Chris BaberNeighbourhood Energy ManagerCity of Vancouver

Vancouver’s Strategic Approach to Low Carbon Neighbourhood Energy

WORLD URBAN FORUM • APRIL 9, 2014

VANCOUVER

Vancouver

City

USA Border

600,000

people

MetroVancouver

2.5 million people

Vancouver: Canada’s Pacific Gateway

4

• Lowest greenhouse gas emissions in North America

• Power >90% hydro electric• Provincial Carbon Tax $30/t• Growing population and

economy, decreasing vehicle use emissions

Greenest City in the World by 2020

Greenest City Action Plan Aspirational Goals

Greenest City Action Plan Framework

City jurisdiction over Greenest City goals

City goals will only be achieved through partnerships.

GOAL: Eliminate Vancouver’s dependence on fossil fuels.

2020 target: Reduce greenhouse gas emissions 33 per cent from 2007 levels.

TOWARD ZERO CARBON THROUGH:CLIMATE LEADERSHIP

Reaching our 2020 GHG Goal:Neighbourhood Energy’s Role

9

GCAP goal: 33% carbon reduction by 2020 (reduce 1,110,000 tons CO2 / year)

SLIDE 10

What is Neighbourhood Energy?

Neighbourhood Energy Systems (NES) supply centralized heating, hot water, and sometimes cooling for multiple buildings (commonly referred to as “District Energy”).

.

11

Central Heat (steam)

Hospital Campuses

(steam)

Goal – Convert Legacy Steam SystemsTarget = 95,000 tonnes/year CO2 reduction by 2020

12

SE False Creek

NE False Creek

River District

Central Heat (steam)

Hospital Campuses

(steam)

Large Development

Sites

Goal – Establish New Low Carbon SystemsTarget = 25,000 tonnes/year CO2 reduction by 2020

Southeast False Creek Neighbourhood Energy Utility saved 2,500 tonnes of GHG emissions in 2013

SLIDE 14

SEFC Neighbourhood Energy Utility(established in 2010)

• 70% of energy supply is waste heat recovered from untreated sewage (60% CO2 reduction)

• Financially self-sufficient, recovering capital/operating costs and ROI with competitive customer rates

• Rapidly expanding

Strategic Approach to Neighbourhood EnergyApproved by City Council October 2012

15

Targets areas with greatest CO2 reduction potential

Utilizes a flexible combination of enabling tools Minimizes City financial risk and exposure

NES Strategy - Priority Areas Identified

16

Broadway Corridor

Cambie Corrido

r

Downtown

Energy Centre Guidelines: Supportive Policy for New Low Carbon Facilities

- GHG performance -- Air quality -

- Neighbourhood fit -- Sustainability of fuel sources -

- Community engagement -

SLIDE 18

NES Enabling Tools

• NES Franchise Contracts: City provides utility with exclusive right to supply energy in return for performance outcomes

• Cost Competitiveness Measures: may include adjustments to property tax policy, access to grants etc.

• Customer Connection Policy: used to secure customer base to de-risk NES capital investments - examples include zoning policies and bylaws

• Access to City Assets: City provides access to property and other assets to enable the production, distribution and sale of energy

SLIDE 19

NES Enabling Tools

• NES Franchise Contracts: City provides utility with exclusive right to supply energy in return for performance outcomes

• Cost Competitiveness Measures: may include adjustments to property tax policy, access to grants etc.

• Customer Connection Policy: used to secure customer base to de-risk NES capital investments - examples include zoning policies and bylaws

• Access to City Assets: City provides access to property and other assets to enable the production, distribution and sale of energy

SLIDE 20

NES Enabling Tools

• NES Franchise Contracts: City provides utility with exclusive right to supply energy in return for performance outcomes

• Cost Competitiveness Measures: may include adjustments to property tax policy, access to grants etc.

• Customer Connection Policy: used to secure customer base to de-risk NES investments - examples include zoning policies and bylaws

• Access to City Assets: City provides access to property and other assets to enable the production, distribution and sale of energy

SLIDE 21

NES Enabling Tools

• NES Franchise Contracts: City provides utility with exclusive right to supply energy in return for performance outcomes.

• Cost Competitiveness Measures: may include adjustments to property tax policy, access to grants etc.

• Customer Connection Policy: used to secure customer base to de-risk NES capital investments - examples include zoning policies and service area bylaws

• Access to City Assets: City provides access to property and other assets to enable the production, distribution and sale of energy.

Questions?

1. Low gas and electricity prices

2. The City does not own legacy steam heat systems

3. Limited public understanding of low carbon technologies

Challenges

1. Rapid pace of land development

2. City controls land use and building code

3. Expertise gained through development of SEFC NEU

Leverage Points

• Utility partner selected with competitive process • Planning underway to convert legacy steam system• New franchise contract negotiated to establish

system in Northeast False Creek

IMPLEMENTATION STATUS:DOWNTOWN

IMPLEMENTATION STATUS:CAMBIE CORRIDOR

• Health authority has agreed to proceed with low-carbon conversion of hospital campus steam systems

• Utility partner selection underway to implement new NES networks

• Potential development of Resource and Energy Recovery Facility to supply heat

• Facilitate rapid reduction of CO2 emissions

OUR GOAL

• Facilitate and enable private sector success

OUR ROLE

CONCLUSION

27

Change is possible

1980’s

2000’s