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Community investment in renewables and supporting policy. Renewable Energy Workshop Echo Bay November 20 th , 2008. Neighbourhood Bulk Buy. Benefits to homeowners Volume discount Delegate research & negotiation Transparent process Rapid process Installers Save on sales costs
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Community investment in renewables and supporting policy Renewable Energy Workshop Echo Bay November 20th, 2008
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 • www.ourpower.ca • Resources • Start-up guides • Sign-up forms • Press release templates • Request for Proposal templates • Applicable incentives and rebates
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 • No international standards • Unpublished results • www.wind-works.org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 • 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
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 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 • 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 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 • 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 • 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 Source: NL,D,DK,ES,GB: Dave Toke, University of Birmingham, 2005, updated to Toke 2008 Source: Minnesota: Windustry, 2008 Source: Ontario: OSEA, 2008 16
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 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 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 • 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 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 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) • 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 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 • 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 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 • 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 • 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
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 • 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
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
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? The Green Energy Act!
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 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
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
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 • 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
Stakeholders First Nations Farmers Unions ENGOs Industry Associations Muncipalities Utilities Lenders and other financiers Etc. 42
Thank You! Roberto Garcia Member Services Manager 1-866-573-OSEA (6732) x228 roberto@ontario-sea.org