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: [email protected]
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
[email protected]!
Christine Koenig!
[email protected]!
!
!
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