green infrastructure phase ii emerging renewable power program€¦ · green infrastructure phase...

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017

Green Infrastructure Phase II

Emerging Renewable Power

Program

Project Application WebinarMarch 9, 2018


Contents

• Background• Applicant Guide Overview:

– Eligibility and funding– Application process

• Project Application Form • General Feedback regarding Expression of Interest

responses• Q&A

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PAN-CANADIAN FRAMEWORK

GREEN INFRASTRUCTURE PHASE II

Background

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4Pan-Canadian Framework on Clean Growth and Climate Change: Role of the Electricity Sector

Reduce emissions from electricity

generation

Currently 11 % of total emissions

Secure emissions reductions

through efficiency and

electrification of other sectors

Action

Create an incentive for use of non-

emitting electricity

Regulation: Pricing carbon

pollution (ECCC)

1. Low-Carbon Energy Supply

2. Power Systems Infrastructure

3. Grid Modernization

4. Remote Electricity Supply + Demand

5. Transportation Demand

6. Buildings & Communities Demand

The electricity sector is key to meeting Canada’s target of reducing GHGs by 30% from 2005 levels by 2030


Budget 2017 Announcement:

Emerging Renewable Power Program• $200 million to support the deployment of emerging renewable energy technologies

nearing commercialization

– 5 year program starting FY 2018/2019 (i.e. April 2018)

– Emerging renewable projects face higher risks, costs and more regulatory issues than projects using established renewable energy sources

Program Objectives– Expand the portfolio of commercially-viable, investment-ready, renewable energy technologies

available in Canada

– Support development of new supply chains

– Reduce electricity sector GHG emissions

– Expect to support 2-4 different technology types, with total number of projects supported depending on their size

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https://buyandsell.gc.ca/sites/buyandsell.gc.ca/files/trl_diagram_0.pdf

https://buyandsell.gc.ca/sites/buyandsell.gc.ca/files/trl_diagram_0.pdf


EMERGING RENEWABLE POWER

PROGRAM APPLICANT GUIDE

Applicant Guide Overview

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Applicant Guide: Program Expected Results (§8)

• Increased deployment of emerging RE power projects • Reduced barriers to deployment of emerging RE power

projects• Increase in renewable energy capacity from emerging

sources• Environmental benefits, including GHG reductions • Increase in renewable technology supply chains• Increase in awareness and understanding of regional energy

resources and impacts from renewable energy projects

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Applicant Guide: Eligible technologies (§3,4,&11)

“Emerging” renewable power projects are defined as using technologies that:

– Have been successfully deployed at the utility scale in other countries but not yet in Canada; or

– Have been successfully demonstrated in Canada but not yet commercially deployed.

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Applicant Guide: Eligible technologies (§3,4,&11) 9

Eligible Not Eligible

Offshore Wind Renewables that are already commercial (onshore wind, conventional PV, small hydro, )

Geothermal Renewable heating

Instream Tidal Energy Storage

Concentrated Photovoltaic Renewable fuel production

Other (must meet “emerging” definition)

Residential and building integrated renewable energy projects

Non-organic waste to power


Applicant Guide: Eligible Recipients (§ 9)10

• Legal entities validly registered in Canada

• Provincial, territorial, regional, or municipal governments and their departments or agencies

• Indigenous communities or governments, tribal councils or entities that fulfil a similar function


Applicant Guide: Duration and funding limits (§15)

• Applicants may request up to 50% of their total project expenditures, to a maximum of $50 million.

• Funding for the program is available for projects between April 1, 2018 and March 31, 2023.

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Applicant Guide: Repayable Contributions (§14)

• Project funding will be repayable IF the project generates a profit for the Recipient within 5 years of project commissioning.

• Repayment will be proportional to the amount of profit and NRCan’s funding of the original project.

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Applicant Guide: Holdback (§24)

• A percentage of the contribution agreement will be withheld until all the conditions of the contribution agreement have been met

• Proponent must achieve a minimum average of 50% their expected capacity factor over the two-year period starting from the date of Project commissioning

• The percentage withheld will be determined based on the risk level of the Project.

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Applicant Guide: Eligible Expenditures (§ 12)

• See Applicant Guide for more details

• Examples: salaries, professional services, equipment and reasonable travel costs that must all be directly related to the project

• Overhead must be limited to 15% of total project costs

• “In-kind” from the applicant is considered as “cash” for the purposes of the project budget

– In-kind would only come from project partners

– In-kind must be verifiable

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Applicant Guide: Ineligible expenditures(§ 13)Applicants could choose to identify ineligible expenditures in the proposal, but they would not be included in the total project cost amount used to calculate the amount eligible for NRCan funding. Ineligible costs include:

• Land acquisition costs;

• Legal costs;

• Project Application preparation costs;

• Costs related to energy storage or heating components of a Project;

• All costs associated with the protection of intellectual property; and

• Costs incurred before the proposal approval notification date, or after the Project Completion Date.

Applicants could identify the following costs attributable to the total project costs (proponent contribution) but will not be refunded for:

• Collaborations with federal laboratories;

• The reimbursable portion of Federal and Provincial Taxes; or,

• In-kind costs

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Applicant Guide: Basis and timing of payments (§16)

• Contribution agreements (CA) will set out the required terms, including timing for payment

• Final payment will not be made until all Project activities have been completed by the Proponent and are deemed acceptable to NRCan.

• Per the CA, a percentage of funding (holdback) may be in place depending on the project risk of meeting targets.

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Applicant Guide: Stacking of Assistance (§17)

• The proponent must disclose all funding sources at the application phase and at completion of the Project.

• The maximum level of total Canadian government funding authorized under this program will be 75% of Eligible Project Costs.

• 100% of eligible costs could be stacked if the proponent is a provincial, territorial, municipal government or their departments and agencies, or an Indigenous Recipient.

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EMERGING RENEWABLE POWER PROGRAM –

APPLICANT GUIDE : APPLICATION PROCESS

STAGES

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Applicant Guide: Application Process Stages (§18)

1. Submission of the Project Application

2. Initial screening based on eligibility

3. Evaluation by a panel of experts

4. Due diligence phase

5. Negotiation of contribution agreements

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Applicant Guide: Proposal Evaluation criteria (§20)

• Mandatory pass or fail criteria include:– recipient being validly incorporated in Canada– project location in Canada and meets minimum size requirement– electricity production for sale or use in Canada– Technology is eligible– Application completeness

• Rated criteria will include the following themes in order of importance:– Program objectives– Project plan– Financial stability

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Applicant Guide: Proposal Evaluation criteria (§20)

1. Program Objectives– Cost of Project to the Program

– Life Cycle Energy Costs of Project– Project size

– GHG Reductions

– Socio-economic benefits including jobs

– Indigenous Involvement

2. Project Plan– Expected Commissioning Date– Project Design and Proposed Work Plan

– Permits

– Impact Statement or Federal Environmental Assessment

– Community Involvement

– Project Risks

– Expected Energy Resource

– Project Team Experience

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3. Financial Stability– Financial Plan of Applicant

– Power Purchase Agreement (or Power Pool) Plan– Proponent Financial Contribution

4. Other Considerations– Although the costs of energy storage or heating

components related to a project are ineligible for program funding, points may be given to proposed projects that include these components

Bolded criteria will be more heavily weighted during the evaluation process


Applicant Guide: Due Diligence & CA Negotiations (§21&22)

• The due diligence phase will include an evaluation of the Project’s financial and technical risk where the applicant may be asked for detailed clarification or more information.

• Any funding provided by NRCan is subject to there being a signed contribution agreement (CA) by both parties. NRCan would have no obligation to make a financial contribution prior to signing the CA.

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PROJECT APPLICATION FORM

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Project Application Form

• Proposals must be submitted by 23:59 EST, April 20, 2018

• The completed project application form and all annexes must be submitted by e-mail (or mail) both as an Excel file and as a signed PDF

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Project Application FormSection 1: Information about the Proponent

To be filled out by the program

ERPP Registration Number (internal):

Date proposal was received (internal)

yyyy/mm/dd

1.1 Legal name of the Proponent:

Address of the legal entity: Street

City

Province Postal code

Legal status (e.g. limited partnership, corporation, Crown corporation) of the Proponent:Jurisdiction of the business (province or territory):

Business registration number:

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Project Application Form: Section 2

• 2.2: select your technology type from drop down menu

• 2.4: Net Capacity - total megawatt contribution the project will make to the grid, after taking into account power consumed on site

• 2.4: Nameplate Capacity - maximum rated output

• 2.5: Capacity factor: expected average annual power production in GWh divided by rated (net) peak power

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Project Application Form: Section 3

• The requested information depends on technology type selected in section 2.2

• Please contact us if you have any questions regarding the requested information

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Section 3: Information about the expected energy resource

3.1 (offshore

wind*)

Expected average annual wind speed at the site:(show how this is estimated in A4)

m/s : m (hub height):

*”offshore wind” is used as an illustrative example, and its use does not imply it will be considered more favourably than other technologies for this program.


Project Application Form: Sections 4-7• Suggest completing Annexes first and

summarizing your information in sections 4,5,6

• Total costs – from Apr 1, 2018 to Mar 31, 2023

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Section 7: Supporting documents

The following information must be attached seperately to your PAF

Annex Check Remarks by Proponent

A1 Provide information about the Proponent and the development team’s experience in the electric power plant sector. Provide relevant experience with the technology or similar applications. Please limit to 2 pages.

A2 Short description of the project and technology, including size, site location, ownership of project and socio-economic benefits such as jobs, heating, food security, energy security, etc. Please limit to 2 pages.


Project Application Form: Annexes 6 and 7

• A6: Applicant guide provides a link to a table of GHG emissions per province

(click on Canada NIR: 2017NIR – PT2 pg. 233)

• A7: include any technical standards applicable to your industry

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http://unfccc.int/national_reports/annex_i_ghg_inventories/national_inventories_submissions/items/10116.php


Project Application Form: Annex 9

• Provide a detailed a breakdown of the expected Project costs by fiscal year (April 1 to March 31) between the period of April 1, 2018 and March 31, 2023

• Note: only costs incurred over program life can be eligible

• Identify eligible Project costs and ineligible Project costs

• Identify sources of funds for the Project.

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Applicant Guide: Proposal Evaluation (Annex 10 - §Schedule B)31

Life Cycle Electricity Costs (LCEC) for projects submitted under the Emerging Renewable Power Program

Estimated Cost of Project

Project Name Capacity (MW) Exp. Annual Prod. (GWh)

Exp. Cap. Factor

Technology 50 400 91.3%

Cost CAD Project Lifetime

Capital Total Project Costs Provide total of all expected costs incured by the developer to build the project from it's design to commissioning, including component costs, permits, substation, labour and construction costs exclusive of funding

$400,000,000 30

Average Operation and Maintenance Costs per year

Provide undiscounted average annual costs over the lifetime of the project including all labour and material costs as well as annual costs such as land lease and insurance and allowances for periodic repair and replacements of components.

$10,000,000 O&M Costs per Unit MWh

$25.00

* Information in red is provided only as an example and does not constitute costs of a real project.

Calculations Total Costs over lifetime of Project $700,000,000 LCEC: $/MWh $58.33

Once this form is filled, the information provided will be protected and may be used only in aggregated format


EXPRESSION OF INTEREST

RESPONSES

General Feedback regarding Expression of

Interest responses

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Expression of Interest Purpose

• NOT A SCREENING TOOL

• Used to inform program planning

• Used to help improve instruction in the Applicant Guide

• Used to provide general feedback to potential applicants in advance of the RFP

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Tidal

Offshore wind

Geothermal

Concentrated PV

Biomass

Other solar

Other hydro

Other (fuel cell)

Conventional Storage

Completed EOIs by Technology

EOI packages requested: 347

Total EOIs submitted: 57

Project Application Packagesrequested as of March 2: 38


Feedback: Technology Type

• Ensure the project technology type is eligible for the Program.

• If applying under “other” category, Annex 2 must include a strong description/justification of why the technology and project is both emerging and renewable.

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Feedback: Proponent and Project Location

• All projects must be in Canada

• All proponents must be Canadian legal entities.

– Proponents in the process of incorporating in Canada must complete the process to be considered eligible.

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Feedback: Stage of Project

• Program will support commercial projects

• Feasibility studies which are not part of a full deployment project are not eligible

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Other NRCan Programs supporting renewables: High-level comparison and considerations

Program Project types Recipient Types Other requirements

Emerging Renewable Power Program

Deploy Utility-scale renewable generation Any in Canada Commercial tech not yet in Canada; Demonstrated but not deployed

Smart Grid Program Demo, Deploy,Hybrid

Grid benefits, grid integrated or microgrid Utilities, system operators

Clean Energy for Rural & Remote Communities

Demo, Deploy,Hybrid

Reduction of diesel use for heat & power in remote communities and/or industrial sites, as well as bioheat for rural locations.

Any in Canada Preference for Indigenous-led and/or supported projects; minimum RE generation requirements for deployment

Clean Growth R&D, FEED, Demo, up to first commercial installations

Call is tech agnostic; Must reduce impact on air, land, water.

Any in Canada Requires funding from Province / Territory; Must benefit mining, energy or forestry sectors; TRL levels 3-9

Electric Vehicle Infrastructure

Demo Grid management of EV charging infrastructure

Any in Canada

Electric Vehicle and Alternative Fuel Infrastructure

Deploy EV fast chargers Any in Canada Applicant must be engaged with the relevant energy supplier

Energy Efficient Buildings

R&D, Demo Behind the meter technology Any in Canada

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https://www.nrcan.gc.ca/energy/funding/20502

https://www.nrcan.gc.ca/energy/science/programs-funding/19793


https://www.nrcan.gc.ca/cleangrowth/20254


http://www.nrcan.gc.ca/energy/alternative-fuels/fuel-facts/ecoenergy/18352



Q&A

• Proposals must be submitted by 23:59 EST, April 20, 2018

• Program Inquiries: [email protected]

• Program website: https://www.nrcan.gc.ca/energy/funding/20502

• Program FAQ: continually updated on website

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mailto:[email protected]

https://www.nrcan.gc.ca/energy/funding/20502

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