Business of

Energy

Nishnawbe Aski Development Fund

Energy and Forestry ExpoMarch 28 2017

Thunder Bay

Introduction

• Energy investments

• The ‘X’ factors

• Investment Objectives

• Comparing Investment

• Non-Financial Benefits

– Community Impacts

• Business Models

• Conclusions

Personal Declaration

‘Conservation First’ proponent

Energy Investments

Infrastructure

• Renewable

generation

– Wind, solar,

biomass,

geothermal,

wood stoves

• Transmission

• Distribution

• District heating

• Combination

Conservation &

Efficiency

• Existing

buildings

– Insulation

– Weathersealing

– Appliances

• New construction

• System design

– Urban planning

‘X’ Factors

Infrastructure

• WOW

Conservation &

Efficiency

• Huh

Dual Axis self-tracking solar panelsBundle of Insulation

Investment Objectives

• Financial

– Independent

revenue source

• Business venture

– Revenue

– Jobs

– Economic

horsepower

• Energy

independence

• Social

– More than economic

The Bottom Line

Triple Quadruple

Investment Outcomes

• Financial

– How is the money

going to be used?

• Business venture

– Short/long term

– Capacity building

• Energy

independence

– Impacts

• Social

– Complex

interactions

Conservation:More than Economic

Mental

HealthEducation

Personal

Pride

Individual

Health

Inter-

generation

Conflict

Economic

Housing

Comparing Investments

Pre-investment risk assessment

• Current value of assets

– Housing – 3rd most valuable asset

• Technology performance

• Operation and maintenance

Financial Return

Financial Returns

Renewable

• Capital and

operating costs

• kWhs generated

• Power purchase

agreement

• Rate structure

(net metering)

– Tiered

– Time-of-use

– Future cost

Conservation

• Capital costs

• Maintenance

costs

• kWhs saved

– Energy audit

– Appliance usage

• Rate structure

– Tiered

– Time-of-use

– Future cost

Financial Benefits

Renewable

• How is the

revenue going to

be used

• When does the

project start to

cash flow

Conservation

• Immediate cash

flow to the

building owner

and/or occupants

• Reduced

economic

leakage

• Avoided costs

Non-Financial Benefits

How do you assess the non-

financial benefits of an investment?

• Food security

– Build a greenhouse

– Solar/geothermal energy

– Increases productivity of the

greenhouse

Non-Financial Benefits

LED street lights

• $ savings: energy & maintenance

• Improved lighting

• ‘Dark sky’ compliant: see the stars

Non-Financial Benefits

Educational benefits of solar

panels on schools

• Participate in the installation

• Real life teaching aid

– Consumption awareness

Community Impact

Energy savings via reduced hot water

consumption• Installation of low flow shower heads, faucet aerators

and even low flush toilets.

• Individual savings($)

• Community savings ($$):

– less water use, less pumping of water (use less

electricity)

– less chemicals required to treat the water

– less water being pumped from the home

Energy Business Models

Many energy industry models

• First Nations ownership

– Five Nations Energy Inc. (FNEI)

• First Nation/private sector

– Wataynakenup Power

• Utility/First Nation Partnerships

• Do the necessary homework

– Talk to people who have been there

Housing as a Business

Consider the Asset Value

• Build

• Operate

• Non-financial

Housing business models

• Band operated

• Local Housing Authority

• Regional Housing Authority

Housing as a Business

An Energy Business Plan

Community Energy ACTION Plan

• Don’t have one – time to do one– Not a technical exercise

– It’s a business exercise that captures the energy

needs and ‘desires’ of your community

• Have one – good start – Take another look at it

– Foundational information – something to build on.

– An ongoing process – a business plan is not static

– Identify a need – get started and build on the

results

• IESO has funding

Conclusions

• Establish clear business objectives

– Appropriate for the your community

– Jim Collins: From Good to Great for the

Social Sector

• Building process – long term

direction, short term steps to get

there

• Need a business plan

• Watch out for the

‘Wow/Huh’ factor

Conclusions (cont’d)

• Right team members for the right job

– Internal

– External

– Build in knowledge transfer

• Running a business - a lot of work

• Requires ongoing support

• Look to leveraging all of the resources

available to the First Nation

• Allocation of dedicated resources

Thank--You

IESO Community Energy Plans

http://www.ieso.ca/get-involved/indigenous-relations/funding-programs

Five Nations Energy Inc.

http://www.fivenations.ca/

Conservation on the Coast

http://www.fivenations.ca/index.php/conservation/program-information

Wataynikaneyap Power

http://www.wataypower.ca/

Hydro One

http://www.hydroone.com/MyHome/SaveEnergy/Pages/FNCP.aspx

Northern Housing Conference

http://www.northernhousingconference.com/