office of energy initiatives - clean air partnership · 2016-10-20 · reduction target emission...

• Corporate Energy Policy

• Council Mandate 2005

• Office of Energy Initiatives formed in 2006

• Corporate Energy Policy 2007 (Targeted Reductions)

• Energy Commodity Policy 2007 (Revised 2008)

• Both policies were revised and amalgamated in May of 2014

Office of Energy Initiatives

Year Energy Policy

Reduction Target

Emission

Reduction and

Offset Target

2020 Initial 20%

(2005 as base year) 20%

2030 45% 50%

2050 60% 80%

Clean Air Partnership Webinar

Clean Air Partnership

Municipal Corporate Energy Efficiency

Workshop

September 16, 2016

Providing services that bring our City to life !

• Overview of City of Hamilton Energy Activities

• Results

• Methane Capture Overview

• Financing Retrofits

• Reserve Policy Language

Agenda

Clean Air Partnership Webinar 2

District Energy Heating and Cooling Loop

Energy Efficient Lighting and Controls

Arena Ice Plant Refrigeration Optimization

Hamilton Water (kWh per MLD)

Renewable Energy Portfolio (Solar, Methane)

CNG for Transit

Energy Engineering Activity



Energy Commodity Procurement

Utility Rate Optimization

Contract Management Suppliers & Utilities

Continuous Analysis

Monthly Billing and Bill Verification

Regulatory Issues and Updates

Utilities Management



Results To Date



$0

$4

$8

$12

$16

$20

$24

$28

$32

$36

$40

$44

$48

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Cumulative Energy Savings, Incentives & Avoided Costs (2006 - 2015)

Utility Rates & Cost Avoidance Cost Recovery Energy Conservation & Incentives

$19.0 Million $23.3 Million

Total $46.2 Million

$3.9 Million

• The City of Hamilton created Hamilton Renewable Power Inc. in 2005.

• Inception of this company came out of the City’s desire to construct, operate and maintain a cogeneration facility; a source of renewable energy.

• Under legislation at that time, the City was not able to participate in this venture directly. Therefore, a city owned corporation, Hamilton Renewable Power Inc.(HRPI), was established to carry out the construction, operation and maintenance of this renewable energy facility.

• Governed by members of Council.

• Hamilton was the first municipality in Ontario to be accepted by the Ontario Energy Financial Corporation to build a generator for sustainable green energy.

• Annual Benefit to City ~$1.6M to $2M.

Hamilton Renewable Power Inc.


Woodward Wastewater Treatment Plant


Getting started:

• Identify measure;

• Preliminary assessment and analysis;

• High level proposal development:

• billing analysis;

• technology review;

• incentive potential;

• Client group awareness/application & confirmation.

• Capital Funding activity:

• Review internal resources;

• Reserves, Client budgets;

• Review external programs (GMF, Infrastructure Ontario

etc);

• Partnerships (utilities, ESCO option, PPP, etc).

• Write & Deliver Council report (approval hopefully!!);

• Project begins…

Financing Retrofits


Project Payback Options:

Easy:

• Operating budget only impact is actual cost/consumption

reduction. Incentives used to reduce initial capital.

Slightly more complex:

• Direct Operating Savings to pay capital and interest first.

• Decide on where incentives go:

• If external funding used, reduce capital with incentives.

• If internally financed, direct incentives to Reserve to

fund future projects.

• Once capital fully paid, what happens with the savings?

• Lower operating budget – sure.

• Continue to direct savings to Reserve (client budget

remains fixed at pre-project level).

• Combination of shared savings & budget reduction.

Financing Retrofits


Arena Project A (City Financial Impact):

• Capital Cost of $100. Annual Savings of $25. One time

incentive of $25;

• Requires capital of $100, net cost of $75 (less

incentive);

• 3 year simple payback:

• $100 less $25 incentive equals $75;

• $75 divided by $25 annual savings equals 3 yrs;

Financing Retrofits


I Need $100 I’ll pay $100

Project paying

$25 incentive &

$25/yr savings

Arena Project A (Recreation Financial Impact): • Capital Cost of $100. Annual Savings of $25. One time incentive of $25;

• Requires capital of $100, net cost of $75 (less incentive);

• 3 year simple payback ($25 savings over 3 yrs);

Internally fund and DIRECT INCENTIVE TO YOUR

RESERVE

Client budget moves to 4 year simple payback

Financing Retrofits


I Need $100 I’ll pay $100

Project paying

$25 incentive &

$25/yr savings

Same project, same capital, same incentives:

Reserve

Financing Retrofits


Facility Technology Capital

Annual

Energy

Savings

1 2 3 4

Community Centre LED Lighting $25,000 $9,000 $9,000 $9,000 $7,000 4BRY

• Project cost of $25,000;

• Project pays back capital from savings at $9,000/yr;

• Year 4 Client Budget has paid off Capital;

• One time incentive directed to Energy Reserve ($8,000);

• City captures 1.89 year simple payback;

• Client Budget has 2.78 year simple payback

• since no incentive goes to the client budget;

• Energy Reserve may pay for future capital or efficiency upgrade.

Reserve Policy Language ideas:

• …In order to maintain a healthy reserve and secure the best leverage for funds on energy

related projects, the energy reserve will also be used to fund specific and targeted projects or

activities…to ensure compliance with the Corporate Energy Policy.

• Funds that are attributed to any energy conservation demand management program, renewable

energy revenues, energy related project revenues (e.g. leases or other payments), utility bill

recovery (current year recoveries will be returned to client budget, previous year recoveries

will go to reserve), carbon off-sets, demand response revenue and all utility incentives will be

deposited into the Energy Reserve. In addition, revenue from renewable energy projects (solar

lease or other) or fuel procurement (compressed natural gas or other) will be established as a

means of funding the ongoing activities required to manage these energy related services.

Future operational budget savings will be transferred to the Energy Reserve to maintain an

acceptable level of funding in the reserve.

• Funds moving into or out of the Energy Reserve will be approved per this policy. These funds

can be used to finance (in whole or in part) energy projects, energy studies, pilot projects and

other similar activities. For instance, incremental costs for more efficient options could be

financed by the Energy Reserve with the understanding that it will be paid back through

savings. Funding incremental costs for more high efficiency project options provides a win-win

scenario as less capital would be requested and the lower operating costs will benefit operating

budgets, plus move us closer to our energy intensity targets.

Financing Retrofits


Hamilton Waterfront Development


office of energy initiatives - clean air partnership · 2016-10-20 · reduction target emission...

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