarded close to 1000 MW
• Poised to announce third RFP for projects
  lt20 MW

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OSEAs SOCs campaign

• 2004 OSEA spearheaded a campaign for Advanced
  Renewable Tariffs (SOC)
• Fall 2005 - Ministry of Energy issues directive
  to OPA to develop recommendations on a SOC
  program for Ontario
• February 2006 - Ministry of Energy will announce
  details of SOC program for Ontario
• Summer 2006 - Implementation of SOC program

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OSEAs ARTs Proposal

• Key components
• Size (0 up to 10 MW) suggested cap
• Open to all players
• 20 year contract between generator and OPA
• Price specific to production and technology
• 10.4 cents/kWh wind
• 42 cents/kWh solar PV
• 13 cents/kWh biogas and small hydro
• Guaranteed (within reason and established safety
  guidelines) access to the distribution grid (lt 44
  kV)

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Why ARTs

• Profound Need to increase public acceptance of
  RETs
• ARTs allow municipalities, farmers,
  co-operatives, community groups, small businesses
  and members of the public to participate in green
  power generation
• Simplified administrative process for government
  and suppliers
• Markets with ARTs have more players, stronger
  local economies, more manufacturing, more jobs,
  more renewable energy generation

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Co-operative Fund for CP

• Average Community Power wind project costs
  650,000 to develop
• Difficult for communities to raise this
• Fund would provide relatively easy capital
  through grants and loans at fair rates

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Capacity Building for CP

• Certification Program - targets staff and
  Directors
• Technical Assistance Providers
• Org Dev
• Site Dev and Technical
• Financial
• Community Engagement
• Sales and Marketing
• Integration Manager
• Financial institutions
• EDCOs
• Universities and Colleges
• Specialized RE programs
• Co-operative curriculum
• Relevant government agencies

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Role of EDCOs

• Promote RE and ED opportunities
• Initiate local projects
• Facilitate information resources
• Organize the community (e.g.) Asset mapping
• Resource availability (prefeasibility)
• Organizational Development
• Financing
• Technical and site development
• Permitting and Approvals
• Legal
• Manufacturing, construction and OM

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Contact OSEA

• Please visit www.communitygreenpower.ca for more
  info or contact Deborah Doncaster at 416.977.4441
  or deb_at_ontario-sea.org