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/